Alternative

Dispute Resolution





Chapter 9:
Special Rules of Court on Alternative Dispute Resolution
The Specific Court Reliefs







Prepared for:
Atty. Ballesteros




Prepared by:
Erana, Zilpha Leah A.
Gabayno, Roxanne Gail M.
Merilles, Krishiena G.
Oliveros, Keisha
Paderna, Francis B.



 A. Judicial Relief Involving the Issues of Existence, Validity and Enforceability
of the Arbitration Agreement
The judicial relief referred to in Rule 3 of the Special ADR Rules is a petition for judicial
determination of the existence, validity and/or enforceability of an arbitration agreement.
The issues involved in these proceedings are:

1. Existence of the arbitration agreement – whether or not there is an arbitration
agreement.
2. Validity of the arbitration agreement – whether or not the arbitration agreement
complies with all the essential requisites for a valid contract.
3. Enforceability of the arbitration agreement – whether or not the arbitration
agreement is enforceable in accordance with Article 1403 of the Civil Code.

The following contracts are unenforceable, unless they are ratified:
(1) Those entered into in the name of another person by one who has been given no
authority or legal representation, or who has acted beyond his powers;
(2) Those that do not comply with the Statute of Frauds as set forth in this number:
a. An agreement that by it terms is not to be performed within a year from making
thereof;
b. A special promise to answer for the debt, default, or miscarriage of another;
c. An agreement made in consideration of marriage, other than a mutual promise to
marry;
d. An agreement for the sale of goods, chattels or things in action, at a price not less
than five hundred pesos, unless the buyer accept and receive part of such goods and
chattels, or the evidence, or some of them, of such things in action, or pay at the time
some part of the purchase money; but when a sale is made by auction and entry is
made by the auctioneer in his sales book, at the time of the sale, of the amount and
kind of property sold, terms of sale, price, names of the purchaser and person on
whose account the sale is made, it is a sufficient memorandum;
e. An agreement for the leasing for a longer period than one year, or for the sale of real
property or of an interest therein;
f. A representation as to the credit of a third person.
(3) Those where both parties are incapable of giving consent to the contract
The cited case also stressed that the proceedings are summary in nature:
This proceeding is merely a summary remedy to enforce the agreement to arbitrate.
The duty of the court in this case is not to resolve the merits of the parties’ claims but only to
determine if they should proceed to arbitration or not.

Judicial Relief Before Commencement of Arbitration

The rules on judicial relief prior to the commencement of arbitration apply when the
following circumstances are present:
1. The arbitration proceeding has not yet commenced; and
 2. There is between the parties a dispute regarding the existence, validity or enforceability
of the arbitration agreement.

The procedural rules are as follows:

1. Petition. The initiatory pleading for judicial relief before the commencement of
arbitration is a petition filed with the Regional Trial Court where any of the parties resides
or has his principal place of business. The petition should state facts showing [i] the legal
capacity of the parties to sue and be sued; [ii] the nature and substance of the dispute;
[iii] the grounds and circumstances relied upon by the petitioner; and [iv] the relief
sought. As in all other initiatory pleadings under the Special ADR Rules, the petition must
be verified and must be accompanied by a certification of non-forum shopping. An
authentic copy of the arbitration agreement should be attached to the petition unless the
ground relied upon is the non-existence or unenforceability of the arbitration agreement.
A copy of the petition shall be served upon the respondent before it is filed in court.
2. Comment / opposition. Within fifteen (15) days from service of the petition, the
respondent must file his comment or opposition.
3. Court action. In resolving the petition, the court must exercise judicial restraint and defer
to the competence or jurisdiction of the arbitral tribunal to rule on its competence and
jurisdiction.
4. Relief against court action. The determination by the court upholding the existence,
validity or enforceability of the arbitration agreement under these proceedings is merely
prima facie. Such prima facie determination, however, shall not be subject to a motion
for reconsideration, appeal or certiorari, but shall be without prejudice to the right of any
party to raise the same issues before the arbitral tribunal or the court in a petition to
vacate or set aside the arbitral award which shall be resolved in accordance with the
standards set for such proceedings.

Judicial Relief After Arbitration Commences

The rules on judicial relief after the commencement of arbitration apply under the
following circumstances:
1. The arbitration proceeding has already commenced, the arbitral tribunal has been
constituted and has rendered a preliminary ruling on its jurisdiction; and
2. A party desires to challenge the arbitral tribunal’s ruling on the issue of jurisdiction.

