Arbitration Law Procedures and Enforcement

Law Summary

Exclusions from Arbitration under This Act

Excludes disputes under jurisdiction of the Court of Industrial Relations as provided by Commonwealth Act No. 103

Formal Requirements of Arbitration Agreements

Arbitration agreements or submissions must be in writing and subscribed by the party to be charged or their lawful agent
Contractual arbitration constitutes consent to the jurisdiction of the Court of First Instance where any party resides for enforcement

Initiation and Preliminary Procedures for Arbitration

Arbitration initiated by serving a demand for arbitration specifying controversy details and arbitration contract copy
Demand served personally or by registered mail
Procedures vary depending on whether single or three arbitrators are provided for in contract
Failure to respond permits filing of demand with the Court of First Instance
Existing controversy submissions filed with Court of First Instance and must be executed by both parties

Court Intervention to Enforce Arbitration

Aggrieved parties may petition court to compel arbitration as per agreement
Court gives notice and conducts summary hearing to determine existence and compliance of agreement
Orders to proceed with arbitration issued if agreement valid and default exists
Court must decide motions within 10 days after hearing

Stay of Civil Proceedings

Court shall stay suits involving issues referable to arbitration if applicant is not in default

Appointment of Arbitrators

Appointment method in contract or submission must be followed
Court appoints arbitrators if parties fail to agree, arbitrator is unwilling/unable to serve, or failure to appoint within 15 days
Court may appoint one or three arbitrators depending on dispute importance
Arbitrators must accept or decline appointment within 7 days
Substitutes appointed if arbitrators decline or fail to accept

Appointment of Additional Arbitrators

Contract or submission may allow two or more arbitrators to appoint an additional arbitrator in writing
Additional arbitrator must sit with original arbitrators at the hearing

Qualifications and Disqualifications of Arbitrators

Arbitrators must be of legal age, capable of civil rights, literate
No arbitrator related by blood or marriage within sixth degree to any party
Disqualification for financial interest, bias, or advocacy role
Arbitrators to disclose any potential bias or disqualification before or during hearings
Parties may waive disqualification or declare vacancy for replacement

Challenge Procedure for Arbitrators

Challenges only for reasons arising after arbitration agreement or unknown at time of arbitration
Challenges initially made before arbitrators, then, if refused, before Court of First Instance
Arbitration hearing suspended during challenge resolution

Arbitration Hearing Procedures

Arbitrators set hearing time/place within 5 or 15 days depending on parties' residence location
Postponements or adjournments only by party agreement or arbitrators for sufficient cause
Hearing may proceed in absentia if due notice given
No award solely based on default; evidence required from parties
Representation limited to parties, authorized representatives, or counsel with prior notice
Stenographic record of testimony may be ordered by arbitrators at requesting party's expense
Persons with direct interest may attend hearings; others at arbitrators' discretion

Oath Administration and Powers of Arbitrators

Arbitrators sworn to fairly hear and award justly
Power to administer oath to witnesses

Subpoena Power and Hearing Attendance

Authority to subpoena witnesses and documents when relevancy is established
Power to require witness withdrawal during other testimonies
All arbitrators must attend all hearings; majority award valid unless unanimous consent required
May safeguard or conserve matters before award is rendered

Evidence and Examination at Hearings

Arbitrators solicit issue statements and permit evidence submission
Arbitrators judge relevance and are not bound by Rules of Court evidence provisions
Documents received as exhibits held by Clerk of Court until award issuance
May conduct ocular inspections with parties' presence

Submission of Briefs and Reopening Hearing

Parties may file briefs within time limits fixed by arbitrators
Hearing may be reopened for good cause at any time before award

Proceeding Without Oral Hearing

Parties may agree to submit dispute on written statements, proofs, and arguments without oral hearing
Each party must provide copies of submissions to others
Right to reply in writing; failure to reply within 7 days constitutes waiver

Timeframe for Rendering Award

Default period 30 days post-hearing closure or after closing written proceedings
Extensions allowed by mutual party consent

Form, Content, and Powers in Award

Award must be in writing, signed and acknowledged by majority or sole arbitrator
Copy furnished to parties
Awards may include just and equitable relief within parties' agreement scope, including specific performance
Settlement during arbitration may be recorded in award upon parties' request
Arbitrators only decide submitted matters
Expenses may be assessed against parties

Arbitrators' Fees

Default fee of fifty pesos per day unless otherwise agreed in writing

Jurisdiction and Nature of Arbitration

Arbitration considered special proceedings under jurisdiction of Court of First Instance where parties reside or arbitration held
Court applications governed generally by motion rules

Confirmation, Modification, Correction, and Vacating of Awards

Party may apply within 1 month to court to confirm award
Court must confirm unless vacating, modifying, or correcting grounds exist
Grounds for vacating include corruption, partiality, misconduct, disqualification, or exceeding powers
Court may order new arbitration upon vacating award
Grounds for modification include miscalculations, awards on matters not submitted, or form defects
Motion for vacate, modify, or correct must be served within 30 days

Entry and Effect of Judgment

Court enters judgment conforming to confirmed, modified, or corrected award
Costs may be awarded in court's discretion and included in judgment
Judgment treated and enforced as ordinary court judgments

Appeal Procedure

Appeals allowed only on questions of law from orders or judgments under this Act
Appeals governed by Rules of Court as applicable

Effect of Death of Party

Arbitration proceedings may continue or begin upon notice to executor, administrator, or temporary administrator
Court may extend time for motions associated with awards
Judgment entered in name of original party after death

Repealing Clause and Effectivity

Retains specific chapters of the Civil Code relating to arbitration
Repeals inconsistent laws
Invalid provisions do not affect remainder of Act
Takes effect six months after approval