ANACTTOINSTITUTIONALIZETHEUSEOFANALTERNATIVEDISPUTERESOLUTION

SYSTEMINTHEPHILIPPINESANDTOESTABLISHTHEOFFICEFORALTERNATIVE
DISPUTERESOLUTION,ANDFOROTHERPURPOSES
BeitenactedbytheSenateandHouseofRepresentativesofthePhilippinesinCongressassembled:
CHAPTER1GENERALPROVISIONS
SECTION1.Title.Thisactshallbeknownasthe"AlternativeDisputeResolutionActof2004."
SEC.2.DeclarationofPolicy.itisherebydeclaredthepolicyoftheStatetoactivelypromoteparty
autonomyintheresolutionofdisputesorthefreedomofthepartytomaketheirownarrangementsto
resolvetheirdisputes.Towardsthisend,theStateshallencourageandactivelypromotetheuseof
AlternativeDisputeResolution(ADR)asanimportantmeanstoachievespeedyandimpartialjusticeand
declogcourtdockets.Assuch,theStateshallprovidemeansfortheuseofADRasanefficienttoolandan
alternativeprocedurefortheresolutionofappropriatecases.Likewise,theStateshallenlistactiveprivate
sectorparticipationinthesettlementofdisputesthroughADR.ThisActshallbewithoutprejudicetothe
adoptionbytheSupremeCourtofanyADRsystem,suchasmediation,conciliation,arbitration,orany
combinationthereofasameansofachievingspeedyandefficientmeansofresolvingcasespendingbefore
allcourtsinthePhilippineswhichshallbegovernedbysuchrulesastheSupremeCourtmayapprovefrom
timetotime.
SEC.3.DefinitionofTerms.ForpurposesofthisAct,theterm:
(a)"AlternativeDisputeResolutionSystem"meansanyprocessorprocedureusedtoresolvea
disputeorcontroversy,otherthanbyadjudicationofapresidingjudgeofacourtoranofficerofa
governmentagency,asdefinedinthisAct,inwhichaneutralthirdpartyparticipatestoassistin
theresolutionofissues,whichincludesarbitration,mediation,conciliation,earlyneutral
evaluation,minitrial,oranycombinationthereof;
(b)"ADRProvider"meansinstitutionsorpersonsaccreditedasmediator,conciliator,arbitrator,
neutralevaluator,oranypersonexercisingsimilarfunctionsinanyAlternativeDisputeResolution
system.Thisiswithoutprejudicetotherightsofthepartiestochoosenonaccreditedindividualsto
actasmediator,conciliator,arbitrator,orneutralevaluatoroftheirdispute.
WheneverrefferedtointhisAct,theterm"ADRpractitioners"shallrefertoindividualsactingas
mediator,conciliator,arbitratororneutralevaluator;
(c)"Authenticate"meanstosign,executeoradoptasymbol,orencryptarecordinwholeorin
part,intendedtoidentitytheauthenticatingpartyandtoadopt,acceptorestablishtheauthenticity
ofarecordorterm;
(d)"Arbitration"meansavoluntarydisputeresolutionprocessinwhichoneormorearbitrators,
appointedinaccordancewiththeagreementoftheparties,orrulespromulgatedpursuanttothis
Act,resolveadisputebyrenderinganaward;
(e)"Arbitrator"meansthepersonappointedtorenderanaward,aloneorwithothers,inadispute
thatisthesubjectofanarbitrationagreement;
(f)"Award"meansanypartialorfinaldecisionbyanarbitratorinresolvingtheissueina
controversy;

(g)"CommercialArbitration"Anarbitrationis"commercialifitcoversmatterarisingfromall
relationshipsofacommercialnature,whethercontractualornot;
(h)"Confidentialinformation"meansanyinformation,relativetothesubjectofmediationor
arbitration,expresslyintendedbythesourcenottobedisclosed,orobtainedundercircumstances
thatwouldcreateareasonableexpectationonbehalfofthesourcethattheinformationshallnotbe
disclosed.Itshallinclude(1)communication,oralorwritten,madeinadisputeresolution
proceedings,includinganymemoranda,notesorworkproductoftheneutralpartyornonparty
participant,asdefinedinthisAct;(2)anoralorwrittenstatementmadeorwhichoccursduring
mediationorforpurposesofconsidering,conducting,participating,initiating,continuingof
reconveningmediationorretainingamediator;and(3)pleadings,motionsmanifestations,witness
statements,reportsfiledorsubmittedinanarbitrationorforexpertevaluation;
(i)"ConventionAward"meansaforeignarbitralawardmadeinaConventionState;
(j)"ConventionState"meansaStatethatisamemberoftheNewYorkConvention;
(k)"Court"asreferredtoinArticle6oftheModelLawshallmeanaRegionalTrialCourt;
(l)"CourtAnnexedMediation"meansanymediationprocessconductedundertheauspicesofthe
court,aftersuchcourthasacquiredjurisdictionofthedispute;
(m)"CourtReferredMediation"meansmediationorderedbyacourttobeconductedin
accordancewiththeAgreementofthePartieswhenasactionisprematurelycommencedin
violationofsuchagreement;
(n)"EarlyNeutralEvaluation"meansanADRprocesswhereinpartiesandtheirlawyersare
broughttogetherearlyinapretrialphasetopresentsummariesoftheircasesandreceivea
nonbindingassessmentbyanexperienced,neutralperson,withexpertiseinthesubjectinthe
substanceofthedispute;
(o)"GovernmentAgency"meansanygovernmententity,officeorofficer,otherthanacourt,that
isvestedbylawwithquasijudicialpowertoresolveoradjudicatedisputeinvolvingthe
government,itsagenciesandinstrumentalities,orprivatepersons;
(p)"InternationalParty"shallmeananentitywhoseplaceofbusinessisoutsidethePhilippines.It
shallnotincludeadomesticsubsidiaryofsuchinternationalpartyoracoventurerinajoint
venturewithapartywhichhasitsplaceofbusinessinthePhilippines.