Hereunder are the procedural rules:

1. Petition. Within thirty (30) days from receipt of the notice of a ruling from an arbitral
tribunal, an aggrieved party may file a petition with the Regional Trial Court [i] where
the arbitration is taking place, or [ii] where any of the petitioners or respondents has
his principal place of business or residence, at the option of the petitionary, for judicial
relief from the ruling of the arbitral tribunal on a preliminary question upholding or
declining its jurisdiction.

The petition shall state [i] the facts showing that the petitioner or respondent has
legal capacity to sue or be sued; [ii] the nature and substance of the dispute; [iii] the
grounds and circumstances relied upon for the petition; and [iv] the relief sought. The
petitioner shall attach a copy of the request for arbitration and the ruling of the
arbitral tribunal.
2. Comment / opposition. The respondent should file his comment or opposition within
(15) days from the date of service of the petition
3. Court action. The court shall render judgment on the basis of the pleadings filed and
evidence submitted, within thirty (30) days from the time the petition is submitted for
resolution.

The filing and pendency of the petition for judicial relief shall not be a cause for the
court to enjoin the arbitration proceeding and the arbitral tribunal may proceed with
the arbitration and render the award.
4. Relief against court action. The aggrieved party may file a motion for reconsideration
of the order of the court, which shall, however, not be subject to an appeal. An order
affirming the jurisdiction of the arbitral tribunal shall not be subject to a petition for
certiorari, but an order denying jurisdiction may be the subject of such a petition.

If the arbitral tribunal, instead of rendering a preliminary ruling on its jurisdiction,
decides to defer such ruling until the rendition of the arbitral award, none of the
parties can seek judicial relief from the deferment. Motions for reconsideration,
appeal and petitions for certiorari are not available to challenge the decision of the
arbitral tribunal to defer the resolution of the preliminary jurisdictional issues. The
parties can, however, await the rendition of the final arbitral award, and raise the
same issues before the court in a proceeding for setting aside or vacating the award.

If, in the meantime that the resolution of the preliminary jurisdictional issue is
deferred, or before the court could render any ruling thereon, the arbitral tribunal
renders the final arbitral award, the prospective or pending petition for judicial relief
on the preliminary jurisdictional issue, will be rendered moot and academic, and any
pending petition ought to be dismissed. Again, the aggrieved party may raise the same
issues before the court in a proceeding to set aside or to vacate the arbitral award.

A nominal party is one who is named as party in an action although the real interest is
with some other party.

A nominal party must be distinguished from a real party-in-interest, an indispensable
party, and a necessary party. A real party-in-interest is “the part who stands to be benefited or
injured by the judgment or the party entitled to the avails of the suit.”

 An indispensable party is “a party who has such an interest in the controversy or subject
matter that a final adjudication cannot be made, in his absence, without injuring or affecting that
interest.”

A necessary party is one who is not indispensable but “who ought to be joined as a party
if complete relief is to be accorded as to those who are already parties, or for a complete
determination or settlement of the claim subject of the action.”

The circumstance that not all of the parties to the civil action are bound by the arbitration
agreement or that referral to arbitration would result in multiplicity of suits are not grounds to
deny the referral of a pending action to arbitration.

B. Referral to ADR
• this pertains to the referral of pending court action to arbitration rather than any other form of ADR

The situation contemplated under this rule:

a) There is already pending court action;
b) There is either a pre-action arbitration agreement or a present-action agreement;
c) one or both parties desire to undergo arbitration;

Pre-action: arbitration agreement executed prior to the filing of an action
Ø either be an agreement to submit to arbitration or a submission agreement
Ø the request for referral to arbitration may be made by anyone of the parties not later than pre-trial
conference; if request is after the pre-trial, it must be with the agreement of both parties

Present-action: executed after the filing of an action
Ø necessarily a submission agreement
Ø the parties may request the referral to arbitration at any time during the proceedings

Classification of Arbitration Agreement Based on the Time of Execution Relative to the Filing of the
Action
Ø for the purpose of determining the timeliness of the request for referral to arbitration and the
number of the parties who are required to make the request, i.e., pre-action or present-action

Classification Based on the Time of the Execution of the Arbitration Agreement Relative to the Existence
of the Dispute
Ø for the purpose of determining the date of commencement of the arbitration, i.e., pre-causal or
present-causal arbitration agreement


