ADR Local Laws

7/24/2019 ADR Local Laws

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REPUBLIC ACT NO. 876

AN ACT TO AUTHORIZE THE MAKING OF ARBITRATION AND SUBMISSION AGREEMENTS,

TO PROVIDE FOR THE APPOINTMENT OF ARBITRATORS AND THE PROCEDURE FOR

ARBITRATION IN CIVIL CONTROVERSIES, AND FOR OTHER PURPOSES

Secti! ".Short Title.- This Act shall be known as "The Arbitration Law."

Secti! #.Persons and matters subject to arbitration.- Two or more persons or parties may submit

to the arbitration of one or more arbitrators any controversy existing between them at the time of the

submission and which may be the subject of an action or the parties to any contract may in such

contract agree to settle by arbitration a controversy thereafter arising between them. !uch

submission or contract shall be valid enforceable and irrevocable save upon such grounds as exist

at law for the revocation of any contract.

!uch submission or contract may include uestion arising out of valuations appraisals or other

controversies which may be collateral incidental precedent or subseuent to any issue between theparties.

A controversy cannot be arbitrated where one of the parties to the controversy is an infant or a

person judicially declared to be incompetent unless the appropriate court having jurisdiction approve

a petition for permission to submit such controversy to arbitration made by the general guardian or

guardian ad litem of the infant or of the incompetent.

#ut where a person capable of entering into a submission or contract has knowingly entered into the

same with a person incapable of so doing the objection on the ground of incapacity can be taken

only in behalf of the person so incapacitated.

Secti! $.Controversies or cases not subject to the provisions of this Act.- This Act shall not apply

to controversies and to cases which are subject to the jurisdiction of the $ourt of %ndustrial &elations

or which have been submitted to it as provided by $ommonwealth Act 'umbered (ne hundred and

three as amended.

Secti! %.Form of arbitration agreement.- A contract to arbitrate a controversy thereafter arising

between the parties as well as a submission to arbitrate an existing controversy shall be in writing

and subscribed by the party sought to be charged or by his lawful agent.

The making of a contract or submission for arbitration described in section two hereof providing for

arbitration of any controversy shall be deemed a consent of the parties to the jurisdiction of the$ourt of )irst %nstance of the province or city where any of the parties resides to enforce such

contract or submission.

Secti! &.Preliminary procedure.- An arbitration shall be instituted by*

+a, %n the case of a contract to arbitrate future controversies by the service by either party

upon the other of a demand for arbitration in accordance with the contract. !uch demand


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shall be set forth the nature of the controversy the amount involved if any and the relief

sought together with a true copy of the contract providing for arbitration. The demand shall

be served upon any party either in person or by registered mail. %n the event that the contract

between the parties provides for the appointment of a single arbitrator the demand shall be

set forth a specific time within which the parties shall agree upon such arbitrator. %f the

contract between the parties provides for the appointment of three arbitrators one to beselected by each party the demand shall name the arbitrator appointed by the party making

the demand and shall reuire that the party upon whom the demand is made shall within

fifteen days after receipt thereof advise in writing the party making such demand of the name

of the person appointed by the second party such notice shall reuire that the two arbitrators

so appointed must agree upon the third arbitrator within ten days from the date of such

notice.

+b, %n the event that one party defaults in answering the demand the aggrieved party may

file with the $lerk of the $ourt of )irst %nstance having jurisdiction over the parties a copy of

the demand for arbitration under the contract to arbitrate with a notice that the original

demand was sent by registered mail or delivered in person to the party against whom theclaim is asserted. !uch demand shall set forth the nature of the controversy the amount

involved if any and the relief sought and shall be accompanied by a true copy of the

contract providing for arbitration.

+c, %n the case of the submission of an existing controversy by the filing with the $lerk of the

$ourt of )irst %nstance having jurisdiction of the submission agreement setting forth the

nature of the controversy and the amount involved if any. !uch submission may be filed by

any party and shall be duly executed by both parties.

+d, %n the event that one party neglects fails or refuses to arbitrate under a submission

agreement the aggrieved party shall follow the procedure prescribed in subparagraphs +a,and +b, of this section.

Secti! 6.Hearing by court.- A party aggrieved by the failure neglect or refusal of another to

perform under an agreement in writing providing for arbitration may petition the court for an order

directing that such arbitration proceed in the manner provided for in such agreement. )ive days

notice in writing of the hearing of such application shall be served either personally or by registered

mail upon the party in default. The court shall hear the parties and upon being satisfied that the

making of the agreement or such failure to comply therewith is not in issue shall make an order

directing the parties to proceed to arbitration in accordance with the terms of the agreement. %f the

making of the agreement or default be in issue the court shall proceed to summarily hear such issue.

%f the finding be that no agreement in writing providing for arbitration was made or that there is nodefault in the proceeding thereunder the proceeding shall be dismissed. %f the finding be that a

written provision for arbitration was made and there is a default in proceeding thereunder an order

shall be made summarily directing the parties to proceed with the arbitration in accordance with the

terms thereof.

The court shall decide all motions petitions or applications filed under the provisions of this Act

within ten days after such motions petitions or applications have been heard by it.


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Secti! 7.Stay of civil action.- %f any suit or proceeding be brought upon an issue arising out of an

agreement providing for the arbitration thereof the court in which such suit or proceeding is pending

upon being satisfied that the issue involved in such suit or proceeding is referable to arbitration shall

stay the action or proceeding until an arbitration has been had in accordance with the terms of the

agreement* rovided That the applicant for the stay is not in default in proceeding with such

arbitration.

Secti! 8.Appointment of arbitrators.- %f in the contract for arbitration or in the submission

described in section two provision is made for a method of naming or appointing an arbitrator or

arbitrators such method shall be followed but if no method be provided therein the $ourt of )irst

%nstance shall designate an arbitrator or arbitrators.

The $ourt of )irst %nstance shall appoint an arbitrator or arbitrators as the case may be in the

following instances*

+a, %f the parties to the contract or submission are unable to agree upon a single arbitrator or

+b, %f an arbitrator appointed by the parties is unwilling or unable to serve and his successor

has not been appointed in the manner in which he was appointed or

+c, %f either party to the contract fails or refuses to name his arbitrator within fifteen days after

receipt of the demand for arbitration or

+d, %f the arbitrators appointed by each party to the contract or appointed by one party to the

contract and by the proper $ourt shall fail to agree upon or to select the third arbitrator.

+e, The court shall in its discretion appoint one or three arbitrators according to the

importance of the controversy involved in any of the preceding cases in which the agreementis silent as to the number of arbitrators.

+f, Arbitrators appointed under this section shall either accept or decline their appointments

within seven days of the receipt of their appointments. %n case of declination or the failure of

an arbitrator or arbitrators to duly accept their appointments the parties or the court as the

case may be shall proceed to appoint a substitute or substitutes for the arbitrator or

arbitrators who decline or failed to accept his or their appointments.

Secti! '.Appointment of additional arbitrators.- /here a submission or contract provides that two

or more arbitrators therein designated or to be thereafter appointed by the parties may select or

appoint a person as an additional arbitrator the selection or appointment must be in writing. !uchadditional arbitrator must sit with the original arbitrators upon the hearing.

Secti! "(.Qualifications of arbitrators.- Any person appointed to serve as an arbitrator must be of

legal age in full-enjoyment of his civil rights and know how to read and write. 'o person appointed

to served as an arbitrator shall be related by blood or marriage within the sixth degree to either party

to the controversy. 'o person shall serve as an arbitrator in any proceeding if he has or has had

financial fiduciary or other interest in the controversy or cause to be decided or in the result of the


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proceeding or has any personal bias which might prejudice the right of any party to a fair and

impartial award.

'o party shall select as an arbitrator any person to act as his champion or to advocate his cause.

%f after appointment but before or during hearing a person appointed to serve as an arbitrator shalldiscover any circumstances likely to create a presumption of bias or which he believes might

disualify him as an impartial arbitrator the arbitrator shall immediately disclose such information to

the parties. Thereafter the parties may agree in writing*

+a, to waive the presumptive disualifying circumstances or

+b, to declare the office of such arbitrator vacant. Any such vacancy shall be filled in the

same manner as the original appointment was made.

Secti! "".Challenge of arbitrators.- The arbitrators may be challenged only for the reasons

mentioned in the preceding section which may have arisen after the arbitration agreement or wereunknown at the time of arbitration.

The challenge shall be made before them.