ThetermforeignerarbitratorshallmeanapersonwhoisnotanationalofthePhilippines.
(q)"Mediation"meansavoluntaryprocessinwhichamediator,selectedbythedisputingparties,
facilitatescommunicationandnegotiation,andassistthepartiesinreachingavoluntaryagreement
regardingadispute.
(r)"Mediator"meansapersonwhoconductsmediation;
(s)"MediationParty"meansapersonwhoparticipatesinamediationandwhoseconsentis
necessarytoresolvethedispute;

(t)"MediationArbitration"orMedArbisastepdisputeresolutionprocessinvolvingboth
mediationandarbitration;
(u)"MiniTrial"meansastructureddisputeresolutionmethodinwhichthemeritsofacaseare
arguedbeforeapanelcomprisingseniordecisionmakerswithorwithoutthepresenceofaneutral
thirdpersonafterwhichthepartiesseekanegotiatedsettlement;
(v)"ModelLaw"meanstheModelLawonInternationalCommercialArbitrationadoptedbythe
UnitedNationsCommissiononInternationalTradeLawon21June1985;
(w)"NewYorkConvention"meanstheUnitedNationsConventionontheRecognitionand
EnforcementofForeignArbitralAwardsapprovedin1958andratifiedbythePhilippineSenate
underSenateResolutionNo.71;
(x)"NonConventionAward"meansaforeignarbitralawardmadeinaStatewhichisnota
ConventionState;
(y)"NonConventionState"meansaStatethatisnotamemberoftheNewYorkConvention.
(z)"NonPartyParticipant"meansaperson,otherthanapartyormediator,whoparticipatesina
mediationproceedingasawitness,resourcepersonorexpert;
(aa)"Proceeding"meansajudicial,administrative,orotheradjudicativeprocess,includingrelated
prehearingmotions,conferencesanddiscovery;
(bb)"Record"meansaninformationwrittenonatangiblemediumorstoredinanelectronicor
othersimilarmedium,retrievableform;and
(cc)"Roster"meansalistofpersonsqualifiedtoprovideADRservicesasneutralsortoserveas
arbitrators.
SEC.4.ElectronicSignaturesinGlobalandECommerceAct.TheprovisionsoftheElectronic
SignaturesinGlobalandECommerceAct,anditsimplementingRulesandRegulationsshallapplyto
proceedingcontemplatedinthisAct.
SEC.5.LiabilityofADRProviderandPractitioner.TheADRprovidersandpractitionersshallhavethe
samecivilliabilityfortheActsdoneintheperformanceofthendutiesasthatofpublicofficersasprovided
inSection38(1),Chapter9,BookoftheAdministrativeCodeof1987.
SEC.6.ExceptiontotheApplicationofthisAct.TheprovisionsofthisActshallnotapplytoresolution
orsettlementofthefollowing:(a)labordisputescoveredbyPresidentialDecreeNo.442,otherwiseknown
astheLaborCodeofthePhilippines,asamendedanditsImplementingRulesandRegulations;(b)thecivil
statusofpersons;(c)thevalidityofamarriage;(d)anygroundforlegalseparation;(e)thejurisdictionof
courts;(f)futurelegitime;(g)criminalliability;and(h)thosewhichbylawcannotbecompromised.
CHAPTER2MEDIATION
SEC.7.Scope.TheprovisionsofthisChaptershallcovervoluntarymediation,whetheradhocor
institutional,otherthancourtannexed.Theterm"mediation'shallincludeconciliation.

SEC.8.ApplicationandInterpretation.InapplyingconstruingtheprovisionsofthisChapter,
considerationmustbegiventotheneedtopromotecandororpartiesandmediatorsthroughconfidentiality
ofthemediationprocess,thepolicyoffosteringprompt,economical,andamicableresolutionofdisputesin
accordancewiththeprinciplesofintegrityofdeterminationbytheparties,andthepolicythatthedecision
makingauthorityinthemediationprocessrestswiththeparties.
SEC.9.ConfidentialityofInformation.Informationobtainedthroughmediationproceedingsshallbe
subjecttothefollowingprinciplesandguidelines:
(a)Informationobtainedthroughmediationshallbeprivilegedandconfidential.
(b)Aparty,amediator,oranonpartyparticipantmayrefusetodiscloseandmaypreventany
otherpersonfromdisclosingamediationcommunication.
(c)ConfidentialInformationshallnotbesubjecttodiscoveryandshallbeinadmissibleifany
adversarialproceeding,whetherjudicialorquasijudicial,However,evidenceorinformationthat
isotherwiseadmissibleorsubjecttodiscoverydoesnotbecomeinadmissibleorprotectedfrom
discoverysolelybyreasonofitsuseinamediation.
