THE PHILIPPINE ADR REVIEW
MAY 2010 BROADENING ITS SCOPE OF ARBITRATION ADVOCACY
Secretariat
Unit 937, 9th Floor,
Cityland Megaplaza Condominium
ADB Avenue corner Garnet Road,
Ortigas Center, Pasig City.
Telephone: +632 9865171
Telefax: +632 9149608
Email: secretariat@pdrci.org
info.pdrci@gmail.com
Website: www.pdrci.org
Ocers
Chief Justice Artemio V. Panganiban (Ret.), Chairman
Atty. Custodio O. Parlade, President Emeritus
Atty. Victor P. Lazatin, President
Atty. Miguel B. Varela, Vice Chairman, Internal Aairs
Atty. Eduardo R. Ceniza, Vice Chairman, External Aairs
Atty. Beda G. Fajardo, Vice-President
Atty. Salvador S. Panga, Jr., Secretary General
Atty. Mario E. Valderrama, Deputy Secretary General
Mr. Gregorio S. Navarro, Treasurer
Dr. Eduardo G. Ong, Assistant Treasurer
Atty. Gwen Grecia-De Vera, Corporate Secretary
Atty. Ricardo Ma. P.G. Ongkiko, Assistant Corporate Secretary
Board of Trustees
Atty. Shirley F. Alinea
Atty. Daisy P. Arce
Engr. Salvador P. Castro, Jr.
Atty. Eduardo R. Ceniza
Atty. Gwen Grecia-De Vera
Atty. Roberto N. Dio
Atty. Beda G. Fajardo
Atty. Jose A. Grapilon
Atty. Victor P. Lazatin
Atty. Bienvenido S. Magnaye
Mr. Gregorio S. Navarro
Atty. Rogelio C. Nicandro
Dr. Eduardo G. Ong
Atty. Ricardo Ma. P. G. Ongkiko
Atty. Victoriano V. Orocio
Atty. Salvador S. Panga, Jr.
Rep. Rufus B. Rodriguez
Atty. Mario E. Valderrama
Atty. Miguel B. Varela
The Philippine ADR Review publishes matters of legal interest to PDRCIs members and readers. The articles printed in the Review contain indi-
vidual views of the authors and do not state PDRCIs policy. Contributions may be sent to the PDRCI Secretariat. All materials submitted for publication
become property of PDRCI and are subject to editorial review and revisions. Texts of original legal materials digested are available upon request.
PDRCI lauds launching of ADR
Act Implementing Rules
By Frances Cyrille F. Tandog
T
he Implementing Rules and Regulations (IRR) of the Alternative Dispute
Resolution Act of 2004 was officially launched by the Department of Justice
(DOJ) last January 27, 2010 in Manila. Atty. Custodio Parlade, President Emeritus
of PDRCI described the approval of the IRR as an important milestone in the his-
tory of dispute resolution in the Philippines.
DOJ Secretary Agnes VST Deva- hoc arbitration. Atty. Parlade stated that
nadera and DOJ Under-Secretary Jose parties should be able to select arbitra-
Vicente Salazar formally launched the tors from their own locality. This would
IRR. Supporters of ADR in the Philip- be possible if the IBP National President
pines attended the event, among them would authorize chapter presidents to
PDRCI President Atty. Victor Lazatin act as his duly authorized representative.
and Deputy Secretary General Atty. Ma-
rio Valderrama. In addition, according to Atty. Par-
lade, the IBP can accredit arbitrators
Atty. Parlade was among those invited and may also provide a procedure when
to speak at the launching. During his re- a challenge is unsuccessful and the IBP
marks, Atty. Parlade expressed the hope is requested to decide the challenge. He
that with the IRR in place, together expressed the hope that the IBP will cre-
with the Special ADR Rules approved ate a committee to draft guidelines per-
by the Supreme Court, many parties taining to ADR and approve and imple-
would be encouraged to use ADR in set- ment them soonest.