%f they do not yield to the challenge the challenging party may renew the challenge before the $ourt

of )irst %nstance of the province or city in which the challenged arbitrator or any of them if there be

more than one resides. /hile the challenging incident is discussed before the court the hearing or

arbitration shall be suspended and it shall be continued immediately after the court has delivered an

order on the challenging incident.

Secti! "#.Procedure by arbitrators.- !ubject to the terms of the submission or contract if any arespecified therein are arbitrators selected as prescribed herein must within five days after

appointment if the parties to the controversy reside within the same city or province or within fifteen

days after appointment if the parties reside in different provinces set a time and place for the

hearing of the matters submitted to them and must cause notice thereof to be given to each of the

parties. The hearing can be postponed or adjourned by the arbitrators only by agreement of the

parties otherwise adjournment may be ordered by the arbitrators upon their own motion only at the

hearing and for good and sufficient cause. 'o adjournment shall extend the hearing beyond the day

fixed in the submission or contract for rendering the award unless the time so fixed is extended by

the written agreement of the parties to the submission or contract or their attorneys or unless the

parties have continued with the arbitration without objection to such adjournment.

The hearing may proceed in the absence of any party who after due notice fails to be present at

such hearing or fails to obtain an adjournment thereof. An award shall not be made solely on the

default of a party. The arbitrators shall reuire the other party to submit such evidence as they may

reuire for making an award.

'o one other than a party to said arbitration or a person in the regular employ of such party duly

authori0ed in writing by said party or a practicing attorney-at-law shall be permitted by the


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arbitrators to represent before him or them any party to the arbitration. Any party desiring to be

represented by counsel shall notify the other party or parties of such intention at least five days prior

to the hearing.

The arbitrators shall arrange for the taking of a stenographic record of the testimony when such a

record is reuested by one or more parties and when payment of the cost thereof is assumed bysuch party or parties.

ersons having a direct interest in the controversy which is the subject of arbitration shall have the

right to attend any hearing but the attendance of any other person shall be at the discretion of the

arbitrators.

Secti! "$.ath of arbitrators.- #efore hearing any testimony arbitrators must be sworn by any

officer authori0ed by law to administer an oath faithfully and fairly to hear and examine the matters

in controversy and to make a just award according to the best of their ability and understanding.

Arbitrators shall have the power to administer the oaths to all witnesses reuiring them to tell the

whole truth and nothing but the truth in any testimony which they may give in any arbitration hearing.This oath shall be reuired of every witness before any of his testimony is heard.

Secti! "%.Subpoena and subpoena duces tecum.- Arbitrators shall have the power to reuire any

person to attend a hearing as a witness. They shall have the power to subpoena witnesses and

documents when the relevancy of the testimony and the materiality thereof has been demonstrated

to the arbitrators. Arbitrators may also reuire the retirement of any witness during the testimony of

any other witness. All of the arbitrators appointed in any controversy must attend all the hearings in

that matter and hear all the allegations and proofs of the parties but an award by the majority of

them is valid unless the concurrence of all of them is expressly reuired in the submission or

contract to arbitrate. The arbitrator or arbitrators shall have the power at any time before rendering

the award without prejudice to the rights of any party to petition the court to take measures tosafeguard and1or conserve any matter which is the subject of the dispute in arbitration.

Secti! "&.Hearing by arbitrators.- Arbitrators may at the commencement of the hearing ask both

parties for brief statements of the issues in controversy and1or an agreed statement of facts.

Thereafter the parties may offer such evidence as they desire and shall produce such additional

evidence as the arbitrators shall reuire or deem necessary to an understanding and determination

of the dispute. The arbitrators shall be the sole judge of the relevancy and materiality of the evidence

offered or produced and shall not be bound to conform to the &ules of $ourt pertaining to evidence.

Arbitrators shall receive as exhibits in evidence any document which the parties may wish to submit

and the exhibits shall be properly identified at the time of submission. All exhibits shall remain in the

custody of the $lerk of $ourt during the course of the arbitration and shall be returned to the partiesat the time the award is made. The arbitrators may make an ocular inspection of any matter or

premises which are in dispute but such inspection shall be made only in the presence of all parties

to the arbitration unless any party who shall have received notice thereof fails to appear in which

event such inspection shall be made in the absence of such party.

Secti! "6.!riefs.- At the close of the hearings the arbitrators shall specifically inuire of all parties

whether they have any further proof or witnesses to present upon the receipt of a negative reply


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from all parties the arbitrators shall declare the hearing closed unless the parties have signified an

intention to file briefs. Then the hearing shall be closed by the arbitrations after the receipt of briefs

and1or reply briefs. 2efinite time limit for the filing of such briefs must be fixed by the arbitrators at

the close of the hearing. #riefs may filed by the parties within fifteen days after the close of the oral

hearings the reply briefs if any shall be filed within five days following such fifteen-day period.

Secti! "7."eopening of hearing.- The hearing may be reopened by the arbitrators on their own

motion or upon the reuest of any party upon good cause shown at any time before the award is

rendered. /hen hearings are thus reopened the effective date for the closing of the hearings shall

be the date of the closing of the reopened hearing.

Secti! "8.Proceeding in lieu of hearing.- The parties to a submission or contract to arbitrate may

by written agreement submit their dispute to arbitration by other than oral hearing. The parties may

submit an agreed statement of facts. They may also submit their respective contentions to the duly

appointed arbitrators in writing this shall include a statement of facts together with all documentary

proof. arties may also submit a written argument. 3ach party shall provide all other parties to the

dispute with a copy of all statements and documents submitted to the arbitrators. 3ach party shallhave an opportunity to reply in writing to any other party4s statements and proofs but if such party

fails to do so within seven days after receipt of such statements and proofs he shall be deemed to

have waived his right to reply. 5pon the delivery to the arbitrators of all statements and documents

together with any reply statements the arbitrators shall declare the proceedings in lieu of hearing

closed.

Secti! "'.Time for rendering a#ard.- 5nless the parties shall have stipulated by written

agreement the time within which the arbitrators must render their award the written award of the

arbitrators shall be rendered within thirty days after the closing of the hearings or if the oral hearings

shall have been waived within thirty days after the arbitrators shall have declared such proceedings

in lieu of hearing closed. This period may be extended by mutual consent of the parties.alf$itc

Secti! #(.Form and contents of a#ard.- The award must be made in writing and signed and

acknowledged by a majority of the arbitrators if more than one and by the sole arbitrator if there is

only one. 3ach party shall be furnished with a copy of the award. The arbitrators in their award may

grant any remedy or relief which they deem just and euitable and within the scope of the agreement

of the parties which shall include but not be limited to the specific performance of a contract.

%n the event that the parties to an arbitration have during the course of such arbitration settled their

dispute they may reuest of the arbitrators that such settlement be embodied in an award which

shall be signed by the arbitrators. 'o arbitrator shall act as a mediator in any proceeding in which he

is acting as arbitrator and all negotiations towards settlement of the dispute must take place withoutthe presence of the arbitrators.

The arbitrators shall have the power to decide only those matters which have been submitted to

them. The terms of the award shall be confined to such disputes.

The arbitrators shall have the power to assess in their award the expenses of any party against

another party when such assessment shall be deemed necessary.


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Secti! #".Fees of arbitration.- The fees of the arbitrators shall be fifty pesos per day unless the

parties agree otherwise in writing prior to the arbitration.

Secti! ##.Arbitration deemed a special proceeding.- Arbitration under a contract or submission

shall be deemed a special proceeding of which the court specified in the contract or submission or

if none be specified the $ourt of )irst %nstance for the province or city in which one of the partiesresides or is doing business or in which the arbitration was held shall have jurisdiction. Any

application to the court or a judge thereof hereunder shall be made in manner provided for the

making and hearing of motions except as otherwise herein expressly provided.

Secti! #$.Confirmation of a#ard.- At any time within one month after the award is made any

party to the controversy which was arbitrated may apply to the court having jurisdiction as provided

in section twenty-eight for an order confirming the award and thereupon the court must grant such

order unless the award is vacated modified or corrected as prescribed herein. 'otice of such

motion must be served upon the adverse party or his attorney as prescribed by law for the service of

such notice upon an attorney in action in the same court.