(d)Insuchanadversarialproceeding,thefollowingpersonsinvolvedorpreviouslyinvolvedina
mediationmaynotbecompelledtodiscloseconfidentialinformationobtainedduringmediation:
(1)thepartiestothedispute;(2)themediatorormediators;(3)thecounselfortheparties;(4)the
nonpartyparticipants;(5)anypersonshiredorengagedinconnectionwiththemediationas
secretary,stenographer,clerkorassistant;and(6)anyotherpersonwhoobtainsorpossesses
confidentialinformationbyreasonofhis/herprofession.
(e)TheprotectionsofthisActshallcontinuetoapplyevenofamediatorisfoundtohavefailedto
actimpartially.
(f)amediatormaynotbecalledtotestifytoprovideinformationgatheredinmediation.A
mediatorwhoiswrongfullysubpoenaedshallbereimbursedthefullcostofhisattorney'sfeesand
relatedexpenses.
SEC.10.WaiverofConfidentiality.Aprivilegearisingfromtheconfidentialityofinformationmaybe
waivedinarecord,ororallyduringaproceedingbythemediatorandthemediationparties.
Aprivilegearisingfromtheconfidentialityofinformationmaylikewisebewaivedbyanonparty
participantiftheinformationisprovidedbysuchnonpartyparticipant.
Apersonwhodisclosesconfidentialinformationshallbeprecludedfromassertingtheprivilegeunder
Section9ofthisChaptertobardisclosureoftherestoftheinformationnecessarytoacomplete
understandingofthepreviouslydisclosedinformation.Ifapersonsufferslossordamagesinajudicial
proceedingagainstthepersonwhomadethedisclosure.
Apersonwhodisclosesormakesarepresentationaboutamediationisprecludefromassertingthe
privilegeunderSection9,totheextentthatthecommunicationprejudicesanotherpersonintheproceeding
anditisnecessaryforthepersonprejudicedtorespondtotherepresentationofdisclosure.
SEC.11.ExceptionstoPrivilege.
(a)ThereisnoprivilegeagainstdisclosureunderSection9ifmediationcommunicationis:

(1)inanagreementevidencedbyarecordauthenticatedbyallpartiestotheagreement;
(2)availabletothepublicorthatismadeduringasessionofamediationwhichisopen,
orisrequiredbylawtobeopen,tothepublic;
(3)athreatorstatementofaplantoinflictbodilyinjuryorcommitacrimeofviolence;
(4)internationallyusedtoplanacrime,attempttocommit,orcommitacrime,orconceal
anongoingcrimeorcriminalactivity;
(5)soughtorofferedtoproveordisproveabuse,neglect,abandonment,orexploitationin
aproceedinginwhichapublicagencyisprotectingtheinterestofanindividualprotected
bylaw;butthisexceptiondoesnotapplywhereachildprotectionmatterisreferredto
mediationbyacourtorapublicagencyparticipatesinthechildprotectionmediation;
(6)soughtorofferedtoproveordisproveaclaimorcomplaintofprofessional
misconductormalpracticefiledagainstmediatorinaproceeding;or
(7)soughtorofferedtoproveordisproveaclaimofcomplaintofprofessional
misconductofmalpracticefiledagainstaparty,nonpartyparticipant,orrepresentativeof
apartybasedonconductoccurringduringamediation.
(b)ThereisnoprivilegeunderSection9ifacourtoradministrativeagency,finds,afterahearing
incamera,thatthepartyseekingdiscoveryoftheproponentoftheevidencehasshownthatthe
evidenceisnototherwiseavailable,thatthereisaneedfortheevidencethatsubstantially
outweighstheinterestinprotectingconfidentiality,andthemediationcommunicationissoughtor
offeredin:
(1)acourtproceedinginvolvingacrimeorfelony;or
(2)aproceedingtoproveaclaimordefensethatunderthelawissufficienttoreformor
avoidaliabilityonacontractarisingoutofthemediation.
(c)Amediatormaynotbecompelledtoprovideevidenceofamediationcommunicationortestify
insuchproceeding.
(d)Ifamediationcommunicationisnotprivilegedunderanexceptioninsubsection(a)or(b),
onlytheportionofthecommunicationnecessaryfortheapplicationoftheexceptionfor
nondisclosuremaybeadmitted.Theadmissionofparticularevidenceforthelimitedpurposeofan
exceptiondoesnotrenderthatevidence,oranyothermediationcommunication,admissiblefor
anyotherpurpose.
SEC.12.ProhibitedMediatorReports.Amediatormaynotmakeareport,assessment,evaluation,
recommendation,finding,orothercommunicationregardingamediationtoacourtoragencyorother
authoritythatmakearulingonadisputethatisthesubjectofamediation,except:
(a)Wherethemediationoccurredorhasterminated,orwhereasettlementwasreached.
(b)AspermittedtobedisclosedunderSection13ofthisChapter.

