Republic of the Philippines

Congress of the Philippines

Metro Manila
Twelfth Congress
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-eight day of July, two thousand
three.
Republic Act No. 9285 pril !, !""#
$ CT T% &$ST&T'T&%$(&)* T+* 'S* %, $ (T*R$T&-* .&SP'T*
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Be it enacted by the Senate and +ouse of Representati0es of the Philippines in Congress
asse1bled2
C+PT*R 3 - 4*$*R( PR%-&S&%$S
S*CT&%$ 3. Title. - This act shall be 5nown as the 6lternati0e .ispute Resolution ct of
!""#.6
S*C. !. .eclaration of Policy. - it is hereby declared the policy of the State to acti0ely
pro1ote party autono1y in the resolution of disputes or the freedo1 of the party to 1a5e their
own arrange1ents to resol0e their disputes. Towards this end, the State shall encourage and
acti0ely pro1ote the use of lternati0e .ispute Resolution 7.R8 as an i1portant 1eans to
achie0e speedy and i1partial 9ustice and declog court doc5ets. s such, the State shall pro0ide
1eans for the use of .R as an efficient tool and an alternati0e procedure for the resolution of
appropriate cases. (i5ewise, the State shall enlist acti0e pri0ate sector participation in the
settle1ent of disputes through .R. This ct shall be without pre9udice to the adoption by the
Supre1e Court of any .R syste1, such as 1ediation, conciliation, arbitration, or any
co1bination thereof as a 1eans of achie0ing speedy and efficient 1eans of resol0ing cases
pending before all courts in the Philippines which shall be go0erned by such rules as the
Supre1e Court 1ay appro0e fro1 ti1e to ti1e.
S*C. :. .efinition of Ter1s. - ,or purposes of this ct, the ter12
7a8 6lternati0e .ispute Resolution Syste16 1eans any process or procedure used to resol0e a
dispute or contro0ersy, other than by ad9udication of a presiding 9udge of a court or an officer of
a go0ern1ent agency, as defined in this ct, in which a neutral third party participates to assist in
the resolution of issues, which includes arbitration, 1ediation, conciliation, early neutral
e0aluation, 1ini-trial, or any co1bination thereof;
7b8 6.R Pro0ider6 1eans institutions or persons accredited as 1ediator, conciliator,
arbitrator, neutral e0aluator, or any person e<ercising si1ilar functions in any lternati0e .ispute
3
Resolution syste1. This is without pre9udice to the rights of the parties to choose nonaccredited
indi0iduals to act as 1ediator, conciliator, arbitrator, or neutral e0aluator of their dispute.
=hene0er reffered to in this ct, the ter1 6.R practitioners6 shall refer to indi0iduals acting
as 1ediator, conciliator, arbitrator or neutral e0aluator;
7c8 6uthenticate6 1eans to sign, e<ecute or adopt a sy1bol, or encrypt a record in whole or in
part, intended to identity the authenticating party and to adopt, accept or establish the
authenticity of a record or ter1;
7d8 6rbitration6 1eans a 0oluntary dispute resolution process in which one or 1ore
arbitrators, appointed in accordance with the agree1ent of the parties, or rules pro1ulgated
pursuant to this ct, resol0e a dispute by rendering an award;
7e8 6rbitrator6 1eans the person appointed to render an award, alone or with others, in a
dispute that is the sub9ect of an arbitration agree1ent;
7f8 6ward6 1eans any partial or final decision by an arbitrator in resol0ing the issue in a
contro0ersy;
7g8 6Co11ercial rbitration6 n arbitration is 6co11ercial if it co0ers 1atter arising fro1 all
relationships of a co11ercial nature, whether contractual or not;
7h8 6Confidential infor1ation6 1eans any infor1ation, relati0e to the sub9ect of 1ediation or
arbitration, e<pressly intended by the source not to be disclosed, or obtained under circu1stances
that would create a reasonable e<pectation on behalf of the source that the infor1ation shall not
be disclosed. &t shall include 738 co11unication, oral or written, 1ade in a dispute resolution
proceedings, including any 1e1oranda, notes or wor5 product of the neutral party or non-party
participant, as defined in this ct; 7!8 an oral or written state1ent 1ade or which occurs during
1ediation or for purposes of considering, conducting, participating, initiating, continuing of
recon0ening 1ediation or retaining a 1ediator; and 7:8 pleadings, 1otions 1anifestations,
witness state1ents, reports filed or sub1itted in an arbitration or for e<pert e0aluation;
7i8 6Con0ention ward6 1eans a foreign arbitral award 1ade in a Con0ention State;
798 6Con0ention State6 1eans a State that is a 1e1ber of the $ew /or5 Con0ention;
758 6Court6 as referred to in rticle > of the Model (aw shall 1ean a Regional Trial Court;
7l8 6Court-nne<ed Mediation6 1eans any 1ediation process conducted under the auspices of
the court, after such court has ac?uired 9urisdiction of the dispute;
718 6Court-Referred Mediation6 1eans 1ediation ordered by a court to be conducted in
accordance with the gree1ent of the Parties when as action is pre1aturely co11enced in
0iolation of such agree1ent;
7n8 6*arly $eutral *0aluation6 1eans an .R process wherein parties and their lawyers are
brought together early in a pre-trial phase to present su11aries of their cases and recei0e a
!
nonbinding assess1ent by an e<perienced, neutral person, with e<pertise in the sub9ect in the
substance of the dispute;
7o8 64o0ern1ent gency6 1eans any go0ern1ent entity, office or officer, other than a court,
that is 0ested by law with ?uasi-9udicial power to resol0e or ad9udicate dispute in0ol0ing the
go0ern1ent, its agencies and instru1entalities, or pri0ate persons;
7p8 6&nternational Party6 shall 1ean an entity whose place of business is outside the
Philippines. &t shall not include a do1estic subsidiary of such international party or a co0enturer
in a 9oint 0enture with a party which has its place of business in the Philippines.
