Question & AnswerQ&A (Republic Act No. 876)
Republic Act No. 876 is known as "The Arbitration Law."
Two or more persons or parties who have an existing controversy or who are parties to a contract may submit their controversy to arbitration.
Yes, arbitration agreements or submissions are valid, enforceable, and irrevocable except upon grounds for revocation of any contract under the law.
No, unless the appropriate court grants permission upon a petition made by the general guardian or guardian ad litem.
Controversies subject to the jurisdiction of the Court of Industrial Relations or that have been submitted to it are excluded from this law.
The arbitration agreement or submission must be in writing and subscribed by the party sought to be charged or their lawful agent.
The court of first instance has jurisdiction to enforce arbitration agreements and may order parties to proceed to arbitration if one party refuses.
The aggrieved party may file a demand for arbitration with the Clerk of Court or petition the court to compel arbitration in accordance with the agreement.
The Court of First Instance appoints arbitrators if parties fail to agree, if an arbitrator cannot serve, or if other appointment methods fail.
An arbitrator must be of legal age, have full civil rights, be literate, not related within the sixth degree to any party, and have no bias, interest, or financial stake in the controversy.
An arbitrator may be challenged for reasons arising after appointment or unknown at appointment time, such as bias or disqualification, first before the arbitrators then before the Court of First Instance if the challenge is denied.
Arbitrators set hearing schedules, require evidence, admit parties and counsel, subpoena witnesses, administer oaths, and can rule on procedural matters within the arbitration.
The award must be rendered within thirty days after the close of hearings or after proceedings in lieu of hearing are closed, unless extended by written agreement of the parties.
The award must be in writing, signed by a majority of arbitrators, specify remedies or relief granted, and be provided in copies to all parties.
An award may be vacated for corruption, fraud, evident partiality, misconduct by arbitrators, disqualification not disclosed, or arbitrators exceeding their powers.
The court may modify or correct awards for evident miscalculations, awards on matters not submitted, or formal defects not affecting the merits.
The arbitration may proceed upon application or notice to the deceased's executor, administrator, or representative, and the court may extend time limits accordingly.
Arbitrators receive fees of fifty pesos per day unless the parties agree otherwise in writing before arbitration.
A party may apply to the court to confirm the award, after which judgment may be entered and enforced as a regular court judgment.
Yes, appeals are allowed but limited to questions of law, proceeding under the Rules of Court as applicable.