SEC.13.Mediator'sDisclosureandConflictofInterest.Themediationshallbeguidedbythefollowing
operativeprinciples:
(a)Beforeacceptingamediation,anindividualwhoisrequestedtoserveasamediatorshall:
(1)makeaninquirythatisreasonableunderthecircumstancestodeterminatewhether
thereareanyknownfactsthatareasonableindividualwouldconsiderlikelytoaffectthe
impartialityofthemediator,includingafinancialorpersonalinterestintheoutcomeof
themediationandanyexistingorpastrelationshipwithapartyorforeseeableparticipant
inthemediation;and
(2)disclosuretothemediationpartiesanysuchfactknownorlearnedassoonasis
practicalbeforeacceptingamediation.
(b)Ifamediationlearnsanyfactdescribedinparagraph(a)(1)ofthissectionafteracceptinga
mediation,themediatorshalldiscloseitassoonaspracticable.
Attherequestofamediationparty,anindividualwhoisrequestedtoserveasmediatorshalldisclose
his/herqualificationstomediateadispute.
ThisActdoesnotrequirethatamediatorshallhavespecialqualificationsbybackgroundorprofession
unlessthespecialqualificationsofamediatorarerequiredinthemediationagreementorbythemediation
parties.
SEC.14.ParticipationinMediation.ExceptasotherwiseprovidedinthisAct,apartymaydesignatea
lawyeroranyotherpersontoprovideassistanceinthemediation.Alawyerofthisrightshallbemadein
writingbythepartywaivingit.Awaiverofparticipationorlegalrepresentationmayberescindedatany
time.
SEC.15.PlaceofMediation.Thepartiesarefreetoagreeontheplaceofmediation.Failingsuch
agreement,theplaceofmediationshallbeanyplaceconvenientandappropriatetoallparties.
SEC.16.EffectofAgreementtoSubmitDisputetoMediationUnderInstitutionalRules.Anagreement
tosubmitadisputetomediationbyanyinstitutionshallincludeanagreementtobeboundbytheinternal
mediationandadministrativepoliciesofsuchinstitution.Further,anagreementtosubmitadisputeto
mediationunderinternationalmediationruleshallbedeemedtoincludeanagreementtohavesuchrules
governthemediationofthedisputeandforthemediator,theparties,theirrespectivecounsel,andnonparty
participantstoabidebysuchrules.
IncaseofconflictbetweentheinstitutionalmediationrulesandtheprovisionsofthisAct,thelattershall
prevail.
SEC.17.EnforcementofMediatedSettlementAgreement.Themediationshallbeguidedbythe
followingoperativeprinciples:
(a)Asettlementagreementfollowingsuccessfulmediationshallbepreparedbythepartieswith
theassistanceoftheirrespectivecounsel,ifany,andbythemediator.
Thepartiesandtheirrespectivecounselsshallendeavortomakethetermsandconditionthereof
completeandmakeadequateprovisionsforthecontingencyofbreachtoavoidconflicting
interpretationsoftheagreement.

(b)Thepartiesandtheirrespectivecounsels,ifany,shallsignthesettlementagreement.The
mediatorshallcertifythathe/sheexplainedthecontentsofthesettlementagreementtotheparties
inalanguageknowntothem.
(c)Ifthepartiessodesire,theymaydepositsuchsettlementagreementwiththeappropriateClerk
ofaRegionalTrialCourtoftheplacewhereoneofthepartiesresides.Wherethereisaneedto
enforcethesettlementagreement,apetitionmaybefiledbyanyofthepartieswiththesamecourt,
inwhichcase,thecourtshallproceedsummarilytohearthepetition,inaccordancewithsuch
rulesofprocedureasmaybepromulgatedbytheSupremeCourt.
(d)Thepartiesmayagreeinthesettlementagreementthatthemediatorshallbecomeasole
arbitratorforthedisputeandshalltreatthesettlementagreementasanarbitralawardwhichshall
besubjecttoenforcementunderRepublicActNo.876,otherwiseknownastheArbitrationLaw,
notwithstandingtheprovisionsofExecutiveOrderNo.1008formediateddisputeoutsideofthe
CIAC.
CHAPTER3OTHERADRFORMS
SEC.18.ReferralofDisputetootherADRForms.Thepartiesmayagreetoreferoneormoreorall
issuesarisinginadisputeorduringitspendencytootherformsofADRsuchasbutnotlimitedto(a)the
evaluationofathirdpersonor(b)aminitrial,(c)mediationarbitration,oracombinationthereof.
ForpurposesofthisAct,theuseofotherADRformsshallbegovernedbyChapter2ofthisActexcept
whereitiscombinedwitharbitrationinwhichcaseitshalllikewisebegovernedbyChapter5ofthisAct.
CHAPTER4INTERNATIONALCOMMERCIALARBITRATION
SEC.19.AdoptionoftheModelLawonInternationalCommercialArbitration.International
commercialarbitrationshallbegovernedbytheModelLawonInternationalCommercialArbitration(the
"ModelLaw")adoptedbytheUnitedNationsCommissiononInternationalTradeLawonJune21,1985
(UnitedNationsDocumentA/40/17)andrecommendedapprovedonDecember11,1985,copyofwhichis
heretoattachedasAppendix"A".
SEC.20.InterpretationofModelLaw.IninterpretingtheModelLaw,regardshallbehadtoits
internationaloriginandtotheneedforuniformityinitsinterpretationandresortmaybemadetothe
travauxpreparatoriesandthereportoftheSecretaryGeneraloftheUnitedNationsCommissionon
InternationalTradeLawdatedMarch25,1985entitled,"InternationalCommercialArbitration:Analytical
CommentaryonDraftTradeidentifiedbyreferencenumberA/CN.9/264."