Secti! #%.%rounds for vacating a#ard.- %n any one of the following cases the court must make an

order vacating the award upon the petition of any party to the controversy when such party proves

affirmatively that in the arbitration proceedings*

+a, The award was procured by corruption fraud or other undue means or

+b, That there was evident partiality or corruption in the arbitrators or any of them or

+c, That the arbitrators were guilty of misconduct in refusing to postpone the hearing upon

sufficient cause shown or in refusing to hear evidence pertinent and material to the

controversy that one or more of the arbitrators was disualified to act as such under sectionnine hereof and wilfully refrained from disclosing such disualifications or of any other

misbehavior by which the rights of any party have been materially prejudiced or

+d, That the arbitrators exceeded their powers or so imperfectly executed them that a

mutual final and definite award upon the subject matter submitted to them was not made.

/here an award is vacated the court in its discretion may direct a new hearing either before the

same arbitrators or before a new arbitrator or arbitrators to be chosen in the manner provided in the

submission or contract for the selection of the original arbitrator or arbitrators and any provision

limiting the time in which the arbitrators may make a decision shall be deemed applicable to the new

arbitration and to commence from the date of the court4s order.

/here the court vacates an award costs not exceeding fifty pesos and disbursements may be

awarded to the prevailing party and the payment thereof may be enforced in like manner as the

payment of costs upon the motion in an action.


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Secti! #&.%rounds for modifying or correcting a#ard.- %n any one of the following cases the court

must make an order modifying or correcting the award upon the application of any party to the

controversy which was arbitrated*

+a, /here there was an evident miscalculation of figures or an evident mistake in the

description of any person thing or property referred to in the award or

+b, /here the arbitrators have awarded upon a matter not submitted to them not affecting

the merits of the decision upon the matter submitted or

+c, /here the award is imperfect in a matter of form not affecting the merits of the

controversy and if it had been a commissioner4s report the defect could have been

amended or disregarded by the court.

The order may modify and correct the award so as to effect the intent thereof and promote justice

between the parties.

Secti! #6.&otion to vacate' modify or correct a#ard( #hen made.- 'otice of a motion to vacate

modify or correct the award must be served upon the adverse party or his counsel within thirty days

after award is filed or delivered as prescribed by law for the service upon an attorney in an action.

Secti! #7.)udgment.- 5pon the granting of an order confirming modifying or correcting an award

judgment may be entered in conformity therewith in the court wherein said application was filed.

$osts of the application and the proceedings subseuent thereto may be awarded by the court in its

discretion. %f awarded the amount thereof must be included in the judgment.

Secti! #8.Papers to accompany motion to confirm' modify' correct' or vacate a#ard.- The party

moving for an order confirming modifying correcting or vacating an award shall at the time thatsuch motion is filed with the court for the entry of judgment thereon also file the following papers with

the $lerk of $ourt

+a, The submission or contract to arbitrate the appointment of the arbitrator or arbitrators

and each written extension of the time if any within which to make the award.

+b, A verified of the award.

+c, 3ach notice affidavit or other paper used upon the application to confirm modify correct

or vacate such award and a copy of each of the court upon such application.

The judgment shall be docketed as if it were rendered in an action.

The judgment so entered shall have the same force and effect in all respects as and be subject to

all the provisions relating to a judgment in an action and it may be enforced as if it had been

rendered in the court in which it is entered.


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Secti! #'.Appeals.- An appeal may be taken from an order made in a proceeding under this Act

or from a judgment entered upon an award through certiorari proceedings but such appeals shall be

limited to uestions of law. The proceedings upon such an appeal including the judgment thereon

shall be governed by the &ules of $ourt in so far as they are applicable.

Secti! $(.*eath of party.- /here a party dies after making a submission or a contract to arbitrateas prescribed in this Act the proceedings may be begun or continued upon the application of or

notice to his executor or administrator or temporary administrator of his estate. %n any such case

the court may issue an order extending the time within which notice of a motion to confirm vacate

modify or correct an award must be served. 5pon confirming an award where a party has died since

it was filed or delivered the court must enter judgment in the name of the original party and the

proceedings thereupon are the same as where a party dies after a verdict.

Secti! $"."epealing clause.- The provisions of chapters one and two Title 6%7 of the $ivil $ode

shall remain in force. All other laws and parts of laws inconsistent with this Act are hereby repealed.

%f any provision of this Act shall be held invalid the remainder that shall not be affected thereby.

Secti! $#.+ffectivity.- This Act shall take effect six months after its approval.

Approved* 8une 9: 9:;>D for mediated dispute outside of the $%A$.

CHAPTER $ / OTHER ADR FORMS

SEC. "8. Referral of Disute to ot!er ADR 'orms. - The parties may agree to refer one ormore or all issues arising in a dispute or during its pendency to other forms of A2& such asbut not limited to +a, the evaluation of a third person or +b, a mini-trial +c, mediation-arbitration or a combination thereof.

For purposes of this Act, the use of other ADR forms shall be governed by

Chapter 2 of this Act except where it is combined with arbitration in which case

it shall likewise be governed by Chapter of this Act!

CHAPTER & / DOMESTIC ARBITRATION

SEC. $#. La( Governing Domestic Arbitration. - 2omestic arbitration shall continue to begoverned by &epublic Act 'o. DE otherwise known as "The Arbitration Law" as amendedby this $hapter. The term "domestic arbitration" as used herein shall mean an arbitrationthat is not international as defined in Article +


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LEONARDO A. 1UISUMBINGAssociate 8ustice

CONSUELO NARES/SANTIAGOAssociate 8ustice

ANTONIO T. CARPIOAssociate 8ustice

RENATO C. CORONAAssociate 8ustice

CONCHITA CARPIO MORALESAssociate 8ustice

MINITA V. CHICO/NAZARIOAssociate 8ustice

PRESBITERO 2. VELASCO, 2R.Associate 8ustice

ANTONIO EDUARDO B. NACHURAAssociate 8ustice

TERESITA 2. LEONARDO/DE CASTROAssociate 8ustice

ARTURO D. BRIONAssociate 8ustice

DIOSDADO M. PERALTAAssociate 8ustice

LUCAS P. BERSAMINAssociate 8ustice

MARIANO C. DEL CASTILLOAssociate 8ustice

ROBERTO A. ABADAssociate 8ustice

SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION

PART I

GENERAL PROVISIONS AND POLICIES

RULE "3 GENERAL PROVISIONS

R*e ".".Subject matter and governing rules.-The !pecial &ules of $ourt on Alternative 2ispute&esolution +the "!pecial A2& &ules", shall apply to and govern the following cases*

a. &elief on the issue of 3xistence 7alidity or 3nforceability of the Arbitration Agreement


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b. &eferral to Alternative 2ispute &esolution +"A2&",

c. %nterim Beasures of rotection

d. Appointment of Arbitrator

e. $hallenge to Appointment of Arbitrator

f. Termination of Bandate of Arbitrator

g. Assistance in Taking 3vidence

h. $onfirmation $orrection or 7acation of Award in 2omestic Arbitration

i. &ecognition and 3nforcement or !etting Aside of an Award in %nternational $ommercialArbitration

j. &ecognition and 3nforcement of a )oreign Arbitral Award

k. $onfidentiality1rotective (rders and

l. 2eposit and 3nforcement of Bediated !ettlement Agreements.

R*e ".#.,ature of the proceedings.-All proceedings under the !pecial A2& &ules are specialproceedings.

R*e ".$.Summary proceedings in certain cases.-The proceedings in the following instances aresummary in nature and shall be governed by this provision*

a. 8udicial &elief %nvolving the %ssue of 3xistence 7alidity or 3nforceability of the ArbitrationAgreement

b. &eferral to A2&

c. %nterim Beasures of rotection

d. Appointment of Arbitrator

e. $hallenge to Appointment of Arbitrator

f. Termination of Bandate of Arbitrator

g. Assistance in Taking 3vidence

h. $onfidentiality1rotective (rders and

i. 2eposit and 3nforcement of Bediated !ettlement Agreements.


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+A, Service and filing of petition in summary proceedings.-The petitioner shall serve either bypersonal service or courier a copy of the petition upon the respondent before the filing thereof. roofof service shall be attached to the petition filed in court.

)or personal service proof of service of the petition consists of the affidavit of the person whoeffected service stating the time place and manner of the service on the respondent. )or service by

courier proof of service consists of the signed courier proof of delivery. %f service is refused or hasfailed the affidavit or delivery receipt must state the circumstances of the attempted service andrefusal or failure thereof.

+#, ,otice.-3xcept for cases involving &eferral to A2& and $onfidentiality1rotective (rders madethrough motions the court shall if it finds the petition sufficient in form and substance send notice tothe parties directing them to appear at a particular time and date for the hearing thereof which shallbe set no later than five +;, days from the lapse of the period for filing the opposition or comment.The notice to the respondent shall contain a statement allowing him to file a comment or oppositionto the petition within fifteen +9;, days from receipt of the notice.

