DOMESTIC ARBITRATION : The Salient Features of the laws governing domestic arbitration.

DOMESTIC ARBITRATION : As defined under Section 32 of R. A 9285:

It shall mean an arbitration that is not international as defined in Article 1(3) of the Model Law.

Thus, if the dispute is between parties who have their place of business in the Philippines, and their obligations are to be performed in the Philippines, and there is no stipulation in their arbitration agreement that the subject matter of the arbitration agreement relates to another country, the arbitration will be considered domestic.

Laws Governing Domestic Arbitration : Republic Act No. 876 : The Arbitration Law

Chapter IV : Sections 22 31 of R. A 876

Section 32 , R. A 9285

The UNCITRAL MODEL LAW ( ARTICLES 8, 10, 11, 12, 13, 14, 18, 19, 29, 32 )Salient Features :1. A Special Proceeding a petition is filed not a complaint:

Special Proceeding A remedy where the party seeks to establish a status,right, or a particular fact. The Regional Trial Court shall have jurisdiction over the proceeding.

2. Confirmation of Award - There must be a grant of award except when the award is vacated,modified, or corrected.

It gives the party the discretion to apply for an order confirming the award

3. Grounds for Vacating the Award - The court must vacate the award if :

1. Procured by corruption, fraud, or other undue means;

2. Evident partiality in the arbitrators;

3. Arbitrators guilty of misconduct; One or more of the arbitrators was disqualified to act.

4. Arbitrators exceeded their powers.

4. Modifying or Correcting Award : The court must make an order to modify or correct the award.

5. Service of Notice of Motion upon the adverse party.

6. Judgment

7. Filing of additional papers with the Clerk of Court :

a. Submission or contract to arbitrate; the appointment of the arbitrator/s; each written extension of the time

b. A verified of the award;

c. Each notice,affidavit or other paper used upon the application.

8. Appeal as to questions of Law.

- Questions which must be answered by applying relevant legal principles by an interpretation of the law.

9. Freedom to Determine the number of arbitrators, the appointment of the arbitrators Challenge the appointment of the arbitrator, Freedom to choose or agree on a procedure to be used in the proceeding

10. Any party may request the court to decide on the termination of the mandate.

11. Equal Treatment of the parties

Domestic Arbitration : brief on Arbitration Proceedings : (Luigi's report)Preliminary procedure.- An arbitration shall be instituted by: (a) In 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. Such demand 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. In 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. If the contract between the parties provides for the appointment of three arbitrators, one to be selected by each party, the demand shall name the arbitrator appointed by the party making the demand; and shall require 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 require that the two arbitrators so appointed must agree upon the third arbitrator within ten days from the date of such notice.

(b) In the event that one party defaults in answering the demand, the aggrieved party may file with the Clerk of the Court of First Instance 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 the claim is asserted. Such 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) In the case of the submission of an existing controversy by the filing with the Clerk of the Court of First Instance having jurisdiction, of the submission agreement, setting forth the nature of the controversy, and the amount involved, if any. Such submission may be filed by any party and shall be duly executed by both parties.

(d) In 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.

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. Five 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. If the making of the agreement or default be in issue the court shall proceed to summarily hear such issue. If the finding be that no agreement in writing providing for arbitration was made, or that there is no default in the proceeding thereunder, the proceeding shall be dismissed. If 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. Article 1(3) UNCITRAL Model Law :

An Arbitration is international if :

a.) The parties to an arbitration agreement have,at the time of the conclusion of that agreement, their places of business in different States ; or

b.) One of the following places is situated outside the State in which the parties have their places of business:

(i) the place of arbitration if determined in, or pursuant to, the arbitration agreement;

(ii) any place where the substantial part of the obligations of the commercial relationship is to be performed or the place with which the subject - matter of the dispute is most closely connected ;

The parties have expressly agreed that the subject- matter of the arbitration agreement relates to more than one country.

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R.A 876 , Section 22

R.A 876 , Section 23

R.A 876 , Section 24

R.A 876 , Section 25

R.A 876 , Section 26

R.A 876 , Section 27

R.A 876 , Section 28

R.A 876 , Section 29

UNCITRAL MODEL LAW Article 10

UNCITRAL MODEL LAW Article 11

UNCITRAL MODEL LAW Article 12

UNCITRAL MODEL LAW Article 13

UNCITRAL MODEL LAW Article 14

UNCITRAL MODEL LAW Article 18

Section 5, R.A 876 The Arbitration Law

Section 6, R.A 876 The Arbitration Law