The ter1 foreigner arbitrator shall 1ean a person who is not a national of the Philippines.
7?8 6Mediation6 1eans a 0oluntary process in which a 1ediator, selected by the disputing
parties, facilitates co11unication and negotiation, and assist the parties in reaching a 0oluntary
agree1ent regarding a dispute.
7r8 6Mediator6 1eans a person who conducts 1ediation;
7s8 6Mediation Party6 1eans a person who participates in a 1ediation and whose consent is
necessary to resol0e the dispute;
7t8 6Mediation-rbitration6 or Med-rb is a step dispute resolution process in0ol0ing both
1ediation and arbitration;
7u8 6Mini-Trial6 1eans a structured dispute resolution 1ethod in which the 1erits of a case are
argued before a panel co1prising senior decision 1a5ers with or without the presence of a
neutral third person after which the parties see5 a negotiated settle1ent;
708 6Model (aw6 1eans the Model (aw on &nternational Co11ercial rbitration adopted by
the 'nited $ations Co11ission on &nternational Trade (aw on !3 June 3@AB;
7w8 6$ew /or5 Con0ention6 1eans the 'nited $ations Con0ention on the Recognition and
*nforce1ent of ,oreign rbitral wards appro0ed in 3@BA and ratified by the Philippine Senate
under Senate Resolution $o. C3;
7<8 6$on-Con0ention ward6 1eans a foreign arbitral award 1ade in a State which is not a
Con0ention State;
7y8 6$on-Con0ention State6 1eans a State that is not a 1e1ber of the $ew /or5 Con0ention.
7D8 6$on-Party Participant6 1eans a person, other than a party or 1ediator, who participates in
a 1ediation proceeding as a witness, resource person or e<pert;
7aa8 6Proceeding6 1eans a 9udicial, ad1inistrati0e, or other ad9udicati0e process, including
related pre-hearing 1otions, conferences and disco0ery;
:
7bb8 6Record6 1eans an infor1ation written on a tangible 1ediu1 or stored in an electronic or
other si1ilar 1ediu1, retrie0able for1; and
7cc8 6Roster6 1eans a list of persons ?ualified to pro0ide .R ser0ices as neutrals or to ser0e
as arbitrators.
S*C. #. *lectronic Signatures in 4lobal and *-Co11erce ct. - The pro0isions of the
*lectronic Signatures in 4lobal and *-Co11erce ct, and its i1ple1enting Rules and
Regulations shall apply to proceeding conte1plated in this ct.
S*C. B. (iability of .R Pro0ider and Practitioner. - The .R pro0iders and practitioners
shall ha0e the sa1e ci0il liability for the cts done in the perfor1ance of then duties as that of
public officers as pro0ided in Section :A 738, Chapter @, Boo5 of the d1inistrati0e Code of
3@AC.
S*C. >. *<ception to the pplication of this ct. - The pro0isions of this ct shall not apply to
resolution or settle1ent of the following2 7a8 labor disputes co0ered by Presidential .ecree $o.
##!, otherwise 5nown as the (abor Code of the Philippines, as a1ended and its &1ple1enting
Rules and Regulations; 7b8 the ci0il status of persons; 7c8 the 0alidity of a 1arriage; 7d8 any
ground for legal separation; 7e8 the 9urisdiction of courts; 7f8 future legiti1e; 7g8 cri1inal
liability; and 7h8 those which by law cannot be co1pro1ised.
C+PT*R ! - M*.&T&%$
S*C. C. Scope. - The pro0isions of this Chapter shall co0er 0oluntary 1ediation, whether ad
hoc or institutional, other than court-anne<ed. The ter1 61ediationE shall include conciliation.
S*C. A. pplication and &nterpretation. - &n applying construing the pro0isions of this Chapter,
consideration 1ust be gi0en to the need to pro1ote candor or parties and 1ediators through
confidentiality of the 1ediation process, the policy of fostering pro1pt, econo1ical, and
a1icable resolution of disputes in accordance with the principles of integrity of deter1ination by
the parties, and the policy that the decision-1a5ing authority in the 1ediation process rests with
the parties.
S*C. @. Confidentiality of &nfor1ation. - &nfor1ation obtained through 1ediation proceedings
shall be sub9ect to the following principles and guidelines2
7a8 &nfor1ation obtained through 1ediation shall be pri0ileged and confidential.
7b8 party, a 1ediator, or a nonparty participant 1ay refuse to disclose and 1ay pre0ent any
other person fro1 disclosing a 1ediation co11unication.