tling their disputes. Atty. Parlade traced
the beginnings of the ADR Act, includ- Atty. Parlades second concern is
ing PDRCIs active participation in the with regard to the organization of the
inception and development of the law Office for Alternative Dispute Reso-
since 2002. lution (OADR) and the PAGE 3
CONTENTS
Atty. Parlade then highlighted two
urgent concerns that came to light with
the approval and release of the IRR. The PDRCI lauds launching of ADR
Act Implementing Rules ............................................ 1
first pertains to the participation of the Role of File Counsel in PDRCI Arbitration .................. 2-3
Integrated Bar of the Philippines (IBP) Member Spotlight ................................................ 4
in the arbitration process, particularly PDRCI welcomes new members ..................................... 4
the designation of the IBP National
President as appointing authority in ad
2
May 2010

The Role of File Counsel in

PDRCI Arbitration
By Shirley F. Alinea

W hen parties decide to refer a dispute future or existing to arbitration, one of the things that
they have to decide on is whether they will opt for ad hoc or institutional arbitration. If the
parties decide on ad hoc arbitration, they will then administer the arbitration themselves.
While there is or his authorized
nothing wrong representative shall
with opting for act as the Adminis-
ad hoc arbitration, trator in charge of
problems some- the file. However,
times arise in en- subsequent expe-
suring that the ar- rience in a few ar-
bitration proceeds bitrations admin-
promptly and istered by PDRCI
efficiently. This underscored the
happens when the need for more de-
parties and their finitive guidelines
counsel are unfa- to define the role of
miliar with arbi- the File Counsel.
tration and thus
are unable to un- In one case, a
dertake measures party questioned
to move the arbi- the propriety of fil-
tration forward. ing the arbitration
This is the advan- with the PDRCI
tage of institu- because the arbi-
tional arbitration. tration clause con-
The private arbi- tained in the main
tral institution will take care of ad-
proceedings, PDRCI assigns a agreement contained an error in
ministering the arbitration for the counsel-in-charge of the file (File the name of PDRCI as the admin-
parties and ensure that the same Counsel) upon the institution of istering body. The File Counsel
proceeds promptly and efficiently. the arbitration. The File Counsel played a critical role in moving the
supervises the newly commenced arbitration forward so the arbitral
In the Philippines, the Philip- arbitration until the arbitral tribu- tribunal could be constituted.
pine Dispute Resolution Center, nal is constituted.
Inc. (PDRCI) is the leading private In another case, the arbitrators
arbitral institution offering ser- PDRCIs Administrative Guide- appointed by the parties were not
vices to disputants who may want lines approved on October 17, experienced arbitrators. The File
to resolve their dispute through 2005 broadly stated in Part A, par. Counsel became involved in advis-
arbitration. To ensure efficient 8 that (t)he Secretary-General ing the arbitral tribunal and the

May 2010
that can be extended
by the File Counsel.
In addition, the
File Counsel moni-
tors the arbitration
through his access
to the case record,
including pleadings,
papers and com-
munications from
a party to another
party, or from a rar-
ty to the tribunal, or
from the tribunal to
the parties or from
PDRCI to the tribu-
nal and the parties.
He may also attend
hearings and meet-
parties on the procedure to en- ings of the tribunal and the par-
sure that the arbitration proceeded ties, unless the tribunal expressly
with dispatch. directs otherwise.
Recognizing the important The File Counsel is required
role played by the File Counsel, under the Guidelines to regularly
PDRCIs Board of Trustees ap- inform the PDRCI Secretary-
proved on September 15, 2008 General of the progress of or lack
Part II of the Administrative of progress in the case.
Guidelines. The Introduction of
the new Guidelines explains the With the proactive role of the
role of File Counsel. File Counsel, PDRCI arbitrations
will proceed with even more dis-
As a general rule, the File Coun- patch and efficiency, helping the
sel does not intervenes directly in parties achieve a speedy resolu-
the conduct of an arbitration ex- tion of their disputes.
cept in case of manifest violation
of the PDRCI Arbitration Rules. About the Author
He is available to the parties and Shirley F. Alinea spe-
arbitrators for information and cializes in arbitra-
advice with respect to PDRCI ar- tion, litigation, labor
and employment, and
bitration practice, e.g., the proce- intellectual property
dures to be followed, presenting law. She received her
arguments and evidence, and mak- Bachelor of Laws
degree from the Uni-
ing awards. There are, of course, versity of the Philippines in 1996 and until
necessary limits to the assistance 2008 was a partner of Quisumbing & Torres.