The motion filed pursuant to the rules on &eferral to A2& or $onfidentiality1rotective (rders shall

be set for hearing by the movant and contain a notice of hearing that complies with the reuirementsunder &ule 9; of the &ules of $ourt on motions.

+$, Summary hearing. - %n all cases as far as practicable the summary hearing shall be conductedin one +9, day and only for purposes of clarifying facts.

3xcept in cases involving &eferral to A2& or $onfidentiality1rotective (rders made throughmotions it shall be the court that sets the petition for hearing within five +;, days from the lapse ofthe period for filing the opposition or comment.

+2, "esolution. - The court shall resolve the matter within a period of thirty +, days from the day ofthe hearing.

R*e ".%.-erification and submissions. -Any pleading motion opposition comment defense orclaim filed under the !pecial A2& &ules by the proper party shall be supported by verifiedstatements that the affiant has read the same and that the factual allegations therein are true andcorrect of his own personal knowledge or based on authentic records and shall contain as annexesthe supporting documents.

The annexes to the pleading motion opposition comment defense or claim filed by the properparty may include a legal brief duly verified by the lawyer submitting it stating the pertinent factsthe applicable law and jurisprudence to justify the necessity for the court to rule upon the issueraised.

R*e ".&.Certification Against Forum Shopping. - A $ertification Against )orum !hopping is onemade under oath made by the petitioner or movant* +a, that he has not theretofore commenced anyaction or filed any claim involving the same issues in any court tribunal or uasi-judicial agency andto the best of his knowledge no such other action or claim is pending therein +b, if there is suchother pending action or claim a complete statement of the present status thereof and +c, if heshould thereafter learn that the same or similar action or claim has been filed or is pending he shallreport that fact within five +;, days therefrom to the court wherein his aforementioned petition ormotion has been filed.


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A $ertification Against )orum !hopping shall be appended to all initiatory pleadings except a Botionto &efer the 2ispute to Alternative 2ispute &esolution.

R*e ".6.Prohibited submissions. - The following pleadings motions or petitions shall not beallowed in the cases governed by the !pecial A2& &ules and shall not be accepted for filing by the$lerk of $ourt*

a. Botion to dismiss

b. Botion for bill of particulars

c. Botion for new trial or for reopening of trial

d. etition for relief from judgment

e. Botion for extension except in cases where an ex-parte temporary order of protection hasbeen issued

f. &ejoinder to reply

g. Botion to declare a party in default and

h. Any other pleading specifically disallowed under any provision of the !pecial A2& &ules.

The court shall motu proprioorder a pleading1motion that it has determined to be dilatory in naturebe expunged from the records.

R*e ".7.Computation of time. - %n computing any period of time prescribed or allowed by the!pecial A2& &ules or by order of the court or by any applicable statute the day of the act or eventfrom which the designated period of time begins to run is to be excluded and the date ofperformance included. %f the last day of the period as thus computed falls on a !aturday a !undayor a legal holiday in the place where the court sits the time shall not run until the next working day.

!hould an act be done which effectively interrupts the running of the period the allowable periodafter 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.

R*e ".8.Service and filing of pleadings' motions and other papers in non$summary proceedings. -The initiatory pleadings shall be filed directly with the court. The court will then cause the initiatorypleading to be served upon the respondent by personal service or courier. /here an action isalready pending pleadings motions and other papers shall be filed and1or served by the concerned

party by personal service or courier. /here courier services are not available resort to registeredmail is allowed.

+A, Proof of filing. - The filing of a pleading shall be proved by its existence in the record of the case.%f it is not in the record but is claimed to have been filed personally the filing shall be proved by thewritten or stamped acknowledgment of its filing by the clerk of court on a copy of the same if filed bycourier by the proof of delivery from the courier company.


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+#, Proof of service. - roof of personal service shall consist of a written admission by the partyserved or the official return of the server or the affidavit of the party serving containing a fullstatement of the date place and manner of service. %f the service is by courier proof thereof shallconsist of an affidavit of the proper person stating facts showing that the document was depositedwith the courier company in a sealed envelope plainly addressed to the party at his office if knownotherwise at his residence with postage fully pre-paid and with instructions to the courier to

immediately provide proof of delivery.

+$, Filing and service by electronic means and proof thereof. - )iling and service of pleadings byelectronic transmission may be allowed by agreement of the parties approved by the court. %f thefiling or service of a pleading or motion was done by electronic transmission proof of filing andservice shall be made in accordance with the &ules on 3lectronic 3vidence.

R*e ".'.,o summons. - %n cases covered by the !pecial A2& &ules a court acuires authority toact on the petition or motion upon proof of jurisdictional facts i.e. that the respondent was furnisheda 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 writing by the server and shall set forth the manner place and date of service.

+#, !urden of proof. - The burden of showing that a copy of the petition and the notice of hearingwere served on the respondent rests on the petitioner.

The technical rules on service of summons do not apply to the proceedings under the !pecial A2&&ules. %n instances where the respondent whether a natural or a juridical person was not personallyserved with a copy of the petition and notice of hearing in the proceedings contemplated in the firstparagraph of &ule 9.< +#, or the motion in proceedings contemplated in the second paragraph of&ule 9.< +#, the method of service resorted to must be such as to reasonably ensure receipt thereofby the respondent to satisfy the reuirement of due process.

R*e "."(.Contents of petitionmotion. - The initiatory pleading in the form of a verified petition ormotion in the appropriate case where court proceedings have already commenced shall include thenames of the parties their addresses the necessary allegations supporting the petition and therelief+s, sought.

R*e "."".*efinition. - The following terms shall have the following meanings*

a. "A2& Laws" refers to the whole body of A2& laws in the hilippines.

b. "Appointing Authority" shall mean the person or institution named in the arbitrationagreement as the appointing authority or the regular arbitration institution under whose rulethe arbitration is agreed to be conducted. /here the parties have agreed to submit theirdispute to institutional arbitration rules and unless they have agreed to a different procedurethey shall be deemed to have agreed to procedure under such arbitration rules for theselection and appointment of arbitrators. %n ad hoc arbitration the default appointment ofarbitrators shall be made by the 'ational resident of the %ntegrated #ar of the hilippines orhis duly authori0ed representative.

c. "Authenticate" means to sign execute or use a symbol or encrypt a record in whole or inpart intended to identify the authenticating party and to adopt accept or establish theauthenticity of a record or term.


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d. ")oreign Arbitral Award" is one made in a country other than the hilippines.

e. "Legal #rief" is a written legal argument submitted to a court outlining the facts derivedfrom the factual statements in the witnessGs statements of fact and citing the legal authoritiesrelied upon by a party in a case submitted in connection with petitions counter-petitions +i.e.petitions to vacate or to set aside and1or to correct1modify in opposition to petitions to confirm

or to recogni0e and enforce or petitions to confirm or to recogni0e and enforce in oppositionto petitions to vacate or set aside and1or correct1modify, motions evidentiary issues andother matters that arise during the course of a case. The legal brief shall state the applicablelaw and the relevant jurisprudence and the legal arguments in support of a partyGs position inthe case.

f. "7erification" shall mean a certification under oath by a party or a person who has authorityto act for a party that he has read the pleading1motion and that he certifies to the truth of thefacts stated therein on the basis of his own personal knowledge or authentic documents inhis possession. /hen made by a lawyer verification shall mean a statement under oath by alawyer signing a pleading1motion for delivery to the $ourt or to the parties that he personallyprepared the pleading1motion 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 forrelief therein and that the pleading1motion is filed in good faith and is not interposed fordelay.

R*e "."#.Applicability of Part // on Specific Court "elief. - art %% of the !pecial A2& &ules on!pecific $ourt &elief insofar as it refers to arbitration shall also be applicable to other forms of A2&.

R*e "."$. Sirit and intent of t!e Secial ADR Rules.H %n situations where no specific rule isprovided under the !pecial A2& &ules the court shall resolve such matter summarily and be guidedby the spirit and intent of the !pecial A2& &ules and the A2& Laws.

RULE #3 STATEMENT OF POLICIES

R*e #.".%eneral policies. - %t is the policy of the !tate to actively promote the use of various modesof A2& and to respect party autonomy or the freedom of the parties to make their own arrangementsin the resolution of disputes with the greatest cooperation of and the least intervention from thecourts. To this end the objectives of the !pecial A2& &ules are to encourage and promote the useof A2& particularly arbitration and mediation as an important means to achieve speedy andefficient 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 !pecial A2& &ules.$ourts shall intervene only in the cases allowed by law or these !pecial A2& &ules.

