RULE 1 k.

Confidentiality/Protective Orders; and

GENERAL PROVISIONS
l. Deposit and Enforcement of Mediated Settlement
Agreements.
General Provisions

The Special ADR Rules, passed and approved on September 1, Rule 1.2. Nature of the proceedings.-All proceedings under the
2009 and took effect after the completion of its publication on Special ADR Rules are special proceedings.
October 30, 2009, govern the various stages of court participation
in arbitration proceedings.

The Special ADR Rules reiterate the state policy of promoting Subject Matter and Coverage
arbitration: “It is the policy of the State to actively promote the use (Rule 1.1 Special ADR Rule)
of various modes of ADR and to respect party autonomy or the
freedom of the parties to make their ow n arrangements in the The Special ADR Rules govern the follow ing judicial processes and
resolution of disputes with the greatest cooperation of and the least proceedings
intervention from the courts.”
a. Relief on the issue of Existence, Validity, or
The ADR Act of 2004, Republic Act No. 876 (Arbitration Law ), the Enforceability of the Arbitration Agreement;
Model Law and the Implementing Rules and Regulations of the
b. Referral to Alternative Dispute Resolution ("ADR");
ADR Act, deferred to the Supreme Court’s authority to enact
special rules of procedure applicable in courts for specific areas c. Interim Measures of Protection;
and aspects of ADR.
d. Appointment of Arbitrator;
Under the Constitution (Article VIII, Section 5), the Supreme Court
has the exclusive pow er and authority to promulgate rules of e. Challenge to Appointment of Arbitrator;
practice and procedure subject to the condition that they shall not
diminish, increase or modify substantive rights. f. Termination of Mandate of Arbitrator;

The Special ADR Rules are applicable only in proceedings in g.
Philippine courts and any quasi-judicial agency w hich may adopt
the same in a suppletory character. h.
To this end, the objectives of the Special ADR Rules are to
encourage and promote the use of ADR, particularly arbitration and i.
mediation, as an important means to achieve speedy and efficient
resolution of disputes, impartial justice, curb a litigious culture and
to de-clog court dockets.” j.
Assistance in Taking Evidence;
Confirmation, Correction or Vacation of Aw ard in
Domestic Arbitration;
Recognition and Enforcement or Setting Aside of an
Aw ard in International Commercial Arbitration;
Recognition and Enforcement of a Foreign Arbitral
Aw ard;

k. Confidentiality/Protective Orders; and

Rule 1.1. Subject matter and governing rules.-The Special
l. Deposit and Enforcement of Mediated Settlement
Rules of Court on Alternative Dispute Resolution (the "Special
Agreements.
ADR Rules") shall apply to and govern the follow ing cases:
The abovementioned proceedings under the Special ADR Rules
a. Relief on the issue of Existence, Validity, or Enforceability of
are summary in nature, except:
the Arbitration Agreement;
i. Those that pertain to the confirmation or recognition
b. Referral to Alternative Dispute Resolution ("ADR");
and enforcement of arbitral aw ards, w hether
c. Interim Measures of Protection; domestic, international, commercial, or foreign,
w hich are non-summary proceedings
d. Appointment of Arbitrator;
ii. The deposit of mediated settlement agreements
e. Challenge to Appointment of Arbitrator; w hich is not a judicial proceeding.

f. Termination of Mandate of Arbitrator;
g. Assistance in Taking Evidence;
h. Confirmation, Correction or Vacation of Aw ard in Domestic
Arbitration;
The foregoing reliefs are applicable only to domestic arbitration and
Philippine ICA, except referral to ADR assistance in taking
evidence and recognition of the arbitral aw ard which are applicable
also to foreign arbitration, including foreign ICA.

i. Recognition and Enforcement or Setting Aside of an Aw ard in Special Proceedings

International Commercial Arbitration; (Rule 1.2, Special ADR Rules)

j. Recognition and Enforcement of a Foreign Arbitral Award; All procedures under the Special ADR rules are Special
Proceedings. As such, jurisdiction over the persons of the parties