SEC.21.CommercialArbitration.Anarbitrationis"commercial"ifitcoversmattersarisingfromall
relationshipsofacommercialnature,whethercontractualornot.Relationshipsofatransactions:anytrade
transactionforthesupplyorexchangeofgoodsorservices;distributionagreements;constructionofworks;
commercialrepresentationoragency;factoring;leasing,consulting;engineering;licensing;investment;
financing;banking;insurance;jointventureandotherformsofindustrialorbusinesscooperation;carriage
ofgoodsorpassengersbyair,sea,railorroad.
SEC.22.LegalRepresentationinInternationalArbitration.Ininternationalarbitrationconductedinthe
Philippines,apartymaybepresentedbyanypersonofhischoice.Provided,thatsuchrepresentative,
unlessadmittedtothepracticeoflawinthePhilippines,shallnotbeauthorizedtoappearascounselinany
Philippinecourt,oranyotherquasijudicialbodywhetherornotsuchappearanceisinrelationtothe
arbitrationinwhichheappears.

SEC.23.ConfidentialofArbitrationProceedings.Thearbitrationproceedings,includingtherecords,
evidenceandthearbitralaward,shallbeconsideredconfidentialandshallnotbepublishedexcept(1)with
theconsentoftheparties,or(2)forthelimitedpurposeofdisclosingtothecourtofrelevantdocumentsin
caseswhereresorttothecourtisallowedherein.Provided,however,thatthecourtinwhichtheactionor
theappealispendingmayissueaprotectiveordertopreventorprohibitdisclosureofdocumentsor
informationcontainingsecretprocesses,developments,researchandotherinformationwhereitisshown
thattheapplicantshallbemateriallyprejudicedbyanauthorizeddisclosurethereof.
SEC.24.ReferraltoArbitration.Acourtbeforewhichanactionisbroughtinamatterwhichisthe
subjectmatterofanarbitrationagreementshall,ifatleastonepartysorequestsnotlaterthatthepretrial
conference,orupontherequestofbothpartiesthereafter,referthepartiestoarbitrationunlessitfindsthat
thearbitrationagreementisnullandvoid,inoperativeorincapableofbeingperformed.
SEC.25.InterpretationoftheAct.IninterpretingtheAct,thecourtshallhavedueregardtothepolicyof
thelawinfavorofarbitration.Whereactioniscommencedbyoragainstmultipleparties,oneormoreof
whomarepartieswhoareboundbythearbitrationagreementalthoughthecivilactionmaycontinueasto
thosewhoarenotboundbysucharbitrationagreement.
SEC.26.Meaningof"AppointingAuthority."."AppointingAuthority"asusedintheModelLawshall
meanthepersonorinstitutionnamedinthearbitrationagreementastheappointingauthority;ortheregular
arbitrationarbitrationinstitutionunderwhoserulesthearbitrationisagreedtobeconducted.Wherethe
partieshaveagreedtosubmittheirdisputetoinstitutionalarbitrationrules,andunlesstheyhaveagreedtoa
differentprocedure,theyshallbedeemedtohaveagreedtoprocedureundersucharbitrationrulesforthe
selectionandappointmentofarbitrators.Inadhocarbitration,thedefaultappointmentofanarbitratorshall
bemadebytheNationalPresidentoftheIntegratedBarofthePhilippines(IBP)orhisdulyauthorized
representative.
SEC.27.WhatFunctionsMaybePerformedbyAppointingAuthority.Thefunctionsreferredtoin
Articles11(3),11(4),13(3)and14(1)oftheModelLawshallbeperformedbytheAppointingAuthority,
unlessthelattershallfailorrefusetoactwithinthirty(30)daysfromreceiptoftherequestinwhichcase
theapplicantmayrenewtheapplicationwiththeCourt.
SEC.28.GrantofInterimMeasureofProtection.
(a)Itisnotincompatiblewithanarbitrationagreementforapartytorequest,beforeconstitution
ofthetribunal,fromaCourtaninterimmeasureofprotectionandfortheCourttograntsuch
measure.Afterconstitutionofthearbitraltribunalandduringarbitralproceedings,arequestforan
interimmeasureofprotectionormodificationthereof,maybemadewiththearbitraltribunalorto
theextentthatthearbitraltribunalhasnopowertoactorisunabletoacteffectively,therequest
maybemadewiththeCourt.Thearbitraltribunalisdeemedconstitutedwhenthesolearbitrator
orthethirdarbitratorwhohasbeennominated,hasacceptedthenominationandwritten
communicationofsaidnominationandacceptancehasbeenreceivedbythepartymakingrequest.
(b)Thefollowingrulesoninterimorprovisionalreliefshallbeobserved:
(1)Anypartymayrequestthatprovisionreliefbegrantedagainsttheadverseparty:
(2)Suchreliefmaybegranted:
(i)topreventirreparablelossorinjury:

(ii)toprovidesecurityfortheperformanceofanyobligation;
(iii)toproduceorpreserveanyevidence;or
(iv)tocompelanyotherappropriateactoromission.
(3)Theordergrantingprovisionalreliefmaybeconditionedupontheprovisionof
securityoranyactoromissionspecifiedintheorder.