R*e #.#.Policy on arbitration.- +A, /here the parties have agreed to submit their dispute toarbitration courts shall refer the parties to arbitration pursuant to &epublic Act 'o. :=D; bearing in

mind that such arbitration agreement is the law between the parties and that they are expected toabide by it in good faith. )urther the courts shall not refuse to refer parties to arbitration for reasonsincluding but not limited to the following*

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


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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. (ne or more of the issues are legal and one or more of the arbitrators are not lawyers

g. (ne or more of the arbitrators are not hilippine nationals or

h. (ne or more of the arbitrators are alleged not to possess the reuired ualification underthe arbitration agreement or law.

+#, /here court intervention is allowed under A2& Laws or the !pecial A2& &ules courts shall notrefuse to grant relief as provided herein for any of the following reasons*

a. rior to the constitution of the arbitral tribunal the court finds that the principal action is thesubject of an arbitration agreement or

b. The principal action is already pending before an arbitral tribunal.

The !pecial A2& &ules recogni0e the principle of competence-competence which means that thearbitral tribunal may initially rule on its own jurisdiction including any objections with respect to theexistence or validity of the arbitration agreement or any condition precedent to the filing of a reuestfor arbitration.

The !pecial A2& &ules recogni0e the principle of separability of the arbitration clause which meansthat said clause shall be treated as an agreement independent of the other terms of the contract ofwhich it forms part. A decision that the contract is null and void shall not entail ipso jure the invalidityof the arbitration clause.

R*e #.$."ules governing arbitral proceedings. - The parties are free to agree on the procedure tobe followed in the conduct of arbitral proceedings. )ailing such agreement the arbitral tribunal mayconduct arbitration in the manner it considers appropriate.

R*e #.%.Policy implementing competence$competence principle. - The arbitral tribunal shall beaccorded the first opportunity or competence to rule on the issue of whether or not it has thecompetence or jurisdiction to decide a dispute submitted to it for decision including any objectionwith respect to the existence or validity of the arbitration agreement. /hen a court is asked to ruleupon issue1s affecting the competence or jurisdiction of an arbitral tribunal in a dispute broughtbefore it either before or after the arbitral tribunal is constituted the court must exercise judicialrestraint and defer to the competence or jurisdiction of the arbitral tribunal by allowing the arbitral

tribunal the first opportunity to rule upon such issues.

/here the court is asked to make a determination of whether the arbitration agreement is null andvoid inoperative or incapable of being performed under this policy of judicial restraint the courtmust make no more than a prima facie determination of that issue.

5nless the court pursuant to such prima facie determination concludes that the arbitrationagreement is null and void inoperative or incapable of being performed the court must suspend theaction before it and refer the parties to arbitration pursuant to the arbitration agreement.


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R*e #.&.Policy on mediation. - The !pecial A2& &ules do not apply to $ourt-Annexed Bediationwhich shall be governed by issuances of the !upreme $ourt.

/here the parties have agreed to submit their dispute to mediation a court before which that disputewas brought shall suspend the proceedings and direct the parties to submit their dispute to privatemediation. %f the parties subseuently agree however they may opt to have their dispute settled

through $ourt-Annexed Bediation.

R*e #.6.Policy on Arbitration$&ediation or &ediation$Arbitration. - 'o arbitrator shall act as amediator in any proceeding in which he is acting as arbitrator and all negotiations towardssettlement of the dispute must take place without the presence of that arbitrator. $onversely nomediator shall act as arbitrator in any proceeding in which he acted as mediator.

R*e #.7.Conversion of a settlement agreement to an arbitral a#ard. - /here the parties tomediation have agreed in the written settlement agreement that the mediator shall become the solearbitrator for the dispute or that the settlement agreement shall become an arbitral award the solearbitrator shall issue the settlement agreement as an arbitral award which shall be subject toenforcement under the law.

PART IISPECIFIC COURT RELIEF

RULE $3 2UDICIAL RELIEF INVOLVING THE ISSUE OF E4ISTENCE, VALIDIT ANDENFORCEABILIT OF THE ARBITRATION AGREEMENT

R*e $.".0hen judicial relief is available. - The judicial relief provided in &ule


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a. The facts showing that the persons named as petitioner or respondent have legal capacityto 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 relief1s sought.

Apart from other submissions the petitioner must attach to the petition an authentic copy of thearbitration agreement.

R*e $.7.Commentpposition.-The comment1opposition of the respondent must be filed withinfifteen +9;, days from service of the petition.

R*e $.8.Court action. - %n resolving the petition the court must exercise judicial restraint inaccordance with the policy set forth in &ule =.? deferring to the competence or jurisdiction of the

arbitral tribunal to rule on its competence or jurisdiction.

R*e $.'.,o forum shopping. - A petition for judicial relief under this &ule may not be commencedwhen the existence validity or enforceability of an arbitration agreement has been raised as one ofthe issues in a prior action before the same or another court.

R*e $."(.Application for interim relief. - %f the petitioner also applies for an interim measure ofprotection he must also comply with the reuirements of the !pecial A2& &ules for the applicationfor an interim measure of protection.

R*e $.""."elief against court action. - /here there is a prima facie determination upholding thearbitration 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 appealor certiorari.

!uchprima faciedetermination will not however prejudice the right of any party to raise the issue ofthe existence validity and enforceability of the arbitration agreement before the arbitral tribunal orthe court in an action to vacate or set aside the arbitral award. %n the latter case the courtGs review ofthe arbitral tribunalGs ruling upholding the existence validity or enforceability of the arbitrationagreement shall no longer be limited to a mere prima facie determination of such issue or issues asprescribed in this &ule but shall be a full review of such issue or issues with due regard however tothe standard for review for arbitral awards prescribed in these !pecial A2& &ules.

B. 2*5ici Reie te- A-+it-ti! C00e!ce

R*e $."#.0ho may file petition. - Any party to arbitration may petition the appropriate court forjudicial relief from the ruling of the arbitral tribunal on a preliminary uestion upholding or decliningits jurisdiction. !hould the ruling of the arbitral tribunal declining its jurisdiction be reversed by thecourt the parties shall be free to replace the arbitrators or any one of them in accordance with therules that were applicable for the appointment of arbitrator sought to be replaced.

R*e $."$.0hen petition may be filed. - The petition may be filed within thirty +, days after havingreceived notice of that ruling by the arbitral tribunal.


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R*e $."%.-enue. - The petition may be filed before the &egional Trial $ourt of the place wherearbitration is taking place or where any of the petitioners or respondents has his principal place ofbusiness or residence.

R*e $."&.%rounds. - The petition may be granted when the court finds that the arbitrationagreement is invalid inexistent or unenforceable as a result of which the arbitral tribunal has no

jurisdiction to resolve the dispute.

R*e $."6.Contents of petition. - The petition shall state the following*

a. The facts showing that the person named as petitioner or respondent has legal capacity tosue 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 relief1s sought.

%n addition to the submissions the petitioner shall attach to the petition a copy of the reuest forarbitration and the ruling of the arbitral tribunal.

The arbitrators shall be impleaded as nominal parties to the case and shall be notified of theprogress of the case.

R*e $."7.Commentpposition. - The comment1opposition must be filed within fifteen +9;, daysfrom service of the petition.

R*e $."8.Court action. - +A, Period for resolving the petition.- The court shall render judgment onthe basis of the pleadings filed and the evidence if any submitted by the parties within thirty +,

days from the time the petition is submitted for resolution.

+#, ,o injunction of arbitration proceedings. - The court shall not enjoin the arbitration proceedingsduring the pendency of the petition.

8udicial recourse to the court shall not prevent the arbitral tribunal from continuing the proceedingsand rendering its award.

+$, 0hen dismissal of petition is appropriate. - The court shall dismiss the petition if it fails to complywith &ule


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to uestion the deferral and must await the final arbitral award before seeking appropriate judicialrecourse.

A ruling by the arbitral tribunal deferring resolution on the issue of its jurisdiction until final awardshall not be subject to a motion for reconsideration appeal or a petition for certiorari.

R*e $.#"."endition of arbitral a#ard before court decision on petition from arbitral tribunal1spreliminary ruling on jurisdiction. - %f the arbitral tribunal renders a final arbitral award and the $ourthas not rendered a decision on the petition from the arbitral tribunalGs preliminary ruling affirming its

jurisdiction that petition shall become ipso facto moot and academic and shall be dismissed by the&egional Trial $ourt. The dismissal shall be without prejudice to the right of the aggrieved party toraise the same issue in a timely petition to vacate or set aside the award.