2 0 1 9 . P a g e 1 | 40
is acquired by the court, not through the service of summons, but
upon proof of compliance w ith the jurisdictional requirements, i.e.,
that the respondent w as furnished a copy of the petition.
Before the petition is filed in court, the petitioner is required to serve
copies of the petition upon the respondent. Service of the petition
shall be made through personal service or by courier, proof of
w hich shall be attached to the petition.
Rule 1.3. Summary proceedings in certain cases.-The
proceedings in the follow ing instances are summary in nature
and shall be governed by this provision:
a. Judicial Relief Involving the Issue of Existence, Validity or
Enforceability of the Arbitration Agreement;
b. Referral to ADR;
c. Interim Measures of Protection;
d. Appointment of Arbitrator;
e. Challenge to Appointment of Arbitrator;
f. Termination of Mandate of Arbitrator;
g. Assistance in Taking Evidence;
h. Confidentiality/Protective Orders; and
i. Deposit and Enforcement of Mediated Settlement
Agreements.
(A) Service and filing of petition in summary proceedings.-The
petitioner shall serve, either by personal service or courier, a
copy of the petition upon the respondent before the filing
thereof. Proof of service shall be attached to the petition filed in
court.
For personal service, proof of service of the petition consists of
the affidavit of the person who effected service, stating the time,
place and manner of the service on the respondent. For service
by courier, proof of service consists of the signed courier proof
of delivery. If service is refused or has failed, the affidavit or
delivery receipt must state the circumstances of the attempted
service and refusal or failure thereof.
(B) Notice.-Except for cases involving Referral to ADR and
Confidentiality/Protective Orders made through motions, the
court shall, if it finds the petition sufficient in form and substance,
send notice to the parties directing them to appear at a particular
time and date for the hearing thereof w hich shall be set no later
than five (5) days from the lapse of the period for filing the
opposition or comment. The notice to the respondent shall
contain a statement allow ing him to file a comment or opposition
to the petition w ithin fifteen (15) days from receipt of the notice.
The motion filed pursuant to the rules on Referral to ADR or
Confidentiality/Protective Orders shall be set for hearing by the
movant and contain a notice of hearing that complies w ith the
requirements under Rule 15 of the Rules of Court on motions.
(C) Summary hearing. - In all cases, as far as practicable, the
summary hearing shall be conducted in one (1) day and only for
purposes of clarifying facts.
Except in cases involving Referral to ADR or
Confidentiality/Protective Orders made through motions, it shall
be the court that sets the petition for hearing w ithin five (5) days
from the lapse of the period for filing the opposition or comment.
(D) Resolution. - The court shall resolve the matter w ithin a
period of thirty (30) days from the day of the hearing.
Rule 1.4. Verification and submissions. -Any pleading, motion,
opposition, comment, defense or claim filed under the Special
ADR Rules by the proper party shall be supported by verified
statements that the affiant has read the same and that the
factual allegations therein are true and correct of his own
personal know ledge or based on authentic records and shall
contain as annexes the supporting documents.
The annexes to the pleading, motion, opposition, comment,
defense or claim filed by the proper party may include a legal
brief, duly verified by the law yer submitting it, stating the
pertinent facts, the applicable law and jurisprudence to justify
the necessity for the court to rule upon the issue raised.
Rule 1.5. Certification Against Forum Shopping. - A
Certification Against Forum Shopping is one made under oath
made by the petitioner or movant: (a) that he has not theretofore
commenced any action or filed any claim involving the same
issues in any court, tribunal or quasi-judicial agency and, to the
best of his know ledge, no such other action or claim is pending
therein; (b) if there is such other pending action or claim, a
complete statement of the present status thereof; and (c) if he
should thereafter learn that the same or similar action or claim
has been filed or is pending, he shall report that fact w ithin five
(5) days therefrom to the court w herein his aforementioned
petition or motion has been filed.
A Certification Against Forum Shopping shall be appended to
all initiatory pleadings except a Motion to Refer the Dispute to
Alternative Dispute Resolution.
Rule 1.6. Prohibited submissions. - The follow ing pleadings,
motions, or petitions shall not be allow ed in the cases governed
by the Special ADR Rules and shall not be accepted for filing by
the Clerk of Court:
a. Motion to dismiss;
b. Motion for bill of particulars;
c. Motion for new trial or for reopening of trial;
d. Petition for relief from judgment;
e. Motion for extension, except in cases w here an ex -parte
temporary order of protection has been issued;
f. Rejoinder to reply;
g. Motion to declare a party in default; and
h. Any other pleading specifically disallow ed under any
provision of the Special ADR Rules.
The court shall motu proprio order a pleading/motion that it has
determined to be dilatory in nature be expunged from the
records.
Rule 1.7. Computation of time. - In computing any period of time
prescribed or allow ed by the Special ADR Rules, or by order of
the court, or by any applicable statute, the day of the act or event
from w hich the designated period of time begins to run is to be
excluded and the date of performance included. If the last day
of the period, as thus computed, falls on a Saturday, a Sunday,
or a legal holiday in the place w here the court sits, the time shall
not run until the next w orking day.
Should an act be done w hich effectively interrupts the running
of the period, the allow able period after such interruption shall
start to run on the day after notice of the cessation of the cause
thereof.
The day of the act that caused the interruption shall be excluded
from the computation of the period.
Rule 1.8. Service and filing of pleadings, motions and other
papers in non-summary proceedings. - The initiatory pleadings
shall be filed directly w ith the court. The court w ill then cause
the initiatory pleading to be served upon the respondent by
personal service or courier. Where an action is already pending,
pleadings, motions and other papers shall be filed and/or served
2 0 1 9 . P a g e 2 | 40
 by the concerned party by personal service or courier. Where
courier services are not available, resort to registered mail is
allow ed.
(A) Proof of filing. - The filing of a pleading shall be proved by
its existence in the record of the case. If it is not in the record,
but is claimed to have been filed personally, the filing shall be
proved by the w ritten or stamped acknow ledgment of its filing
by the clerk of court on a copy of the same; if filed by courier, by
the proof of delivery from the courier company.
(B) Proof of service. - Proof of personal service shall consist of
a w ritten admission by the party served, or the official return of
the server, or the affidavit of the party serving, containing a full
statement of the date, place and manner of service. If the
service is by courier, proof thereof shall consist of an affidavit of
the proper person, stating facts showing that the document was
deposited w ith the courier company in a sealed envelope,
plainly addressed to the party at his office, if know n, otherwise
at his residence, w ith postage fully pre-paid, and w ith
instructions to the courier to immediately provide proof of
delivery.
(C) Filing and service by electronic means and proof thereof. -
Filing and service of pleadings by electronic transmission may
be allow ed by agreement of the parties approved by the court.
If the filing or service of a pleading or motion w as done by
electronic transmission, proof of filing and service shall be made
in accordance with the Rules on Electronic Evidence.
Sum m ary Proceedings
(Rule 1.3, Special ADR Rules)
The proceedings under the Special ADR Rules are generally
summary and, therefore, are conducted by way of submission of
verified pleadings, affidavits, and supporting documents, except for
the proceedings involving the confirmation, recognition and
enforcement of arbitral aw ards which are generally non-summary,
and the deposit of mediated settlement agreements w hich is not a
judicial proceeding.
As a consequence of the summary nature of the proceedings under
the Special ADR Rules, the follow ing pleadings, motions or
petitions are not allow ed and shall not be accepted for filing, and if
inadvertently accepted, should not be considered by the court.
1. Motion to dismiss (therefore, any ground for a motion to
dismiss must be pleaded in the answ er in opposition to
the petition or motion);
2. Motion for bill of particulars;
3. Motion for new trial or for reopening of trial;
4. Petition for relief from judgement;
5. Motion for extension, except in cases where an ex-parte
temporary restraining order of protection has been
issued (in w hich case the adverse party is amply
protected from any delay that may be caused by the
extension);
6. Rejoinder to reply (the reply, therefore, is the last
pleading to be filed);
7. Motion to declare a party in default; and
8. Any other pleading specifically disallow ed under any
provision of the Special ADR Rules.
If inadvertently accepted for filing, any of the foregoing motions or
pleadings may be expunged from the records of the case.
Non-Sum mary Proceedings
(Rule 1.8, Special ADR Rules)
The proceedings under the Special ADR Rules w hich are generally
non-summary are the follow ing:
1. Confirmation, correction or vacation of award in domestic
arbitration;
2. Recognition and enforcement of an aw ard in an
international commercial arbitration; and
3. Recognition and enforcement of a foreign arbitral aw ard.
The technical rules on the service of summons ordinarily applicable
to regular court proceedings are not applicable under the Special
ADR Rules. Instead, the Special ADR Rules require, for non-
summary proceedings, that the initiatory pleading be filed directly
w ith the court which will then serve a copy thereof to the respondent
by personal service or courier. If the court action is already
pending, the initiatory pleading or motion shall be served by
personal service or courier upon the respondent before it is filed in
court. In the event that courier service is not available, resort may
be had to service by registered mail.
The Special ADR Rules is one of the rules w here filing and service
of pleadings by electronic means may be allow ed by agreement of
the parties. Proof of filing and service thereof shall be made in
accordance with the Rules on Electronic Evidence.
Jurisdiction and Venue
Jurisdiction over any of the proceedings covered by the Special
ADR Rules is lodged by law w ith the Regional Trial Courts.
Generally, the venue is either: (1) the place where any of the parties
resides or has his place of business; (2) the place w here the asset
or act involved is located, or (3) the National Capital Judicial
Region, at the option of the petitioner.
Rule 1.9. No summons. - In cases covered by the Special ADR
Rules, a court acquires authority to act on the petition or motion
upon proof of jurisdictional facts, i.e., that the respondent was
furnished a copy of the petition and the notice of hearing.
(A) Proof of service. - A proof of service of the petition and
notice of hearing upon respondent shall be made in w riting by
the server and shall set forth the manner, place and date of
service.
(B) Burden of proof. - The burden of show ing that a copy of the
petition and the notice of hearing w ere served on the
respondent rests on the petitioner.
2 0 1 9 . P a g e 3 | 40
The technical rules on service of summons do not apply to the
proceedings under the Special ADR Rules. In instances where
the respondent, w hether a natural or a juridical person, w as not
personally served w ith a copy of the petition and notice of
hearing in the proceedings contemplated in the first paragraph
of Rule 1.3 (B), or the motion in proceedings contemplated in
the second paragraph of Rule 1.3 (B), the method of service
resorted to must be such as to reasonably ensure receipt
thereof by the respondent to satisfy the requirement of due
process.
Rule 1.10. Contents of petition/motion. - The initiatory pleading
in the form of a verified petition or motion, in the appropriate
case w here court proceedings have already commenced, shall
include the names of the parties, their addresses, the necessary
allegations supporting the petition and the relief(s) sought.
Rule 1.11. Definition. - The follow ing terms shall have the
follow ing meanings:
a. "ADR Law s" refers to the w hole body of ADR laws
in the Philippines.
b. "Appointing Authority" shall mean the person or
institution named in the arbitration agreement as the
appointing authority; or the regular arbitration
institution under w hose rule the arbitration is agreed
to be conducted. Where the parties have agreed to
submit their dispute to institutional arbitration rules,
and unless they have agreed to a different procedure,
they shall be deemed to have agreed to procedure
under such arbitration rules for the selection and
appointment of arbitrators. In ad hoc arbitration, the
default appointment of arbitrators shall be made by
the National President of the Integrated Bar of the
Philippines or his duly authorized representative.
c. "Authenticate" means to sign, execute or use a
symbol, or encrypt a record in w hole or in part,
intended to identify the authenticating party and to
adopt, accept or establish the authenticity of a record
or term.
d. "Foreign Arbitral Aw ard" is one made in a country
other than the Philippines.
e. "Legal Brief" is a w ritten legal argument submitted
to a court, outlining the facts derived from the factual
statements in the w itness’s statements of fact and
citing the legal authorities relied upon by a party in a
case submitted in connection w ith petitions, counter-
petitions (i.e., petitions to vacate or to set aside and/or
to correct/modify in opposition to petitions to confirm
or to recognize and enforce, or petitions to confirm or
to recognize and enforce in opposition to petitions to
vacate or set aside and/or correct/modify), motions,
evidentiary issues and other matters that arise during
the course of a case. The legal brief shall state the
applicable law and the relevant jurisprudence and the
legal arguments in support of a party’s position in the
case.
f. "Verification" shall mean a certification under oath
by a party or a person w ho has authority to act for a
party that he has read the pleading/motion, and that
he certifies to the truth of the facts stated therein on
the basis of his ow n personal know ledge or authentic
documents in his possession. When made by a
law yer, verification shall mean a statement under
oath by a law yer signing a pleading/motion for
delivery to the Court or to the parties that he
personally prepared the pleading/motion, that there is
sufficient factual basis for the statements of fact
stated therein, that there is sufficient basis in the facts
and the law to support the prayer for relief therein,
and that the pleading/motion is filed in good faith and
is not interposed for delay.
Rule 1.12. Applicability of Part II on Specific Court Relief. - Part
II of the Special ADR Rules on Specific Court Relief, insofar as
it refers to arbitration, shall also be applicable to other forms of
ADR.
Rule 1.13. Spirit and intent of the Special ADR Rules. – In
situations w here no specific rule is provided under the Special
ADR Rules, the court shall resolve such matter summarily and
be guided by the spirit and intent of the Special ADR Rules and
the ADR Law s.
RULE 2
STATEMENT OF POLICIES
Fundam ental Principles Adopted by the Special ADR Rules
The follow ing are the fundamental policies, principles and
objectives of ADR:
1. Self-determination, party autonomy, and promotion of ADR as
a means of resolving disputes.
The Special ADR Rules took into account the objective
of ADR of achieving a speedy and efficient resolution of disputes,
impartial justice, curbing a litigious culture and declogging court
dockets.
Rule 2.1. General policies. - It is the policy of the State to actively
promote the use of various modes of ADR and to respect party
autonomy or the freedom of the parties to make their own
arrangements in the resolution of disputes w ith the greatest
cooperation of and the least intervention from the courts. To this
end, the objectives of the Special ADR Rules are to encourage and
promote the use of ADR, particularly arbitration and mediation, as
an important means to achieve speedy and efficient resolution of
disputes, impartial justice, curb a litigious culture and to de-clog
court dockets.
The court shall exercise the power of judicial review as provided by
these Special ADR Rules. Courts shall intervene only in the cases
allow ed by law or these Special ADR Rules.
2. Preference for arbitration.
The Special ADR Rules requires courts to refer to
arbitration parties w ho have agreed to submit their disputes to
arbitration, and precludes courts from refusing the referral for any
of the follow ing and other similar reasons:
a. The referral tends to oust a court of its
jurisdiction;
2 0 1 9 . P a g e 4 | 40
 b. The court is in a better position to resolve the
dispute subject of the arbitration;
c. The referral would result in multiplicity of suits;
d. The arbitration proceeding has not
commenced;
e. The place of arbitration is in a foreign country;
f. One or more of the issues are legal and one
or more arbitrators are not law yers;
g. One or more of the arbitrators are not
Philippine nationals;
h. One or more of the arbitrators are alleged not
to possess the required qualification under the
arbitration agreement or law .
3. Doctrine of Separability/ Severability.
The arbitration clause shall be treated as an agreement
independent of the contract of which it forms part, and a decision
that the contract is null and void shall not entail ipso jure the
invalidity of the arbitration clause.
Rule 2.2. Policy on arbitration.- (A) Where the parties have
agreed to submit their dispute to arbitration, courts shall refer the
parties to arbitration pursuant to Republic Act No. 9285 bearing in
mind that such arbitration agreement is the law between the parties
and that they are expected to abide by it in good faith. Further, the
courts shall not refuse to refer parties to arbitration for reasons
including, but not limited to, the follow ing:
a. The referral tends to oust a court of its jurisdiction;
b. The court is in a better position to resolve the dispute subject of
arbitration;
c. The referral would result in multiplicity of suits;
d. The arbitration proceeding has not commenced;
e. The place of arbitration is in a foreign country;
f. One or more of the issues are legal and one or more of the
arbitrators are not law yers;
g. One or more of the arbitrators are not Philippine nationals; or
h. One or more of the arbitrators are alleged not to possess the
required qualification under the arbitration agreement or law .
(B) Where court intervention is allow ed under ADR Law s or the
Special ADR Rules, courts shall not refuse to grant relief, as
provided herein, for any of the follow ing reasons:
a. Prior to the constitution of the arbitral tribunal, the court finds that
the principal action is the subject of an arbitration agreement; or
b. The principal action is already pending before an arbitral tribunal.
The Special ADR Rules recognize the principle of competence-
competence, w hich means that the arbitral tribunal may initially rule
on its ow n jurisdiction, including any objections w ith respect to the
existence or validity of the arbitration agreement or any condition
precedent to the filing of a request for arbitration.
The Special ADR Rules recognize the principle of separability of
the arbitration clause, w hich means that said clause shall be
treated as an agreement independent of the other terms of the
contract of which it forms part. A decision that the contract is null
and void shall not entail ipso jure the invalidity of the arbitration
clause.
4. Freedom to agree on the procedure to be follow ed in the
conduct of arbitral proceedings.
Only in the absence of such an agreement may the
arbitral tribunal conduct arbitration in the manner it considers
appropriate.
Rule 2.3. Rules governing arbitral proceedings. - The parties
are free to agree on the procedure to be follow ed in the conduct of
arbitral proceedings. Failing such agreement, the arbitral tribunal
may conduct arbitration in the manner it considers appropriate.
5. The “Competence-Competence Principle”.
The arbitral tribunal should be accorded the first
opportunity or competence to rule on the issue of w hether or not it
has the competence or jurisdiction to decide a dispute submitted to
it for decision, including any objection, including any objection w ith
respect to the existence or validity of the arbitration agreement. The
same principle calls upon the courts, w hen asked to rule upon
issues affecting the competence or jurisdiction of an arbitral tribunal
in a dispute brought before it, either before or after the arbitral
tribunal is constituted, to exercise judicial restraint and defer to the
competence or jurisdiction of the arbitral tribunal the first
opportunity to rule upon such issues.
Rule 2.4. Policy im plementing com petence-competence
principle. - The arbitral tribunal shall be accorded the first
opportunity or competence to rule on the issue of w hether or not it
has the competence or jurisdiction to decide a dispute submitted to
it for decision, including any objection w ith respect to the existence
or validity of the arbitration agreement. When a court is asked to
rule upon issue/s affecting the competence or jurisdiction of an
arbitral tribunal in a dispute brought before it, either before or after
the arbitral tribunal is constituted, the court must exercise judicial
restraint and defer to the competence or jurisdiction of the arbitral
tribunal by allow ing the arbitral tribunal the first opportunity to rule
upon such issues.
Where the court is asked to make a determination of w hether the
arbitration agreement is null and void, inoperative or incapable of
being performed, under this policy of judicial restraint, the court
must make no more than a prima facie determination of that issue.
Unless the court, pursuant to such prima facie determination,
concludes that the arbitration agreement is null and void,
inoperative or incapable of being performed, the court must
suspend the action before it and refer the parties to arbitration
pursuant to the arbitration agreement.
6. No arbitrator shall act as mediator in any proceedings in which
he is acting as arbitrator.
Conversely, no mediator shall act as arbitrator in any
proceeding in w hich he is acting as mediator. How ever, where the
parties to mediation have agreed in the w ritten settlement
agreement that the mediator shall become the sole arbitrator for
the dispute or that the settlement agreement shall become an
arbitral aw ard, the mediator-arbitrator shall issue the settlement
agreement as an arbitral aw ard, w hich shall be subject to
enforcement under the law .
2 0 1 9 . P a g e 5 | 40
Rule 2.5. Policy on m ediation. - The Special ADR Rules do not
apply to Court-Annexed Mediation, w hich shall be governed by
issuances of the Supreme Court.
Where the parties have agreed to submit their dispute to mediation,
a court before w hich that dispute w as brought shall suspend the
proceedings and direct the parties to submit their dispute to private
mediation. If the parties subsequently agree, how ever, they may
opt to have their dispute settled through Court-Annexed Mediation.
Rule 2.6. Policy on Arbitration-Mediation or Mediation-
Arbitration. - No arbitrator shall act as a mediator in any
proceeding in w hich he is acting as arbitrator; and all negotiations
tow ards settlement of the dispute must take place w ithout the
presence of that arbitrator. Conversely, no mediator shall act as
arbitrator in any proceeding in w hich he acted as mediator.
Rule 2.7. Conversion of a settlement agreement to an arbitral
aw ard. - Where the parties to mediation have agreed in the w ritten
settlement agreement that the mediator shall become the sole
arbitrator for the dispute or that the settlement agreement shall
become an arbitral aw ard, the sole arbitrator shall issue the
settlement agreement as an arbitral aw ard, which shall be subject
to enforcement under the law .
RULE 3
JUDICIAL RELIEF INVOLVING THE ISSUE OF EXISTENCE,
VALIDITY AND ENFORCEABILITY OF THE ARBITRATION
AGREEMENT
The judicial relief referred to in Rule 3 oF the Special ADR Rules is
a petition for judicial determination of the existence, validity and/or
enforceability of an arbitration agreement. The issues involved in
the proceedings under Rule 3 are:
1. Existence of the arbitration agreement - whether or not there
is an arbitration agreement
2. Validity of the arbitration agreement - w hether or not the
arbitration agreement complies w ith all the essential requisites for
a valid contract
3. Enforceability of the arbitration agreement – whether or not
the arbitration agreement is enforceable in accordance with Art
1403 of the Civil Code
Rule 3.1. When judicial relief is available. - The judicial relief
provided in Rule 3, w hether resorted to before or after
commencement of arbitration, shall apply only w hen the place
of arbitration is in the Philippines.
When Judicial Relief is Available; Nature
This judicial relief is applicable only t arbitration proceedings
conducted in the Philippines. As stated in Rule 3.1 : The judicial
relief provided in Rule 3, w hether resorted to before or after
commencement of arbitration shall apply only w hen the place of
arbitration is in the Philippines.
Also, these proceedings are summary in nature. As held in the case
of Mindanao Portland Cement Corp v McDonough Construction
Co., of Florida:
The proceeding is merely a summary remedy to enforce the
agreement to arbitrate. The duty of the court in this case is not to
resolve the merits of the parties’ claims but only to determine if they
should proceed to arbitration or not.
Rule 3.2. Who may file petition. - Any party to an arbitration
agreement may petition the appropriate court to determine any
question concerning the existence, validity and enforceability of
such arbitration agreement serving a copy thereof on the
respondent in accordance with Rule 1.4 (A).
Rule 3.3. When the petition may be filed. - The petition for
judicial determination of the existence, validity and/or
enforceability of an arbitration agreement may be filed at any
time prior to the commencement of arbitration.
Despite the pendency of the petition provided herein, arbitral
proceedings may nevertheless be commenced and continue to
the rendition of an aw ard, while the issue is pending before the
court.
Rule 3.4. Venue. - A petition questioning the existence, validity
and enforceability of an arbitration agreement may be filed
before the Regional Trial Court of the place w here any of the
petitioners or respondents has his principal place of business or
residence.
Rule 3.5. Grounds. - A petition may be granted only if it is shown
that the arbitration agreement is, under the applicable law,
invalid, void, unenforceable or inexistent.
Rule 3.6. Contents of petition. - The verified petition shall state
the follow ing:
a. The facts showing that the persons named as
petitioner or respondent have legal capacity to sue or
be sued;
b. The nature and substance of the dispute between
the parties;
c. The grounds and the circumstances relied upon by
the petitioner to establish his position; and
d. The relief/s sought.
Apart from other submissions, the petitioner must attach to the
petition an authentic copy of the arbitration agreement.
Rule 3.7. Comment/Opposition.-The comment/opposition of
the respondent must be filed w ithin fifteen (15) days from
service of the petition.
Rule 3.8. Court action. - In resolving the petition, the court must
exercise judicial restraint in accordance with the policy set forth
2 0 1 9 . P a g e 6 | 40
 in Rule 2.4, deferring to the competence or jurisdiction of the
arbitral tribunal to rule on its competence or jurisdiction.
Rule 3.9. No forum shopping. - A petition for judicial relief under
this Rule may not be commenced w hen the existence, validity
or enforceability of an arbitration agreement has been raised as
one of the issues in a prior action before the same or another
court.
Rule 3.10. Application for interim relief. - If the petitioner also
applies for an interim measure of protection, he must also
comply w ith the requirements of the Special ADR Rules for the
application for an interim measure of protection.
Rule 3.11. Relief against court action. - Where there is a prima
facie determination upholding the arbitration agreement.-A
prima facie determination by the court upholding the existence,
validity or enforceability of an arbitration agreement shall not be
subject to a motion for reconsideration, appeal or certiorari.
Such prima facie determination w ill not, how ever, prejudice the
right of any party to raise the issue of the existence, validity and
enforceability of the arbitration agreement before the arbitral
tribunal or the court in an action to vacate or set aside the
arbitral aw ard. In the latter case, the court’s review of the arbitral
tribunal’s ruling upholding the existence, validity or
enforceability of the arbitration agreement shall no longer be
limited to a mere prima facie determination of such issue or
issues as prescribed in this Rule, but shall be a full review of
such issue or issues w ith due regard, how ever, to the standard
for review for arbitral awards prescribed in these Special ADR
Rules.
Judicial Relief Before Commencement of Arbitration (Rules
3.2 to 3.11)
For the rules on judicial relief prior to the commencement of
arbitration to apply, the follow ing circumstances must be present:
1. The arbitration proceeding has not yet commenced; and
2. There is betw een the parties a dispute regarding the
existence, a validity or enforceability of the arbitration
agreement
Procedural rules are as follow s:
 Petition – The initiatory pleading for judicial relief before
the commencement of arbitration is a petition filed w ith
the Regional Trial Court w here any of the parties resides
or his principal place of business.
The petition must state (a) legal capacity of the parties to sue, (b)
the nature and substance of the dispute; (c) the grounds and
circumstance relied upon by the petitioner and (d) the relief sought.
The petition must be verified and must be accompanied by CNFS.
An authentic copy of the arbitration agreement should be attached
to the petition unless the ground relied upon is the non-existence
or unenforceability of the arbitration agreement. A copy of the
petition shall be served upon the respondent before it is filed in
court.
The filing of the petition does not prevent the commencement of
the arbitration, or the continuation thereof and the rendition of an
aw ard therein.
 Com ment/opposition – It must be filed w ithin 15 days
from the service of petition
 Court action – In resolving the petition, the court must
exercise judicial restraint and defer to the competence or
jurisdiction of the arbitral tribunal to rule on its
competence and jurisdiction
 Relief against court action – The determination bu the
court upholding the existence, validity or enforceability of
the arbitration agreement under these proceeding is
merely prima facie. Such prima facie determination shall
not be subject to a motion for reconsideration, appeal or
certiorari, but shall be w ithout prejudice to the right of any
party to raise the same issues before the arbitral tribunal
or the court in a petition to vacate or set aside the arbitral
aw ard which shall be resolved in accordance with the
standards set for such proceedings.
On the other hand, if the court finds the arbitration agreement
inexistent, invalid or unenforceable, the aggrieved party may file a
motion for reconsideration or a petition for certiorari. The distinction
is necessary in order to provide judicial remedy for a ruling against
the jurisdiction of an arbitral tribunal in line w ith the state policy of
giving preference to ADR.
Rule 3.12. Who may file petition. - Any party to arbitration may
petition the appropriate court for judicial relief from the ruling of
the arbitral tribunal on a preliminary question upholding or
declining its jurisdiction. Should the ruling of the arbitral tribunal
declining its jurisdiction be reversed by the court, the parties
shall be free to replace the arbitrators or any one of them in
accordance w ith the rules that w ere applicable for the
appointment of arbitrator sought to be replaced.
Rule 3.13. When petition may be filed. - The petition may be
filed w ithin thirty (30) days after having received notice of that
ruling by the arbitral tribunal.
Rule 3.14. Venue. - The petition may be filed before the
Regional Trial Court of the place w here arbitration is taking
place, or w here any of the petitioners or respondents has his
principal place of business or residence.
Rule 3.15. Grounds. - The petition may be granted w hen the
court finds that the arbitration agreement is invalid, inexistent or
unenforceable as a result of w hich the arbitral tribunal has no
jurisdiction to resolve the dispute.
Rule 3.16. Contents of petition. - The petition shall state the
follow ing:
2 0 1 9 . P a g e 7 | 40
 a. The facts show ing that the person named as
petitioner or respondent has legal capacity to sue or
be sued;
b. The nature and substance of the dispute between
the parties;
c. The grounds and the circumstances relied upon by
the petitioner; and
d. The relief/s sought.
In addition to the submissions, the petitioner shall attach to the
petition a copy of the request for arbitration and the ruling of the
arbitral tribunal.
The arbitrators shall be impleaded as nominal parties to the
case and shall be notified of the progress of the case.
Rule 3.17. Comment/Opposition. - The comment/opposition
must be filed w ithin fifteen (15) days from service of the petition.
Rule 3.18. Court action. - (A) Period for resolving the petition.-
The court shall render judgment on the basis of the pleadings
filed and the evidence, if any, submitted by the parties, w ithin
thirty (30) days from the time the petition is submitted for
resolution.
(B) No injunction of arbitration proceedings. - The court shall not
enjoin the arbitration proceedings during the pendency of the
petition.
Judicial recourse to the court shall not prevent the arbitral
tribunal from continuing the proceedings and rendering its
aw ard.
(C) When dismissal of petition is appropriate. - The court shall
dismiss the petition if it fails to comply w ith Rule 3.16 above; or
if upon consideration of the grounds alleged and the legal briefs
submitted by the parties, the petition does not appear to be
prima facie meritorious.
Rule 3.19. Relief against court action. - The aggrieved party
may file a motion for reconsideration of the order of the court.
The decision of the court shall, how ever, not be subject to
appeal. The ruling of the court affirming the arbitral tribunal’s
jurisdiction shall not be subject to a petition for certiorari. The
ruling of the court that the arbitral tribunal has no jurisdiction
may be the subject of a petition for certiorari.
Rule 3.20. Where no petition is allowed. - Where the arbitral
tribunal defers its ruling on preliminary question regarding its
jurisdiction until its final aw ard, the aggrieved party cannot seek
judicial relief to question the deferral and must aw ait the final
arbitral aw ard before seeking appropriate judicial recourse.
A ruling by the arbitral tribunal deferring resolution on the issue
of its jurisdiction until final aw ard, shall not be subject to a
motion for reconsideration, appeal or a petition for certiorari.
Rule 3.21. Rendition of arbitral award before court decision on
petition from arbitral tribunal’s preliminary ruling on jurisdiction.
- If the arbitral tribunal renders a final arbitral aw ard and the
Court has not rendered a decision on the petition from the
arbitral tribunal’s preliminary ruling affirming its jurisdiction, that
petition shall become ipso facto moot and academic and shall
be dismissed by the Regional Trial Court. The dismissal shall
be w ithout prejudice to the right of the aggrieved party to raise
the same issue in a timely petition to vacate or set aside the
aw ard.
Rule 3.22. Arbitral tribunal a nominal party. - The arbitral
tribunal is only a nominal party. The court shall not require the
arbitral tribunal to submit any pleadings or w ritten submissions
but may consider the same should the latter participate in the
proceedings, but only as nominal parties thereto.
Judicial Relief After Arbitration Commences
(Rules 3.12 to 3.22, Special ADR Rules)
The rules on judicial relief after the commencement of arbitration
apply under the follow ing circumstances:
1. The arbitration proceeding has already commenced, the
arbitral tribunal has been constituted, and has rendered
a preliminary ruling on its jurisdiction.
2. A party desires to challenge the arbitral tribunal’s ruling
on the issue of jurisdiction.
Procedural rules:
1. Petition. Within thirty (30) days from receipt of the notice
of a ruling from an arbitral tribunal, an aggrieved party
may file a petition w ith the Regional Trial Court (i) w here
the arbitration is taking place, or (ii) w here any of the
petitioners or respondents has his principal place of
business or residence, at the option of the petitioner, for
judicial relief from the ruling of the arbitral tribunal on a
preliminary question upholding or declining its
jurisdiction.
The petition shall state (i) the facts showing that the
petitioner or respondent has legal capacity to sue or be
sued; (ii) the nature and substance of the dispute; (iii)
the grounds and circumstances relied upon for the
petition; and (iv) the relief sought. The petitioner shall
attach a copy of the request for arbitration and the
ruling of the arbitral tribunal. The respondents shall be
furnished w ith a copy of the petition before it is filed.
2. Com ment/opposition. The respondent should file his
comment or opposition w ithin fifteen (15) days from the
date of service of the petition.
3. Court action. The court shall render judgment on the
basis of the pleadings filed and evidence submitted,
w ithin thirty (30) days from the time the petition is
submitted for resolution.
The filing and pendency of the petition for judicial relief
shall not be a cause for the court to enjoin the
arbitration proceeding and the arbitral tribunal may
proceed w ith the arbitration and render the aw ard.
2 0 1 9 . P a g e 8 | 40
 The court shall dismiss the petition if it fails to comply
w ith Rule 3.16 (contents of petition); or if upon
consideration of the grounds alleged and the legal
briefs submitted by the parties, the petition does not
appear to be prima facie meritorious.
4. Relief against court action. The aggrieved party may
file a motion for reconsideration of the order of the court,
w hich shall, how ever, not be subject to an appeal. An
order affirming the jurisdiction of the arbitral tribunal shall
not be subject to a petition for certiorari, but an order
denying jurisdiction may be the subject of such a petition.
If the arbitral tribunal, instead of rendering a preliminary
ruling on its jurisdiction, decides to defer such ruling
until the rendition of the arbitral aw ard, none of the
parties can seek judicial relief from the deferment. The
parties can, how ever, await the rendition of the final
arbitral aw ard, and raise the same issues before the
court in a proceeding for setting aside or vacating the
aw ard.
If, in the meantime that the resolution of the preliminary
jurisdictional issue is deferred, or before the court could
render any ruling thereon, the arbitral tribunal renders
the final arbitral aw ard, the prospective or pending
petition for judicial relief on the preliminary jurisdictional
issue, w ill be rendered moot and academic, and any
pending petition ought to be dismissed. The aggrieved
party, how ever, may raise the same issues before the
court in a proceeding to set aside or to vacate the
arbitral aw ard.
In a petition for judicial relief, the arbitrator or the members of the
arbitral tribunal shall be nominal parties. As nominal parties, it is
not mandatory for them to file pleadings or submissions for the
consideration of the court.
RULE 4
REFERRAL TO ADR
Rule 4.1. Who m akes the request. - A party to a pending action
filed in violation of the arbitration agreement, w hether contained in
an arbitration clause or in a submission agreement, may request
the court to refer the parties to arbitration in accordance with such
agreement.
Rule 4.2. When to m ake request. - (A) Where the arbitration
agreement exists before the action is filed. - The request for referral
shall be made not later than the pre-trial conference. After the pre-
trial conference, the court will only act upon the request for referral
if it is made w ith the agreement of all parties to the case.
(B) Submission agreement. - If there is no existing arbitration
agreement at the time the case is filed but the parties subsequently
enter into an arbitration agreement, they may request the court to
refer their dispute to arbitration at any time during the proceedings.
Rule 4.3. Contents of request. - The request for referral shall be
in the form of a motion, w hich shall state that the dispute is covered
by an arbitration agreement.
Apart from other submissions, the movant shall attach to his motion
an authentic copy of the arbitration agreement.
The request shall contain a notice of hearing addressed to all
parties specifying the date and time w hen it w ould be heard. The
party making the request shall serve it upon the respondent to give
him the opportunity to file a comment or opposition as provided in
the immediately succeeding Rule before the hearing.
Rule 4.4. Com ment/Opposition. - The comment/opposition must
be filed w ithin fifteen (15) days from service of the petition. The
comment/opposition should show that: (a) there is no agreement to
refer the dispute to arbitration; and/or (b) the agreement is null and
void; and/or (c) the subject-matter of the dispute is not capable of
settlement or resolution by arbitration in accordance with Section 6
of the ADR Act.
Rule 4.5. Court action. - After hearing, the court shall stay the
action and, considering the statement of policy embodied in Rule
2.4, above, refer the parties to arbitration if it finds prima facie,
based on the pleadings and supporting documents submitted by
the parties, that there is an arbitration agreement and that the
subject-matter of the dispute is capable of settlement or resolution
by arbitration in accordance w ith Section 6 of the ADR Act.
Otherw ise, the court shall continue w ith the judicial proceedings.
Rule 4.6. No reconsideration, appeal or certiorari. - An order
referring the dispute to arbitration shall be immediately executory
and shall not be subject to a motion for reconsideration, appeal or
petition for certiorari.
An order denying the request to refer the dispute to arbitration shall
not be subject to an appeal, but may be the subject of a motion for
reconsideration and/or a petition for certiorari.
Rule 4.7. Multiple actions and parties. - The court shall not
decline to refer some or all of the parties to arbitration for any of the
follow ing reasons:
a. Not all of the disputes subject of the civil action may be referred
to arbitration;
b. Not all of the parties to the civil action are bound by the arbitration
agreement and referral to arbitration w ould result in multiplicity of
suits;
c. The issues raised in the civil action could be speedily and
efficiently resolved in its entirety by the court rather than in
arbitration;
d. Referral to arbitration does not appear to be the most prudent
action; or
e. The stay of the action w ould prejudice the rights of the parties to
the civil action w ho are not bound by the arbitration agreement.
The court may, how ever, issue an order directing the inclusion in
arbitration of those parties w ho are not bound by the arbitration
agreement but w ho agree to such inclusion provided those
originally bound by it do not object to their inclusion.
Rule 4.8. Arbitration to proceed.- Despite the pendency of the
action referred to in Rule 4.1, above, arbitral proceedings may
nevertheless be commenced or continued, and an aw ard may be
made, w hile the action is pending before the court.
This rule pertains to the referral of a pending court action to
arbitration and applies in the follow ing situations:
1. When there is already a pending court action;
2. When there is either a pre-action arbitration
agreement or a present action arbitration agreement;
and
2 0 1 9 . P a g e 9 | 40
 3. When one or both parties desire to undergo
arbitration.
The classification of arbitration agreement as to pre-action
arbitration agreement which is executed prior to the filing of an
action and present-action arbitration agreement which is
executed after the filing of the action are based on the time of the
execution relative to the filing of the action, as opposed to the
classification based on the time of the execution relative to the
existence of the dispute w hich are referred to as pre-causal
arbitration agreement or the agreement to submit to arbitration or
a present-causal arbitration agreement or the submission
agreement.
In order to determine the timeliness of the request for referral to
arbitration and the number of parties w ho are required to make the
request, the relevant classification is the one based on the time of
the execution of the arbitration agreement relative to the filing of
the action.
If there is a pre-action arbitration agreement, w hich may either be:
a. An agreement to submit to arbitration; or
b. a submission agreement,
The request for referral to arbitration may be made by any one of
the parties not later than the pre-trial conference. A request made
after the pre-trial conference must be w ith the agreement of both
parties.
The classification based on the time of execution relative to the
existence of the dispute is relevant in the determination of the date
of commencement of the arbitration.
Present-action Arbitration Agreement
This is basically a submission agreement w herein the parties may
request the referral to arbitration at any time during the
proceedings.
Procedure
1. Filing of Request or Motion
This is the pleading that initiates the referral and not a petition
because the rules on referral to ADR contemplate the existence of
an already pending court action initiated either by a complaint or
petition.
The motion shall contain an authentic copy of the arbitration
agreement, and as in the case of litigated motions, must be served
upon the respondent (Rule 1.3 (A), Special ADR Rules) and set for
hearing. (Rule 4.2 and 4.3, Special ADR Rules)
2. Com ment or Opposition
Must be filed w ithin 15 days from service of the request or motion
and must show that:
a. There is no agreement to refer the dispute to arbitration
b. The agreement is null and void; or
c. the subject matter of the dispute is not capable of settlement or
resolution by arbitration. (Rule 4.4, Special ADR Rules).
3. Court Action
The court may:
a. Grant the motion – if it finds prima facie that there is a valid and
enforceable arbitration agreement and that the subject matter of
the dispute is capable of arbitration; or
b. Deny the motion – if the court finds otherwise.
Either w ay, the court should stay the judicial proceedings w hile the
motion for referral is pending resolution. Arbitral proceedings,
how ever may be commenced or continued and an aw ard may be
made thereon, w hile the action is pending in court. (Rule 4.4,
Special ADR Rules)
The finding of the court on the validity and enforceability of an
arbitration agreement and that the dispute involved is capable of
arbitration resulting to the grant of referral is merely a prima facie
finding and is not conclusive upon the parties.
4. Relief against court action
The order granting the motion for referral shall be immediately
executory and shall not be subject to a motion for reconsideration,
appeal, or petition for certiorari (Rule 19, Special ADR Rules).
The order denying the request although not subject to appeal may
be subject to a motion for reconsideration and a petition for
certiorari (Rule 19, Special ADR Rules).
The opportunity to reverse a ruling adverse to arbitration is made
available by w ay of a motion for reconsideration or a petition for
certiorari.
Principle of Preference for ADR
The courts are prohibited from denying the request for referral of
some or all of the parties to arbitration for any of the following
reasons:
1. Not all of the disputes subject of the civil action may be referred
to arbitration;
2. Not all of the parties to the civil action are bound by the arbitration
agreement and the referral to arbitration w ould result in multiplicity
of suits;
3. The issues raised in the civil action could be speedily and
efficiently resolved in its entirety by the court rather than in
arbitration;
4. Referral to arbitration does not appear to be the most prudent
action; or
5. The stay of the action w ould prejudice the rights of the parties to
the civil action w ho are not bound by the arbitration agreement. The
court may, how ever, issue an order directing the inclusion provided
that those originally bound by it do not object to their inclusion
provided that those originally bound by it do not object to their
inclusion.
Legal effects of the non-application of the arbitration clause to
a case:
Koppel, Inc. v M akati Rotary Club Foundation. Inc.,
1. The Judicial proceedings conducted beyond the point w hen the
dispute should have been referred to arbitration are rendered
invalid;
2. The decisions, including those of the appellate courts, must be
vacated and set aside;
3. The case must be remanded to the court a quo to be
suspended at said point; and
2 0 1 9 . P a g e 10 | 40
4. The petitioner must then be referred to arbitration pursuant to
the arbitration clause.
RULE 8
TERMINATION OF THE MANDATE OF ARBITRATOR
Rule 8.1. Who may request termination and on what grounds.-
Any of the parties to an arbitration may request for the termination
of the mandate of an arbitrator w here an arbitrator becomes de
jure or de facto unable to perform his function or for other reasons
fails to act w ithout undue delay and that arbitrator, upon request
of any party, fails or refuses to w ithdraw from his office.
Rule 8.2. When to request. - If an arbitrator refuses to w ithdraw
from his office, and subsequently, the Appointing Authority fails or
refuses to decide on the termination of the mandate of that
arbitrator w ithin such period as may be allow ed under the
applicable rule or, in the absence thereof, within thirty (30) days
from the time the request is brought before him, any party may file
w ith the court a petition to terminate the mandate of that
arbitrator.
The rules on judicial termination of the m andate of arbitrator
apply w hen.
1. An arbitrator becomes de jure or de facto unable to
perform his function or for other reasons fails to act
w ithout undue delay
2. that arbitrator, upon request of any party, fails or
refuses to w ithdraw from his office.
3. the Appointing Authority fails or refuses to decide on
the termination of the mandate of that arbitrator w ithin
such period as may be allow ed under the applicable
rule or, in the absence thereof, within thirty (30) days
from the time the request is brought before him
4. any party seeks judicial action in terminating the
mandate of the arbitrator.
Relief for the term ination of the mandate of an arbitrator is
different from a challenge to an arbitrator.
Judicial challenge to an Judicial termination of the
arbitrator m andate of an arbitrator
The arbitrator is sought to be The arbitrator w ho has been
removed on the ground of validly appointed has
partiality or non-compliance become incapable of
w ith the qualifications performing his functions or
required of him has become unable to do so
Procedure for the judicial termination of the mandate of arbitrator.
1. Petition
Rule 8.3. Venue. - A petition to terminate the mandate of an
arbitrator may, at that petitioner’s option, be filed w ith the
Regional Trial Court (a) w here the principal place of business of
any of the parties is located, (b) w here any of the parties who are
individuals resides, or (c) in the National Capital Region.
Rule 8.4. Contents of the petition. - The petition shall state the
follow ing:
a. The name of the arbitrator w hose mandate is sought to be
terminated;
b. The ground/s for termination;
c. The fact that one or all of the parties had requested the
arbitrator to w ithdraw but he failed or refused to do so;
d. The fact that one or all of the parties requested the Appointing
Authority to act on the request for the termination of the mandate
of the arbitrator and failure or inability of the Appointing Authority
to act w ithin thirty (30) days from the request of a party or parties
or w ithin such period as may have been agreed upon by the
parties or allow ed under the applicable rule.
The petitioner shall further allege that one or all of the parties had
requested the arbitrator to w ithdraw but he failed or refused to do
so.
The petition shall be filed w ith the Regional Trial Court
a. Where the principal place of business of the parties is
located
b. Where any of the w here any of the parties w ho are
individuals resides
c. in the National Capital Region.
At the option of the petitioner
The petition shall state (basically the same w ith 8.1 and 8.2)
a. the name of the arbitrator w hose mandate is sought to
be terminated
b. the grounds for the termination
c. the fact that one or all of the parties had requested the
arbitrator to w ithdraw but he failed or refused to accede,
and
d. The fact that one or all of the parties requested the
Appointing Authority to act on the request for the
termination of the mandate of the arbitrator and failure
or inability of the Appointing Authority to act w ithin thirty
(30) days from the request of a party or parties or w ithin
such period as may have been agreed upon by the
parties or allow ed under the applicable rule
A copy of the petition shall be served upon the respondent before
it is filed in court.
2. Com ment/Opposition
Rule 8.5. Comment/Opposition. - The comment/opposition must
be filed w ithin fifteen (15) days from service of the petition.
The comment or opposition must be filed w ithin 15 days from
service of the petition
3. Court Action
Rule 8.6. Court action. - After hearing, if the court finds merit in
the petition, it shall terminate the mandate of the arbitrator w ho
refuses to w ithdraw from his office; otherwise, it shall dismiss the
petition.
Rule 8.8. Appointment of substitute arbitrator. - Where the
mandate of an arbitrator is terminated, or he w ithdraws from office
2 0 1 9 . P a g e 11 | 40
for any other reason, or because of his mandate is revoked by 3.
agreement of the parties or is terminated for any other reason, a
substitute arbitrator shall be appointed according to the rules that
w ere applicable to the appointment of the arbitrator being
replaced.
The court shall grant the petition and terminate the mandate of 4.
the arbitrator if it finds merit in the petition; otherw ise it shall
dismiss the petition. 5.
To allow the physical examination of the condition of
persons, or the inspection of things or premises and,
w hen appropriate, to allow the recording and/or
documentation of condition of persons, things or
premises (i.e., photographs, video and other means of
recording/documentation);
To allow the examination and copying of documents;
and
To perform any similar acts.