7c8 Confidential &nfor1ation shall not be sub9ect to disco0ery and shall be inad1issible if any
ad0ersarial proceeding, whether 9udicial or ?uasi-9udicial, +owe0er, e0idence or infor1ation that
is otherwise ad1issible or sub9ect to disco0ery does not beco1e inad1issible or protected fro1
disco0ery solely by reason of its use in a 1ediation.
#
7d8 &n such an ad0ersarial proceeding, the following persons in0ol0ed or pre0iously in0ol0ed
in a 1ediation 1ay not be co1pelled to disclose confidential infor1ation obtained during
1ediation2 738 the parties to the dispute; 7!8 the 1ediator or 1ediators; 7:8 the counsel for the
parties; 7#8 the nonparty participants; 7B8 any persons hired or engaged in connection with the
1ediation as secretary, stenographer, cler5 or assistant; and 7>8 any other person who obtains or
possesses confidential infor1ation by reason of hisFher profession.
7e8 The protections of this ct shall continue to apply e0en of a 1ediator is found to ha0e
failed to act i1partially.
7f8 a 1ediator 1ay not be called to testify to pro0ide infor1ation gathered in 1ediation.
1ediator who is wrongfully subpoenaed shall be rei1bursed the full cost of his attorneyEs fees
and related e<penses.
S*C. 3". =ai0er of Confidentiality. - pri0ilege arising fro1 the confidentiality of
infor1ation 1ay be wai0ed in a record, or orally during a proceeding by the 1ediator and the
1ediation parties.
pri0ilege arising fro1 the confidentiality of infor1ation 1ay li5ewise be wai0ed by a
nonparty participant if the infor1ation is pro0ided by such nonparty participant.
person who discloses confidential infor1ation shall be precluded fro1 asserting the
pri0ilege under Section @ of this Chapter to bar disclosure of the rest of the infor1ation
necessary to a co1plete understanding of the pre0iously disclosed infor1ation. &f a person
suffers loss or da1ages in a 9udicial proceeding against the person who 1ade the disclosure.
person who discloses or 1a5es a representation about a 1ediation is preclude fro1 asserting
the pri0ilege under Section @, to the e<tent that the co11unication pre9udices another person in
the proceeding and it is necessary for the person pre9udiced to respond to the representation of
disclosure.
S*C. 33. *<ceptions to Pri0ilege. -
7a8 There is no pri0ilege against disclosure under Section @ if 1ediation co11unication is2
738 in an agree1ent e0idenced by a record authenticated by all parties to the agree1ent;
7!8 a0ailable to the public or that is 1ade during a session of a 1ediation which is open, or is
re?uired by law to be open, to the public;
7:8 a threat or state1ent of a plan to inflict bodily in9ury or co11it a cri1e of 0iolence;
7#8 internationally used to plan a cri1e, atte1pt to co11it, or co11it a cri1e, or conceal an
ongoing cri1e or cri1inal acti0ity;
7B8 sought or offered to pro0e or dispro0e abuse, neglect, abandon1ent, or e<ploitation in a
proceeding in which a public agency is protecting the interest of an indi0idual protected by law;
B
but this e<ception does not apply where a child protection 1atter is referred to 1ediation by a
court or a public agency participates in the child protection 1ediation;
7>8 sought or offered to pro0e or dispro0e a clai1 or co1plaint of professional 1isconduct or
1alpractice filed against 1ediator in a proceeding; or
7C8 sought or offered to pro0e or dispro0e a clai1 of co1plaint of professional 1isconduct of
1alpractice filed against a party, nonparty participant, or representati0e of a party based on
conduct occurring during a 1ediation.
7b8 There is no pri0ilege under Section @ if a court or ad1inistrati0e agency, finds, after a
hearing in ca1era, that the party see5ing disco0ery of the proponent of the e0idence has shown
that the e0idence is not otherwise a0ailable, that there is a need for the e0idence that substantially
outweighs the interest in protecting confidentiality, and the 1ediation co11unication is sought
or offered in2
738 a court proceeding in0ol0ing a cri1e or felony; or
7!8 a proceeding to pro0e a clai1 or defense that under the law is sufficient to refor1 or a0oid
a liability on a contract arising out of the 1ediation.
7c8 1ediator 1ay not be co1pelled to pro0ide e0idence of a 1ediation co11unication or
testify in such proceeding.
7d8 &f a 1ediation co11unication is not pri0ileged under an e<ception in subsection 7a8 or 7b8,
only the portion of the co11unication necessary for the application of the e<ception for
nondisclosure 1ay be ad1itted. The ad1ission of particular e0idence for the li1ited purpose of
an e<ception does not render that e0idence, or any other 1ediation co11unication, ad1issible
for any other purpose.
S*C. 3!. Prohibited Mediator Reports. - 1ediator 1ay not 1a5e a report, assess1ent,
e0aluation, reco11endation, finding, or other co11unication regarding a 1ediation to a court
or agency or other authority that 1a5e a ruling on a dispute that is the sub9ect of a 1ediation,
e<cept2
7a8 =here the 1ediation occurred or has ter1inated, or where a settle1ent was reached.
7b8 s per1itted to be disclosed under Section 3: of this Chapter.