R*e $.##.Arbitral tribunal a nominal party. - The arbitral tribunal is only a nominal party. The courtshall not reuire the arbitral tribunal to submit any pleadings or written submissions but may considerthe same should the latter participate in the proceedings but only as nominal parties thereto.

RULE %3 REFERRAL TO ADR

R*e %.".0ho ma2es the re3uest. - A party to a pending action filed in violation of the arbitrationagreement whether contained in an arbitration clause or in a submission agreement may reuestthe court to refer the parties to arbitration in accordance with such agreement.

R*e %.#.0hen to ma2e re3uest. - +A, 0here the arbitration agreement e4ists before the action isfiled. - The reuest for referral shall be made not later than the pre-trial conference. After the pre-trialconference the court will only act upon the reuest for referral if it is made with the agreement of allparties to the case.

+#, Submission agreement. - %f there is no existing arbitration agreement at the time the case is filedbut the parties subseuently enter into an arbitration agreement they may reuest the court to refer

their dispute to arbitration at any time during the proceedings.

R*e %.$.Contents of re3uest. - The reuest for referral shall be in the form of a motion which shallstate that the dispute is covered by an arbitration agreement.

Apart from other submissions the movant shall attach to his motion an authentic copy of thearbitration agreement.

The reuest shall contain a notice of hearing addressed to all parties specifying the date and timewhen it would be heard. The party making the reuest shall serve it upon the respondent to give himthe opportunity to file a comment or opposition as provided in the immediately succeeding &ulebefore the hearing.

R*e %.%.Commentpposition. - The comment1opposition must be filed within fifteen +9;, days fromservice of the petition. The comment1opposition should show that* +a, there is no agreement to referthe dispute to arbitration and1or +b, the agreement is null and void and1or +c, the subject-matter ofthe dispute is not capable of settlement or resolution by arbitration in accordance with !ection ofthe A2& Act.

R*e %.&.Court action. - After hearing the court shall stay the action and considering the statementof policy embodied in &ule =.? above refer the parties to arbitration if it findsprima facie based on


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the pleadings and supporting documents submitted by the parties that there is an arbitrationagreement and that the subject-matter of the dispute is capable of settlement or resolution byarbitration in accordance with !ection of the A2& Act. (therwise the court shall continue with the

judicial proceedings.

R*e %.6.,o 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 petitionfor certiorari.

An order denying the reuest to refer the dispute to arbitration shall not be subject to an appeal butmay be the subject of a motion for reconsideration and1or a petition for certiorari.

R*e %.7.&ultiple actions and parties. - The court shall not decline to refer some or all of the partiesto arbitration for any of the following reasons*

a. 'ot all of the disputes subject of the civil action may be referred to arbitration

b. 'ot all of the parties to the civil action are bound by the arbitration agreement and referral

to arbitration would result in multiplicity of suits

c. The issues raised in the civil action could be speedily and efficiently resolved in its entiretyby the court rather than in arbitration

d. &eferral to arbitration does not appear to be the most prudent action or

e. The stay of the action would prejudice the rights of the parties to the civil action who arenot bound by the arbitration agreement.

The court may however issue an order directing the inclusion in arbitration of those parties who arenot bound by the arbitration agreement but who agree to such inclusion provided those originally

bound by it do not object to their inclusion.

R*e %.8.Arbitration to proceed.- 2espite the pendency of the action referred to in &ule ?.9 abovearbitral proceedings may nevertheless be commenced or continued and an award may be madewhile the action is pending before the court.

RULE &3 INTERIM MEASURES OF PROTECTION

R*e &.".0ho may as2 for interim measures of protection. - A party to an arbitration agreement maypetition the court for interim measures of protection.

R*e &.#.0hen to petition. - A petition for an interim measure of protection may be made +a, before

arbitration is commenced +b, after arbitration is commenced but before the constitution of thearbitral tribunal or +c, after the constitution of the arbitral tribunal and at any time during arbitralproceedings but at this stage only to the extent that the arbitral tribunal has no power to act or isunable to act effectively.

R*e &.$.-enue. - A petition for an interim measure of protection may be filed with the &egional Trial$ourt which has jurisdiction over any of the following places*

a. /here the principal place of business of any of the parties to arbitration is located


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b. /here any of the parties who are individuals resides

c. /here any of the acts sought to be enjoined are being performed threatened to beperformed or not being performed or

d. /here the real property subject of arbitration or a portion thereof is situated.

R*e &.%.%rounds. - The following grounds while not limiting the reasons for the court to grant aninterim measure of protection indicate the nature of the reasons that the court shall consider ingranting the relief*

a. The need to prevent irreparable loss or injury

b. The need to provide security for the performance of any obligation

c. The need to produce or preserve evidence or

d. The need to compel any other appropriate act or omission.

R*e &.&.Contents of the petition. - The verified petition must state the following*

a. The fact that there is an arbitration agreement

b. The fact that the arbitral tribunal has not been constituted or if constituted is unable to actor would be unable to act effectively

c. A detailed description of the appropriate relief sought

d. The grounds relied on for the allowance of the petition

Apart from other submissions the petitioner must attach to his petition an authentic copy of thearbitration agreement.

R*e &.6.Type of interim measure of protection that a court may grant.- The following amongothers are the interim measures of protection that a court may grant*

a. reliminary injunction directed against a party to arbitration

b. reliminary attachment against property or garnishment of funds in the custody of a bankor a third person

c. Appointment of a receiver

d. 2etention preservation delivery or inspection of property or

e. Assistance in the enforcement of an interim measure of protection granted by the arbitraltribunal which the latter cannot enforce effectively.

R*e &.7.*ispensing #ith prior notice in certain cases. - rior notice to the other party may bedispensed with when the petitioner alleges in the petition that there is an urgent need to either +a,


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preserve property +b, prevent the respondent from disposing of or concealing the property or +c,prevent the relief prayed for from becoming il lusory because of prior notice and the court finds thatthe reason1s given by the petitioner are meritorious.

R*e &.8.Commentpposition. - The comment1opposition must be filed within fifteen +9;, days fromservice of the petition. The opposition or comment should state the reasons why the interim measure

of protection should not be granted.

R*e &.'.Court action. - After hearing the petition the court shall balance the relative interests of theparties and inconveniences that may be caused and on that basis resolve the matter within thirty+, days from +a, submission of the opposition or +b, upon lapse of the period to file the same or+c, from termination of the hearing that the court may set only if there is a need for clarification orfurther argument.

%f the other parties fail to file their opposition on or before the day of the hearing the court shall motupropriorender judgment only on the basis of the allegations in the petition that are substantiated bysupporting documents and limited to what is prayed for therein.

%n cases where based solely on the petition the court finds that there is an urgent need to either +a,preserve property +b, prevent the respondent from disposing of or concealing the property or +c,prevent the relief prayed for from becoming il lusory because of prior notice it shall issue animmediately executory temporary order of protection and reuire the petitioner within five +;, daysfrom receipt of that order to post a bond to answer for any damage that respondent may suffer as aresult of its order. The ex-parte temporary order of protection shall be valid only for a period oftwenty +=>, days from the service on the party reuired to comply with the order. /ithin that periodthe court shall*

a. )urnish the respondent a copy of the petition and a notice reuiring him to commentthereon on or before the day the petition will be heard and

b. 'otify the parties that the petition shall be heard on a day specified in the notice whichmust not be beyond the twenty +=>, day period of the effectivity of the ex-parte order.

The respondent has the option of having the temporary order of protection lifted by posting anappropriate counter-bond as determined by the court.

%f the respondent reuests the court for an extension of the period to file his opposition or commentor to reset the hearing to a later date and such reuest is granted the court shall extend the periodof validity of the e4$partetemporary order of protection for no more than twenty days from expirationof the original period.

After notice and hearing the court may either grant or deny the petition for an interim measure ofprotection. The order granting or denying any application for interim measure of protection in aid ofarbitration must indicate that it is issued without prejudice to subseuent grant modificationamendment revision or revocation by an arbitral tribunal.

R*e &."(."elief against court action. - %f respondent was given an opportunity to be heard on apetition for an interim measure of protection any order by the court shall be immediately executorybut may be the subject of a motion for reconsideration and1or appeal or if warranted a petition forcertiorari.