Procedural Rules:

1. Request/motion
 • the initiatory pleading in referral to arbitration is a “request” or a “motion” and not a petition
because it contemplates the existence of a pending court action already initiated either by a complaint
or a petition
• the motion shall contain the authentic copy of the arbitration agreement and must be served
upon the respondent and be set for hearing

2. Comment/opposition
• It must be filed within fifteen (15) days from service of request or motion and must show:
a. that there is no agreement to refer the dispute to arbitration;
b. the agreement is null and void;
c. the subject matter of the dispute is not capable of settlement or resolution by arbitration

3. Court action
The court may:
a. Grant the motion
Ø if it finds prima facie that there is a valid and enforceable arbitration agreement
and that the subject matter of the dispute is capable of arbitration
b. Deny
Ø if the court finds otherwise

Either way, the court should stay the judicial proceedings while the motion to referral is pending.
However, the arbitral proceedings may be commenced or continued, and an award may be
made thereon while the action is pending in the court

4. Relief against court action
• the order granting the motion for referral to arbitration shall be immediately executory and
shall not be subject to a motion for reconsideration, appeal or petition for certiorari
• the order denying the request for referral, although not subject to appeal, maybe a subject of
a motion for reconsideration and petition for certiorari

The courts are prohibited from denying the request for referral of some or all of the parties on the
following reasons:

1. Not all of the dispute subject of the civil action may be referred to arbitration;
2. Not all of the parties to the civil action are bound by the arbitration agreeement and referral to
arbitration would result in multiplicity of suits;
3. The issues raised in the civil action could be speedily and efficiently resolved in its entirety by the
court rather than in an arbitration;
4. Referral to arbitration does not appear to be the most prudent action; or
5. The stay of the action would prejudice the rights of the parties to the civil action who are not
bound by the arbitration agreement.

Legal Effects of the Non-Application of the Arbitration Clause to a Case:

1. the judicial proceedings conducted beyond the point when the dispute should have been referred
to arbitration are rendered invalid;
2. the decisions, including those of the appellate courts, must be vacated and set aside;
 3. the case must be remanded to the court a quo to be suspended at said point; and
4. the petitioner and respondent must then be referred to arbitration pursuant to the arbitration
clause


C. Interim Measures of Protection

Contemplate the situation:
1. Either
i) before the commencement of arbitration, or
ii) after the commencement of the arbitration but prior to the constitution of the
arbitral tribunal, or
iii) after the arbitral tribunal’s constitution but it has no power to act or is unable to act
effectively; and
2. Where a party desires to secure interim measures of protection.
Measure of protection is either:
a. Interim; or
b. Temporary

Interim Measures of Protection
The following may be requested by the parties from the court:
1. Preliminary injunction directed against a party to arbitration;
2. Preliminary attachment against property or garnishment of funds in the custody of a bank or third
person;
3. Appointment of receiver;
4. Detention, preservation, delivery or inspection of property; or
5. Assistance in the enforcement of an interim measure of protection granted by the arbitral tribunal
which it can enforce effectively.


The rules of procedure or the application for interim measures of protection with the court:
1. Petition.
The application for interim measure of protection is initiated by filing a petition with the RTC of the
place where:
i) any of the parties has his principal place of business or residence; or
ii) any if the acts sought to be enjoined are being performed or threatened to be performed; or
iii) the real property subject of the arbitration is situated, at the option of the petitioner.

Prior notice must be served upon the adverse party unless the petitioner alleges in the petition an
application for a n ex parte temporary protective measure t o the effect that there is an urgent need to
either:
a. preserve property;
b. prevent the respondent from disposing of, or concealing the property,
c. prevent the relief prayed for from becoming illusory because of prior notice, and the court
finds that the reasons given are meritorious.

2. Comment/opposition.
It must be filed within fifteen (15) days from service of the petition.

3. Court action.
The court shall resolve the petition within 30 days from the
i) submission of the opposition; or
ii) upon the lapse of the period to file the same;
iii) from the termination of the hearing that may be set if there is need for clarification or further
argumentation.

When the court shall defer the action on the petition:
• If the basis for petition for an interim measure is the non-constitution of the arbitral tribunal.
Exception:
• Unless it is established that the arbitral tribunal has no power to act on any such interim
measure of protection or is unable to act thereon effectively.

4. Relief against court action.
An order of the court granting or denying an interim measure may be the subject of a motion for
reconsideration, appeal, or a petition for certiotrari.