If the petition is granted, a substitute arbitrator shall be appointed What are the possible court actions?
according to the rules that w ere applicable to the appointment of The court shall:
the arbitrator being replaced. 1. grant the assistance in taking evidence requested and
2. shall order petitioner to pay costs attendant to such
4. No Relief Against Court Action assistance.
Rule 8.7. No motion for reconsideration or appeal. - Any order of
the court resolving the petition shall be immediately executory and If the evidence sought:
shall not be subject of a motion for reconsideration, appeal or 1. is not privileged, and
petition for certiorari. 2. is material and relevant

Any order of the court resolving the petition shall be immediately What is the possible relief against the court’s action?
executor and shall not be subject to a motion for reconsideration, If the court declines to grant assistance in taking evidence, the
appeal or petition for certiorari. petitioner may file:
1. a motion for reconsideration or
RULE 9 2. appeal.
ASSISTANCE IN TAKING EVIDENCE
If the court grants assistance in taking evidence, the order shall
be:
1. immediately executory and
Who m ay request evidence?
2. not subject to reconsideration or appeal.
Any party to an arbitration, w hether:
When is the perpetuation of a person’s testimony allowed?
1. domestic or
Any person w ho desires to perpetuate his testimony or that of
2. Foreign
another person may do so in accordance with Rule 24 of the Rules
When assistance may be sought? of Court at:
At any time during the course of the arbitral proceedings when the
need arises. 1. anytime before arbitration is commenced or
2. before the arbitral tribunal is constituted
Where is the venue?
At the option of the petitioner, it may be filed w ith Regional Trial
Court w here: RULE 10:
1. arbitration proceedings are taking place, CONFIDENTIALITY/PROTECTIVE ORDERS
2. the w itnesses reside or may be found, or
3. w here the evidence may be found.
Who m ay request confidentiality?
What are the types of assistance that m ay be given by the 1. party,
court? 2. counsel or
A party requiring assistance in the taking of evidence may petition 3. w itness who disclosed or
the court to direct: 4. w ho was compelled to disclose information relative to the
any person, including a representative of a corporation, subject of ADR under circumstances that w ould create a
association, partnership or other entity (other than a party to the reasonable expectation, on behalf of the source,
ADR proceedings or its officers) found in the Philippines, that the information shall be kept confidential has the right to
prevent such information from being further disclosed without the
for any of the follow ing: express written consent of the source or the party who made the
1. To comply w ith a subpoena ad testificandum and/or disclosure.
subpoena duces tecum;
2. To appear as a w itness before an officer for the taking of When request made?
his deposition upon oral examination or by w ritten A party may request a protective order at “anytime” there is a need
interrogatories; to enforce the confidentiality of the information obtained, or to be
obtained, in ADR proceedings.

2 0 1 9 . P a g e 12 | 40
Venue
A petition for a protective order may be filed w ith the Regional Trial For mediation proceedings, the court shall be further guided by the
Court w here that order would be implemented. follow ing principles:
a. Information obtained through mediation shall be
If there is a pending court proceeding in w hich the information privileged and confidential.
obtained in an ADR proceeding is required to be divulged or is b. A party, a mediator, or a nonparty participant may
being divulged, the party seeking to enforce the confidentiality of refuse to disclose and may prevent any
the information may file a motion w ith the court w here the other person from disclosing a mediation
proceedings are pending to enjoin the confidential information from communication.
being divulged or to suppress confidential information. c. In such an adversarial proceeding, the following
persons involved or previously involved in a
Grounds mediation may not be compelled to disclose
A protective order may be granted only if it is show n that the confidential information obtained during the
applicant w ould be materially prejudiced by an unauthorized mediation:
disclosure of the information obtained, or to be obtained, during an (1) the parties to the dispute;
ADR proceeding. (2) the mediator or mediators;
(3) the counsel for the parties:
Contents of the m otion or petition (4) the nonparty participants;
The petition or motion must state the follow ing: (5) any persons hired or engaged in
a. That the information sought to be protected was connection w ith the mediation
obtained, or w ould be obtained, during an ADR as secretary, stenographer;
proceeding; clerk or assistant; and
b. The applicant w ould be materially prejudiced by the (6) any other person w ho obtains or
disclosure of that information; possesses confidential
c. The person or persons who are being asked to divulge information by reason of his/ her
the confidential information participated in an ADR profession.
proceedings; and d. The protection of the ADR Law s shall continue to
d. The time, date and place w hen the ADR proceedings apply even if a mediator is found to have
took place. failed to act impartially.
Apart from the other submissions, the movant must set the motion e. A mediator may not be called to testify to provide
for hearing and contain a notice of hearing in accordance with Rule information gathered in mediation. A
15 of the Rules of Court. mediator w ho is w rongfully subpoenaed
shall be reimbursed the full cost of his
Notice attorney fees and related expenses.
Notice of a request for a protective order made through a motion
shall be made to the opposing parties in accordance with Rule 15 Relief against court action.
of the Rules of Court. The order enjoining a person or persons from divulging confidential
information shall be immediately executory and may not be
Com ment/Opposition enjoined w hile the order is being questioned w ith the appellate
The comment/opposition must be filed w ithin fifteen (15) days from courts.
service of the petition. The opposition or comment may be
accompanied by w ritten proof that: If the court declines to enjoin a person or persons from divulging
(a) the information is not confidential, confidential information, the petitioner may file a motion for
(b) the information w as not obtained during an ADR reconsideration or appeal.
proceeding,
(c) there w as a waiver of confidentiality, or Consequence of disobedience
(d) the petitioner/movant is precluded from asserting Any person w ho disobeys the order of the court to cease from
confidentiality. divulging confidential information shall be imposed the proper
sanction by the court.
Court action
If the court finds the petition or motion meritorious, it shall issue an
order enjoining a person or persons from divulging confidential RULE 11
information. CONFIRMATION, CORRECTION OR VACATION OF AWARD
IN DOMESTIC ARBITRATION
In resolving the petition or motion, the courts shall be guided by the
follow ing principles applicable to all ADR proceedings: Confidential
information shall not be subject to discovery and shall be Who m ay request confirmation, correction or vacation of
inadmissible in any adversarial proceeding, w hether judicial or aw ard in domestic arbitration?
quasi judicial. How ever, evidence or information that is otherwise
admissible or subject to discovery does not become inadmiss ible Any party to a domestic arbitration may petition the court to confirm,
or protected from discovery solely by reason of its use therein. correct, or vacate a domestic arbitral aw ard.

2 0 1 9 . P a g e 13 | 40
 b. Where the arbitrators have aw arded upon a matter not
When to file a petition for confirmation, submitted to them, not affecting the merits of the decision
correction/modification or vacation? upon the matter submitted;

Confirmation - At any time after the lapse of thirty (30) days from c. Where the arbitrators have omitted to resolve an issue
receipt by the petitioner of the arbitral aw ard. submitted to them for resolution; or

Correction/Modification - Not later than thirty (30) days from receipt
of the arbitral aw ard.
Vacation - Not later than thirty (30) days from receipt of the arbitral
aw ard.
What are the grounds?
To vacate an arbitral award:
a. The arbitral aw ard was procured through corruption, fraud or
other undue means;
b. There w as evident partiality or corruption in the arbitral tribunal
or any of its members;
c. The arbitral tribunal w as guilty of misconduct or any form of
misbehavior that has materially prejudiced the rights of any party
such as refusing to postpone a hearing upon sufficient cause
show n or to hear evidence pertinent and material to the
controversy;
d. Where the aw ard is imperfect in a matter of form not
affecting the merits of the controversy, and if it had been a
commissioner’s report, the defect could have been amended
or disregarded by the Court.
What is the Form of Petition?
An application to vacate an arbitral aw ard
An application to correct/modify an arbitral aw ard
 A petition to Vacate
 A petition to vacate in opposition to a petition to confirm
the same aw ard
May be included:
 In a petition to confirm an arbitral aw ard or
 in a petition to vacate in opposition to confirm the same
aw ard.
When a petition to confirm an arbitral award is pending before
a court

d. One or more of the arbitrators was disqualified to act as such The party seeking to vacate or correct/modify said award may only
under the law and w illfully refrained from disclosing such apply for those reliefs through:
disqualification; or
1. a petition to vacate or
e. The arbitral tribunal exceeded its pow ers, or so imperfectly 2. A petition to correct/modify the award in opposition to the
executed them, such that a complete, final and definite aw ard upon petition to confirm the aw ard
the subject matter submitted to them w as not made.
Condition:
The aw ards may also be vacated on any of the follow ing grounds:
Petition to vacate or correct/modify must be filed within thirty (30)
days from his receipt of the aw ard.
a. The arbitration agreement did not exist, or is invalid for
any ground for the revocation of a contract or is
otherw ise unenforceable; or There is forum shopping w hen a petition to vacate or correct/modify
an arbitral aw ard is filed:
b. A party to arbitration is a minor or a person judicially 1. in another court or
declared to be incompetent. 2. in a separate case before the same court

If one of the parties is a minor, the Petition must in behalf of the Effect:
minor and must alleged:
shall be dismissed, upon appropriate motion.
 (a) the other party to arbitration had know ingly entered When a petition to vacate or correct/modify an arbitral aw ard is
into a submission or agreement w ith such minor or pending before a court
incompetent, or
The party seeking to confirm said aw ard may only apply for that
 (b) the submission to arbitration w as made by a relief through:
guardian or guardian ad litem w ho was not authorized to
do so by a competent court. 1. a petition to confirm the same aw ard in opposition to the
petition to vacate or
2. A petition to correct/modify the aw ard.
To correct/modify an arbitral award:
Note:
a. Where there w as an evident miscalculation of figures or an
evident mistake in the description of any person, thing or Petition shall be dismissed for violation of rule against forum
property referred to in the aw ard; shopping if:
1. If filed as separate proceeding in another court or
2. Filed in a different case before the same court

