CONTRACT
- Commercial contract
- There must be an arbitration clause
- No arbitration clause – go to court
- A dispute must arise in a contract containing the arbitration clause
Commencement – adhoc or institutional
Arbitration is nothing but “private judging”
- Take away the public nature of a courtroom proceeding
o Take away the public servant – no judge
o Replace with a private person (arbitrator)
o Mandated by the law that the award shall have the force and effect of na
courtroom judgment
o Arbitration is confidential
Among the kinds of ADR, Only in arbitration is there a BINDING award
HOMEWORK: List down as many as you can – Arbitration Institutions/Centers
- Submit by Thursday
Commencement – Demand is how you commence – Sec 5 RA 876
- 3 items – nature of the dispute; amount involved; relief sought = DEMAND LETTER
o “by this demand, I commence arbitration”
o Write the demand letter; serve it to the other party
o When a demand of arbitration has been served – in the eyes of the law, it is
commenced
ARBITRATION CLAUSE - “Any dispute arising out of this contract shall be resolved by
arbitration” – Adhoc arbitration (because it did not mention any arbitration institution – follow
RA 876)
- Are you barred from going to court if there is an arbitration clause?
Institutional Arbitration - “Any dispute arising out of this contract shall be resolved by
arbitration under the rules of arbitration of the international chamber of commerce”
- Commence: prepare a request for arbitration in the international chamber of commerce
(ICC)
o In the international court of arbitration = BUT IT IS NOT A COURT
This is the arbitration office
“Any dispute arising out of this contract shall be resolved by arbitration under the rules of
arbitration of the international chamber of commerce by three arbitrators”
Motion for inhibition (court) = Challenge (arbitration)
- When the judge/arbitrator lost impartiality
Notes February 26, 2021
1953 – RA 876. First arbitration law. Law on domestic arbitration.
Arbitration v. Submission Agreement
CFI – Appointing authority Sec 8
o Petition for Confirmation/Vacate/(Modify/correct)
o But see Sec 26 RA 9285
Arbitral award appealable on questions of law.
Domestic Arbitration v. International Arbitration v. Foreign Arbitration
1958 – New York Convention (“Convention on the Recognition and Enforcement of Foreign
Arbitral Awards”). Obligates every member state to recognize arbitral award rendered in other
member states.
Member-states – Member state binds itself to Recognize and enforce Arbitration
Agreements AND Arbitral awards.
Arbitration Agreements
Arbitral Awards
Recognize and Enforce
With 7 exceptions
1. If the arbitral award is against public policy in the Philippines
1965 – Ph Adopts New York Convention
1985 – EO 1008 – created the CIAC – developed for construction disputes.
Created the CIAC as an arbitration institution
Devoted to the arbitration of construction disputes
CIAC has original and exclusive jurisdiction over construction disputes.
Original and exclusive jurisdiction
1985 – UNCINTRAL Model Law
United Nations Commission On International Trade Law
o UN Agency
o What the UNCINTRAL, it created an arbitration rules (this is the model law)
o Every country is free to adopt this model law.
o Purpose: so that there would be uniformity of cross border disputes
o Eventually adopted by so many countries.
2004 – RA 9285 – ADR Act of 2004 – Alternative Dispute Act of 2004. This gave us foreign and
international arbitration by adopting the UNCINTRAL Model
Not just Arbitration – but the entire field of ADR
ADR includes arbitration, mediation, early neutral Evaluation, mini trial, or any
combination thereof.
Domestic Arbitration – international Arbitration – Foreign Arbitration.
Adopted UNCITRAL Model Law to govern international arbitration.
RA 876 Continues to govern domestic arbitration
2009 – Special ADR Rules IRR of RA 9285 (AM 07-11-08-SC)
Special Rules of Court
IRR of RA 9285 – DOJ Circular No. 98
Lex Arbitri – The entirety of the entire arbitration laws in a certain country. Above
enumeration is our (Ph) entire Lex Arbitri