The order granting the petition shall be immediately executory
o if the protective measure was issued in a proceeding whereat the adverse party was given
an opportunity to be heard.
Exception:
If it is a temporary protective measure.

Temporary Protective Measure
• Referred to as temporary order of protection (TOP), is an injunctive relief the office of which is to
preserve property subject matter of the arbitration, or prevent the relief prayed for from
becoming moot and academic, during the period that the court is resolving the application for the
interim protective measure.
• It is applied for ex parte;
• Immediately executory;
• Has a lifetime of only twenty (20) days from issuance unless extended for another twenty (20)
days.
• May be issued by the court on the following reasons:
a. There is an urgent need to
i. preserve property;
ii. prevent the respondent from disposing of, or concealing the property;
iii. prevent the relief prayed for from being illusory because of prior notice.
b. The petitioner shall post a bond to answer for any damage that the respondent may suffer as
a result thereof;
c. It shall be valid only for 20 days from the service of the party required to comply unless
extended but not for more than 20 days;
d. During the 20-day period and any extension thereof, the court shall determine the propriety
of issuing the principal interim protective measure requested; and
e. It can be lifted by the respondent by posting an appropriate counter-bond as determined by
the court.


Temporary Order of Protection (TOP) as distinguished from Temporary Restraining Order (TRO)

1. The effectivity of a TOP is susceptible of extension for not more than 20 days while a TRO is non-
extendible and becomes functus oficio after the lapse of the 20 days from the service thereof.
2. A bond is required for a TOP unlike in TRO which does not generally require.
3. A TOP may be lifted through the posting of a counter-bond which is not true of a TRO.

D. Appointment of Arbitrators:
The rules on the judicial appointment apply if:

1. There is a failure to appoint an arbitrator under the ff. circumstances:
a. Where any of the parties in an institutional arbitration failed or refused to appoint an
arbitrator, or the parties have failed to reach an agreement on the sole arbitrator (in
an arbitration 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 of arbitrators), and the institution under whose rules arbitration is to
be conducted fails or is unable to perform its duty as appointing authority within a
reasonable time from receipt of the request for appointment;
b. Where the arbitration is ad hoc and the parties have failed to provide a method for
appointing or replacing an arbitrator, or substitute arbitrator, or the method agreed
upon is ineffective, and the National President of the IBP or his duly authorized
representative fails or refuses to act within such period as may be allowed under the
pertinent rules of the IBP or within such period as may be agreed upon by the parties,
or in the absence thereof, within 30 days from receipt of such request for
appointment; OR
c. Where the parties agreed that their dispute shall be resolved by 3 arbitrators but no
method of appointing those arbitrators has been agreed upon, and the parties, and
subsequently, the appointing authority, fails or refuses to appoint the arbitrator
within a reasonable time from receipt of the request to do so.

2. And any party or the appointed arbitrators request the court to act as the appointing
authority and appoint the arbitrator or third arbitrator as the case may be.

Rules of procedure for the judicial appointment of arbitrators:
a. Petition: Petition for the appointment of an arbitrator shall be filed with the RTC (a.)
where the principal place of business of any of the parties is located, (b.) if any of the
parties are individuals where those individuals reside, or (c.) in the NCR, at the petitioner’s
option.
The petition shall state:
i. the general nature of the dispute.
ii. a description of the procedure for the appointment of the arbitrators, if there is
any, & the agreement containing such procedure.
iii. the number of the arbitrators agreed upon or the absence of such an agreement.
 iv. the special qualifications of the arbitrators if there is any agreement thereon.
v. the fact that the appointing authority, without justifiable cause, has failed or
refused to act as such within the time prescribed or within a reasonable time, from
the date a request was made.
vi. the petitioner is not the cause of the delay or in the failure of the appointment of
the arbitrator. It should contain an authentic copy of the arbitration agreement,
and proof that the appointing authority has been notified of the filing of the
petition for appointment with the court. The petition shall be served upon the
respondent before it is filed in court.
b. Comment/Opposition: The comment or opposition must be filed within 15 days from the
service of the petition.
c. Court action: The court may require each party to submit a list of not less than 3 proposed
arbitrators together with their CV from whom the court may appoint the arbitrator. Prior
to the appointment, if the court is informed that the appointing authority has already
made an appointment, it shall dismiss the petition.
d. Relief against court action: The order of the court appointing an arbitrator shall be
immediately executory and shall not be the subject of a motion for reconsideration,
appeal, or certiorari. An order of the court denying the petition of an arbitrator may,
however, be the subject of a motion for reconsideration, appeal, or certiorari.