S*C. 3:. MediatorEs .isclosure and Conflict of &nterest. - The 1ediation shall be guided by
the following operati0e principles2
7a8 Before accepting a 1ediation, an indi0idual who is re?uested to ser0e as a 1ediator shall2
738 1a5e an in?uiry that is reasonable under the circu1stances to deter1inate whether there
are any 5nown facts that a reasonable indi0idual would consider li5ely to affect the i1partiality
of the 1ediator, including a financial or personal interest in the outco1e of the 1ediation and
any e<isting or past relationship with a party or foreseeable participant in the 1ediation; and
>
7!8 disclosure to the 1ediation parties any such fact 5nown or learned as soon as is practical
before accepting a 1ediation.
7b8 &f a 1ediation learns any fact described in paragraph 7a8 738 of this section after accepting a
1ediation, the 1ediator shall disclose it as soon as practicable.
t the re?uest of a 1ediation party, an indi0idual who is re?uested to ser0e as 1ediator shall
disclose hisFher ?ualifications to 1ediate a dispute.
This ct does not re?uire that a 1ediator shall ha0e special ?ualifications by bac5ground or
profession unless the special ?ualifications of a 1ediator are re?uired in the 1ediation agree1ent
or by the 1ediation parties.
S*C. 3#. Participation in Mediation. - *<cept as otherwise pro0ided in this ct, a party 1ay
designate a lawyer or any other person to pro0ide assistance in the 1ediation. lawyer of this
right shall be 1ade in writing by the party wai0ing it. wai0er of participation or legal
representation 1ay be rescinded at any ti1e.
S*C. 3B. Place of Mediation. - The parties are free to agree on the place of 1ediation. ,ailing
such agree1ent, the place of 1ediation shall be any place con0enient and appropriate to all
parties.
S*C. 3>. *ffect of gree1ent to Sub1it .ispute to Mediation 'nder &nstitutional Rules. - n
agree1ent to sub1it a dispute to 1ediation by any institution shall include an agree1ent to be
bound by the internal 1ediation and ad1inistrati0e policies of such institution. ,urther, an
agree1ent to sub1it a dispute to 1ediation under international 1ediation rule shall be dee1ed to
include an agree1ent to ha0e such rules go0ern the 1ediation of the dispute and for the
1ediator, the parties, their respecti0e counsel, and nonparty participants to abide by such rules.
&n case of conflict between the institutional 1ediation rules and the pro0isions of this ct, the
latter shall pre0ail.
S*C. 3C. *nforce1ent of Mediated Settle1ent gree1ent. - The 1ediation shall be guided by
the following operati0e principles2
7a8 settle1ent agree1ent following successful 1ediation shall be prepared by the parties
with the assistance of their respecti0e counsel, if any, and by the 1ediator.
The parties and their respecti0e counsels shall endea0or to 1a5e the ter1s and condition
thereof co1plete and 1a5e ade?uate pro0isions for the contingency of breach to a0oid
conflicting interpretations of the agree1ent.
7b8 The parties and their respecti0e counsels, if any, shall sign the settle1ent agree1ent. The
1ediator shall certify that heFshe e<plained the contents of the settle1ent agree1ent to the
parties in a language 5nown to the1.
C
7c8 &f the parties so desire, they 1ay deposit such settle1ent agree1ent with the appropriate
Cler5 of a Regional Trial Court of the place where one of the parties resides. =here there is a
need to enforce the settle1ent agree1ent, a petition 1ay be filed by any of the parties with the
sa1e court, in which case, the court shall proceed su11arily to hear the petition, in accordance
with such rules of procedure as 1ay be pro1ulgated by the Supre1e Court.
7d8 The parties 1ay agree in the settle1ent agree1ent that the 1ediator shall beco1e a sole
arbitrator for the dispute and shall treat the settle1ent agree1ent as an arbitral award which shall
be sub9ect to enforce1ent under Republic ct $o. AC>, otherwise 5nown as the rbitration (aw,
notwithstanding the pro0isions of *<ecuti0e %rder $o. 3""A for 1ediated dispute outside of the
C&C.
C+PT*R : - %T+*R .R ,%RMS
S*C. 3A. Referral of .ispute to other .R ,or1s. - The parties 1ay agree to refer one or
1ore or all issues arising in a dispute or during its pendency to other for1s of .R such as but
not li1ited to 7a8 the e0aluation of a third person or 7b8 a 1ini-trial, 7c8 1ediation-arbitration, or
a co1bination thereof.
,or purposes of this ct, the use of other .R for1s shall be go0erned by Chapter ! of this
ct e<cept where it is co1bined with arbitration in which case it shall li5ewise be go0erned by
Chapter B of this ct.
C+PT*R # - &$T*R$T&%$( C%MM*RC&( RB&TRT&%$
S*C. 3@. doption of the Model (aw on &nternational Co11ercial rbitration. - &nternational
co11ercial arbitration shall be go0erned by the Model (aw on &nternational Co11ercial
rbitration 7the 6Model (aw68 adopted by the 'nited $ations Co11ission on &nternational
Trade (aw on June !3, 3@AB 7'nited $ations .ocu1ent F#"F3C8 and reco11ended appro0ed
on .ece1ber 33, 3@AB, copy of which is hereto attached as ppendi< 66.