(4)Interimorprovisionalreliefisrequestedbywrittenapplicationtransmittedby
reasonablemeanstotheCourtorarbitraltribunalasthecasemaybeandthepartyagainst
whomthereliefissought,describinginappropriatedetailthepreciserelief,theparty
againstwhomthereliefisrequested,thegroundsfortherelief,andevidencesupporting
therequest.
(5)Theordershallbebindingupontheparties.
(6)EitherpartymayapplywiththeCourtforassistanceinImplementingorenforcingan
interimmeasureorderedbyanarbitraltribunal.
(7)Apartywhodoesnotcomplywiththeordershallbeliableforalldamagesresulting
fromnoncompliance,includingallexpenses,andreasonableattorney'sfees,paidin
obtainingtheorder'sjudicialenforcement.
SEC.29.FurtherAuthorityforArbitratortoGrantInterimMeasureofProtection.Unlessotherwise
agreedbytheparties,thearbitraltribunalmay,attherequestofaparty,orderanypartytotakesuch
interimmeasuresofprotectionasthearbitraltribunalmayconsidernecessaryinrespectofthesubject
matterofthedisputefollowingtherulesinSection28,paragraph2.Suchinterimmeasuresmayincludebut
shallnotbelimitedtopreliminaryinjuctiondirectedagainstaparty,appointmentofreceiversordetention,
preservation,inspectionofpropertythatisthesubjectofthedisputeinarbitration.Eitherpartymayapply
withtheCourtforassistanceinimplementingorenforcinganinterimmeasuresorderedbyanarbitral
tribunal.
SEC.30.PlaceofArbitration.Thepartiesarefreetoagreeontheplaceofarbitration.Failingsuch
agreement,theplaceofarbitrationshallbeinMetroManila,unlessthearbitraltribunal,havingregardto
thecircumstancesofthecase,includingtheconvenienceofthepartiesshalldecideonadifferentplaceof
arbitration.
Thearbitraltribunalmay,unlessotherwiseagreedbytheparties,meetatanyplaceitconsidersappropriate
forconsultationamongitsmembers,forhearingwitnesses,experts,ortheparties,orforinspectionof
goods,otherpropertyordocuments.
SEC.31.LanguageoftheArbitration.Thepartiesarefreetoagreeonthelanguageorlanguagestobe
usedinthearbitralproceedings.Failingsuchagreement,thelanguagetobeusedshallbeEnglishin
internationalarbitration,andEnglishorFilipinofordomesticarbitration,unlessthearbitraltribunalshall
determineadifferentoranotherlanguageorlanguagestobeusedintheproceedings.Thisagreementor
determination,unlessotherwisespecifiedtherein,shallapplytoanywrittenstatementbyaparty,any
hearingandanyaward,decisionorothercommunicationbythearbitraltribunal.

Thearbitraltribunalmayorderthatanydocumentaryevidenceshallbeaccompaniedbyatranslationinto
thelanguageorlanguagesagreeduponbythepartiesordeterminedinaccordancewithparagraph1ofthis
section.
CHAPTER5DOMESTICARBITRATION
SEC.32.LawGoverningDomesticArbitration.Domesticarbitrationshallcontinuetobegovernedby
RepublicActNo.876,otherwiseknownas"TheArbitrationLaw"asamendedbythisChapter.Theterm
"domesticarbitration"asusedhereinshallmeananarbitrationthatisnotinternationalasdefinedinArticle
(3)oftheModelLaw.
SEC.33.ApplicabilitytoDomesticArbitration.Article8,10,11,12,13,14,18and19and29to32of
theModelLawandSection22to31oftheprecedingChapter4shallapplytodomesticarbitration.
CHAPTER6ARBITRATIONOFCONSTRUCTIONDISPUTES
SEC.34.ArbitrationofConstructionDisputes:GoverningLaw.Thearbitrationofconstructiondisputes
shallbegovernedbyExecutiveOrderNo.1008,otherwiseknownastheConstitutionIndustryArbitration
Law.
SEC.35.CoverageoftheLaw.Constructiondisputeswhichfallwithintheoriginalandexclusive
jurisdictionoftheConstructionIndustryArbitrationCommission(the"Commission")shallincludethose
betweenoramongpartiesto,orwhoareotherwiseboundby,anarbitrationagreement,directlyorby
referencewhethersuchpartiesareprojectowner,contractor,subcontractor,quantitysurveyor,bondsmanor
issuerofaninsurancepolicyinaconstructionproject.
TheCommissionshallcontinuetoexerciseoriginalandexclusivejurisdictionoverconstructiondisputes
althoughthearbitrationis"commercial"pursuanttoSection21ofthisAct.
SEC.36.AuthoritytoActasMediatororArbitrator.Bywrittenagreementofthepartiestoadispute,an
arbitratormayactasmediatorandamediatormayactasarbitrator.Thepartiesmayalsoagreeinwriting
that,followingasuccessfulmediation,themediatorshallissuethesettlementagreementintheformofan
arbitralaward.