E. Challenge to Appointment of Arbitrator
The rules of procedure on the judicial challenge to the appointment of arbitrators apply to the
following:
1. The challenge to the appointment of an arbitrator before the arbitral tribunal is not
successful, and the appointing authority fails or refuses to act on the challenge within
such period of time as may be allowed under the applicable rule or, in the absence
thereof, within 30 days from receipt of the request.
2. The aggrieved party wants to secure judicial action on the challenge.

The procedure for the challenge to the appointment of an arbitrator before the court is as
follows:
1. Petition: The petition for the judicial challenge shall be filed with the RTC (a.) where the
principal place of business of any of the parties is located, (b.) if any of the parties are
individuals, where those individuals reside, or (c.) in the National Capital Judicial region,
at the option of the petitioner.
The petition shall state:
a. the name of the arbitrator challenged and his address,
b. the grounds for the challenge,
c. the facts showing that the ground for the challenge has been expressly or
impliedly rejected by the challenged arbitrator, and
d. the facts showing that the appointing authority failed or refused to act on the
challenge. A copy of the petition shall be served upon the respondent before it is
filed in court.
 2. Comment/Opposition: The challenged arbitrator or other parties may file a comment or
opposition within 15 days from service of the petition.
3. Court action: The court has any of the following options in resolving the petition:
a. grant the petition by removing the challenged arbitrator if it finds merit in the
petition;
b. dismiss the petition if there is no merit thereto.
c. allow the challenged arbitrator to withdraw as arbitrator.
d. accept the challenge and remove the arbitrator if
i. the party or parties who named and appointed the challenged arbitrator
agree to the challenge and withdraw the appointment,
ii. the other arbitrators in the arbitral tribunal agree to the removal of the
challenged arbitrator,
iii. the challenged arbitrator fails or refuses to submit his comment on the
petition or the brief of legal documents as directed by the court, or he fails
to object to his removal.

F. Termination of mandate of Arbitrator:
The rules on the judicial termination of mandate of an arbitrator apply when:
1. An arbitrator becomes de jure or de facto unable to perform his actions or for reasons fail
to act without undue delay.
2. The arbitrator, upon request of any party, fails or refuses to withdraw from his office.
3. The appointing authority fails or refuses to decide on the termination of the mandate of
the arbitrator within such period of time of the mandate of the arbitrator as may be
allowed under the applicable rule or, in the absence thereof, within 30 days, from the
time the request is brought before him.
4. Any party seeks judicial action in terminating the mandate of the arbitrator.

The relief for the termination of the mandate of an arbitrator is different from a challenge to an
arbitrator. In the judicial challenge to an arbitrator, the arbitrator is sought to be removed on the
ground of partiality or non-compliance with the qualifications required of him. In the judicial
termination of the mandate of an arbitrator, the arbitrator who has been validly appointed has
become incapable of performing his functions or has become unable to do so.

The procedure for the judicial termination of the mandate of an arbitrator is as follows:

1. Petition: The petition shall be filed with the RTC
a. where the principal place of business of any of the parties is located,
b. where any of the parties who are individuals reside, or,
c. in the national capital judicial region, at the option of the petitioner.

The petition shall state:
a. the name of the arbitrator whose mandate is sought to be terminated,
b. the grounds for termination,
 c. the fact that one or all of the parties had requested the arbitrator to withdraw but
he failed or refused to accede,
d. the fact that one or all of the parties requested the appointing authority to act on
the request but is unable or has failed to act within 30 days from the request or
within such period of time as may have been agreed upon by the parties or
allowed under the applicable rule. A copy of the petition shall be served upon the
respondent before it is filed in court.

2. Comment/Opposition: The comment or opposition must be filed within 15 days from
service of the petition.
3. Court action: The court shall grant the petition and terminate the mandate of the
arbitrator if it finds merit in the petition, otherwise it shall dismiss the petition. If the
petition is granted, a substitute arbitrator shall be appointed accdng. to the rules that
were applicable to the appointment of the arbitrator being replaced.
4. No relief against court action: Any order of the court resolving the petition shall be
immediately executory and shall not be subject to a motion for reconsideration, appeal,
or petition for certiorari.