S*C. !". &nterpretation of Model (aw. - &n interpreting the Model (aw, regard shall be had to
its international origin and to the need for unifor1ity in its interpretation and resort 1ay be 1ade
to the tra0au< preparatories and the report of the Secretary 4eneral of the 'nited $ations
Co11ission on &nternational Trade (aw dated March !B, 3@AB entitled, 6&nternational
Co11ercial rbitration2 nalytical Co11entary on .raft Trade identified by reference nu1ber
FC$. @F!>#.6
S*C. !3. Co11ercial rbitration. - n arbitration is 6co11ercial6 if it co0ers 1atters arising
fro1 all relationships of a co11ercial nature, whether contractual or not. Relationships of a
transactions2 any trade transaction for the supply or e<change of goods or ser0ices; distribution
agree1ents; construction of wor5s; co11ercial representation or agency; factoring; leasing,
consulting; engineering; licensing; in0est1ent; financing; ban5ing; insurance; 9oint 0enture and
other for1s of industrial or business cooperation; carriage of goods or passengers by air, sea, rail
or road.
S*C. !!. (egal Representation in &nternational rbitration. - &n international arbitration
conducted in the Philippines, a party 1ay be presented by any person of his choice. Pro0ided,
A
that such representati0e, unless ad1itted to the practice of law in the Philippines, shall not be
authoriDed to appear as counsel in any Philippine court, or any other ?uasi-9udicial body whether
or not such appearance is in relation to the arbitration in which he appears.
S*C. !:. Confidential of rbitration Proceedings. - The arbitration proceedings, including the
records, e0idence and the arbitral award, shall be considered confidential and shall not be
published e<cept 738 with the consent of the parties, or 7!8 for the li1ited purpose of disclosing to
the court of rele0ant docu1ents in cases where resort to the court is allowed herein. Pro0ided,
howe0er, that the court in which the action or the appeal is pending 1ay issue a protecti0e order
to pre0ent or prohibit disclosure of docu1ents or infor1ation containing secret processes,
de0elop1ents, research and other infor1ation where it is shown that the applicant shall be
1aterially pre9udiced by an authoriDed disclosure thereof.
S*C. !#. Referral to rbitration. - court before which an action is brought in a 1atter which
is the sub9ect 1atter of an arbitration agree1ent shall, if at least one party so re?uests not later
that the pre-trial conference, or upon the re?uest of both parties thereafter, refer the parties to
arbitration unless it finds that the arbitration agree1ent is null and 0oid, inoperati0e or incapable
of being perfor1ed.
S*C. !B. &nterpretation of the ct. - &n interpreting the ct, the court shall ha0e due regard to
the policy of the law in fa0or of arbitration. =here action is co11enced by or against 1ultiple
parties, one or 1ore of who1 are parties who are bound by the arbitration agree1ent although
the ci0il action 1ay continue as to those who are not bound by such arbitration agree1ent.
S*C. !>. Meaning of 6ppointing uthority.6. - 6ppointing uthority6 as used in the Model
(aw shall 1ean the person or institution na1ed in the arbitration agree1ent as the appointing
authority; or the regular arbitration arbitration institution under whose rules the arbitration is
agreed to be conducted. =here the parties ha0e agreed to sub1it their dispute to institutional
arbitration rules, and unless they ha0e agreed to a different procedure, they shall be dee1ed to
ha0e agreed to procedure under such arbitration rules for the selection and appoint1ent of
arbitrators. &n ad hoc arbitration, the default appoint1ent of an arbitrator shall be 1ade by the
$ational President of the &ntegrated Bar of the Philippines 7&BP8 or his duly authoriDed
representati0e.
S*C. !C. =hat ,unctions May be Perfor1ed by ppointing uthority. - The functions referred
to in rticles 337:8, 337#8, 3:7:8 and 3#738 of the Model (aw shall be perfor1ed by the
ppointing uthority, unless the latter shall fail or refuse to act within thirty 7:"8 days fro1
receipt of the re?uest in which case the applicant 1ay renew the application with the Court.
S*C. !A. 4rant of &nteri1 Measure of Protection. -
7a8 &t is not inco1patible with an arbitration agree1ent for a party to re?uest, before
constitution of the tribunal, fro1 a Court an interi1 1easure of protection and for the Court to
grant such 1easure. fter constitution of the arbitral tribunal and during arbitral proceedings, a
re?uest for an interi1 1easure of protection or 1odification thereof, 1ay be 1ade with the
arbitral tribunal or to the e<tent that the arbitral tribunal has no power to act or is unable to act
effecti0ely, the re?uest 1ay be 1ade with the Court. The arbitral tribunal is dee1ed constituted
when the sole arbitrator or the third arbitrator who has been no1inated, has accepted the
@
no1ination and written co11unication of said no1ination and acceptance has been recei0ed by
the party 1a5ing re?uest.
7b8 The following rules on interi1 or pro0isional relief shall be obser0ed2
738 ny party 1ay re?uest that pro0ision relief be granted against the ad0erse party2
7!8 Such relief 1ay be granted2
7i8 to pre0ent irreparable loss or in9ury2
7ii8 to pro0ide security for the perfor1ance of any obligation;
7iii8 to produce or preser0e any e0idence; or
7i08 to co1pel any other appropriate act or o1ission.
7:8 The order granting pro0isional relief 1ay be conditioned upon the pro0ision of security or
any act or o1ission specified in the order.