2 0 1 9 . P a g e 14 | 40
Consolidation of Proceedings
Alternative to the dismissal of petitions by reason of violation of the
non-forum shopping rule:
 the court or courts concerned may allow the
consolidation of the tw o proceedings in one court and in
one case.
Where the petition to confirm the aw ard and petition to vacate or
correct/modify were simultaneously f iled by the parties in the same
court or in different courts in the Philippines
 the court may order the consolidation of the tw o cases
before either court, upon motion of either party
GENERAL REQUISITE: the petition must be verified by a person
w ho has know ledge of the jurisdictional facts.
Where should the petition be filed?
The petition may be filed w ith REGIONAL TRIAL COURT
having jurisdiction:
1. Over the place in w hich one of the parties is doing
business;
2. Where any of the parties reside; or
3. Where the arbitration proceedings were conducted.
What should be stated in the petition?
a. The addresses of the parties and any change thereof;
b. The jurisdictional issues raised by a party during arbitration
proceedings;
c. The grounds relied upon by the parties in seeking the vacation
of the arbitral aw ard whether the petition is a petition for the
vacation or setting aside of the arbitral aw ard or a petition in
opposition to a petition to confirm the aw ard; and
d. A statement of the date of receipt of the arbitral award and the
circumstances under which it w as received by the petitioner
What are the necessary attachments to the petition?
a. An authentic copy of the arbitration agreement;
b. An authentic copy of the arbitral aw ard;
c. A certification against forum shopping executed by the applicant
in accordance with Section 5 of Rule 7 of the Rules of Court; and
d. An authentic copy or authentic copies of the appointment of an
arbitral tribunal.
Notice requirement
Upon finding that the petition f iled under this Rule is sufficient both
in form and in substance, the Court shall:
1. cause notice and a copy of the petition to be delivered to the
respondent.
2. The Respondent is allow ed to file a comment or opposition
thereto w ithin fifteen (15) days from receipt of the petition.
3. In lieu of an opposition, the respondent may file a petition in
opposition to the petition.
4. The petitioner may w ithin fifteen (15) days from receipt of the
petition in opposition thereto file a reply
When hearing is required.
If the Court finds from the petition or petition in opposition thereto
that there are issues of fact:
 The Court shall require the parties, within a period of not
more than fifteen (15) days from receipt of the order, to
simultaneously submit the affidavits of all of their
w itnesses and reply affidavits within ten (10) days from
receipt of the affidavits to be replied to.
 There shall be attached to the affidavits or reply
affidavits documents relied upon in support of the
statements of fact in such affidavits or reply affidavits.
If the petition or the petition in opposition thereto is one for vacation
of an arbitral aw ard:
 The interested party in arbitration may oppose the
petition or the petition in opposition thereto for the reason
that the grounds cited in the petition or the petition in
opposition thereto, assuming them to be true, do not
affect the merits of the case and may be cured or
remedied.
 Moreover, the interested party may request the court to
suspend the proceedings for vacation for a period of time
and to direct the arbitral tribunal to reopen and conduct
a new hearing and take such other action as w ill
eliminate the grounds for vacation of the aw ard.
 The opposition shall be supported by a brief of legal
arguments to show the existence of a sufficient legal
basis for the opposition.
If the ground of the petition to vacate an arbitral aw ard is that the
arbitration agreement did not exist, is invalid or otherwise
unenforceable, and an earlier petition for judicial relief under Rule
3 had been filed, a copy of such petition and of the decision or final
order of the court shall be attached thereto. But if the ground was
raised before the arbitral tribunal in a motion to dismiss filed not
later than the submission of its answ er, and the arbitral tribunal
ruled in favor of its ow n jurisdiction as a preliminary question w hich
w as appealed by a party to the Regional Trial Court, a copy of the
order, ruling or preliminary aw ard or decision of the arbitral tribunal,
the appeal therefrom to the Court and the order or decision of the
Court shall all be attached to the petition.
If the ground of the petition is that the petitioner is an infant or a
person judicially declared to be incompetent:
 there shall be attached to the petition certified copies of
documents show ing such fact. In addition, the petitioner
shall show that even if the submission or arbitration
agreement w as entered into by a guardian or guardian
2 0 1 9 . P a g e 15 | 40
 ad litem, the latter w as not authorized by a competent
court to sign such the submission or arbitration
agreement.
If on the basis of the petition, the opposition, the affidavits and reply
affidavits of the parties the court finds that there is a need to
conduct an oral hearing:
 the court shall set the case for hearing.
 This case shall have preference over other cases
before the court, except criminal cases.
 During the hearing, the affidavits of witnesses shall take
the place of their direct testimonies and they shall
immediately be subject to cross-examination thereon.
 The Court shall have full control over the proceedings
in order to ensure that the case is heard w ithout undue
delay.
What are the possible court actions?
The Court shall:
1. As a rule, confirm the aw ard.
Exception: A ground to vacate an arbitral aw ard under Rule 11.5 is
fully established.
2. In resolving the petition or petition in opposition thereto in
accordance w ith these Special ADR Rules, the court can either
confirm or vacate the arbitral aw ard.
3. The Court (RTC) in the appropriate case, order the new hearing
before a new arbitral tribunal, the members of w hich shall be
chosen in the manner provided in the arbitration agreement or
submission, or the law .
4. In referring the case back to the arbitral tribunal or to a new
arbitral tribunal pursuant to Rule 24 of Republic Act No. 876, the
court may not direct it to revise its aw ard in a particular w ay, or to
revise its findings of fact or conclusions of law or otherwise
encroach upon the independence of an arbitral tribunal in the
making of a final aw ard.
NOTE: The judgment of the RTC in Domestic Arbitral vacating,
modifying or correcting the aw ard is considered as an order or
decision entered upon an aw ard. (There w ill be an entry of
judgment before the RTC)
5. The Court (RTC) w ill not entertain the petition on the ground
raised to vacate an aw ard in Domestic arbitration on the ground
that the arbitral tribunal committed errors of fact or law or mixed
questions of fact and law .
(Basis: Rule 19.10 par. 3 and Rule 11.9 of Special ADR Rules)
What is the possible relief against the court’s action?
If the Court grants the petition to vacate, correct or modify the
Domestic Arbitral Aw ard, the aggrieved party may:
 File a Motion for Reconsideration (15 days from the
receipt of the order)
IF the Motion for Reconsideration is denied, the aggrieved party
may:
 File an appeal before the Court of Appeals via petition
for review; or
 File a petition for Certiorari
RULE 12
RECOGNITION AND ENFORCEMENT OR SETTING ASIDE OF
AN INTERNATIONALCOMMERCIAL ARBITRATION AWARD
Recognition and Enforcement or Setting Aside of an
International Commercial Arbitration Award: Overview
Rule 12 of the Special Rules on Alternative Dispute
Resolution provides for the Recognition and Enforcement or
Setting Aside of an International Commercial Arbitration Award.
The parties to an arbitration proceeding has the option to enforce
the arbitral aw ard or to set aside such aw ard through a petition for
that purpose.
Procedure to be Follow ed to Request Recognition and
Enforcement or Setting Aside of the Arbitral Award
Any party to an international commercial arbitration in the
Philippines may request recognition and enforcement or setting
aside of the arbitral aw ard by filing a petition in the proper court.
With respect to a petition to recognize and enforce an arbitral
aw ard, the petition may be filed anytime from receipt of the aw ard,
w hile in a petition to set aside, petition must be filed w ithin 3 months
from the time the petitioner receives a copy thereof. An opposition
to a petition for recognition and enforcement of the aw ard may be
filed by the opposing party. It must be made w ithin the period for
filing an opposition w hich is w ithin 3 months from the receipt of the
aw ard.
The petition must be filed in the Regional Trial Court w here
arbitration proceedings w ere conducted, or, w here any of the
assets to be attached or levied upon is located, or, w here the act
to be enjoined w ill be or is being performed, or, w here any of the
parties to arbitration resides or has its place of business, or, in the
National Capital Judicial Region.
In a petition to set aside, such must be made w ithin 3 months
from the time the petitioner receives a copy of the arbitral award. In
the event that there is correction, interpretation or additional award,
the 3-month period shall be counted from the time the petitioner
receives the resolution. The petition to set aside is time barred. It
must be filed w ithin the 3-month period. If a petition is made beyond
the period it w ill be dismissed. In the event that a petition to set
aside is dismissed, it does not automatically result in the approval
of the petition to recognize or enforce the aw ard.
Any recourse against an arbitral aw ard shall be made
through a petition to set aside the arbitral aw ard and on grounds
prescribed by the law . Any other recourse from the arbitral aw ard,
such as by appeal or petition for review or petition for certiorari or
otherw ise, shall be dismissed by the court.
2 0 1 9 . P a g e 16 | 40