SEC.37.AppointmentofForeignArbitrator.TheConstructionIndustryArbitrationCommission
(CIAC)shallpromulgaterulestoallowfortheappointmentofaforeignarbitratororcoarbitratoror
chairmanofatribunalapersonwhohasnotbeenpreviouslyaccreditedbyCIAC:Provided,That:
(a)thedisputeisaconstructiondisputeinwhichonepartyisaninternationalparty
(b)thepersontobeappointedagreedtoabidebythearbitrationrulesandpoliciesofCIAC;
(c)he/sheiseithercoarbitratoruponthenominationoftheinternationalparty;orhe/sheisthe
commonchoiceofthetwoCIACaccreditedarbitratorsfirstappointedoneofwhomwas
nominatedbytheinternationalparty;and
(d)theforeignarbitratorshallbeofdifferentnationalityfromtheinternationalparty.
SEC.38.ApplicabilitytoConstructionArbitration.TheprovisionsofSections17(d)ofChapter2,and
Section28and29ofthisActshallapplytoarbitrationofconstructiondisputescoveredbythisChapter.

SEC.39.CourttoDismissCaseInvolvingaConstructionDispute.Aregionaltrialcourtwhicha
constructiondisputeisfiledshall,uponbecomingaware,notlaterthanthepretrialconference,thatthe
partieshadenteredintoanarbitrationtobeconductedbytheCIAC,unlessbothparties,assistedbytheir
respectivecounsel,shallsubmittotheregionaltrialcourtawrittenagreementexclusivefortheCourt,
ratherthantheCIAC,toresolvethedispute.
CHAPTER7JUDICIALREVIEWOFARBITRALAWARDS
A.DOMESTICAWARDS
SEC.40.ConfirmationofAward.Theconfirmationofadomesticarbitralawardshallbegovernedby
Section23ofR.A.876.
Adomesticarbitralawardwhenconfirmedshallbeenforcedinthesamemannerasfinalandexecutory
decisionsoftheRegionalTrialCourt.
Theconfirmationofadomesticawardshallbemadebytheregionaltrialcourtinaccordancewiththe
RulesofProceduretobepromulgatedbytheSupremeCourt.
ACIACarbitralawardneednotbeconfirmedbytheregionaltrialcourttobeexecutoryasprovidedunder
E.O.No.1008.
SEC.41.VacationAward.Apartytoadomesticarbitrationmayquestionthearbitralawardwiththe
appropriateregionaltrialcourtinaccordancewiththerulesofproceduretobepromulgatedbytheSupreme
CourtonlyonthosegroundsenumeratedinSection25ofRepublicActNo.876.Anyothergroundraised
againstadomesticarbitralawardshallbedisregardedbytheregionaltrialcourt.
B.FOREIGNARBITRALAWARDS
SEC.42.ApplicationoftheNewYorkConvention.TheNewYorkConventionshallgovernthe
recognitionandenforcementofarbitralawardscoveredbythesaidConvention.
Therecognitionandenforcementofsucharbitralawardsshallbefilledwithregionaltrialcourtin
accordancewiththerulesofproceduretobepromulgatedbytheSupremeCourt.Saidproceduralrules
shallprovidethatthepartyrelyingontheawardorapplyingforitsenforcementshallfilewiththecourtthe
originalorauthenticatedcopyoftheawardandthearbitrationagreement.Iftheawardoragreementisnot
madeinanyoftheofficiallanguages,thepartyshallsupplyadulycertifiedtranslationthereofintoanyof
suchlanguages.
Theapplicantshallestablishthatthecountryinwhichforeignarbitrationawardwasmadeisapartytothe
NewYorkConvention.
Iftheapplicationforrejectionorsuspensionofenforcementofanawardhasbeenmade,theregionaltrial
courtmay,ifitconsidersitproper,vacateitsdecisionandmayalso,ontheapplicationoftheparty
claimingrecognitionorenforcementoftheaward,orderthepartytoprovideappropriatesecurity.
SEC.43.RecognitionandEnforcementofForeignArbitralAwardsNotCoveredbytheNewYork
Convention.TherecognitionandenforcementofforeignarbitralawardsnotcoveredbytheNewYork
ConventionshallbedoneinaccordancewithproceduralrulestobepromulgatedbytheSupremeCourt.

TheCourtmay,groundsofcomityandreciprocity,recognizeandenforceanonconventionawardasa
conventionaward.
SEC.44.ForeignArbitralAwardNotForeignJudgment.Aforeignarbitralawardwhenconfirmedbya
courtofaforeigncountry,shallberecognizedandenforcedasaforeignarbitralawardandnotajudgment
ofaforeigncourt.
Aforeignarbitralaward,whenconfirmedbytheregionaltrialcourt,shallbeenforcedasaforeignarbitral
awardandnotasajudgmentofaforeigncourt.
Aforeignarbitralaward,whenconfirmedbytheregionaltrialcourt,shallbeenforcedinthesamemanner
asfinalandexecutorydecisionsofcourtsoflawofthePhilippines.
SEC.45.RejectionofaForeignArbitralAward.Apartytoaforeignarbitrationproceedingmayoppose
anapplicationforrecognitionandenforcementofthearbitralawardinaccordancewiththeproceduralrules
tobepromulgatedbytheSupremeCourtonlyonthosegroundsenumeratedunderArticleVoftheNew
YorkConvention.Anyothergroundraisedshallbedisregardedbytheregionaltrialcourt.
SEC.46.AppealfromCourtDecisionsonArbitralAwards.Adecisionoftheregionaltrialcourt
confirming,vacating,settingaside,modifyingorcorrectinganarbitralawardmaybeappealedtotheCourt
ofAppealsinaccordancewiththerulesofproceduretobepromulgatedbytheSupremeCourt.