7#8 &nteri1 or pro0isional relief is re?uested by written application trans1itted by reasonable
1eans to the Court or arbitral tribunal as the case 1ay be and the party against who1 the relief is
sought, describing in appropriate detail the precise relief, the party against who1 the relief is
re?uested, the grounds for the relief, and e0idence supporting the re?uest.
7B8 The order shall be binding upon the parties.
7>8 *ither party 1ay apply with the Court for assistance in &1ple1enting or enforcing an
interi1 1easure ordered by an arbitral tribunal.
7C8 party who does not co1ply with the order shall be liable for all da1ages resulting fro1
nonco1pliance, including all e<penses, and reasonable attorneyEs fees, paid in obtaining the
orderEs 9udicial enforce1ent.
S*C. !@. ,urther uthority for rbitrator to 4rant &nteri1 Measure of Protection. - 'nless
otherwise agreed by the parties, the arbitral tribunal 1ay, at the re?uest of a party, order any
party to ta5e such interi1 1easures of protection as the arbitral tribunal 1ay consider necessary
in respect of the sub9ect 1atter of the dispute following the rules in Section !A, paragraph !.
Such interi1 1easures 1ay include but shall not be li1ited to preli1inary in9uction directed
against a party, appoint1ent of recei0ers or detention, preser0ation, inspection of property that is
the sub9ect of the dispute in arbitration. *ither party 1ay apply with the Court for assistance in
i1ple1enting or enforcing an interi1 1easures ordered by an arbitral tribunal.
S*C. :". Place of rbitration. - The parties are free to agree on the place of arbitration. ,ailing
such agree1ent, the place of arbitration shall be in Metro Manila, unless the arbitral tribunal,
ha0ing regard to the circu1stances of the case, including the con0enience of the parties shall
decide on a different place of arbitration.
3"
The arbitral tribunal 1ay, unless otherwise agreed by the parties, 1eet at any place it considers
appropriate for consultation a1ong its 1e1bers, for hearing witnesses, e<perts, or the parties, or
for inspection of goods, other property or docu1ents.
S*C. :3. (anguage of the rbitration. - The parties are free to agree on the language or
languages to be used in the arbitral proceedings. ,ailing such agree1ent, the language to be used
shall be *nglish in international arbitration, and *nglish or ,ilipino for do1estic arbitration,
unless the arbitral tribunal shall deter1ine a different or another language or languages to be
used in the proceedings. This agree1ent or deter1ination, unless otherwise specified therein,
shall apply to any written state1ent by a party, any hearing and any award, decision or other
co11unication by the arbitral tribunal.
The arbitral tribunal 1ay order that any docu1entary e0idence shall be acco1panied by a
translation into the language or languages agreed upon by the parties or deter1ined in
accordance with paragraph 3 of this section.
C+PT*R B - .%M*ST&C RB&TRT&%$
S*C. :!. (aw 4o0erning .o1estic rbitration. - .o1estic arbitration shall continue to be
go0erned by Republic ct $o. AC>, otherwise 5nown as 6The rbitration (aw6 as a1ended by
this Chapter. The ter1 6do1estic arbitration6 as used herein shall 1ean an arbitration that is not
international as defined in rticle 7:8 of the Model (aw.
S*C. ::. pplicability to .o1estic rbitration. - rticle A, 3", 33, 3!, 3:, 3#, 3A and 3@ and
!@ to :! of the Model (aw and Section !! to :3 of the preceding Chapter # shall apply to
do1estic arbitration.
C+PT*R > - RB&TRT&%$ %, C%$STR'CT&%$ .&SP'T*S
S*C. :#. rbitration of Construction .isputes2 4o0erning (aw. - The arbitration of
construction disputes shall be go0erned by *<ecuti0e %rder $o. 3""A, otherwise 5nown as the
Constitution &ndustry rbitration (aw.
S*C. :B. Co0erage of the (aw. - Construction disputes which fall within the original and
e<clusi0e 9urisdiction of the Construction &ndustry rbitration Co11ission 7the 6Co11ission68
shall include those between or a1ong parties to, or who are otherwise bound by, an arbitration
agree1ent, directly or by reference whether such parties are pro9ect owner, contractor,
subcontractor, ?uantity sur0eyor, bonds1an or issuer of an insurance policy in a construction
pro9ect.
The Co11ission shall continue to e<ercise original and e<clusi0e 9urisdiction o0er
construction disputes although the arbitration is 6co11ercial6 pursuant to Section !3 of this ct.
S*C. :>. uthority to ct as Mediator or rbitrator. - By written agree1ent of the parties to a
dispute, an arbitrator 1ay act as 1ediator and a 1ediator 1ay act as arbitrator. The parties 1ay
also agree in writing that, following a successful 1ediation, the 1ediator shall issue the
settle1ent agree1ent in the for1 of an arbitral award.
33
S*C. :C. ppoint1ent of ,oreign rbitrator. - The Construction &ndustry rbitration
Co11ission 7C&C8 shall pro1ulgate rules to allow for the appoint1ent of a foreign arbitrator
or coarbitrator or chair1an of a tribunal a person who has not been pre0iously accredited by
C&C2 Pro0ided, That2
7a8 the dispute is a construction dispute in which one party is an international party
7b8 the person to be appointed agreed to abide by the arbitration rules and policies of C&C;
7c8 heFshe is either coarbitrator upon the no1ination of the international party; or heFshe is the
co11on choice of the two C&C-accredited arbitrators first appointed one of who1 was
no1inated by the international party; and
7d8 the foreign arbitrator shall be of different nationality fro1 the international party.