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R*e &."".*uty of the court to refer bac2. - The court shall not deny an application for assistance inimplementing or enforcing an interim measure of protection ordered by an arbitral tribunal on any orall of the following grounds*

a. The arbitral tribunal granted the interim relief ex parte or

b. The party opposing the application found new material evidence which the arbitral tribunalhad not considered in granting in the application and which if considered may produce adifferent result or

c. The measure of protection ordered by the arbitral tribunal amends revokes modifies or isinconsistent with an earlier measure of protection issued by the court.

%f it finds that there is sufficient merit in the opposition to the application based on letter +b, abovethe court shall refer the matter back to the arbitral tribunal for appropriate determination.

R*e &."#.Security. - The order granting an interim measure of protection may be conditioned uponthe provision of security performance of an act or omission thereof specified in the order.

The $ourt may not change or increase or decrease the security ordered by the arbitral tribunal.

R*e &."$.&odification' amendment' revision or revocation of court1s previously issued interimmeasure of protection. - Any court order granting or denying interim measure1s of protection isissued without prejudice to subseuent grant modification amendment revision or revocation bythe arbitral tribunal as may be warranted.

An interim measure of protection issued by the arbitral tribunal shall upon its issuance be deemed tohave ipso jure modified amended revised or revoked an interim measure of protection previouslyissued by the court to the extent that it is inconsistent with the subseuent interim measure ofprotection issued by the arbitral tribunal.

R*e &."%.Conflict or inconsistency bet#een interim measure of protection issued by the court andby the arbitral tribunal. - Any uestion involving a conflict or inconsistency between an interimmeasure of protection issued by the court and by the arbitral tribunal shall be immediately referredby the court to the arbitral tribunal which shall have the authority to decide such uestion.

R*e &."&.Court to defer action on petition for an interim measure of protection #hen informed ofconstitution of the arbitral tribunal. - The court shall defer action on any pending petition for aninterim measure of protection filed by a party to an arbitration agreement arising from or inconnection with a dispute thereunder upon being informed that an arbitral tribunal has beenconstituted pursuant to such agreement. The court may act upon such petition only if it is establishedby the petitioner that the arbitral tribunal has no power to act on any such interim measure of

protection or is unable to act thereon effectively.

R*e &."6.Court assistance should arbitral tribunal be unable to effectively enforce interim measureof protection. - The court shall assist in the enforcement of an interim measure of protection issuedby the arbitral tribunal which it is unable to effectively enforce.

RULE 63 APPOINTMENT OF ARBITRATORS


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R*e 6.".0hen the court may act as Appointing Authority. - The court shall act as AppointingAuthority only in the following instances*

a. /here any of the parties in an institutional arbitration failed or refused to appoint anarbitrator or when the parties have failed to reach an agreement on the sole arbitrator +in anarbitration before a sole arbitrator, or when the two designated arbitrators have failed to

reach an agreement on the third or presiding arbitrator +in an arbitration before a panel ofthree arbitrators, and the institution under whose rules arbitration is to be conducted fails oris unable to perform its duty as appointing authority within a reasonable time from receipt ofthe reuest for appointment

b. %n all instances where arbitration is ad hoc and the parties failed to provide a method forappointing or replacing an arbitrator or substitute arbitrator or the method agreed upon isineffective and the 'ational resident of the %ntegrated #ar of the hilippines +%#, or hisduly authori0ed representative fails or refuses to act within such period as may be allowedunder the pertinent rules of the %# or within such period as may be agreed upon by theparties or in the absence thereof within thirty +, days from receipt of such reuest forappointment

c. /here the parties agreed that their dispute shall be resolved by three arbitrators but nomethod of appointing those arbitrators has been agreed upon each party shall appoint onearbitrator and the two arbitrators thus appointed shall appoint a third arbitrator. %f a party failsto appoint his arbitrator within thirty +, days of receipt of a reuest to do so from the otherparty or if the two arbitrators fail to agree on the third arbitrator within a reasonable time fromtheir appointment the appointment shall be made by the Appointing Authority. %f the latterfails or refuses to act or appoint an arbitrator within a reasonable time from receipt of thereuest to do so any party or the appointed arbitrator1s may reuest the court to appoint anarbitrator or the third arbitrator as the case may be.

R*e 6.#.0ho may re3uest for appointment. - Any party to an arbitration may reuest the court toact as an Appointing Authority in the instances specified in &ule .9 above.

&ule .


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e. The fact that the Appointing Authority without justifiable cause has failed or refused to actas such within the time prescribed or in the absence thereof within a reasonable time fromthe date a reuest is made and

f. The petitioner is not the cause of the delay in or failure of the appointment of thearbitrator.

Apart from other submissions the petitioner must attach to the petition +a, an authentic copy of thearbitration agreement and +b, proof that the Appointing Authority has been notified of the filing of thepetition for appointment with the court.

R*e 6.&.Commentpposition. - The comment1opposition must be filed within fifteen +9;, days fromservice of the petition.

R*e 6.6.Submission of list of arbitrators. - The court may at its option also reuire each party tosubmit a list of not less than three +


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R*e 7.%.%rounds. - An arbitrator may be challenged on any of the grounds for challenge providedfor in &epublic Act 'o. :=D; and its implementing rules &epublic Act 'o. DE or the Bodel Law. Thenationality or professional ualification of an arbitrator is not a ground to challenge an arbitratorunless the parties have specified in their arbitration agreement a nationality and1or professionalualification for appointment as arbitrator.

R*e 7.&.Contents of the petition. - The petition shall state the following*

a. The name1s of the arbitrator1s challenged and his1their address

b. The grounds for the challenge

c. The facts showing that the ground for the challenge has been expressly or impliedlyrejected by the challenged arbitrator1s and

d. The facts showing that the Appointing Authority failed or refused to act on the challenge.

The court shall dismiss the petition motu propriounless it is clearly alleged therein that the

Appointing Authority charged with deciding the challenge after the resolution of the arbitral tribunalrejecting the challenge is raised or contested before such Appointing Authority failed or refused toact on the challenge within thirty +, days from receipt of the reuest or within such longer period asmay apply or as may have been agreed upon by the parties.

R*e 7.6.Commentpposition. - The challenged arbitrator or other parties may file a comment oropposition within fifteen +9;, days from service of the petition.

R*e 7.7.Court action. - After hearing the court shall remove the challenged arbitrator if it finds meritin the petition otherwise it shall dismiss the petition.

The court shall allow the challenged arbitrator who subseuently agrees to accept the challenge to

withdraw as arbitrator.

The court shall accept the challenge and remove the arbitrator in the following cases*

a. The party or parties who named and appointed the challenged arbitrator agree to thechallenge and withdraw the appointment.

b. The other arbitrators in the arbitral tribunal agree to the removal of the challengedarbitrator and

c. The challenged arbitrator fails or refuses to submit his comment on the petition or the briefof legal arguments as directed by the court or in such comment or legal brief he fails to

object to his removal following the challenge.

The court shall decide the challenge on the basis of evidence submitted by the parties.

The court will decide the challenge on the basis of the evidence submitted by the parties in thefollowing instances*

a. The other arbitrators in the arbitral tribunal agree to the removal of the challengedarbitrator and


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b. %f the challenged arbitrator fails or refuses to submit his comment on the petition or thebrief of legal arguments as directed by the court or in such comment or brief of legalarguments he fails to object to his removal following the challenge.

R*e 7.8.,o motion for reconsideration' appeal or certiorari. - Any order of the court resolving thepetition shall be immediately executory and shall not be the subject of a motion for reconsideration

appeal or certiorari.

R*e 7.'."eimbursement of e4penses and reasonable compensation to challenged arbitrator. -5nless the bad faith of the challenged arbitrator is established with reasonable certainty byconcealing or failing to disclose a ground for his disualification the challenged arbitrator shall beentitled to reimbursement of all reasonable expenses he may have incurred in attending to thearbitration and to a reasonable compensation for his work on the arbitration. !uch expenses includebut shall not be limited to transportation and hotel expenses if any. A reasonable compensationshall be paid to the challenged arbitrator on the basis of the length of time he has devoted to thearbitration and taking into consideration his stature and reputation as an arbitrator. The reuest forreimbursement of expenses and for payment of a reasonable compensation shall be filed in thesame case and in the court where the petition to replace the challenged arbitrator was filed. The

court in determining the amount of the award to the challenged arbitrator shall receive evidence ofexpenses to be reimbursed which may consist of air tickets hotel bills and expenses and inlandtransportation. The court shall direct the challenging party to pay the amount of the award to thecourt for the account of the challenged arbitrator in default of which the court may issue a writ ofexecution to enforce the award.