Thelosingpartywhoappealsfromthejudgmentofthecourtconfirminganarbitralawardshallrequiredby
theappealantcourttopostcounterbondexecutedinfavoroftheprevailingpartyequaltotheamountofthe
awardinaccordancewiththerulestobepromulgatedbytheSupremeCourt.
SEC.47.VenueandJurisdiction.Proceedingsforrecognitionandenforcementofanarbitration
agreementorforvacation,settingaside,correctionormodificationofanarbitralaward,andany
applicationwithacourtforarbitrationassistanceandsupervisionshallbedeemedasspecialproceedings
andshallbefilledwiththeregionaltrialcourt(i)wherearbitrationproceedingsareconducted;(ii)where
theassettobeattachedorleviedupon,ortheacttobeenjoinedislocated;(iii)whereanyofthepartiesto
thedisputeresidesorhashisplaceofbusiness;or(iv)intheNationalJudicialCapitalRegion,attheoption
oftheapplicant.
SEC.48.NoticeofProceedingtoParties.Inaspecialproceedingforrecognitionandenforcementofan
arbitralaward,theCourtshallsendnoticetothepartiesattheiraddressofrecordinthearbitration,orifany
partycannotbeservednoticeatsuchaddress,atsuchparty'slastknownaddress.Thenoticeshallbesentat
leastfifteen(15)daysbeforethedatesetfortheinitialhearingoftheapplication.
CHAPTER8MISCELLANEOUSPROVISIONS
SEC.49.OfficeforAlternativeDisputeResolution.ThereisherebyestablishedtheOfficefor
AlternativeDisputeResolutionasanattachedagencytotheDepartmentofJustice(DOJ)whichshallhave
aSecretariattobeheadedbyanexecutivedirector.Theexecutivedirectorshallbeappointedbythe
PresidentofthePhilippines.
Theobjectiveoftheofficeare:
(a)topromote,developandexpandtheuseofADRintheprivateandpublicsectors;and

Toassistthegovernmenttomonitor,studyandevaluatetheusebythepublicandtheprivatesectorof
ADR,andrecommendtoCongressneedfulstatutorychangestodevelop.StrengthenandimproveADR
practicesinaccordancewithworldstandards.
SEC.50.PowersandFunctionsoftheOfficeforAlternativeDisputeResolution.TheOfficefor
AlternativeDisputeResolutionshallhavethefollowingpowersandfunctions:
(a)ToformulatestandardsforthetrainingoftheADRpractitionersandserviceproviders;
(b)TocertifythatsuchADRpractitionersandADRserviceprovidershaveundergonethe
professionaltrainingprovidedbytheoffice;
(c)Tocoordinatethedevelopment,implementation,monitoring,andevaluationofgovernment
ADRprograms;
(d)Tochargefeesfortheirservices;and
(e)ToperformsuchactsasmaybenecessarytocarryintoeffecttheprovisionsofthisAct.
SEC.51.Appropriations.TheamountnecessarytocarryouttheprovisionsofthisActshallbeincluded
intheGeneralAppropriationsActoftheyearfollowingitsenactmentintolawandthereafter.
SEC.52.ImplementingRulesandRegulations(IRR).Withinone(1)monthaftertheapprovalofthis
Act,thesecretaryofjusticeshallconveneacommitteethatshallformulatetheappropriaterulesand
regulationsnecessaryfortheimplementationofthisAct.Thecommittee,composedofrepresentatives
from:
(a)theDepartmentofJustice;
(b)theDepartmentofTradeandIndustry;
(c)theDepartmentoftheInteriorandLocalGovernment;
(d)thepresidentoftheIntegratedBarofthePhilippines;
(e)Arepresentativefromthearbitrationprofession;and
(f)Arepresentativefromthemediationprofession;and
(g)ArepresentativefromtheADRorganizations
shallwithinthree(3)monthsafterconvening,submittheIRRtotheJointCongressionalOversight
Committeeforreviewandapproval.TheOversightCommitteeshallbecomposedofthechairmanofthe
SenateCommitteeonJusticeandHumanRights,chairmanoftheHouseCommitteeonJustice,andone(1)
membereachfromthemajorityandminorityofbothHouses.
TheJointOversightCommitteeshallbecomefunctusofficiouponapprovaloftheIRR.

SEC.53.ApplicabilityoftheKatarunganPambarangay.ThisActshallnotbeinterpretedtorepeal,
amendormodifythejurisdictionoftheKatarunganPambarangayunderRepublicActNo.7160,otherwise
knownastheLocalGovernmentCodeof1991.
SEC.54.RepealingClause.Alllaws,decrees,executiveorders,rulesandregulationswhichare
inconsistentwiththeprovisionsofthisActareherebyrepealed,amendedormodifiedaccordingly.
SEC.55.SeparabilityClause.Ifforanyreasonorreasons,anyportionorprovisionofthisActshallbe
heldunconstitutionalorinvalid,allotherpartsorprovisionsnotaffectedshalltherebycontinuetoremain
infullforceandeffect.
SEC.56.Effectivity.Thisactshalltakeeffectfifteendays(15)afteritspublicationinatleasttwo(2)
nationalnewspapersofgeneralcirculation.