S*C. :A. pplicability to Construction rbitration. - The pro0isions of Sections 3C 7d8 of
Chapter !, and Section !A and !@ of this ct shall apply to arbitration of construction disputes
co0ered by this Chapter.
S*C. :@. Court to .is1iss Case &n0ol0ing a Construction .ispute. - regional trial court
which a construction dispute is filed shall, upon beco1ing aware, not later than the pretrial
conference, that the parties had entered into an arbitration to be conducted by the C&C, unless
both parties, assisted by their respecti0e counsel, shall sub1it to the regional trial court a written
agree1ent e<clusi0e for the Court, rather than the C&C, to resol0e the dispute.
C+PT*R C - J'.&C&( R*-&*= %, RB&TR( =R.S
. .%M*ST&C =R.S
S*C. #". Confir1ation of ward. - The confir1ation of a do1estic arbitral award shall be
go0erned by Section !: of R.. AC>.
do1estic arbitral award when confir1ed shall be enforced in the sa1e 1anner as final and
e<ecutory decisions of the Regional Trial Court.
The confir1ation of a do1estic award shall be 1ade by the regional trial court in accordance
with the Rules of Procedure to be pro1ulgated by the Supre1e Court.
C&C arbitral award need not be confir1ed by the regional trial court to be e<ecutory as
pro0ided under *.%. $o. 3""A.
S*C. #3. -acation ward. - party to a do1estic arbitration 1ay ?uestion the arbitral award
with the appropriate regional trial court in accordance with the rules of procedure to be
pro1ulgated by the Supre1e Court only on those grounds enu1erated in Section !B of Republic
ct $o. AC>. ny other ground raised against a do1estic arbitral award shall be disregarded by
the regional trial court.
B. ,%R*&4$ RB&TR( =R.S
3!
S*C. #!. pplication of the $ew /or5 Con0ention. - The $ew /or5 Con0ention shall go0ern
the recognition and enforce1ent of arbitral awards co0ered by the said Con0ention.
The recognition and enforce1ent of such arbitral awards shall be filled with regional trial
court in accordance with the rules of procedure to be pro1ulgated by the Supre1e Court. Said
procedural rules shall pro0ide that the party relying on the award or applying for its enforce1ent
shall file with the court the original or authenticated copy of the award and the arbitration
agree1ent. &f the award or agree1ent is not 1ade in any of the official languages, the party shall
supply a duly certified translation thereof into any of such languages.
The applicant shall establish that the country in which foreign arbitration award was 1ade is a
party to the $ew /or5 Con0ention.
&f the application for re9ection or suspension of enforce1ent of an award has been 1ade, the
regional trial court 1ay, if it considers it proper, 0acate its decision and 1ay also, on the
application of the party clai1ing recognition or enforce1ent of the award, order the party to
pro0ide appropriate security.
S*C. #:. Recognition and *nforce1ent of ,oreign rbitral wards $ot Co0ered by the $ew
/or5 Con0ention. - The recognition and enforce1ent of foreign arbitral awards not co0ered by
the $ew /or5 Con0ention shall be done in accordance with procedural rules to be pro1ulgated
by the Supre1e Court. The Court 1ay, grounds of co1ity and reciprocity, recogniDe and enforce
a noncon0ention award as a con0ention award.
S*C. ##. ,oreign rbitral ward $ot ,oreign Judg1ent. - foreign arbitral award when
confir1ed by a court of a foreign country, shall be recogniDed and enforced as a foreign arbitral
award and not a 9udg1ent of a foreign court.
foreign arbitral award, when confir1ed by the regional trial court, shall be enforced as a
foreign arbitral award and not as a 9udg1ent of a foreign court.
foreign arbitral award, when confir1ed by the regional trial court, shall be enforced in the
sa1e 1anner as final and e<ecutory decisions of courts of law of the Philippines.
S*C. #B. Re9ection of a ,oreign rbitral ward. - party to a foreign arbitration proceeding
1ay oppose an application for recognition and enforce1ent of the arbitral award in accordance
with the procedural rules to be pro1ulgated by the Supre1e Court only on those grounds
enu1erated under rticle - of the $ew /or5 Con0ention. ny other ground raised shall be
disregarded by the regional trial court.
S*C. #>. ppeal fro1 Court .ecisions on rbitral wards. - decision of the regional trial
court confir1ing, 0acating, setting aside, 1odifying or correcting an arbitral award 1ay be
appealed to the Court of ppeals in accordance with the rules of procedure to be pro1ulgated by
the Supre1e Court.
The losing party who appeals fro1 the 9udg1ent of the court confir1ing an arbitral award
shall re?uired by the appealant court to post counterbond e<ecuted in fa0or of the pre0ailing
3:
party e?ual to the a1ount of the award in accordance with the rules to be pro1ulgated by the
Supre1e Court.