Grounds to set aside: Exclusive
The grounds provided by law are exclusive and as such no
other ground is allow ed. The grounds can be based on the
allegation of the petitioner or as founded by the court. With
respect to the grounds that can be alleged by the petitioner, he
must furnish proof that:
1. A party to the arbitration agreement w as under some
incapacity, or the said agreement is not valid under
the law to w hich the parties have subjected it or, failing
any indication thereof, under Philippine law ; or
2. The party making the application to set aside or resist
enforcement w as not given proper notice of the
appointment of an arbitrator or of the arbitral proceedings
or w as otherwise unable to present his case; or
3. The aw ard deals with a dispute not contemplated by or
not falling w ithin the terms of the submission to
arbitration, or contains decisions on matters beyond the
scope of the submission to arbitration; provided that, if
the decisions on matters submitted to arbitration can be
separated from those not so submitted, only that part of
the aw ard w hich contains decisions on matters not
submitted to arbitration may be set aside or only that part
of the aw ard w hich contains decisions on matters
submitted to arbitration may be enforced; or
4. The composition of the arbitral tribunal or the arbitral
procedure w as not in accordance with the agreement of
the parties, unless such agreement w as in conflict with a
provision of Philippine law from w hich the parties cannot
derogate, or, failing such agreement, w as not in
accordance with Philippine law ;
With respect to the findings of the court, the must find that:
1. The subject-matter of the dispute is not capable of
settlement by arbitration under the law of the Philippines;
or
2. The recognition or enforcement of the aw ard would be
contrary to public policy.
In addition to the above stated grounds, minority or
incompetency of a party is aground to set aside. The person in
behalf of the minor or incapacitated person must allege that:
1. The other party to arbitration had know ingly entered into
a submission or agreement w ith such minor or
incompetent, or
2. The submission to arbitration w as made by a guardian
or guardian ad litem w ho was not authorized to do so by
a competent court.
Form and Contents of petition
The application to recognize and enforce or set aside an
arbitral aw ard, whether made through a petition to recognize and
enforce or to set aside or as a petition to set aside the aw ard in
opposition thereto, or through a petition to set aside or petition to
recognize and enforce in opposition thereto, shall be verified by a
person w ho has pe rsonal knowledge of the facts stated
therein.
When a petition to recognize and enforce an arbitral
aw ard is pending, the application to set it aside, if not yet time-
barred, shall be made through a petition to set aside the same
aw ard in the same proceedings. When a timely petition to set aside
an arbitral aw ard is filed, the opposing party may file a petition for
recognition and enforcement of the same aw ard in opposition
thereto.
The contents of a petition to recognize and enforce and
petition to set aside must contain the follow ing:
1. The addresses of record, or any change thereof, of the
parties to arbitration;
2. A statement that the arbitration agreement or submission
exists;
3. The names of the arbitrators and proof of their
appointment;
4. A statement that an arbitral aw ard was issued and when
the petitioner received it; and
5. The relief sought.
6. Attachment of the follow ing documents:
a. An authentic copy of the arbitration
agreement;
b. An authentic copy of the arbitral aw ard;
c. A verification and certification against forum
shopping executed by the applicant in
accordance with Sections 4 and 5 of Rule 7 of
the Rules of Court; and
d. An authentic copy or authentic copies of the
appointment of an arbitral tribunal.
7. In a petition to set aside, the grounds relied upon to set
it aside
In a situation w here the ground to set aside is based on
minority or incompetency, there shall be attached to the petition
certified copies of documents show ing such fact. In addition, the
petitioner shall show that even if the submission or arbitration
agreement w as entered into by a guardian or guardian ad litem, the
latter w as not authorized by a competent court to sign such the
submission or arbitration agreement.
As to questions of the jurisdiction of an arbitral tribunal, the
petitioner shall apprise the court before w hich the petition to
recognize and enforce or set aside is pending of the status of the
appeal or its resolution.
Notice
Upon finding that the petition filed under this Rule is
sufficient both in form and in substance, the court shall cause
notice and a copy of the petition to be delivered to the respondent
directing him to file an opposition thereto w ithin fifteen (15) days
from receipt of the petition. In lieu of an opposition, the respondent
may file a petition to set aside in opposition to a petition to
recognize and enforce, or a petition to recognize and enforce in
opposition to a petition to set aside. The petitioner may w ithin
fifteen (15) days from receipt of the petition to set aside in
opposition to a petition to recognize and enforce, or from receipt of
the petition to recognize and enforce in opposition to a petition to
set aside, file a reply.
Subm ission of Docum ents
2 0 1 9 . P a g e 17 | 40
 If the court finds that the issue betw een the parties is
mainly one of law , the parties may be required to submit briefs of
legal arguments, not more than fifteen (15) days from receipt of the
order, sufficiently discussing the legal issues and the legal basis for
the relief prayed for by each of them.
If the court finds from the petition or petition in opposition
thereto that there are issues of fact relating to the ground(s) relied
upon for the court to set aside, it shall require the parties w ithin a
period of not more than fifteen (15) days from receipt of the order
simultaneously to submit the affidavits of all of their w itnesses and
reply affidavits within ten (10) days from receipt of the affidavits to
be replied to. There shall be attached to the affidavits or reply
affidavits, all documents relied upon in support of the statements of
fact in such affidavits or reply affidavits.
Hearing and Suspension of Proceedings to Set Aside
If on the basis of the petition, the opposition, the
affidavits and reply affidavits of the parties, the court finds that there
is a need to conduct an oral hearing, the court shall set the case
for hearing.
This case shall have preference over other cases before
the court, except criminal cases. During the hearing, the affidavits
of w itnesses shall take the place of their direct testimonies and they
shall immediately be subject to cross-examination thereon. The
court shall have full control over the proceedings in order to ensure
that the case is heard w ithout undue delay.
The court when asked to set aside an arbitral award may,
w here appropriate and upon request by a party, suspend the
proceedings for a period of time determined by it to give the arbitral
tribunal an opportunity to resume the arbitral proceedings or to take
such other action as in the arbitral tribunal’s opinion w ill eliminate
the grounds for setting aside. The court, in referring the case back
to the arbitral tribunal may not direct it to revise its aw ard in a
particular w ay, or to revise its findings of fact or conclusions of law
or otherw ise encroach upon the independence of an arbitral
tribunal in the making of a final aw ard.
The court w hen asked to set aside an arbitral award may
also, w hen the preliminary ruling of an arbitral tribunal affirming its
jurisdiction to act on the matter before it had been appealed by the
party aggrieved by such preliminary ruling to the court, suspend
the proceedings to set aside to await the ruling of the court on
such pending appeal or, in the alternative, consolidate the
proceedings to set aside w ith the earlier appeal.
Judgm ent
Unless a ground to set aside an arbitral aw ard under
Rule 12.4 above is fully established, the court shall dismiss the
petition. If, in the same proceedings, there is a petition to recognize
and enforce the arbitral aw ard filed in opposition to the petition to
set aside, the court shall recognize and enforce the aw ard.
In resolving the petition or petition in opposition thereto
in accordance with the Special ADR Rules, the court shall either
set aside or enforce the arbitral aw ard. The court shall not disturb
the arbitral tribunal’s determination of facts and/or interpretation of
law .
Costs
Unless otherw ise agreed upon by the parties in writing,
at the time the case is submitted to the court for decision, the party
praying for recognition and enforcement or setting aside of an
arbitral aw ard shall submit a statement under oath confirming the
costs he has incurred only in the proceedings for such recognition
and enforcement or setting aside. The costs shall include the
attorney’s fees the party has paid or is committed to pay to his
counsel of record.
The prevailing party shall be entitled to an aw ard of
costs, w hich shall include reasonable attorney’s fees of the
prevailing party against the unsuccessful party. The court shall
determine the reasonableness of the claim for attorney’s fees.
RULE 13
RECOGNITION AND ENFORCEMENT OF A FOREIGN
ARBITRAL AWARD
Who m ay request recognition and enforcement?
Any party to a foreign arbitration may petition the court to recognize
and enforce a foreign arbitral aw ard.
When to file the petition?
At any time after receipt of a foreign arbitral aw ard, any party to
arbitration may petition the proper Regional Trial Court to recognize
and enforce such award.
Where to file the petition?
The petition to recognize and enforce a foreign arbitral aw ard shall
be filed, at the option of the petitioner, w ith the Regional Trial Court
(a) w here the assets to be attached or levied upon is
located,
(b) w here the act to be enjoined is being performed,
(c) in the principal place of business in the Philippines of any
of the parties,
(d) if any of the parties is an individual, w here any of those
individuals resides, or
(e) in the National Capital Judicial Region.
What is the governing law in the recognition and
enforcement of a foreign arbitral award?
The recognition and enforcement of a foreign arbitral award shall
be governed by
1) the 1958 New York Convention on the Recognition and
Enforcement of Foreign Arbitral Aw ards (the "New York
Convention") and
2) the Special ADR Rules.
What are the grounds to refuse recognition and
enforcement?
The court may, upon grounds of comity and reciprocity, recognize
and enforce a foreign arbitral aw ard made in a country that is not
a signatory to the New York Convention as if it w ere a Convention
Aw ard.
2 0 1 9 . P a g e 18 | 40
A Philippine court shall not set aside a foreign arbitral aw ard but
may refuse its recognition and enforcement on any or all of the
follow ing grounds:
(a) The party making the application to refuse recognition
and enforcement of the aw ard furnishes proof that:
(i) A party to the arbitration agreement w as under
some incapacity; or the said agreement is not valid
under the law to w hich the parties have subjected
it or, failing any indication thereof, under the law of
the country where the award was made; or
(ii) The party making the application w as not given
proper notice of the appointment of an arbitrator or
of the arbitral proceedings or was otherwise unable
to present his case; or
(iii) The aw ard deals with a dispute not contemplated
by or not falling w ithin the terms of the submission
to arbitration, or contains decisions on matters
beyond the scope of the submission to arbitration;
provided that, if the decisions on matters submitted
to arbitration can be separated from those not so
submitted, only that part of the aw ard w hich
contains decisions on matters not submitted to
arbitration may be set aside; or
(iv) The composition of the arbitral tribunal or the
arbitral procedure was not in accordance with the
agreement of the parties or, failing such
agreement, w as not in accordance w ith the law of
the country where arbitration took place; or
(v) The aw ard has not yet become binding on the
parties or has been set aside or suspended by a
court of the country in which that award was made;
or
(b) The court finds that:
(i) The subject-matter of the dispute is not capable
of settlement or resolution by arbitration under
Philippine law ; or
(ii) The recognition or enforcement of the aw ard
w ould be contrary to public policy.
The court shall disregard any ground for opposing the recognition
and enforcement of a foreign arbitral aw ard other than those
enumerated above.
What are the contents of the petition?
The petition shall state the follow ing:
(a) The addresses of the parties to arbitration;
(b) In the absence of any indication in the award, the country
w here the arbitral aw ard w as made and w hether such
country is a signatory to the New York Convention; and
(c) The relief sought.
Apart from other submissions, the petition shall have attached to it
the follow ing:
(a) An authentic copy of the arbitration agreement; and
(b) An authentic copy of the arbitral aw ard.
If the foreign arbitral aw ard or agreement to arbitrate or submission
is not made in English, the petitioner shall also attach to the petition
a translation of these documents into English. The translation shall
be certified by an official or sworn translator or by a diplomatic or
consular agent.
What should the court do when petition is deemed sufficient?
Upon finding that the petition filed under this Rule is sufficient both
in form and in substance, the court shall cause notice and a copy
of the petition to be delivered to the respondent allow ing him to file
an opposition thereto within thirty (30) days from receipt of the
notice and petition.
What is the requirement for opposition?
The opposition shall be verified by a person w ho has personal
know ledge of the facts stated therein.
What are other submissions that the parties may be required
to submit?
(a) If the court finds that the issue betw een the parties is mainly
one of law , the parties may be required to submit
(i) briefs of legal arguments, not more than thirty (30)
days from receipt of the order, sufficiently discussing
the legal issues and the legal bases for the relief
prayed for by each other.
(b) If, from a review of the petition or opposition, there are issues
of fact relating to the ground/s relied upon for the court to
refuse enforcement, the court shall, motu proprio or upon
request of any party, require the parties to simultaneously
submit
(i) the affidavits of all of their w itnesses within a period of
not less than fifteen (15) days nor more than thirty (30)
days from receipt of the order.
(ii) The court may, upon the request of any party, allow the
submission of reply affidavits within a period of not less
than fifteen (15) days nor more than thirty (30) days
from receipt of the order granting said request.
(iii) There shall be attached to the affidavits or reply
affidavits all documents relied upon in support of the
statements of fact in such affidavits or reply affidavits.
When shall the court set the case for hearing?
The court shall set the case for hearing if on the basis of the
foregoing submissions there is a need to do so. The court shall give
due priority to hearings on petitions under this Rule.
What happens during the hearing?
During the hearing, the affidavits of witnesses shall take the place
of their direct testimonies and they shall immediately be subject to
cross-examination. The court shall have full control over the
proceedings in order to ensure that the case is heard without undue
delay.
When can the court adjourn or defer rendering a decision on
enforcement of award?
The court before which a petition to recognize and enforce a foreign
arbitral aw ard is pending, may adjourn or defer rendering a
decision thereon if, in the meantime, an application for the setting
aside or suspension of the award has been made w ith a competent
authority in the country w here the aw ard w as made. Upon
application of the petitioner, the court may also require the other
party to give suitable security.
2 0 1 9 . P a g e 19 | 40
What is the presumption on a foreign arbitral award?
It is presumed that a foreign arbitral aw ard was made and released
in due course of arbitration and is subject to enforcement by the
court.
What shall the court do?
The court shall recognize and enforce a foreign arbitral award
unless a ground to refuse recognition or enforcement of the foreign
arbitral aw ard under this rule is fully established.
In resolving the petition for recognition and enforcement of a
foreign arbitral aw ard in accordance with these Special ADR Rules,
the court shall either
(a) recognize and/or enforce or
(b) refuse to recognize and enforce the arbitral aw ard.
The court shall not disturb the arbitral tribunal’s determination of
facts and/or interpretation of law .
What is the effect of the decision of the court?
The decision of the court recognizing and enforcing a foreign
arbitral aw ard is immediately executory.
When can the court recognize and enforce a non-convention
aw ard?
The court shall, only upon grounds provided by these Special ADR
Rules, recognize and enforce a foreign arbitral aw ard made in a
country not a signatory to the New York Convention w hen such
country extends comity and reciprocity to aw ards made in the
Philippines.
If that country does not extend comity and reciprocity to aw ards
made in the Philippines, the court may nevertheless treat such
aw ard as a foreign judgment enforceable as such under Rule 39,
Section 48, of the Rules of Court.
Mediation
According to Black’s Law Dictionary, mediation is the
“act of a third person who interferes with two contending parties
… with a view to reconcile them or persuade them to adjust or
settle their dispute.”
A “process in w hich a third-party neutral assists in
resolving a dispute betw een two or more other parties. It is “a
non-adversarial approach to conflict resolution.”
Purposes of Mediation
Some of the purposes of mediation are the follow ing:
1. To resolve disputes w ithout need of litigation
2. To have faster and cheaper process to settle legal
differences
3. To strengthen party autonomy
Sim ilarities of Mediation and Arbitration
Both are alternatives to people w ho wish to avoid
settling their disputes in court and both are engage an
independent third party to oversee the process.
Differences of Mediation and Arbitration
Mediation Arbitration
Done in an informal manner More formal manner
“party-centered” Miniscule out-of-court
negotiations compared to
mediation
Mediators do not issue orders Arbitrators have the pow er to
and make determinations render a legally binding
decision
According to research many people report a higher
degree of satisfaction with mediation than w ith arbitration and
other court processes because they can control the result and be
part of the resolution.
Types of Mediation
1. Court-Annexed mediation means a mediation process
conducted under the auspices of the court, after
such court has acquired jurisdiction of the dispute. It is
mandatory, being part of pre-trial.
2. Court-Referred mediation means a mediation ordered
by a court to be conducted in accordance with the
Agreement of the Parties w hen an action is prematurely
commenced in violation of such agreement.
PART III: PROVISIONS SPECIFIC TO MEDIATION
RULE 14: GENERAL PROVISIONS
Rule 14.1. Application of the rules on arbitration. -
Whenever applicable and appropriate, the pertinent rules on
arbitration shall be applied in proceedings before the court
relative to a dispute subject to mediation.
RULE 15: DEPOSIT AND ENFORCEMENT OF MEDIATED
SETTLEMENT AGREEMENTS
Rule 15.1. Who m akes a deposit. - Any party to a mediation
that is not court-annexed may deposit w ith the court the w ritten
settlement agreement, w hich resulted from that mediation.
Rule 15.2. When deposit is made. - At any time after an
agreement is reached, the w ritten settlement agreement may
be deposited.
Who makes a deposit? Any party to a mediation (that is not court-
annexed)
Where w ill he deposit? With the court (RTC)
What w ill he deposit? The w ritten settlement agreement, w hich
resulted from that mediation.
2 0 1 9 . P a g e 20 | 40
When w ill the deposit be made? At any time after an agreement is
reached
Rule 15.3. Venue. - The w ritten settlement agreement may be
jointly deposited by the parties or deposited by one party w ith
prior notice to the other party/ies w ith the Clerk of Court of the
Regional Trial Court (a) w here the principal place of business
in the Philippines of any of the parties is located; (b) if any of
the parties is an individual, w here any of those individuals
resides; or (c) in the National Capital Judicial Region.
How w ill the deposit be made?
 Jointly;
 By one party (w ith prior notice to the other party/ies)
In w hich court will the deposit be made? In the Regional Trial
Court
(a) w here the principal place of business in the Philippines
of any of the parties is located;
(b) if any of the parties is an individual, w here any of those
individuals resides; or
(c) in the National Capital Judicial Region.
Rule 15.4. Registry Book . - The Clerk of Court of each
Regional Trial Court shall keep a Registry Book that shall
chronologically list or enroll all the mediated settlement
agreements/settlement aw ards that are deposited w ith the
court as w ell as the names and address of the parties thereto
and the date of enrollment and shall issue a Certificate of
Deposit to the party that made the deposit.
How w ill the court (deposited w ith the w ritten statement
agreement) keep them? The Clerk of Court w ill keep a
REGISTRY BOOK
How w ill it be kept? Chronologically list or enrol all the:
• Mediated settlement agreements/settlement aw ards
that are deposited w ith the court
• As w ell as the names and address of the parties thereto
and the date of enrolment issue a CERTIFICATE OF
DEPOSIT to the party that made the deposit.
Rule 15.5. Enforcement of mediated settlement
agreement. - Any of the parties to a mediated settlement
agreement, w hich was deposited with the Clerk of Court of the
Regional Trial Court, may, upon breach thereof, file a verified
petition w ith the same court to enforce said agreement.
What if a party breaches the m ediated settlement agreement?
The injured party may file a VERIFIED PETITION w ith the same
court for the Enforcement said agreement.
Rule 15.6. Contents of petition. - The verified petition shall:
a. Name and designate, as petitioner or respondent,
all parties to the mediated settlement agreement
and those w ho may be affected by it;
b. State the follow ing:
(i). The addresses of the petitioner and
respondents; and
(ii). The ultimate facts that w ould show
that the adverse party has defaulted to
perform its obligation under said
agreement; and
c. Have attached to it the follow ing:
(i). An authentic copy of the mediated
settlement agreement; and
(ii). Certificate of Deposit show ing that the
mediated settlement agreement w as
deposited w ith the Clerk of Court.
Rule 15.7. Opposition. - The adverse party may file an
opposition, w ithin fifteen (15) days from receipt of notice or
service of the petition, by submitting w ritten proof of
compliance w ith the mediated settlement agreement or such
other affirmative or negative defenses it may have.
What is the REMEDY of the party against w hom the petition is
filed? He may file an OPPOSITION by:
 Submitting w ritten proof of compliance w ith the
mediated settlement agreement
 Such other affirmative or negative defenses
How w ill the court decide? Order Enforcement, if it finds that:
 the agreement is a valid mediated settlement
agreement,
 that there is no merit in any of the affirmative or
negative defenses raised, and
 the respondent has breached that agreement, in w hole
or in part
 Dismiss the petition
Rule 15.8. Court action. - After a summary hearing, if the
court finds that the agreement is a valid mediated settlement
agreement, that there is no merit in any of the affirmative or
negative defenses raised, and the respondent has breached
that agreement, in w hole or in part, the court shall order the
enforcement thereof; otherwise, it shall dismiss the petition.
PART IV: PROVISIONS SPECIFIC TO CONSTRUCTION
ARBITRATION
RULE 16: GENERAL PROVISIONS
Rule 16.1. Application of the rules on arbitration. -
Whenever applicable and appropriate, the rules on arbitration
shall be applied in proceedings before the court relative to a
dispute subject to construction arbitration.
Rule 16.1. Application of the rules on arbitration
2 0 1 9 . P a g e 21 | 40
 Applicability: Whenever applicable and appropriate
Where: Proceedings before the court relative to a
dispute subject to construction arbitration
RULE 17: REFERRAL TO CIAC
Rule 17.1. Dism issal of action. - A Regional Trial Court
before w hich a construction dispute is filed shall, upon
becoming aw are that the parties have entered into an
arbitration agreement, motu proprio or upon motion made not
later than the pre-trial, dismiss the case and refer the parties to
arbitration to be conducted by the Construction Industry
Arbitration Commission (CIAC), unless all parties to arbitration,
assisted by their respective counsel, submit to the court a
w ritten agreement making the court, rather than the CIAC, the
body that w ould exclusively resolve the dispute.
Rule 17: Referral to CIAC
17.1 Dismissal of action.
Who: RTC before w hich a construction
dispute is filed
What: Shall dismiss the case and refer the
parties to arbitration to be conducted by the
CIAC
How : Motu Proprio or upon motion made not
later than the pre-trial
UNLESS:
- Written Agreement submitted by
all parties to arbitration to the court
Rule 17.2. Form and contents of motion. - The request for
dismissal of the civil action and referral to arbitration shall be
through a verified motion that shall (a) contain a statement
show ing that the dispute is a construction dispute; and (b) be
accompanied by proof of the existence of the arbitration
agreement.
If the arbitration agreement or other document evidencing the
existence of that agreement is already part of the record, those
documents need not be submitted to the court provided that
the movant has cited in the motion particular references to the
records where those documents may be found.
The motion shall also contain a notice of hearing addressed to
all parties and shall specify the date and time w hen the motion
w ill be heard, w hich must not be later than fifteen (15) days
after the filing of the motion. The movant shall ensure receipt
by all parties of the motion at least three days before the date
of the hearing.
17.2 Form and contents of motion.
The request for dismissal of the civil action
and referral to arbitration shall be through a
VERIFIED MOTION that shall:
day of the hearing):
a. Contain a statement show ing
that the dispute is a construction dispute; and
b. Be accompanied by proof of the
existence of the arbitration agreement.
The MOTION shall also contain:
a. A notice of hearing addressed to
all parties; and
b. Shall specify the date and time
w hen the motion w ill be heard:
- Which must not be later than 15
days after the filing of the motion
Rule 17.3. Opposition. - Upon receipt of the motion to refer
the dispute to arbitration by CIAC, the other party may file an
opposition to the motion on or before the day such motion is to
be heard. The opposition shall clearly set forth the reasons
w hy the court should not dismiss the case.
17.3 How to Oppose?
Upon receipt of the motion to refer the
dispute to arbitration by CIAC, the other party
may file an opposition to the said motion.
When? On or before the day such motion (to
refer the dispute to arbitration) is to be heard
The opposition shall clearly set forth the
reasons why the court should NOT dismiss
the case.
Rule 17.4. Hearing. - The court shall hear the motion only
once and for the purpose of clarifying relevant factual and
legal issues.
17.4 Hearing
The court shall hear the motion only once.
Purpose: to clarify relevant factual and legal basis
Rule 17.5. Court action. - If the other parties fail to file their
opposition on or before the day of the hearing, the court shall
motu proprio resolve the motion only on the basis of the facts
alleged in the motion.
After hearing, the court shall dismiss the civil action and refer
the parties to arbitration if it finds, based on the pleadings and
supporting documents submitted by the parties, that there is a
valid and enforceable arbitration agreement involving a
construction dispute. Otherwise, the court shall proceed to
hear the case.
All doubts shall be resolved in favor of the existence of a
construction dispute and the arbitration agreement.
17.5 Court Action
Effect of failure to file an opposition (on or before the
The court shall MOTU PROPRIO resolve the
motion (to refer the dispute to arbitration)
2 0 1 9 . P a g e 22 | 40
 Only on the basis of the facts alleged in
the m otion.
Court action after hearing:
 Dismiss the civil action and refer the parties
to arbitration (if it finds that there is a valid
and enforceable arbitration agreement
involving a construction dispute); OR
 Proceed to hear the case.
Construction in cases of doubt:
It shall be resolved in favor of the existence of a
construction dispute and the arbitration agreement.
Rule 17.6. Referral immediately executory. - An
order dismissing the case and referring the dispute
to arbitration by CIAC shall be immediately
executory.
Rule 17.7. Multiple actions and parties. - The court
shall not decline to dismiss the civil action and make
a referral to arbitration by CIAC for any of the
follow ing reasons:
a) Not all of the disputes subject of the civil
action may be referred to arbitration;
b) Not all of the parties to the civil action are
bound by the arbitration agreement and
referral to arbitration w ould result in
multiplicity of suits;
c) The issues raised in the civil action could
be speedily and efficiently resolved in its
entirety by the Court rather than in
arbitration;
d) Referral to arbitration does not appear to
be the most prudent action; or
e) Dismissal of the civil action w ould
prejudice the rights of the parties to the
civil action w ho are not bound by the
arbitration agreement.
The court may, how ever, issue an order directing
the inclusion in arbitration of those parties w ho are
bound by the arbitration agreement directly or by
reference thereto pursuant to Section 34 of Republic
Act No. 9285.
Furthermore, the court shall issue an order directing
the case to proceed w ith respect to the parties not
bound by the arbitration agreement.
Rule 17.8. Referral - If the parties manifest that they
have agreed to submit all or part of their dispute
pending w ith the court to arbitration by CIAC, the
court shall refer them to CIAC for arbitration.
PART V: PROVISIONS SPECIFIC TO OTHER FORMS OF ADR
RULE 18: GENERAL PROVISIONS
APPLICABILITY OF RULES TO OTHER FORMS OF ADR
RULE 18.1
This rule governs the procedure for matters brought before the
court involving the follow ing forms of ADR:
[a] Early neutral evaluation;
[b] Neutral evaluation;
[c] Mini-trial;
[d] Mediation-arbitration;
[e] A combination thereof; or
[f] Any other ADR form.
OTHER FORMS OF ADR, SPECIAL ADR RULES APPLY:
1. Early Neutral Evaluation— means an ADR process
w herein parties and their law yers are brought together
early in a pre-trial phase to present summaries of their
cases and receive a nonbinding assessment by an
experienced, neutral person, w ith expertise in the
subject in the substance of the dispute; [par. [n] Sec. 3,
Ch.1, RA 9285]
2. Mini Trial—means a structured dispute resolution
method in w hich the merits of a case are argued
before a panel comprising senior decision makers w ith
or w ithout the presence of a neutral third person after
w hich the parties seek a negotiated settlement; [par.
[u], Sec. 3, Ch.1, RA 9285]
3. Mediation-arbitration— is a step dispute resolution
process involving both m ediation and arbitration.
Rule 18.2. Applicability of the rules on mediation. - If the
other ADR form/process is more akin to mediation (i.e., the
neutral third party merely assists the parties in reaching a
voluntary agreement), the herein rules on mediation shall
apply.
Rule 18.3. Applicability of rules on arbitration.-If the other
ADR form/process is more akin to arbitration (i.e., the neutral
third party has the pow er to make a binding resolution of the
dispute), the herein rules on arbitration shall apply.
APPLICABILITY OF THE RULES ON MEDIATION AND
ARBITRATION: RULE 18.3 AND 18.4
ARTICLE 2042. The same persons w ho may enter into a
compromise may submit their controversies to one or more
arbitrators for decision.
ARBITRATION vs. COMPROMISE
Mediation is a voluntary process in w hich a mediator,
selected by the disputing parties facilitates communication and
negotiation regarding the dispute (Section 3 [q] RA 9285). The
term mediation shall include conciliation (Section 7, R.A. 99285).
2 0 1 9 . P a g e 23 | 40
 Arbitration is a voluntary dispute resolution process
w herein the neutral third party has the pow er to make a binding
resolution of the dispute.
In arbitration, a third party gives the solution, in
com promise, the decision is arrived at by the parties concerned
WHAT RULE APPLIES?
1. If the other ADR form/process is more akin to
m ediation— herein rules on mediation shall apply
2. If the other ADR form/process is more akin to
arbitration— herein rules on arbitration shall apply
Rule 18.4. Referral. - If a dispute is already before a court,
either party may before and during pre-trial, file a motion for
the court to refer the parties to other ADR forms/processes. At
any time during court proceedings, even after pre-trial, the
parties may jointly move for suspension of the action pursuant
to Article 2030 of the Civil Code of the Philippines w here the
possibility of compromise is show n.
REFERRAL TO OTHER ADR FORMS/PROCESSES: [RULE
18.4]
WHEN MAY BE MADE
 At any time during court proceedings,
 even after pre-trial
HOW:
 file a m otion
SUSPENSION: [RULE 18.4]
HOW MADE:
 the parties may jointly move for suspension of the
action
LEGAL BASIS:
Article 2030 of the Civil Code:
Every civil action or proceeding shall be suspended:
(1) If w illingness to discuss a possible compromise is
expressed by one or both parties; or
(2) If it appears that one of the parties, before the
commencement of the action or proceeding,
offered to discuss a possible compromise but the
other party refused the offer.
The duration and terms of the suspension of the civil
action or proceeding and similar matters shall be
governed by such provisions of the rules of court as the
Supreme Court shall promulgate. Said rules of court
shall likew ise provide for the appointment and duties of
amicable compounders. (n)
OFFERS TO ARBITRATE NOT INCLUDED
Article 2030 of the Civil Code does not include offers
to arbitrate but only refers to compromise, upon terms
that the Court can ascertain and determine if they are
reasonable.
A compromise could dispense w ith a trial; but an
arbitration w ould merely prolong the case, since the
arbiter's decision w ould remain appealable to the
Courts. (Vaswani v. P. Tarochand Bros.,L-15800,
Dec. 29. 1960)
Rule 18.5. Subm ission of settlement agreement. - Either
party may submit to the court, before which the case is
pending, any settlement agreement follow ing a neutral or an
early neutral evaluation, mini-trial or mediation-arbitration.
SUBMISSION OF SETTLEMENT AGREEMENT: RULE 18.5
WHO MAY INITIATE: Either party
WHERE FILED: may submit to the court before w hich
the case is pending, any settlement agreement
LEGAL BASIS: ARTICLE 2028 of the Civil Code: A
compromise is a contract whereby the parties, by
making reciprocal concessions, avoid a litigation or put
an end to one already commenced. (1809a).
SETTLEMENT AGREEMENT
Nature: It is the settlement of a controversy principally,
and is, merely incidentally, the settlement of the claim (McCarthy
v. Barber Steamship Lines, 45 Phil. 488).
Com promise agreement is, however, more than a
contract. It had been submitted to the court for approval w ith
request that judgment be rendered in accordance therewith, and
w as accordingly approved by the court and incorporation into its
decision, w hich was "rendered in conformity there with." In other
w ords, it w as part and parcel of the judgment and may, therefore,
be enforced, as such, by writ execution. (Art. 2037, Civil Code of
the Philippines.) (Tria v. Lirag, L-13994, April 29, 1961).
RULE 19: MOTION FOR RECONSIDERATION, APPEAL AND
CERTIORARI
A. Motion for Reconsideration
Republic Act No. (RA) 9285, otherw ise know n as the
Alternative Dispute Resolution Act of 2004," institutionalized the
use of an Alternative Dispute Resolution System (ADR System) in
the Philippines. The Act, how ever, was w ithout prejudice to the
adoption by the Supreme Court of any ADR system as a means of
achieving speedy and efficient means of resolving cases pending
before all courts in the Philippines.
2 0 1 9 . P a g e 24 | 40
 Accordingly, A.M. No. 07-11-08-SC w as created setting
forth the Special Rules of Court on Alternative Dispute Resolution
(referred as Special ADR Rules) that shall govern the procedure to
be follow ed by the courts whenever judicial intervention is sought
in ADR proceedings in the specif ic cases where it is allow ed.1
Rule 19 of the Special Rules of Court on Alternative
Dispute Resolution is the longest Rule, containing Forty-Tw o (42)
Sections. This is a testament from the Judiciary giving importance
to Alternative Dispute Resolution (ADR) as a matter of public policy
geared tow ards an expeditious, inexpensive, least adversarial, and
effective means of resolving disputes and controversies.
The Supreme Court could have declared that the
provisions of the Rules of Civil Procedure apply suppletorily to ADR
. But it recognized the peculiar nature of ADR and judicial
proceedings that it enacted specific provisions on judicial remedies
and modes of review.
Rule 19 covers the remedies available to parties for
challenging the orders, decisions, judgments rendered by the
Regional Trial Court on matters relating to alternative dispute
resolution, to w it:
1. Motion for Reconsideration (Rules 19.1 to 19.11,
Special ADR Rules);
2. Appeal to the Court of Appeals (Rules 19.12 to
19.25, id.);
3. Special Civil Action for Certiorari (Rules 19.26 to
19.35, id.);
4. Appeal by Certiorari to the Supreme Court (Rules
19.36 to 19.42).2
Rule 19.1. Motion for reconsideration, when allowed. - A party may
ask the Regional Trial to reconsider its ruling on the follow ing:
a. That the arbitration agreement is inexistent, invalid or
unenforceable pursuant to Rule 3.10 (B);
b. Upholding or reversing the arbitral tribunal’s
jurisdiction pursuant to Rule 3.19;
c. Denying a request to refer the parties to arbitration;
d. Granting or denying a party an interim measure of
protection;
e. Denying a petition for the appointment of an arbitrator;
f. Refusing to grant assistance in taking evidence;
g. Enjoining or refusing to enjoin a person from divulging
confidential information;
h. Confirming, vacating or correcting a domestic arbitral
aw ard;
i. Suspending the proceedings to set aside an
international commercial arbitral aw ard and referring the
case back to the arbitral tribunal;
j. Setting aside an international commercial arbitral
aw ard;
k. Dismissing the petition to set aside an international
commercial arbitral aw ard, even if the court does not
recognize and/or enforce the same;
l. Recognizing and/or enforcing, or dismissing a petition
to recognize and/or enforce an international commercial
arbitral aw ard;
m. Declining a request for assistance in taking evidence;
1 DENR vs UNITED PLANNERS CONSULTANTS G.R. No.
212081 February 23, 2015
2 Alternative Dispute Resolution. Central Books
n. Adjourning or deferring a ruling on a petition to set
aside, recognize and/or enforce an international
commercial arbitral aw ard;
o. Recognizing and/or enforcing a foreign arbitral award,
or refusing recognition and/or enforcement of the same;
and
p. Granting or dismissing a petition to enforce a
deposited mediated settlement agreement.
No motion for reconsideration shall be allow ed from the
follow ing rulings of the Regional Trial Court:
a. A prima facie determination upholding the existence,
validity or enforceability of an arbitration agreement
pursuant to Rule 3.1 (A);
b. An order referring the dispute to arbitration;
c. An order appointing an arbitrator;
d. Any ruling on the challenge to the appointment of an
arbitrator;
e. Any order resolving the issue of the termination of the
mandate of an arbitrator; and
f. An order granting assistance in taking evidence.
Rule 37 of the Rules on Civil Procedure provides that a
Motion for Reconsideration may be filed on the grounds judgment,
findings or conclusions or final orders “are not supported by
evidence or x x x are contrary to law .”
How ever, in and ADR dispute, a party aggrieved by the
ruling of the Regional Trial Court may file a Motion for
Reconsideration based on the sixteen (16 ) grounds as provided
for in Rule 19.1, follow ing orders or rulings within fifteen (15) days
from the receipt thereof.3
In the case of DENR vs UNITED PLANNERS
CONSULTANTS G.R. No. 212081 February 23, 2015, the
Supreme Court held “ During the confirmation proceedings,
petitioners did not oppose the RTC’s confirmation by filing a petition
to vacate the Arbitral Award under Rule 11.2 (D) of the Special ADR
Rules. Neither did it seek reconsideration of the confirmation
order in accordance w ith Rule 19.1 (h) thereof. Instead,
petitioner filed only on September 10, 2012 a special civil action for
certiorari before the CA questioning the propriety of (a) the RTC
Order dated September 12, 2011 granting respondent’s motion for
issuance of a w rit of execution, and (b) Order dated July 9,2012
denying its motion to quash.
Rule 19.2. When to move for reconsideration. - A motion for
reconsideration may be filed w ith the Regional Trial Court w ithin a
non-extendible period of fifteen (15) days from receipt of the
questioned ruling or order.
Rule 19.3. Contents and notice. - The motion shall be made in
w riting stating the ground or grounds therefor and shall be filed with
the court and served upon the other party or parties.
Rule 19.4. Opposition or comment. - Upon receipt of the motion for
reconsideration, the other party or parties shall have a non-
extendible period of fifteen (15) days to file his opposition or
comment.
3 Rule 19.2 Special ADR Rules
2 0 1 9 . P a g e 25 | 40
Rule 19.5. Resolution of motion. - A motion for reconsideration An appeal from final orders and judgments of the
shall be resolved w ithin thirty (30) days from receipt of the Regional Trial Courts in ADR related cases to the Court of Appeals
opposition or comment or upon the expiration of the period to file is akin to a “petition for review” under Rule 42 of the 1997 Rules of
such opposition or comment. Civil Procedure w hich is based on errors of fact and/or law.

