Transcription

01/20/2023

Concept and Brief History

Pre-Colonial Period. Filipinos simply submit their disputes to the decision of their elders, which they
respected and carried out.

Spanish Period. Arbitration in the Philippines when it was a colony if Spain was governed by a few
provisions of the Spanish Ley de Enjuiciamento Civil that allowed the appointment by the parties of
friendly adjusters for the settlement of their differences.

American Period. As part of the U.S. territory, the Philippine Supreme Court followed US jurisprudence
in resolving cases related to arbitration. See Wahl vs Donalson, Sims & Co, GR No. 1085, 16 May 1093;
Allen vs Province of Tayabas, GR No. 12283, July 25, 1918, 38 Phil 356-367.

Philippine Arbitration Laws:

 Articles 2044-49 of the Civil Code of the Philippines

 Republic Act No. 876, the Arbitration Law
 Executive Order No. 1008 (9285), as amended by RA 9285, the Construction Industry Arbitration
Law
 Republic Act No. 9285, the Alternative Dispute Resolution Act of 2004, otherwise known as the
ADR Act
 The UNCITRAL Model Law on International Commercial Arbitration which was adopted by the
ADR Act as the law to govern international commercial arbitration in the Philippines
 IRR of the ADR Act of 2004 (DOJ Circular No. 98 dated 04 December 2009)
 Supreme Court’s A.M. No. 07-11-08-SC 01 September 2009 or the Special Rules of Court on
Alternative Dispute Resolution

ADR Act’s Declared Policy

“to actively promote party autonomy in the resolution of disputes or the freedom of the parties to
make their own arrangements to resolve their disputes. Towards this end, the State shall encourage
and actively promote the use of Alternative Dispute Resolution (ADR) as an important means to
achieve speedy and impartial justice and declog court dockets.”

Q: What is Alternative Dispute Resolution (ADR)?

In general, ADR describes the ways that parties can settle civil disputes with the help of an
independent third party and without the need for a formal court hearing.

Q: Who is an ADR provider?

 ADR providers are institutions or persons accredited as mediator, conciliator, arbitrator,

neutral evaluator or any person exercising similar functions in any Alternative Dispute
Resolution System.
 The parties are given the right to choose non-accredited individuals to act as mediator,
conciliator, arbitrator or neutral evaluator of their dispute. (Section 3, RA 9285)
 Cases:

Wahl v Donaldson, Sims & Co, GR No. 1085, 16 May 1903

Doctrine: A clause in a contract providing that all matters in dispute between the parties shall be
referred to arbitrators and to them alone is contrary to public policy and cannot oust the courts
of jurisdiction.

Allen v Province of Tayabas, GR No. 12283, July 25 1918

Doctrine: Unless the agreement is such as absolutely to close the doors of the courts against the
parties which agreement would be void (Wahl and Wahl vs Donaldson, Sims & Co [1903], 2 Phil
301), courts will look with favor upon such amicable arrangement and will only with great
reluctance interfere to anticipate or nullify the action of the arbitrator.

M.E. Sicat Construction, Inc v Biwater (Malaysia) SDN BHD, GR No. 211448, 17 February 2021

“This Court is very much aware of the State policy to promote and encourage arbitration and
alternative dispute resolution, as well as its importance in achieving speedy justice and
decongestion of the courts dockets. This policy essentially favors arbitration in the
interpretation of arbitration clauses. However, where such interpretation of arbitration clauses
will not result in a just, practical and speedy resolution of the controversy, or cause serious
prejudice to the party that rightfully sought judicial interventions, as in the instant case, courts
shall refrain from ordering prior referral to arbitration.”

Questions during Lecture

Does RA 9285 limit the power of the Supreme to adopt any ADR system?

Answer: Yes, RA 9285 does not limit the Supreme Court to adopt any ADR system.

In fact, under Section 2 of the Act, explicitly provides “xxx This Act shall be without prejudice to the
adoption by the Supreme Court of any ADR system, such as mediation, conciliation, arbitration, or any
combination thereof as a means of achieving speedy and efficient means of resolving cases pending
before all courts in the Philippines which shall be governed by such rules as the Supreme Court may
approve from time to time.”

Accordingly, the Supreme Court issued A.M. No. 07-11-08-SC 01 September 2009 or the Special Rules of
Court on Alternative Dispute Resolution pursuant to Section 2 of RA 9285.