S*C. #C. -enue and Jurisdiction. - Proceedings for recognition and enforce1ent of an
arbitration agree1ent or for 0acation, setting aside, correction or 1odification of an arbitral
award, and any application with a court for arbitration assistance and super0ision shall be
dee1ed as special proceedings and shall be filled with the regional trial court 7i8 where
arbitration proceedings are conducted; 7ii8 where the asset to be attached or le0ied upon, or the
act to be en9oined is located; 7iii8 where any of the parties to the dispute resides or has his place
of business; or 7i08 in the $ational Judicial Capital Region, at the option of the applicant.
S*C. #A. $otice of Proceeding to Parties. - &n a special proceeding for recognition and
enforce1ent of an arbitral award, the Court shall send notice to the parties at their address of
record in the arbitration, or if any party cannot be ser0ed notice at such address, at such partyEs
last 5nown address. The notice shall be sent at least fifteen 73B8 days before the date set for the
initial hearing of the application.
C+PT*R A - M&SC*(($*%'S PR%-&S&%$S
S*C. #@. %ffice for lternati0e .ispute Resolution. - There is hereby established the %ffice
for lternati0e .ispute Resolution as an attached agency to the .epart1ent of Justice 7.%J8
which shall ha0e a Secretariat to be headed by an e<ecuti0e director. The e<ecuti0e director shall
be appointed by the President of the Philippines.
The ob9ecti0e of the office are2
7a8 to pro1ote, de0elop and e<pand the use of .R in the pri0ate and public sectors; and
To assist the go0ern1ent to 1onitor, study and e0aluate the use by the public and the pri0ate
sector of .R, and reco11end to Congress needful statutory changes to de0elop. Strengthen
and i1pro0e .R practices in accordance with world standards.
S*C. B". Powers and ,unctions of the %ffice for lternati0e .ispute Resolution. - The %ffice
for lternati0e .ispute Resolution shall ha0e the following powers and functions2
7a8 To for1ulate standards for the training of the .R practitioners and ser0ice pro0iders;
7b8 To certify that such .R practitioners and .R ser0ice pro0iders ha0e undergone the
professional training pro0ided by the office;
7c8 To coordinate the de0elop1ent, i1ple1entation, 1onitoring, and e0aluation of go0ern1ent
.R progra1s;
7d8 To charge fees for their ser0ices; and
7e8 To perfor1 such acts as 1ay be necessary to carry into effect the pro0isions of this ct.
3#
S*C. B3. ppropriations. - The a1ount necessary to carry out the pro0isions of this ct shall
be included in the 4eneral ppropriations ct of the year following its enact1ent into law and
thereafter.
S*C. B!. &1ple1enting Rules and Regulations 7&RR8. - =ithin one 738 1onth after the
appro0al of this ct, the secretary of 9ustice shall con0ene a co11ittee that shall for1ulate the
appropriate rules and regulations necessary for the i1ple1entation of this ct. The co11ittee,
co1posed of representati0es fro12
7a8 the .epart1ent of Justice;
7b8 the .epart1ent of Trade and &ndustry;
7c8 the .epart1ent of the &nterior and (ocal 4o0ern1ent;
7d8 the president of the &ntegrated Bar of the Philippines;
7e8 representati0e fro1 the arbitration profession; and
7f8 representati0e fro1 the 1ediation profession; and
7g8 representati0e fro1 the .R organiDations
shall within three 7:8 1onths after con0ening, sub1it the &RR to the Joint Congressional
%0ersight Co11ittee for re0iew and appro0al. The %0ersight Co11ittee shall be co1posed of
the chair1an of the Senate Co11ittee on Justice and +u1an Rights, chair1an of the +ouse
Co11ittee on Justice, and one 738 1e1ber each fro1 the 1a9ority and 1inority of both +ouses.
The Joint %0ersight Co11ittee shall beco1e functus officio upon appro0al of the &RR.
S*C. B:. pplicability of the Gatarungan Pa1barangay. - This ct shall not be interpreted to
repeal, a1end or 1odify the 9urisdiction of the Gatarungan Pa1barangay under Republic ct
$o. C3>", otherwise 5nown as the (ocal 4o0ern1ent Code of 3@@3.
S*C. B#. Repealing Clause. - ll laws, decrees, e<ecuti0e orders, rules and regulations which
are inconsistent with the pro0isions of this ct are hereby repealed, a1ended or 1odified
accordingly.
S*C. BB. Separability Clause. - &f for any reason or reasons, any portion or pro0ision of this
ct shall be held unconstitutional or in0alid, all other parts or pro0isions not affected shall
thereby continue to re1ain in full force and effect.
S*C. B>. *ffecti0ity. - This act shall ta5e effect fifteen days 73B8 after its publication in at least
two 7!8 national newspapers of general circulation.
ppro0ed,
,R$G(&$ .R&(%$
3B
President of the Senate

J%S* .* -*$*C& JR.
Spea5er of the +ouse of Representati0es
This ct which is a consolidation of Senate Bill $o. !>C3 and +ouse Bill $o. B>B# was finally
passed by the Senate and the +ouse of Representati0es on ,ebruary #, !""#.
%SCR 4. /B*S
Secretary of Senate

R%B*RT% P. $)R*$%
Secretary 4eneral
+ouse of Represenati0es
ppro0ed2 pril !, !""#
4(%R& MCP4(-RR%/%
President of the Philippines
The (awphil Pro9ect - rellano (aw ,oundation
3>