The motion shall be in w riting, filed w ith the court and While it is similar to a petition for review under Rule 42,
served upon the other party who shall have a non-extendible fifteen its comparison and contrast to a Rule 42 petition may be briefly
(15) days w ithin which to file an opposition or comment. The court summarized as follow s:
shall resolve the motion w ithin of thirty(30) days from the receipt
of the opposition or comment or the expiration of the period to file Rule 19 Rule 42
the same. Both are based on errors of facts and law .
The filing of the appeal The filing of the appeal shall
Rule 19.6. No second motion for reconsideration. - No party shall shall not stay the award, stay the judgm ent or final
be allow ed a second motion for reconsideration. judgm ent, final order or order appealed from except in
resolution sought to be certain instances such as:
In Rule 37 of the 1997 Rules of Civil Procedure, second reviewed unless the Court
motions for reconsideration are prohibited. of Appeals directs  in cases governed by
otherw ise. the Rules on
B. General Provisions on Appeal and Certiorari Summary Procedure,
 or w hen the prevailing
An arbitral aw ard is final and binding. Meaning, all parties to an party avails of the
arbitration agreement are precluded from filing an appeal or a remedy of execution
petition for certiorari questioning the merits of the arbitral aw ard. pending appeal,
 or w hen the Rules of
How ever, with regard to the matters and instances that the Special Court provides.
Rules on Alternative Dispute Resolution allow s appeal and a The party appealing the No bond requirement.
petition for certiorari, recourse to one remedy shall preclude decision or final order shall
recourse to the other. be required to post a
bond equal to the amount
Rule 19.10. Rule on judicial review on arbitration in the of the aw ard.
Philippines

Rule: The court can only vacate or set aside the decision of an
arbitral tribunal upon a clear show ing that the aw ard suffers from: review to the Court of Appeals shall be allow ed only from the
follow ing orders of the Regional Trial Court:
 any of the infirmities or grounds for vacating an arbitral
aw ard under Section 24 of Republic Act No. 876; a.
 under Rule 34 of the Model Law in a domestic arbitration; b.
 for setting aside an aw ard in an international arbitration c.
under Article 34 of the Model Law ; OR d.
 for such other grounds provided under these Special
Rule e.
f.
If the Regional Trial Court is asked to set aside an arbitral aw ard in g.
a domestic or international arbitration on any ground other than
those provided in the Special ADR Rules, the court shall entertain
h.
such ground for the setting aside or non-recognition of the arbitral
aw ard only if the same amounts to a violation of public policy. i.
The court shall not set aside or vacate the aw ard of the arbitral j.
tribunal merely on the ground that the arbitral tribunal committed k.
errors of fact, or of law , or of fact and law , as the court cannot
substitute its judgment for that of the arbitral tribunal. l.
m.
Rule 19.11. Rule on judicial review of foreign arbitral award
Under Rule 19.12 the Special ADR Rules, the petition for
Granting or denying an interim measure of protection;
Denying a petition for appointment of an arbitrator;
Denying a petition for assistance in taking evidence;
Enjoining or refusing to enjoin a person from divulging
confidential information;
Confirming, vacating or correcting/modifying a domestic
arbitral aw ard;
Setting aside an international commercial arbitration aw ard;
Dismissing the petition to set aside an international
commercial arbitration aw ard even if the court does not
decide to recognize or enforce such award;
Recognizing and/or enforcing an international commercial
arbitration aw ard;
Dismissing a petition to enforce an international commercial
arbitration aw ard;
Recognizing and/or enforcing a foreign arbitral aw ard;
Refusing recognition and/or enforcement of a foreign
arbitral aw ard;
Granting or dismissing a petition to enforce a deposited
mediated settlement agreement; and
Reversing the ruling of the arbitral tribunal upholding its
jurisdiction.

The court can deny recognition and enforcement of a foreign The appeal shall be filed w ithin fifteen (15) days from
arbitral aw ard only upon the grounds provided in Article V of the notice of the decision of the Regional Trial Court or the denial of
New York Convention, but shall have no power to vacate or set the petitioner’s motion for reconsideration, by filing a verified
aside a foreign arbitral award. petition for review .

The Court of Appeals may give due course to the petition

if it finds prima facie that the Regional Trial Court has committed
C. Appeals to the Court of Appeals (Petition for Review)
an error that w ould w arrant the reversal or modification of the
judgment, final order, or resolution sought to be reviewed.

2 0 1 9 . P a g e 26 | 40
Thereafter, the Court of Appeals may direct the transmittal of
records, set the case for oral arguments, require the submission of
memoranda, and render judgment.
Summary of the Procedure under Rule 19.12 to 19.25 of
the Special ADR Rules:
APPEAL TO THE COURT OF APPEALS
D. Special Civil Actions for Certiotari
The special civil action for certiorari from the orders, decisions or
judgments of the RTC in ADR-related cases to the CA referred to
in Rules 19.26 to 19.35 (Rule 19-D) is akin to a “petition for
certiorari” under Rule 65 of the 1997 Rules of Civil Procedure.
Rule 65, Rules of Court
Section 1. Petition for certiorari. — When any tribunal, board or
officer exercising judicial or quasi-judicial functions has acted
w ithout or in excess its or his jurisdiction, or w ith grave abuse of
discretion amounting to lack or excess of jurisdiction, and there is
no appeal, or any plain, speedy, and adequate remedy in the
ordinary course of law , a person aggrieved thereby may file a
verified petition in the proper court, alleging the facts w ith certainty
and praying that judgment be rendered annulling or modifying the
proceedings of such tribunal, board or officer, and granting such
incidental reliefs as law and justice may require.x x x
The above rule is similar to Rule 19.26 of the Special ADR Rules
w ith respect to the ground of filing such petition for certiorari, i.e.
grave abuse of discretion amounting to lack or excess of
jurisdiction.
Rule 19.26. Certiorari to the Court of Appeals. - When the
Regional Trial Court, in making a ruling under the Special ADR
Rules, has acted without or in excess of its jurisdiction, or with
grave abuse of discretion am ounting to lack or excess of
jurisdiction, and there is no appeal or any plain, speedy, and
adequate remedy in the ordinary course of law , a party may file a
special civil action for certiorari to annul or set aside a ruling of the
Regional Trial Court.
A special civil action for certiorari may be filed against the following
orders of the court.
a. Holding that the arbitration agreement is inexistent,
invalid or unenforceable;
b. Reversing the arbitral tribunal’s preliminary
determination upholding its jurisdiction;
c. Denying the request to refer the dispute to arbitration;
d. Granting or refusing an interim relief;
e. Denying a petition for the appointment of an arbitrator;
f. Confirming, vacating or correcting a domestic arbitral
aw ard;
g. Suspending the proceedings to set aside an international
commercial arbitral aw ard and referring the case back to
the arbitral tribunal;
h. Allow ing a party to enforce an international commercial
arbitral aw ard pending appeal;
i. Adjourning or deferring a ruling on w hether to set aside,
recognize and or enforce an international commercial
arbitral aw ard;
j. Allow ing a party to enforce a foreign arbitral award
pending appeal; and
k. Denying a petition for assistance in taking evidence.
NOTE: Under Rule 19.26, the follow ing must be present:
 The Regional Trial Court has acted w ithout or
in excess of its jurisdiction, or w ith grave
abuse of discretion amounting to lack or
excess of jurisdiction;
 There is no appeal or any plain, speedy, and
adequate remedy in the ordinary course of
law ; and
 The RTC’s order is any of those enumerated
under Rule 19.26.
CASE: CARGILL PHIL, INC. VS SAN FERNANDO REGALA,
INC. 641 SCRA 31 (2011)
In issuing the Order w hich denied petitioner's Motion to
Dismiss/Suspend Proceedings and to Refer Controversy to
Voluntary Arbitration, the RTC went beyond its authority of
determining only the issue of whether or not there is an agreement
in writing providing for arbitration by directing petitioner to file an
answer, instead of ordering the parties to proceed to arbitration.
In so doing, it acted in excess of its jurisdiction and since there is
no plain, speedy, and adequate remedy in the ordinary course of
law , petitioner’s resort to a petition for certiorari is the proper
remedy.
CASE: DENR vs. United Planners Consultants, Inc. (UPCI)
(2015)
During the confirmation proceedings, petitioners did not oppose the
RTC’s confirmation by filing a petition to vacate the Arbitral Award
under Rule 11.2 (D) of the Special ADR Rules. Neither did it seek
reconsideration of the confirmation order in accordance with Rule
19.1 (h) thereof.
Instead, petitioner filed only on September 10, 2012 a special civil
action for certiorari before the CA questioning the propriety of (a)
the RTC Order dated September 12, 2011 granting respondent’s
motion for issuance of a writ of execution, and (b) Order dated July
9, 2012 denying its motion to quash.
2 0 1 9 . P a g e 27 | 40
 Under Rule 19.26 of the Special ADR Rules , “[w ]hen the
Regional Trial Court, in making a ruling under the Special ADR
Rules, has acted w ithout or in excess of its jurisdiction, or with
grave abuse of discretion amounting to lack or excess of
jurisdiction, and there is no appeal or any plain, speedy, and
adequate remedy in the ordinary course of law , a party may file
a special civil action for certiorari to annul or set aside a ruling of
the Regional Trial Court.”
Thus, for failing to avail of the foregoing remedies before
resorting to certiorari, the CA correctly dismissed its petition.
Rule 19.27. Form. - The petition shall be accompanied by a
certified true copy of the questioned judgment, order or resolution
of the Regional Trial Court, copies of all pleadings and
documents relevant and pertinent thereto, and a sworn
certification of non-forum shopping as provided in the Rules of
Court.
Upon the filing of the petition and unless otherwise prescribed by
the Court of Appeals, the petitioner shall pay to the clerk of court
of the Court of Appeals docketing fees and other law ful fees of
P3,500.00 and deposit the sum of P500.00 for costs. Exemption
from payment of docket and other law ful fees and the deposit for
costs may be granted by the Court of Appeals upon a verified
motion setting forth valid grounds therefor. If the Court of Appeals
denies the motion, the petitioner shall pay the docketing and
other law ful fees and deposit for costs within fifteen days from
the notice of the denial.
The petition shall be accompanied
by:
1.A certified true copy of the questioned judgment, order or
resolution of the Regional Trial Court,
2.Copies of all pleadings and documents relevant and pertinent
thereto, and
3.A sw orn certification of non-forum shopping as provided in the
Rules of Court.
NOTE: Failure to com ply w ith Rule 19.27 is a ground for
dism issal under Rule 19.30.
Rule 19.28. When to file petition. - The petition must be filed w ith
the Court of Appeals w ithin fifteen (15) days from notice of the
judgment, order or resolution sought to be annulled or set aside.
No extension of time to file the petition shall be allow ed.
When to file?
Within 15 days from notice of the judgment, order or resolution
sought to be annulled or set aside.
NOTE:
The 15-day period is non-extendible.
Failure to comply w ith Rule 19.28 is a ground for dismissal under
Rule 19.30.
Rule 19.29. Arbitral tribunal a nominal party in the petition. - The
arbitral tribunal shall only be a nominal party in the petition for
certiorari. As nominal party, the arbitral tribunal shall not be
required to submit any pleadings or w ritten submissions to the
court. The arbitral tribunal or an arbitrator may, how ever, submit
such pleadings or w ritten submissions if the same serves the
interest of justice.
In petitions relating to the recognition and enforcement of a foreign
arbitral aw ard, the arbitral tribunal shall not be included even as a
nominal party. How ever, the tribunal may be notified of the
proceedings and furnished with court processes.
NOTE:
 The arbitral tribunal shall only be a nom inal party in the
petition for certiorari.
Rule 19.30. Court to dismiss petition. - The court shall dismiss the
petition if it fails to comply w ith Rules 19.27 and 19.28 above, or
upon consideration of the ground alleged and the legal briefs
submitted by the parties, the petition does not appear to be prima
facie meritorious.
Grounds for dismissal under this rule:
 Failure to comply w ith Rule 19.27 as to form and
payment of required fees
 Failure to comply w ith Rule 19.28 as to period to file the
petition
 The petition does not appear to be prima facie
meritorious
Rule 19.31. Order to comment. - If the petition is sufficient in form
and substance to justify such process, the Court of Appeals shall
immediately issue an order requiring the respondent or
respondents to comment on the petition w ithin a non-extendible
period of fifteen (15) days from receipt of a copy thereof. Such order
shall be served on the respondents in such manner as the court
may direct, together w ith a copy of the petition and any annexes
thereto.
If the petition w as not dismissed, the CA shall issue an order
requiring respondent to file a comment. The respondent is given a
non-extendible period of 15 days w ithin w hich to file the comment.
Rule 19.32. Arbitration may continue despite petition for certiorari.
- A petition for certiorari to the court from the action of the
appointing authority or the arbitral tribunal allow ed under this Rule
shall not prevent the arbitral tribunal from continuing the
proceedings and rendering its aw ard. Should the arbitral tribunal
continue w ith the proceedings, the arbitral proceedings and any
aw ard rendered therein will be subject to the final outcome of the
pending petition for certiorari.
Rule 19.33. Prohibition against injunctions. - The Court of Appeals
shall not, during the pendency of the proceedings before it, prohibit
or enjoin the commencement of arbitration, the constitution of the
arbitral tribunal, or the continuation of arbitration.
Rule 19.34. Proceedings after comment is filed. - After the
comment is filed, or the time for the filing thereof has expired, the
court shall render judgment granting the relief prayed for or to
2 0 1 9 . P a g e 28 | 40
 w hich the petitioner is entitled, or denying the same, w ithin a non-
extendible period of fifteen (15) days .
Regardless of w hether respondent filed a comment, the CA shall
render a judgment w ithin 15 days after the comment w as filed or if
none w as filed, after the lapse of the period to file the same.
A party desiring to appeal by certiorari from a judgment or final
order or resolution of the Court of Appeals issued pursuant to these
Special ADR Rules may file w ith the Supreme Court a verified
petition for review on certiorari. [19.37]
Notes:

• The petition shall raise only questions of law , which must

Rule 19.35. Service and enforcement of order or judgment. - A be distinctly set forth.
certified copy of the judgment rendered in accordance with the last
preceding section shall be served upon the Regional Trial Court • Akin to a Petition for Review on Certiorari (Rule 45 of the
concerned in such manner as the Court of Appeals may direct, and 1997 Rules of Civil Procedure)
disobedience thereto shall be punished as contempt.
• The law (specific rule) is silent as to the availability of a
DISTINCTION BETWEEN RULE 65 (Rules of Court) and RULE petition for review direct from the RTC to the Supreme
19-D (Special ADR Rules) Court, in contrary to the 1997 Rules of Civil Procedure
(general application). Thus, it is not available. (Equitable
PCI Banking Corporation v. RCBC Capital Corporation
RULE 65 RULE 19-D and Korea Technologies Co.,Ltd v. Lerma)
Covers all kind of grave abuse of Limited to grave abuse of • The appeal by certiorari must be from a final order of the
discretion committed by a tribunal, discretion in specific orders of the Court Appeals. Thus in DFA v. BCA Corporation, the
board or officer exercising judicial RTC as enumerated under Rule interlocutory order of the Arbitral Tribunal cannot be
or quasi-judicial functions 19.26 given any merit.
Can be filed sixty (60) days from Must be filed w ithin fifteen (15)
notice of the judgment, order or days from notice of the judgment,
resolution sought to be assailed order or resolution sought to be Serious and Compelling Reasons
annulled or set aside

Period is extendible Period cannot be extended

A review by the Supreme Court is not a matter of right, but of sound
judicial discretion, w hich w ill be granted only for serious and
compelling reasons resulting in grave prejudice to the aggrieved
FLOWCHART FOR RULE 19 – D party. [19.36]

The follow ing, w hile neither controlling nor

fully measuring the court's discretion, indicate
the serious and compelling, and necessarily,
restrictive nature of the grounds that w ill
w arrant the exercise of the Supreme Court’s
discretionary pow ers. When the Court of
Appeals:

a) Failed to apply the applicable

standard or test for judicial review prescribed
in these Special ADR Rules in arriving at its
decision resulting in substantial prejudice to
the aggrieved party;

b) Erred in upholding a final order or

decision despite the lack of jurisdiction of the
court that rendered such final order or
decision

c) Failed to apply any provision,

principle, policy or rule contained in these
Special ADR Rules resulting in substantial
prejudice to the aggrieved party; and

d) Committed an error so egregious and harmful to a party

E. Appeal by Certiorari to the Supreme Court as to amount to an undeniable excess of jurisdiction

Petition for Review on Certiorari Notes:

• The mere fact that the petitioner disagrees w ith the Court of
Appeals’ determination of questions of fact, of law or both

2 0 1 9 . P a g e 29 | 40
 questions of fact and law, shall not warrant the exercise of the
Supreme Court’s discretionary power.
• The error imputed to the Court of Appeals must be grounded
upon any of the above prescribed grounds for review or be
closely analogous thereto.
Filing of Petition
A. Time
The petition shall be filed w ithin fifteen (15) days from [19.38]
• notice of the judgment or final order or resolution appealed
from, or
• of the denial of the petitioner's motion for new trial or
reconsideration filed in due time after notice of the judgment.
The Supreme Court may for justifiable reasons grant an extension
of thirty (30) days only w ithin w hich to file the petition.
• How : On motion duly filed and served, with full payment of the
docket and other law ful fees and the deposit for costs before
the expiration of the reglementary period.
B. Payment
The petitioner shall pay docket and other law ful fees to the clerk of
court of the Supreme Court of P3,500.00 and deposit the amount
of P500.00 for costs at the time of the filing of the petition. [19.39]
• Exception: Unless he has theretofore done so or unless the
Supreme Court orders otherw ise
Notes:
• Proof of service of a copy thereof on the low er court
concerned and on the adverse party shall be submitted
together w ith the petition.
Contents of Petition
The petition shall: [19.40]
1. state the full name of the appealing party as the petitioner and
the adverse party as respondent, without impleading the lower
courts or judges thereof either as petitioners or respondents;
2. indicate the material dates showing:
• w hen notice of the judgment or final order or
resolution subject thereof w as received,
• w hen a motion for new trial or reconsideration, if
any, w as filed and w hen notice of the denial thereof
w as received;
3. set forth concisely a statement of the matters involved, and
the reasons or arguments relied on for the allow ance of the
petition;
4. be accompanied by
 a clearly legible duplicate original, or a certified true copy
of the judgment or final order or resolution certified by
the clerk of court of the court a quo and the requisite
number of plain copies thereof, and
 such material portions of the record as would support the
petition; and
5. contain a sw orn certification against forum shopping.
Notes:
 The petition shall be filed in eighteen (18) copies, w ith the
original copy intended for the court being indicated as such by
the petitioner.
Dism issal or Denial of Petition
A. Failure to comply w ith requirements
There shall be sufficient ground for the dismissal of the petition,
w hen there us failure of the petitioner to comply w ith any of the
foregoing requirements regarding: [19.41]
• the payment of the docket and other law ful fees,
• deposit for costs,
• proof of service of the petition, and
• the contents of and the documents w hich should accompany
the petition
B. Supreme Court
The Supreme Court may on its ow n initiative deny the petition on
the ground
• that the appeal is w ithout merit, or
• is prosecuted manifestly for delay, or that
• the questions raised therein are too insubstantial to
require consideration
• A mere general allegation that the Court of Appeals has
committed serious and substantial error or that it has
acted w ith grave abuse of discretion resulting in
substantial prejudice to the petitioner (w ithout indicating
w ith specificity the nature of such error or abuse of
discretion and the serious prejudice suffered by the
petitioner on account thereof) [19.36]
Petition Given Due Course
If the petition is given due course, the Supreme Court may require
the elevation of the complete record of the case or specified parts
thereof w ithin fifteen (15) days from notice. [19.42]
PART VII
FINAL PROVISIONS
RULE 20: FILING & DEPOSIT FEES
RULE 20.1. Scope –
2 0 1 9 . P a g e 30 | 40
Question: How much is the filing fee for a petition to: Question: How much is the filing fee if the petition is to recognize
and enforce a foreign arbitral award made in a country that is not
1. confirm or enforce, vacate or set aside a signatory to the New York Convention?

an arbitral award in a: Answer: The minimal filing fee payable in "all other actions not
involving property"
•domestic arbitration or
•international commercial Bases:
arbitration
2. enforce a mediated settlement 1. MIJARES V. RANADA - as it
agreement? is the foreign arbitral aw ard
itself that is the subject matter
Answer: of the action and not the
money aw arded.
If the aw ard does not FILING FEE
exceed: 2. SPECIAL ADR RULE
PhP 1,000,000.00 PhP 10,000.00 13.4. Governing law and
grounds to refuse recognition
PhP 20,000,000.00 PhP 20,000.00 and enforcement. xxx The
court may, upon grounds of
PhP 50,000,000.00 PhP 30,000.00 com ity and reciprocity,
recognize and enforce a
foreign arbitral aw ard made in
PhP 100,000,000.00 PhP 40,000.00
a country that is not a
signatory to the New York
Convention as if it w ere a
Convention Aw ard.
Question: How much is the filing fee for a foreign arbitral award if
it is under the New York Convention?
RULE 20.2. FILING FEE FOR ACTION TO ENFORCE AS A
Answer: The minimal filing fee payable in "all other actions not COUNTER-PETITION
involving property"
Question: What is an action to enforce as a counter-petition?
Basis:
Answer:
PRISCILLA MIJARES vs HONORABLE
SANTIAGO RANADA 1. When there is a timely petition to vacate or set
aside the arbitral aw ard; AND
G.R. No. 139325, April 12, 2005 2. there is an opposition thereto submitted as a
petition to enforce and/or recognize an aw ard –
w hether in domestic or international commercial
arbitration.
Issue: Whether the action for the recognition
and enforcement of a foreign judgment is one
incapable of pecuniary estimation as to How much is the filing fee?
w arrant the payment only of a minimal filing fee.
1. If it a domestic or international arbitral
aw ards:

Ruling: Yes.
If the aw ard does not FILING FEE
exceed:
PhP 1,000,000.00 PhP 10,000.00
The Supreme Court ruled that the action for
recognition and enforcement of the foreign PhP 20,000,000.00 PhP 20,000.00
judgment is incapable of pecuniary estimation
since the subject matter of the action is the PhP 50,000,000.00 PhP 30,000.00
foreign judgment itself, and for purposes of
the computation of the filing fee, the foreign PhP 100,000,000.00 PhP 40,000.00
judgment falls within the class of "all other
actions not involving property.”