G. Assistance in taking evidence
The specific rule for judicial assistance in taking evidence is an exception to the principle that the
special ADR rules are applicable only to domestic arbitration and Philippine ICA. The relief is
available whether the arbitration is domestic or foreign. The rules on judicial assistance in taking
evidence apply in the following situations:
1. there is pending arbitration, whether domestic or foreign.
2. a party desires to present evidence or the arbitral tribunal ordered the taking of evidence,
necessitating court assistance.
3. the evidence is sought from a person, including a representative of a corporation,
association, partnership or other entity, other than a party to the arbitration or its
officers, found in the Philippines.

When however, arbitration has not yet commenced or the arbitral tribunal has not yet been
constituted, any person who desires to perpetuate his testimony or that of another may avail of
the rule on the depositions before action or pending appeal under rule 24 of the 1997 rules of
civil procedure.
Examples of court assistance in taking evidence are enumerated in rule 9.5 of the special ADR
rules. They correspond to the different classes of evidence under the rules of court, thus:
1. On testimonial evidence:
a. to comply with a subpoena ad testificandum.
b. to appear as witness before an officer for the taking of his deposition upon oral
examination or written interrogatories.
2. On documentary evidence:
a. to comply with a subpoena duces tecum.
b. to allow the examination and copying of the documents.
On real evidence: to allow the physical examination of the condition of persons, or the inspection
of things or premises and, when appropriate, to allow the recording or documentation of the
conditions of persons, things or premises.

The arbitral tribunal is not clothed with authority to cite persons or parties in contempt. However,
the court may impose sanctions, including the citation for contempt, against persons who violate
its orders issued in assisting the arbitral tribunal in taking evidence.
The procedure for judicial assistance in taking evidence is as ff.:
1. Petition: the petition shall be filed with the RTC where
a. arbitration proceedings are taking place,
b. the witness resides or may be found,
c. the evidence may be found, at the option of the petitioner,

The petition must state
a. the fact there is an ongoing arbitration proceeding even if such proceeding cannot
continue due to some legal impediments,
b. the arbitral tribunal ordered the taking if evidence or a party desires to present
evidence to the arbitral tribunal,
c. the materiality or relevance of the evidence to be taken,
d. the names and addresses of the intended witnesses, place where the evidence
may be found, or the place where the acts required are to be done. A copy of the
petition shall be served upon the respondent before it is filed in court.
2. Comment/Opposition: the comment or opposition must be filed within 15 days from
service of the petition.
3. Court action: if the evidence sought is not privileged, and is material and relevant, the
court shall grant the request for assistance in taking evidence and shall order the
petitioner to pay the costs attendant to such assistance.
4. Relief against court action: the order granting the request for assistance in taking
evidence shall be immediately executory and mot subject to a motion for reconsideration,
appeal, or petition for certiorari. If the court declines to grant assistance in taking
evidence, the petitioner may file a motion for reconsideration, appeal, or petition for
certiorari.

H. Confidentiality/Protective Orders
(Rule 10.1 to 10.10, Special ADR Rules)
Refers to the judicial enforcement of the confidential nature of information disclosed or
obtained during ADR proceeding.

The rules apply when:
1. An ADR proceeding is pending;
2. A party, counsel or witness disclosed information or was otherwise compelled to disclose
information;
 3. The disclosure was made under circumstances that would create a reasonable
expectation, on behalf of the source, that the information shall be kept confidential;
4. The source of the information or the party who made the disclosure has the right to
prevent such information from being disclosed;
5. The source of the information or the party who made the disclosure has not given his
express consent to any disclosure; and
6. The applicant would be materially prejudiced by an unauthorized disclosure of the
information obtained, or to be obtained, during the ADR proceeding.

Procedure:
1. Petition or Motion.
• If there is no pending court proceeding, filed with the RTC of the place where the
order may be implemented.
• Copy of the petition shall be served upon the respondent before it is filed in court.
• If there is pending court proceeding, applicant should file with the court where
the proceeding is pending a motion to enjoin the disclosure or to suppress the
confidential information.
• The petition or motion must state:
a. That the information sought to be protected was obtained, or would be
obtained, or would be obtained, during ADR proceeding;
b. The applicant would be materially prejudiced by the disclosure of that
information;
c. The person or persons who are being ask to divulge the confidential
information participated in the ADR proceedings; and
d. The time, date and place when the ADR proceedings took place.