RULE 83 TERMINATION OF THE MANDATE OF ARBITRATOR

R*e 8.".0ho may re3uest termination and on #hat grounds.- Any of the parties to an arbitrationmay reuest for the termination of the mandate of an arbitrator where an arbitrator becomes de jureor de facto unable to perform his function or for other reasons fails to act without undue delay andthat arbitrator upon reuest of any party fails or refuses to withdraw from his office.

R*e 8.#.0hen to re3uest. - %f an arbitrator refuses to withdraw from his office and subseuentlythe Appointing Authority fails or refuses to decide on the termination of the mandate of that arbitratorwithin such period as may be allowed under the applicable rule or in the absence thereof withinthirty +, days from the time the reuest is brought before him any party may file with the court apetition to terminate the mandate of that arbitrator.

R*e 8.$.-enue. - A petition to terminate the mandate of an arbitrator may at that petitionerGs optionbe filed with the &egional Trial $ourt +a, where the principal place of business of any of the parties islocated +b, where any of the parties who are individuals resides or +c, in the 'ational $apital&egion.

R*e 8.%.Contents of the petition. - The petition shall state the following*

a. The name of the arbitrator whose mandate is sought to be terminated

b. The ground1s for termination

c. The fact that one or all of the parties had reuested the arbitrator to withdraw but he failedor refused to do so


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d. The fact that one or all of the parties reuested the Appointing Authority to act on thereuest for the termination of the mandate of the arbitrator and failure or inability of the

Appointing Authority to act within thirty +, days from the reuest of a party or parties orwithin such period as may have been agreed upon by the parties or allowed under theapplicable rule.

The petitioner shall further allege that one or all of the parties had reuested the arbitrator towithdraw but he failed or refused to do so.

R*e 8.&.Commentpposition. - The comment1opposition must be filed within fifteen +9;, days fromservice of the petition.

R*e 8.6.Court action. - After hearing if the court finds merit in the petition it shall terminate themandate of the arbitrator who refuses to withdraw from his office otherwise it shall dismiss thepetition.

R*e 8.7.,o motion for reconsideration or appeal. - Any order of the court resolving the petition shallbe immediately executory and shall not be subject of a motion for reconsideration appeal or petition

for certiorari.

R*e 8.8.Appointment of substitute arbitrator. - /here the mandate of an arbitrator is terminated orhe withdraws from office for any other reason or because of his mandate is revoked by agreementof the parties or is terminated for any other reason a substitute arbitrator shall be appointedaccording to the rules that were applicable to the appointment of the arbitrator being replaced.

RULE '3 ASSISTANCE IN TAKING EVIDENCE

R*e '.".0ho may re3uest assistance. - Any party to an arbitration whether domestic or foreignmay reuest the court to provide assistance in taking evidence.

R*e '.#.0hen assistance may be sought. - Assistance may be sought at any time during thecourse of the arbitral proceedings when the need arises.

R*e '.$.-enue. - A petition for assistance in taking evidence may at the option of the petitioner befiled with &egional Trial $ourt where +a, arbitration proceedings are taking place +b, the witnessesreside or may be found or +c, where the evidence may be found.

R*e '.%.%round. - The court may grant or execute the reuest for assistance in taking evidencewithin its competence and according to the rules of evidence.

R*e '.&.Type of assistance. - A party reuiring assistance in the taking of evidence may petition thecourt to direct any person including a representative of a corporation association partnership or

other entity +other than a party to the A2& proceedings or its officers, found in the hilippines forany of the following*

a. To comply with a subpoena ad testificandumand1or subpoena duces tecum

b. To appear as a witness before an officer for the taking of his deposition upon oralexamination or by written interrogatories


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c. To allow the physical examination of the condition of persons or the inspection of things orpremises and when appropriate to allow the recording and1or documentation of condition ofpersons things or premises +i.e. photographs video and other means ofrecording1documentation,

d. To allow the examination and copying of documents and

e. To perform any similar acts.

R*e '.6.Contents of the petition. - The petition must state the following*

a. The fact that there is an ongoing arbitration proceeding even if such proceeding could notcontinue due to some legal impediments

b. The arbitral tribunal ordered the taking of evidence or the party desires to presentevidence to the arbitral tribunal

c. Bateriality or relevance of the evidence to be taken and

d. The names and addresses of the intended witness1es place where the evidence may befound the place where the premises to be inspected are located or the place where the actsreuired are to be done.

R*e '.7.Commentpposition. - The comment1opposition must be filed within fifteen +9;, days fromservice of the petition.

R*e '.8.Court action. - %f the evidence sought is not privileged and is material and relevant thecourt shall grant the assistance in taking evidence reuested and shall order petitioner to pay costsattendant to such assistance.

R*e '.'."elief against court action. - The order granting assistance in taking evidence shall beimmediately executory and not subject to reconsideration or appeal. %f the court declines to grantassistance in taking evidence the petitioner may file a motion for reconsideration or appeal.

R*e '."(.Perpetuation of testimony before the arbitral tribunal is constituted. - At anytime beforearbitration is commenced or before the arbitral tribunal is constituted any person who desires toperpetuate his testimony or that of another person may do so in accordance with &ule =? of the&ules of $ourt.

R*e '."".Conse3uence of disobedience. - The court may impose the appropriate sanction on anyperson who disobeys its order to testify when reuired or perform any act reuired of him.

RULE "(3 CONFIDENTIALIT9PROTECTIVE ORDERS

R*e "(.".0ho may re3uest confidentiality. - A party counsel or witness who disclosed or who wascompelled to disclose information relative to the subject of A2& under circumstances that wouldcreate a reasonable expectation on behalf of the source that the information shall be keptconfidential has the right to prevent such information from being further disclosed without theexpress written consent of the source or the party who made the disclosure.


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R*e "(.#.0hen re3uest made. - A party may reuest a protective order at anytime there is a needto enforce the confidentiality of the information obtained or to be obtained in A2& proceedings.

R*e "(.$.-enue. - A petition for a protective order may be filed with the &egional Trial $ourt wherethat order would be implemented.

%f there is a pending court proceeding in which the information obtained in an A2& proceeding isreuired to be divulged or is being divulged the party seeking to enforce the confidentiality of theinformation may file a motion with the court where the proceedings are pending to enjoin theconfidential information from being divulged or to suppress confidential information.

R*e "(.%.%rounds. - A protective order may be granted only if it is shown that the applicant wouldbe materially prejudiced by an unauthori0ed disclosure of the information obtained or to beobtained during an A2& proceeding.

R*e "(.&.Contents of the motion or petition. - The petition or motion must state the following*

a. That the information sought to be protected was obtained or would be obtained during an

A2& proceeding

b. The applicant would be materially prejudiced by the disclosure of that information

c. The person or persons who are being asked to divulge the confidential informationparticipated in an A2& proceedings and

d. The time date and place when the A2& proceedings took place.

Apart from the other submissions the movant must set the motion for hearing and contain a noticeof hearing in accordance with &ule 9; of the &ules of $ourt.

R*e "(.6.,otice. - 'otice of a reuest for a protective order made through a motion shall be madeto the opposing parties in accordance with &ule 9; of the &ules of $ourt.

R*e "(.7.Commentpposition. - The comment1opposition must be filed within fifteen +9;, daysfrom service of the petition. The opposition or comment may be accompanied by written proof that+a, the information is not confidential +b, the information was not obtained during an A2&proceeding +c, there was a waiver of confidentiality or +d, the petitioner1movant is precluded fromasserting confidentiality.

R*e "(.8.Court action. - %f the court finds the petition or motion meritorious it shall issue an orderenjoining a person or persons from divulging confidential information.

%n resolving the petition or motion the courts shall be guided by the following principles applicable toall A2& proceedings* $onfidential information shall not be subject to discovery and shall beinadmissible in any adversarial proceeding whether judicial or uasi judicial. Fowever evidence orinformation that is otherwise admissible or subject to discovery does not become inadmissible orprotected from discovery solely by reason of its use therein.

)or mediation proceedings the court shall be further guided by the following principles*

a. %nformation obtained through mediation shall be privileged and confidential.


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b. A party a mediator or a nonparty participant may refuse to disclose and may prevent anyother person from disclosing a mediation communication.

c. %n such an adversarial proceeding the following persons involved or previously involved ina mediation may not be compelled to disclose confidential information obtained during themediation* +9, the parties to the disput

ADR Local Laws

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