2. The minimal filing fee payable in "all other

actions not involving property" for:
The Supreme Court w ent on to state that if the
a. Enforcement of a foreign arbitral
rule w ere otherwise, foreign judgments w ould aw ard under the New York
be virtually unenforceable in the Philippines Convention
involving as it does exorbitant filing fees.

2 0 1 9 . P a g e 31 | 40
 b. Enforcement of a Foreign Non- f oreign arbitral  shall submit a  the party pray ing
Convention Aw ard on the ground of award statement under f or recognition
comity and reciprocity.  shall submit a oath and enf orcement
statement under o conf irming the costs or f or setting
oath he has incurred aside an arbitral
o conf irming the costs o only in the award
RULE 20.3. DEPOSIT FEE FOR MEDIATED SETTLEMENT he has incurred proceedings f or  shall submit a
AGREEMENTS o only in the conf irmation or statement under
proceedings in the v acation of an oath
Any party to a mediated settlement agreement w ho deposits it Philippines arbitral award. o conf irming the
w ith the clerk of court: o f or such recognition costs he has
and enf orcement or incurred
setting-aside. o only in the
shall pay a deposit fee of P500.00.” proceedings f or
such recognition
RULE 20.4. FILING FEE FOR OTHER PROCEEDINGS and enf orcement
or setting-aside.
“The filing fee for the filing of The costs shall include The costs shall include The costs shall include
attorney ’s f ees  the attorney ’s f ees  attorney ’s f ees
1. any other proceedings,  the party has paid or the party has paid or the party has
2. including applications for interim relief, as is committed to pay is committed to pay paid or is
authorized under these Special Rules not covered to his counsel of to his counsel of committed to pay
record. record. to his counsel of
under any of the foregoing provisions:
record.

shall be P10,000.00.” The prev ailing party shall The prev ailing party shall The prev ailing party
be entitled to be entitled to shall be entitled to
RULE 21: COSTS  an award of costs  an award of costs  an award of
 which shall include  with respect to the costs,
the reasonable proceedings bef ore  which shall
Rule 21.1. Costs. – attorney ’s f ees of the the court, include
prev ailing party  which shall include reasonable
The costs of the ADR proceedings against the the reasonable attorney ’s f ees of
unsuccessf ul party . attorney ’s f ees of the the prev ailing
 shall be borne by the parties equally prev ailing party party against the
 UNLESS otherw ise against the unsuccessf ul
unsuccessf ul party . party .
o agreed upon or
o directed
The court shall determine The court shall determine The court shall
 by the arbitrator or arbitral tribunal. the reasonableness of the the reasonableness of the determine the
claim f or attorney ’s f ees. claim f or attorney ’s f ees. reasonableness of the
claim f or attorney’s
Rule 21.2. On the dismissal of a petition against a ruling of the f ees.
arbitral tribunal on a preliminary question upholding its jurisdiction.
–
Rule 21.6. Government’s exemption from payment of fees. –
If the RTC dismisses the petition
The Republic of the Philippines, its agencies and instrumentalities
o against the ruling of the arbitral tribunal are
o on a preliminary question upholding its jurisdiction,
 exempt from paying legal fees provided in these Special
 it shall also order the petitioner to pay the respondent ADR Rules.
o all reasonable costs and expenses
 incurred in opposing the petition.
Local governments and government controlled corporation

"Costs" shall include reasonable attorney’s fees.  w ith or w ith or w ithout independent charters are not
exempt from paying such fees.
The court shall aw ard costs

 upon application of the respondent RULE 22: APPLICABILITY OF THE RULES OF COURT
 after the petition is denied and the court finds,
 based on proof submitted by respondent,
o that the amount of costs incurred is reasonable.
The provisions of the Rules of Court that are applicable
to the proceedings enumerated in Rule 1.1 of these Special ADR
Rule 21.3. On recognition Rule 21.4. Costs. Rule 21.5. Bill of Rules have either been included and incorporated in these
and enforcement of a Costs.
Special ADR Rules or specifically referred to herein.
foreign arbitral award.
At the time the case is At the time the case is Unless otherwise
submitted to the court for submitted to the court f or agreed upon by the
decision, decision, parties in writing, at
 the party pray ing  the party pray ing the time the case is In connection w ith the above proceedings, the Rules of
f or recognition and f or conf irmation or submitted to the court Evidence shall be liberally construed to achieve the objectives of
enf orcement of a v acation of an f or decision, the Special ADR Rules.
arbitral award

2 0 1 9 . P a g e 32 | 40
Case:
FRUEHAUF vs TECHNOLOGY ELECTRONICS
ASSEMBLY AND MANAGEMENT PACIFIC
CORPORATION (TEAM)
G.R. No. 204197, Novem ber 23, 2016
The Special ADR Rules actually forecloses
against other remedies outside of itself. Thus, a losing
party cannot assail an arbitral aw ard through, a petition
for review under Rule 43 or a petition for certiorari
under Rule 65 because these remedies are not
specifically permitted in the Special ADR Rules.
Question: What happens if the Special ADR Rules is silent?
Answer:
DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES (DENR), vs UNITED PLANNERS
CONSULTANTS, INC. (UPCI),
G.R. NO. 212081, FEBRUARY 23, 2015
Further, let it be clarified that – contrary to
petitioner’s stance – resort to the Rules of Court even
in a suppletory capacity is not allowed. Rule 22.1 of
the Special ADR Rules explicitly provides that “[t]he
provisions of the Rules of Court that are applicable to
the proceedings enumerated in Rule 1.1 of these
Special ADR Rules have either been included and
incorporated in these Special ADR Rules or specifically
referred to herein.”79 Besides, Rule 1.13 thereof
provides that “[i]n situations w here no specific rule is
provided under the Special ADR Rules, the court shall
resolve such matter summarily and be guided by the
spirit and intent of the Special ADR Rules and the
ADR Law s.”
The Special ADR Rules actually forecloses
against other remedies outside of itself. Thus, a losing
party cannot assail an arbitral aw ard through, a petition
for review under Rule 43 or a petition for certiorari
under Rule 65 because these remedies are not
specifically permitted in the Special ADR Rules.
SUMMARY of Rule 22:
The Special ADR Rules are a self -contained body of
rules. The parties cannot invoke remedies and other
provisions from the Rules of Court unless they were
incorporated in the Special ADR Rules.
RULE 23: SEPARABILITY CLAUSE
If, for any reason, the Special ADR Rules shall be held
unconstitutional or invalid, other Rules or provisions hereof which
are not affected thereby, shall continue to be full force and
effect.
RULE 24: TRANSITORY PROVISIONS
Considering its procedural character, the Special ADR
Rules shall be applicable to all pending arbitration, mediation or
other ADR forms covered by the ADR Act, unless the parties
agree otherw ise.
The Special ADR Rules, how ever, may not prejudice or
impair vested rights in accordance with law.
Question: What does the Special ADR Rules cover?
Answer: Considering its procedural character, the Special ADR
Rules shall be applicable to all pending arbitration, mediation or
other ADR forms covered by the ADR Act.
***Applicable to all pending cases starting SEPTEMBER
1, 2009.
Basis:
GR: Article 4 of the New Civil Code - Laws shall have
no retroactive effect, unless the contrary is provided.
XPN: When the law is and that it does
not affect or procedural change
vested rights.
Question: What is the exception to the coverage of Special ADR
Rules
Answer: UNLESS THE PARTIES AGREE OTHERWISE
Basis:
ALTERNATIVE DISPUTE RESOLUTION (ADR)
Dispute resolution processes and techniques
that act as a means for disagreeing parties to come to an
agreement short of litigation. It is a collective term for the
w ays that parties can settle disputes, with (or without) the
help of a third party.
Rule:
The Special ADR Rules, how ever, may not prejudice or impair
vested rights in accordance with law.
VESTED RIGHT is "some right or interest in
the property who has become fixed and established, and
is no longer open to doubt or controversy"; it is an
"immediate fixed right of present and future enjoyment";
it is to be contradistinguished from a right that is
"expectant or contingent. “
Question: Can the Special ADR Rules apply to a proceeding for
the recognition and enforcement of a foreign arbitral award which
was filed before and is still pending when the Special ADR Rules
took effect?
2 0 1 9 . P a g e 33 | 40
Answers: YES.
1. While Rule 24.1 of the Special ADR Rules
states that it shall apply to “all pending
arbitration, mediation or other ADR forms
covered by the ADR Act,” it nonetheless
provides a caveat --- that it shall “not prejudice
or impair vested rights in accordance with
law ”.
On July 3, 2009, the RTC refused to give due
course to the Notice of Appeal because according to
Section 29 of the Arbitration Law , an ordinary appeal
under Rule 41 is not the proper mode of appeal against
an order confirming an arbitral aw ard.
TEAM moved for reconsideration but the
RTC denied the motion on November 15, 2009. Thus,
TEAM led a petition for certiorari before the CA.

2. Also, w hile a trial court’s decision recognizing

and enforcing a foreign arbitral aw ard is
immediately executory, its execution may be
hampered w hen an application is lodged with
the Court of Appeals by the losing party to
avoid its execution pending appeal. Under
Rule 19.22, the Court of Appeals may
otherw ise direct the stay of the foreign arbitral
aw ard.
SUMMARY of Rule 24
GENERAL RULE: ADR Rules shall be applicable to all
pending arbitration, mediation or other ADR forms
covered by the ADR Act.
EXCEPTIONS:
1. the parties agree otherw ise
2. prejudice or impair vested rights in
accordance with law
FRUEHAUF vs TECHNOLOGY ELECTRONICS
ASSEMBLY AND MANAGEMENT PACIFIC
CORPORATION (TEAM)
G.R. No. 204197, Novem ber 23, 2016
TEAM and Fruehauf entered into a lease
contract w hich has a stipulated arbitration clause.
Ruling:
When the ADR Law w as enacted in 2004, it
specified that the appeal shall be made to the CA in
accordance with the rules of procedure to be
promulgated by this Court. The Special ADR Rules
provided that the mode of appeal from the RTC's order
confirming, vacating, or correcting/modifying a domestic
arbitral aw ard was through a petition for review with the
CA. How ever, the Special ADR Rules only took
effect on October 30, 2009.
In the present case, the RTC disallowed
TEAM 's notice of appeal from the former's decision
confirming the arbitral award on July 3, 2009. TEAM
moved for reconsideration which was likewise
denied on November 15, 2009. In the interim, the
Special ADR Rules became effective. Notably, the
Special ADR Rules apply retroactively in light of its
procedural character. TEAM filed its petition
for certiorari soon after.
Nevertheless, w hether 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 aw ard.

Fruehauf filed a case alleging that TEAM

failed to turn over the premises and pay the rent after
the end of the lease agreement.

On December 3, 2008, the arbitral tribunal

aw arded Fruehauf: (1) 8.2 million pesos as (the balance
of) unpaid rent from June 9, 2003 until March 5, 2005;
and (2) 46.8 million pesos as damages.

On April 29, 2009, the

RTC31 found insufficient legal grounds under Sections
24 and 25 of the Arbitration Law to modify or vacate the
aw ard. It denied the petition and CONFIRMED, the
arbitral aw ard. TEAM filed a Notice of Appeal.