2. Comment/Opposition.
• Must be filed within 15 days from service of the petition or motion.
• Comment or opposition may be accompanied by proof that:
a. The information is not confidential;
b. The information was not obtained during an ADR proceeding;
c. There was a waiver of confidentiality; or
d. The petitioner movant is precluded from asserting confidentiality.

3. Court Action.
• If meritorious, order shall be issue to enjoin the person involved from divulging
confidential information.
• Court shall impose proper sanction, including citation for contempt, against any
person who disobeys the order of the court to cease from divulging confidential
information.

4. Relief Against Court Action.
 • Immediately executory and may not enjoined while the order is being questioned
before the appellate courts.
• The order enjoining or refusing to enjoin persons involved from divulging
confidential information may be the subject of a motion for reconsideration or
appeal, but not a petition for certiorari.

I.Confirmation, Recognition, Enforcement, Correction, Vacation or Setting Aside
of Arbitral Awards
(Rules 11 to 13, Special ADR Rules)
The circumstances covered by these rules are as follows:

1. An arbitral award has been rendered either in:
a. Domestic arbitration;
b. Philippines ICA;
c. Foreign arbitration resulting in a convention award or non-convention award but
with comity and reciprocity.
2. A party seeks to:
a. Confirm, correct, or vacate the domestic arbitral award;
b. Recognize and enforce, or set aside the Philippine ICA award; or
c. Recognize and enforce the foreign convention award or foreign as-in convention
award.

Ia. Confirmation, Correction or Vacation of Domestic Arbitral Awards
(Rules 11.1 to 11.9, Special ADR Rules)
Judicial affirmation of a domestic arbitral award is done through “confirmation” and not
“recognition.”

“Recognition” pertains to the grant of legal effect by Philippines courts to an arbitral award
with foreign elements.

Causes of Action and Grounds
1. Confirmation of the domestic arbitral award
• Petition for which can be filed at any time after the lapse of 30 days from receipt
by the petitioner of the arbitral award, unless it is filed in opposition to a petition
for vacation in which case the petition for confirmation may be filed at any time
after the filing of the petition for vacation.
2. Correction or modification of the domestic arbitral award
• Must be filed not later than 30 days from receipt of the arbitral award, unless
the correction is applied for a supplementary relief to a petition for confirmation
in which case the correction may be applied for at the same time as filing of the
petition for confirmation.
• The grounds are as follows:
 a. Where 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;
b. Where the arbitrators have awarded upon matter not submitted to them,
not affecting the merits of the decision upon the matter submitted;
c. Where the arbitrators have omitted to resolve an issue submitted to
them for resolution; or
d. Where the award is imperfect in a matter of form not affecting the merits
of the controversy, and if it had been a commissioner’s report, the defect
could have been amended or disregarded by the court.
3. Vacation of the domestic arbitral award.
• The petition or petition-in-opposition for which must be filed not later than 30
days from receipt of the arbitral award.
• Grounds are as follows:
a. The arbitral award was procured through corruption, fraud or other
undue means;
b. There was evident partiality or corruption in the arbitral tribunal or any
of its members;
c. The arbitral tribunal was guilty of misconduct or any form of misbehavior
that has materially prejudiced the rights of any party;
d. One or more of the arbitrators was disqualified to act as such under the
law and willfully refrained from disclosing such disqualification;
e. The arbitral tribunal exceeded its powers, or is so imperfectly executed
them, such that a complete, final and definite award upon the subject
matter submitted to them was not made;
f. The arbitration agreement did not exist, or is invalid for any ground for
revocation of a contract or is otherwise unenforceable; or
g. A party to the arbitration is a minor or a person judicially declared to be
incompetent, in which case, the petition shall be filed only on behalf of
the minor or the incompetent person, and shall allege that:
i. The other party had knowingly entered into a submission or
agreement with such minor or incompetent; and
ii. The submission to arbitration was made by a guardian or guardian
ad litem who was not authorized to do so by a competent court.
• The foregoing grounds are exclusive and the court cannot consider any other ground.