2 0 1 9 . P a g e 34 | 40
Court Diversion of Pending Cases
Court-annexed mediation and Judicial Dispute Resolution are both
governed by AM 11-1-6-SC-PHILJA or the consolidated and
revised guidelines to implement the expanded coverage of court-
annexed mediation and judicial dispute resolution.
Under the RA 9285, the parties are empow ered to resolve their
disputes voluntarily so they can come up w ith a compromise
agreement. The urpsoe of court diversion is to empow er the
parties, so thus stated, to actively promote party autonomy in the
resolution of the disputes, or the freedom of the parties to make
their ow n arrangements to settle their disputes. Tow ards this end,
the State shall encourage andactively promote the use of
Alternative Dispute Resolution (ADR) as an important means to
achievespeedy and impartial justice and de-clog court dockets (in
relation to the state policies under RA 9285).
Three Stages of Diversion
Instead of going through the usual court litigation, w e first divert the
process of litigation through diversion. Simply stated, court
diversion is a three-stage process.
The first stage is the Court-Annexed Mediation (CAM) w herethe
judge refers the parties to the Philippine Mediation Center(PMC)
for the mediation of their dispute by trained andaccredited
mediators. CAM is part of pre-trial after the court has already
acquired jurisdiction over the case.
Upon failing to secure a settlement of the dispute during the first
stage, a second attempt is made at the JDR stage.There, the JDR
judge sequentially becomes a mediator conciliator-early neutral
evaluator in a continuing effort to secure a settlement.
Still failing that second attempt, the mediator-judge must turn over
the case to another judge (anew one by raffle or nearest/pair judge)
w ho will try the unsettled case. The trial judge shall continue w ith
the pre-trial proper and, thereafter, proceed to try and decide the
case (so, litigation proper w ill occur). If during the litigation, the
parties are w illing to decide on an amicable settlement again, JDR
may still occur.
The third stage is during the appeal w here covered cases are
referred to the PMC-Appeals Court Mediation (ACM) unit for
mediation. So it’s still possible to appeal during mediation.
The ultimate common end of CAM, JDR and ACM is to restore the
role of the judiciary as the forum of last recourse to be resorted to
only after all prior earnest efforts to arrive at private
accommodation and resolution of disputes have failed.
Mandatory Coverage for CAM and JDR
The follow ing cases shall be 1) referred to Court-Annexed
Mediation (CAM) and 2) be the subject of Judicial Dispute
Resolution (JDR) proceedings:
(1) All civil cases and the civil liability of criminal cases covered
by the Rule on Summary Procedure, including the civil liability
for violation of B.P. 22, except those which by law may not be
compromised (as provided for in the first exam coverage);
(2) Special proceedings for the settlement of estates;
(3) All civil and criminal cases filed w ith a certificate to file action
issued by the Punong Barangay or the Pangkat ng
Tagapagkasundo under the Revised Katarungang
Pambarangay Law
(4) The civil aspect of Quasi-Offenses under Title 14 of the
Revised Penal Code;
(5) The civil aspect of less grave felonies punishable by
correctional penalties not exceeding 6 years
imprisonment,w here the offended party is a private person;
 “Not exceeding 6 years” refers to the maximum penalty,
not the minimum penalty.
(6) The civil aspect of estafa, theft and libel;
 The civil aspect of qualified theft is not mediatable
because of the penalty imposed, w hich is higher
compared to simple theft
(7) All civil cases and probate proceedings, testate and
intestate,brought on appeal from the exclusive and original
jurisdiction granted to the first level courts under Section 33,
par. (1) of the Judiciary Reorganization Act of 1980;
(8) All cases of forcible entry and unlaw ful detainer brought on
appeal from the exclusive and original jurisdiction granted to
the first level courts under Section 33, par. (2) of the Judiciary
Reorganization Act of 1980;
(9) All civil cases involving title to or possession of real property
or an interest therein brought on appeal from the exclusive
and original jurisdiction granted to the first level courts under
Section 33, par.(3) of the Judiciary Reorganization Act of
1980; and
 The MTC has no jurisdiction over accion reivindicatoria,
since the RTC already has the jurisdiction if the
dispossession occurred for more than a year
(10) All habeas corpus cases decided by the first level courts in the
absence of the Regional Trial Court judge, that are brought up
on appeal from the special jurisdiction granted to the first level
courts under Section 35 of the Judiciary Reorganization Act
of 1980;
The following cases shall not be referred to CAM and JDR:
(1) Civil cases w hich by law cannot be compromised (Article
2035, New Civil Code);
(2) Other criminal cases not covered under paragraphs 3 to 6
above;
(3) Habeas Corpus petitions (since appealed cases are w hat are
included)
(4) All cases under Republic Act No. 9262(Violence against
Women and Children); and
(5) Cases w ith pending application for Restraining
Orders/Preliminary Injunctions
 It’s not allow ed because there’s an urgency for hearing,
and if the case is subjected to CAM or JDR, it w ill take
time.
How ever, in cases covered under 1, 4 and 5 w here the parties
inform the court that they have agreed to undergo mediation on
some aspects thereof, e.g., custody of minor children, separation
of property, or support pendente lite, the court shall refer them to
mediation.
 EX. In a VAWC case involving economic abuse, the
parties may ask for mediation as to support pendente lite
w hile the main case is being heard.
AM 15-06-10-SC or the Revised Guidelines for Continuous
Trial of Criminal Cases. Due to this law , the coverage of
mediation has been expanded.
EX. A child w as raped. The criminal aspect of rape w as filed. The
parents and the rapist agreed to mediate on the civil liability to help
raise tuition fees for the child. This case is not enumerated in the
mandatory coverage, so it’s not mediatable.
2 0 1 9 . P a g e 35 | 40
The follow ing cases shall be referred to mediation on the civil
liability unless a settlement is reached earlier in the pre-trial/
preliminary conference:
i. Crimes w here payment may prevent criminal prosecution or may
extinguish criminal liability, such as violations of:
a. B.P. Blg. 22;
b. Court violations SSS Law (R.A. No. 1161, as amended
by R.A No. 8282); and
c. Violations of the PAG-IBIG Law (R.A. No. 9679).
ii. Crimes against property under Title 10 of the Revised Penal
Code (RPC), w here the obligation may be civil in nature, such as:
a) Theft under Art. 308, RPC, cognizable by the first level
courts;
b) Estafa under Art. 315(1 ), RPC, except estafa under Art.
315 (2) and (3);
c) Other forms of swindling under Art.316, RPC;
d) Sw indling of a minor under Art. 317,RPC;
e) Other deceits under Art. 318, RPC;and
f) Malicious mischief under Art. 327 of the RPC
iii. Crimes against honor under Title 13, RPC, w here
the liability may be civil in nature, such as:
a. Libel by means of w ritings or similar means
under Art. 355, RPC;
b. Threatening to publish and offer to present
such publication for a compensation under Art.
356, RPC;
c. Prohibited publication of acts ref erred to in the
course of official proceedings under Art. 357,
RPC;
d. Grave Slander (Grave Oral Defamation) of
serious and insulting nature under Art. 358,
par. 1, RPC
e. Simple Slander (Oral Defamation) - not of a
serious and insulting nature under Art. 358,
par. 2, RPC
f. Grave Slander by Deed - of a serious nature
under Art. 359, par. 1, RPC
g. Simple Slander by Deed - not of a serious
nature under Art. 359, par. 2, RPC
h. Incriminating innocent person under Art. 363,
RPC; L Infriguing against honor under Art.
364, RPC
iv. Libel under R.A. 10175 (Cybercrime Prevention Act
of 2012) w here the liability may be civil in nature;
v. Criminal negligence under Title 14, RPC, w here the
liability inay be civil in nature; and vi. Intellectual
property rights cases where the liability may be civil
in nature.
(c) The referral of the case for mediation to the Philippine
Mediation Center (PMC) Unit shall be made only after
the conduct of the arraignment and the pre-frial/
preliminary conference.
(d) The court shall serve the Order of Referral to the PMC
Unit immediately after the arraignment and the pre-h·ial/
preliminary conference.
(e) The mediation shall be terminated w ithin a non-
extendible period of thirty (30) calendar days from the
date of referral by the court to the PMC Unit. After the
lapse of the mediation period or if mediation fails, trial
shall proceed.
(f) Except those cases mentioned above, criminal cases
subject to the Rule on Summary Procedure shall not be
referred to mediation.
Discussion: Sa mga slander cases, civil aspect is mediatable.
Why? Kasi panagsa ingnan ka ng sorry, luhod lang be sa akong
atubangan be, ma-okay na man ka diba?
Kay panagsa chismis2x lang man na, chismis sa mga kapitbahay
diba? Yung mga facebook, be careful w ith those talaga, maraming
mga cases dyan. Kaya be careful with the chismis2x. hihihi
Take note, only the civil aspect is mediatable, the criminal aspect,
padayon lang gihapon. Memorize katong 10 na inclusion and here
kasi mandatory gihapon to sya.
Take note, referral to mediation is AFTER the arraignment and
PTC. Take note also of the period of mediation, non-extendible
period of thirty (30) calendar days from the date of referral.
How about “criminal cases subject to the Rule on Summary
Procedure shall not be referred to m ediation”, sabi sa
continuous trial hindi daw irefer? In conflict ito sa discussion natin
sa CAM. So w hat will prevail?
I believe ito ang magprevail sa continuous trial kasi ito ang later
rule.
So lets go to the procedure of CAM.
(a) After the last pleading has been filed, the judge shall issue an
order requiring the parties to forthwith appear before the
concerned Philippine Mediation Center (PMC) Unit staff to
start the process for the settlement of their dispute through
mediation. On the same date, the court shall give to the PMC
a copy of the Order for mediation.
(b) Individual parties are required to personally appear for
mediation. In the event they cannot do so, they can send their
representatives w ho must be fully authorized to appear,
negotiate and enter into a compromise, through a Special
Pow er of Attorney
Ma’am : What if the parties cannot appear, if gakulo ang akong
dugo makit-an akong kalaban. Pw ede ba ito? Yes, provided
that may SPA in favor a law yer. Ang SPA dapat
may nakasabi: “fully authorized to appear, negotiate and
enter into a compromise”
(c) Corporations, partnerships, or other juridical entities shall be
represented by a ranking corporate officer fully authorized by
a Board Resolution to offer, negotiate, accept, decide and
enter into a compromise agreement, w ithout need of further
approval by or notification to the authorizing party
Ma’am : Just take note, above kung individual SPA, kung
juridical Board Resolution.
(d) The Order issued shall include a clear w arning that sanctions
may be imposed upon a party for 12 failure to comply
therew ith, in accordance with the Section below on sanctions.
(e) On the date set in the Order, the parties shall proceed to
select a mutually acceptable mediator from among the list of
accredited mediators. If no agreement is reached, the PMC
Unit Staff shall, in the presence of the parties and the
Mediators, choose by lot the one w ho will mediate the dispute
from among the Mediators inside the Unit, ensuring a fair and
equal distribution of cases: Provided, how ever, that in
exceptional circumstances w here special qualifications are
required of the mediator, the parties shall be given an
opportunity to select from the entire list of accredited
2 0 1 9 . P a g e 36 | 40
 mediators.
Ma’am : Kung makapunta kayo sa PMC, Makita no may
listahan dyan ng mga mediators, tapos yan sila, meron yan
silang training, expertise sa pagmediate – may mga pastors,
etc. Ang parties, they are given the chance sino gusto nila
magmediate. But, if no agreement is reached, then ang PMC
Unit Staff ang magpili.
Very im portant TAKE NOTE:
(f) The Mediator shall be considered an officer of the court
w hile performing his duties as such or in connection
therewith
(g) The concerned Mediator shall forthwith start the mediation
process, unless the parties and mediator agree to reset the
initial mediation conference, which shall not be later than five
(5) days from the original date
(h) At the initial conference, the Mediator shall explain to both
parties the mediation process, stressing the benefits of an
early settlement of their dispute based on serving their mutual
interests, rather than the legal positions taken by them
(i) With the consent of both parties, the Mediator may hold
separate caucuses w ith each party to determine their
respective real interests in the dispute. Thereafter, another
joint conference may be held to consider various options that
may resolve the dispute through reciprocal concessions and
on terms that are mutually beneficial to both the parties
(j) The Mediator shall not record in any manner the proceedings
of the joint conferences or of the separate caucuses. No
transcript or minutes of mediation proceedings shall be taken.
If personal notes are taken for guidance, the notes shall be
shredded and destroyed. Should such record exists, they
shall not be admissible as evidence in any other proceedings
(k) If no settlement has been reached at the end of the period
given, the case must be returned to the referring judge.
Question: Are law yers allowed to attend mediation conferences?
Hindi dapat, because the order is for the parties to appear. Hindi
naman ang order kay law yer ang mag-appear. Kay ang purpose ng
law is ang parties ang mag-usap2x. Kay kung may law yers mas
gubot man no? Mas daghan kaayoy legalities.
PEROOO, di naman disallow ed, pwede naman advise pero hindi
active participation.
Also take note, no TSN is available kasi confidential dapat (see
procedure J)
Sanctions
The court, upon recommendation of the Mediator, may impose
sanctions upon a party w ho fails to appear before the Philippine
Mediation Center (PMC) Unit as directed by the referring judge, or
upon any person w ho engages in abusive conduct during
mediation proceedings, as provided for in the Rules of Court as
part of the Pre-Trial and other issuances of the Supreme Court,
including, but not limited to censure, reprimand, contempt,
requiring the absent party to reimburse the appearing party his
costs, including attorney’s fees for that day up to treble such costs,
payable on or before the date of the re-scheduled setting.
Sanctions may also be imposed by the referring judge upon his
ow n initiative or upon motion of the interested
Upon justifiable cause duly proved in the hearing called on the
motion to reconsider filed by the absent party, concurred in by the
concerned mediator, the sanctions imposed may be lifted or set
aside in the sound discretion of the referring judge.
Ma’am : Bakit may sanctions, kasi part acrtually ito ng pre-trial.
Duration of Mediation in the PMC
The Mediator shall have a period of not exceeding thirty (30) days
to complete the mediation process. Such period shall be computed
from the date w hen the parties first appeared for the initial
conference as stated in the Order to appear. An extended period
of another thirty (30) days may be granted by the court, upon
motion filed by the Mediator, w ith the conformity of the parties.
Suspension of periods
The period during w hich the case is undergoing mediation shall be
excluded from the regular and mandatory periods for trial and
rendition of judgment in ordinary cases and in cases under
summary proceedings.
Settlement
If full settlement of the dispute is reached, the parties, assisted by
their respective counsels, shall draft the compromise agreement
w hich shall be submitted to the court for judgment upon
compromise or other appropriate action. Where compliance is
forthwith made, the parties shall instead submit a satisfaction of
claims or a mutual w ithdrawal of the case and, thereafter, the court
shall enter an order dismissing the case.
If partial settlement is reached, the parties shall, w ith the
assistance of counsel, subm it the terms thereof for the
appropriate action of the court, without waiting for resolution of
the unsettled part. In relation to the unsettled part of the dispute,
the court shall proceed to conduct JDR proceedings in accordance
w ith PART THREE hereof where JDR is available.
Lets go to the second stage, Judicial Dispute Resolution
Take note of the New Roles of Judges in JDR:
We say that this is an innovation, this JDR. Why? Because the
judge acts as the mediation, conciliator or early neutral evaluator
or any combination thereof. So sya ang mag-reconcile ng
differences. Kuyaw jud diay si judge kay sya na tanan.
So there is also a skills innovation of a judge in an ADR.
We also have this tw o-judge system. We have the JDR judge
and the Trial Judge. The JDR judge assumes from the filing of the
complaint until JDR processes in the pretrial. The trial judge w ill
preside the pretrial proper if the JDR w ill fail.
Note: Referral to CAM is a prerequisite before JDR. Saka pa
magproceed sa JDR, pero both are conducted before the pretrial
stage kasi second stage pa ang JDR (1st stage is CAM).
Take note also, The JDR judge shall not preside over the trial
of the case when the parties did not settle their dispute at JDR.
Kasi naprejudge nya na yung kaso, MAY BIASES NA. The
parties w ill also be more spontaneous if its not the JDR judge w ill
try the case.
II. Procedure Judicial proceedings shall be divided into two
stages:
2 0 1 9 . P a g e 37 | 40
 (1) from the filing of a complaint to the conduct of CAM and JDR
during the pre-trial stage, and (2) pre-trial proper to trial and
judgment. The judge to w hom the case has been originally raffled,
w ho shall be called the JDR Judge, shall preside over the first
stage. The judge, w ho shall be called the trial judge, shall preside
over the second stage.
At the initial stage of the pre-trial conference, the JDR judge briefs
the parties and counsels of the CAM and JDR processes.
Thereafter, he issues an Order of Referral of the case to CAM and
directs the parties and their counsels to proceed to the PMCU
bringing w ith them a copy of the Order of Referral. The JDR judge
shall include in said Order, or in another Order, the pre-setting of
the case for JDR not earlier than forty-five (45) days from the time
the parties first personally appear at the PMCU so that JDR w ill be
conducted immediately if the parties do not settle at CAM.
All incidents or motions filed during the first stage shall be dealt
w ith by the JDR judge. If JDR is not conducted because of the
failure of the parties to appear, the JDR judge may impose the
appropriate sanctions and shall continue w ith the proceedings of
the case.
If the parties do not settle their dispute at CAM, the parties and their
counsels shall appear at the preset date before the JDR judge, who
w ill then conduct the JDR process as mediator, neutral evaluator
and/or conciliator in order to actively assist and facilitate
negotiations among the parties for them to settle their dispute. As
mediator and conciliator, the judge facilitates the settlement
discussions betw een the parties and tries to reconcile their
differences. As a neutral evaluator, the judge assesses the relative
strengths and w eaknesses of each party's case and makes a non-
binding and impartial evaluation of the chances of each party's
success in the case. On the basis of such neutral evaluation, the
judge persuades the parties to a fair and mutually acceptable
settlement of their dispute.
The JDR judge shall not preside over the trial of the case when
the parties did not settle their dispute at JDR.
III. Courts (phrases emphasized by Ma’am in bold)
So general rule: Dapat ireraffle to another branch ang case for
pretrial proper.
Exception is w hen it comes to single sala courts: before the
com mencement of the JDR proceedings, the parties may file
a joint w ritten m otion requesting that the court of origin
conduct the JDR proceedings and trial.
1. Multiple Sala Court - If the case is not resolved during JDR, it
shall be raffled to another branch for the pre trial proper up to
judgment. For cases w ith pending applications for restraining
orders/preliminary injunctions, the judge to w hom the case was
raffled shall rule on the said applications. During the pre-trial stage,
the judge refers the case to CAM, but if the parties do not settle at
CAM, the case w ill be raffled to another branch for JDR. If the
parties do not settle at JDR, the case w ill be returned to the branch
that ruled on the applications for the pre-trial proper and up to
judgment
2. Single Sala Court. – Unless otherw ise agreed upon as provided
below , the JDR proceedings w ill be conducted by the judge of the
pair court, if any, otherw ise, by the judge of the nearest court as
determined by the concerned Executive Judge. The JDR
proceedings shall be conducted at the station where the case
w as originally filed. The result of the JDR proceedings shall be
referred to the court of origin for appropriate action, e.g. approval
of the compromise agreement, trial, etc. Notw ithstanding the
foregoing, before the commencement of the JDR proceedings,
the parties may file a joint written motion requesting that the
court of origin conduct the JDR proceedings and trial.
3. Family Courts – Unless otherw ise agreed upon as provided
below , the JDR proceedings in areas w here only one court is
designated as a family court, shall be conducted by a judge of
another branch through raffle. However, if there is another family
court in the same area, the family court to w hom the case was
originally raffled shall conduct JDR proceedings and if no
settlement is reached, the other family court shall conduct the pre-
trial proper and trial. Notw ithstanding the foregoing, before
commencement of the JDR proceedings, the parties may file a joint
w ritten motion requesting that the family court to w hich the case
w as originally raffled shall conduct the JDR proceedings and trial.
Despite the non-mediatable nature of the principal case, like
annulment of marriage, other issues such as custody of children,
support, visitation, property relations and guardianship, may be
referred to CAM and JDR to limit the issues for trial.
4. Commercial, Intellectual Property, and Environmental Courts -
Unless otherw ise agreed upon as provided below , the JDR
proceedings in areas w here only one court is designated as
commercial/intellectual property/environmental court, hereafter
referred to as special court, shall be conducted by another judge
through raffle and not by the judge of the special court. Where
settlement is not reached, the judge of the special court shall be
the trial judge. Any incident or motion filed before the pre-trial stage
shall be dealt w ith by the special court that shall refer the case to
CAM. Notw ithstanding the foregoing, before commencement of the
JDR proceedings, the parties may file a joint w ritten motion
requesting that the special courts to w hich the case w as originally
raffled shall conduct the JDR proceedings and trial. \
Let’s go to Midtrial JDR:
So pw ede pala. Kasi of course nagfail ang JDR so nagpretrial
proper na. Then nagtrial na
IV. JDR During Trial Cases may be referred to JDR even during
the trial stage upon written motion of one or both parties indicating
w illingness to discuss a possible compromise. If the motion is
granted, the trial shall be suspended18 and the case referred to
JDR, w hich shall be conducted by another judge through raffle
in m ultiple sala courts. If settlement is reached during JDR, the
JDR court shall take appropriate action thereon, i.e.
approval/disapproval of the compromise agreement. If settlement
is not reached at JDR, the case shall be returned to the referring
court for continuation of trial. In single sala courts, the JDR shall be
conducted by the nearest court (or pair court, if any) regardless of
the level of the latter court. The result of the JDR proceedings shall
be referred to the court of origin for appropriate action, e.g.
approval of the compromise agreement, trial, etc. The parties may,
by joint w ritten motion, despite confidential information that may be
divulged during JDR proceedings, file a request that their case be
not transferred to other courts for JDR and that they agree to have
the trial judge continue the trial should the case not be settled
through JDR.
V. Settlement Period Any Settlement Period declared by the
Supreme Court is understood to include JDR and, therefore, half of
all cases referred to mediation shall be for JDR settlement. The
procedure shall be as stated in Roman Numeral IV above, except
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that no w ritten motion is required from the parties for their case to
be referred to JDR.
VI. Party Participation (pareha lang actually sa CAM)
VIII. Sanctions (again, pareha lang din sa CAM, so see CAM na
lang)
Just for emphasis, yung sa pretrial, ano yung mga sanctions kung
di ka mag-appear? On the part of the plaintiff, pw edeng madismiss
ang kaso WITH PREJUDICE. Kung defendant, pw ede na ipakita
ang evidence w ithout him.
IX. Duration of JDR proceedings To complete the JDR process,
judges of the First Level Courts shall have a period of not
exceeding thirty (30) days , while judges of the Second Level
Courts shall have a period of not exceeding sixty (60) days .
A longer period, however, may be granted upon the discretion
of the JDR judge if there is a high probability of settlement and
upon joint w ritten m otion of the parties. Both periods shall be
computed from the date w hen the parties first appeared for JDR
proceedings as directed in the respective Orders issued by the
judge. As far as practicable, JDR conferences shall be set not more
than tw o (2) w eeks apart so as to afford the parties ample time to
negotiate meaningfully for settlement.
In criminal cases covered by CAM and JDR, w here settlement on
the civil aspect has been reached but the period of payment in
accordance with the terms of settlement exceeds one (1) year, the
case may be archived upon motion of the prosecution, w ith notice
to the private complainant and approval by the judge.
XI. Settlement
A. CIVIL CASES: If full settlement of the dispute is reached, the
parties, assisted by their respective counsels, shall draft the
compromise agreement w hich shall be submitted to the court for
a judgm ent upon compromise, enforceable by execution.
Where full compliance with the terms of the compromise is
forthwith m ade, the parties, instead of subm itting a
com promise agreement, shall submit a satisfaction of claims
or a m utual withdrawal of the parties’ respective claims and
counterclaims. Thereafter, the court shall enter an order
dismissing the case. If partial settlement is reached, the parties
shall, w ith the assistance of counsel, submit the terms thereof for
the court’s approval and rendition of a judgment upon partial
compromise, w hich may be enforced by execution w ithout waiting
for resolution of the unsettled part.
In relation to the unsettled part of the dispute, the court shall
proceed to conduct trial on the m erits of the case should the
parties file a joint m otion for him to do so, despite confidential
information that may have been divulged during the
conciliation/mediation stage of the proceedings. Otherw ise, the
JDR Judge shall turn over the case to a new judge by re-raffle in
multiple sala courts or to the originating court in single sala courts,
for the conduct of pre-trial proper and trial.
B. CRIMINAL CASES: If settlement is reached on the civil aspect
of the criminal case, the parties, assisted by their respective
counsels, shall draft the compromise agreement w hich shall be
submitted to the court for appropriate action.
Action on the criminal aspect of the case w ill be determined by the
Public Prosecutor, subject to the appropriate action of the court. If
settlement is not reached by the parties on the civil aspect of the
criminal case, the JDR judge shall proceed to conduct the trial on
the merits of the case should the parties file a joint w ritten motion
for him to do so, despite confidential information that may have
been divulged during the JDR proceedings.
Otherw ise, the JDR Judge shall turn over the case to a new judge
by re-raffle in multiple sala courts or to the originating court in single
sala courts, for the conduct of pretrial proper and trial.
I. Confidentiality
Any and all matters discussed or communications
made, including requests for mediation, and
documents presented during the mediation
proceedings before the Philippine Mediation Center
or the JDR proceedings before the trial judge, shall
be privileged and confidential, and the same shall
be inadmissible as evidence for any purpose in any
other proceedings. How ever, evidence or
information that is otherwise admissible does
not become inadmissible solely by reason of its
use in mediation or conciliation. Further, the JDR
judge shall not pass any information obtained in the
course of conciliation and early neutral evaluation
to the trial judge or to any other person. This
prohibition shall include all court personnel or any
other person present during such proceedings. All
JDR conferences shall be conducted in private.
II. Role of Law yers in m ediation and in JDR
(permissive lang presence, hindi mandatory)
Proceedings Law yers m ay attend mediation
proceedings in the role of adviser and consultant to
their clients, dropping their combative role in the
adjudicative process, and giving up their dominant
role in judicial trials. They must accept a less
directive role in order to allow the parties more
opportunities to craft their ow n agreement.
In particular, they shall perform the following
functions:
1. Help their clients comprehend the mediation
process and its benefits and allow them to assume
greater personal responsibility in making decisions
for the success of mediation in resolving the
dispute.
2. Discuss w ith their clients the follow ing:
*The substantive issues involved in the dispute.
*Prioritization of resolution in terms of importance to
client.
*Understanding the position of the other side and
the underlying fears, concerns, and needs
underneath that position.
*Need for more information or facts to be gathered
or exchanged w ith the other side for informed
decision making.
*Possible bargaining options but stressing the need
to be open-minded about other possibilities.
*The best, w orst, and most likely alternatives to a
negotiated agreement.
3. Assist in preparing a compromise agreement that
is not contrary to law , morals, good customs, public
2 0 1 9 . P a g e 39 | 40
 order, or public policy so that the same may be
approved by the court, paying particular attention to
issues of voluntary compliance of what have been
agreed upon, or otherw ise to issues of enforcement
in case of breach.

3. Assist, wherever applicable, in the preparation of a

manifestation of satisfaction of claims and mutual
w ithdrawal of complaint and counterclaim as basis
for the court to issue an order of dismissal
Take note of WATNA, BATNA, para madali sya mamemorize.
best, w orst, and most likely alternatives to a negotiated
agreement

Let’s go to the last part, ACM (Appellate Court Mediation)

Coverage of Appellate Court Mediation(MEMORIZE!)

1.Civil cases brought on ordinary appeal or petitionfor review

2.Appeals from final orders, aw ards,judgment,resolutions of

the CTA and quasi-judicial agencies in the exercise of their
quasi-judicial functions through petition for review or certiorari
that questions a decision for having been rendered in grave
abuse of discretion amounting to lack of jurisdiction)

What are these quasi-judicial agencies?

LRA
Office of the President
Civil Aeronautics Board
Bureau of Patents
Financial Administration
Energy Regulatory Board
IC
GSIS
ECC
CIAC (take note!)
Board of Arbitrators

3.Special civil actions for certiorari except those involving pure

questions of law
4.Habeas corpus cases involving custody of minors provided
that it is w ith the consent of the parties and provided that the
minor is not detained for commission of criminal offense
5.Criminal cases cognizable by the Katarungang
Pambarangay under RA 7160 or offenses punishable by
imprisonment not exceeding 1 year or a fine not exceeding
5thousandpesos.

CASES THAT CANNOT BE MEDIATED UNDER ACM

1.Civil cases w hich by law cannot be compromised

2.Criminal cases except those under No. 4 above(habeas

corpus of minors not detained for a criminal offense).

3.Habeas corpus petitions involving custody of minors when

the subject is detained for commission of a criminal offense;

4.Cases w ith pending application for restraining orders/

preliminary injunctions, unless both parties have requested for
mediation.

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