Combination of causes of Action
• These are the proceedings involving domestic arbitral awards which cannot be vacated
or set aside.
• The principle allows the combination of 2 or more reliefs to be places in the same
proceeding.
• Initiatory relief is that which is pleaded in the initiatory petition, while the relief-in-
opposition is that prayed for in order to oppose the initiatory relief.
 • Supplementary relief as in the case of a prayer for correction of an arbitral award in
support of a petition for confirmation.
• Alternative relief as in the case of a prayer for correction as an alternative to a petition
to vacate in opposition to a petition for confirmation.
• The following combinations are possible:
1. Confirmation/Vacation
2. Confirmation/Correction
3. Vacation/Correction
• Combination is possible only in the following instances:
1. If the petition to vacate, with a filing period of 30 days from receipt of the
arbitral award, is filed first as it can be opposed by a petition-in-opposition for
confirmation which can be filed at any time after the petition to vacate has been
filed.
2. Or if the arbitral award is received ahead by the party intending to confirm it and
it is received later by the party intending to vacate it, in which case, the filing
period for the petition to set aside the arbitral award will overlap with the filing
period for the petition for confirmation.

Ib. Recognition, Enforcement, or Setting Aside of ICA Awards
• Rule 12 of the Special ADR Rules governs the recognition and enforcemet or setting aside
of a Philippine ICA award. A foreign ICA award shall be treated as foreign arbitral award,
and its recognition and enforcement will be governed by Rule 13 of the Special ADR Rules

Causes of Action Covered by Rule 12 of the Special ADR Rule
1. Recognition and enforcement of an ICA award, the petition of which can be filed at
anytime from receipt of the award. The court shall grant the petition unless any of the
grounds for setting aside is established
2. Setting aside and ICA award, the petition of which shall be filed within 3 months from the
time the petitioner receives a copy of ICA award or the resolution of the tribunal.

Judicial correction or modification is not available for an ICA award

Grounds
1. The party making the application furnishes that:
a. A party was under some capacity, or the agreement is not valid under the law
b. No proper notice of the appointment of an arbitrator or of the arbitral proceedings
was given
c. The award is not contemplated or falls within the terms of submission to arbitration
d. The composition of the arbitral tribunal or the procedure was not in accordance with
the agreement of the parties

2. The court finds that
 a. The subject matter of the dispute is not capable of settlement by arbitration under
Philippine laws
b. The recognition or enforcement of the award would be contrary to public policy

Combination of Causes of Action
- The same principle allowing the combination of reliefs and the dismissal of petitions
or petitions-in-opposition seeking reliefs filed beyond reglementary periods
applicable to the confirmation, enforcement or setting aside of domestic arbitral
awards are applicable to international commercial arbitral awards.

Procedural Rules
1. Petition – Shall be filed with the RTC
a. where the arbitration proceedings were conducted
b. where any of the assets to be attached or levied upon is located
c. where the act to be enjoined will be or being performed
d. where any of the parties reside
e. National Capital Judical Region, at the option of the petitioner

2. Notice, opposition and reply – if the notice is sufficient in form and substance, the court
shall cause a notice and a copy of the petitions to be delivered.
3. Hearing
4. Suspension of the Proceedings – upon the motion of a party, the court may suspend a
proceeding in order to give the arbitral tribunal an opportunity to resume the arbitral
proceedings
5. Judgment
6. Relief from court action

Ic. Recognition and Enforcement of Foreign Arbitral Awards
• governed by 1958 New York Convention on Recognition and Enforcement of Foreign
Arbitral Award and Rule 13 of Special ADR Rules

Grounds for when the PH court may refuse recognition of foreign arbitral award
1. The party making the application furnishes that:
a. A party was under some capacity, or the agreement is not valid under the law
b. No proper notice of the appointment of an arbitrator or of the arbitral proceedings
was given
c. The award is not contemplated or falls within the terms of submission to arbitration
d. The composition of the arbitral tribunal or the procedure was not in accordance with
the agreement of the parties
e. The awards have not yet become binding on the parties or has been set aside or
suspended

2. The court finds that
 a. The subject matter of the dispute is not capable of settlement by arbitration under
Philippine laws
b. The recognition or enforcement of the award would be contrary to public policy

Procedural Rules
1. Petition – Shall be filed with the RTC
a. where any of the assets to be attached or levied upon is located
b. where the act to be enjoined will be or being performed
c. where any of the parties reside
d. National Capital Judicial Region, at the option of the petitioner

2. Notice, opposition – opposition shall be filed within 30 days upon the receipt of the notice
and petition.
3. Hearing
4. Decision
5. Suspension of the Proceedings – upon the motion of a party, the court may suspend a
proceeding in order to give the arbitral tribunal an opportunity to resume the arbitral
proceedings
6. Judgment