3
PDRCI lauds launching
of ADR Act
Implementing Rules
FROM PAGE 1 of its executive direc-
tor. He said he hopes that DOJ Secre-
tary Devanadera will appoint a young
lawyer from the DOJ to this position
and assign support staff from the per-
sonnel of the DOJ. He added that the
OADR must be provided with ad-
equate office space so that the office
can begin performing its functions.
He further suggested that the OADR
prioritize certain functions, such as the
preparation of guidelines for it to act as
appointing authority; the promotion,
development and expansion of the use
of ADR; the establishment of an ADR
library; and the certification of those
who have completed OADR training
programs for ADR service providers.
Atty. Parlade closed his remarks by
expressing his gratitude to those from
the DOJ who supported ADR and con-
tributed to the drafting and approval of
the IRR, namely, Secretary Devanadera,
Undersecretary Jose Vicente B. Salazar,
Senior State Counsel Marlyn L. Ange-
les, State Counsel Lielani R. Fajardo and
State Counsel Bernadette C. Ongoco,
retired Assistant Chief State Prosecutor
Nilo C. Mariano, and State Counsel
Bernadette C. Ongoco.
Atty. Parlade also acknowledged other
contributors who shared their expertise
during the formulation of the ADR
Act and its IRR, namely Atty. Anabelle
Abaya, Prof. Alfredo Tadiar, Prof. Ro-
wena Daroy Morales, Atty. Victor Laza-
tin, Atty. Eduardo de los Angeles, Atty.
Patricia Tysmans Clemente, Director
Victorio Mario Dimagiba, Prof. Mario
Valderrama, as well as the Philippine
Chamber of Commerce and Industry
(PCCI), particularly Atty. Mike Varela
and other PCCI officers.
4
MEMBER SPOTLIGHT
Beda G. Fajardo
A tty. Beda
G. Fajardo
currently serves as
Vice-President of
PDRCI. He has
been a member of
its Board of Trust-
ees since 1996.
He is a Past Pres-
ident of the Philippine Institute of Construc-
tion Arbitration and Mediation (PICAM).
He is also a Past President of the Maritime
Law Association of the Philippines and lone
Filipino member of the Maritime Law Asso-
ciation of the United States since 1984.
Atty. Fajardo is a Fellow of the Chartered
Institute of Arbitrators (FCIArb) and a mem-
ber of International Chamber of Commerce
(ICC) Philippines, Inc., the ICC National
Committee. He is an accredited arbitrator of
PDRCI and the Philippine Construction In-
dustry Arbitration Commission (CIAC). He
is also an accredited mediator of CIAC and
the Philippine Court of Appeals.
He has served as arbitrator in international
and domestic commercial arbitration and
in CIAC construction arbitration. He has
been a speaker and panelist in various confer-
ences, seminars and symposia in commercial
arbitration. He has lectured in arbitration
seminars sponsored by CIAC and the Philip-
pine Supreme Court Mandatory Continuing
Legal Education program. He has written
articles on construction and maritime arbi-
tration.
Atty. Fajardo manages his own law firm.
He received his law degree from the Univer-
sity of the Philippines and finished a special
course in negotiation at Harvard Law School
in 1990. His areas of competence are com-
mercial and maritime litigation and com-
mercial, maritime and construction arbitra-
tion.
May 2010
PDRCI welcomes new members
T he Board of Trustees of PDRCI, upon the recommendation of the
Committee on Membership headed by Atty. Victoriano Orocio, re-
cently accepted three applicants for membership, two
of whom were foreign arbitrators.
The first new member, Atty. Constantino Oraa,
was recommended by PDRCI member Atty. Tomas
Guno. Atty. Oraa is the managing partner of Oraa
Ruaro and Tolentino Law Offices and is a professor of
law at Adamson University.
ATTY. CONSTANTINO ORAA
Atty. Oraa obtained his Bachelor of Laws degree from Ateneo de Manila
University and his Master of Laws from San Beda College. Early in his career,
Atty. Oraa served as legal counsel for the Office of Sen. Ernesto Maceda. He
was also connected with the Department of Justice, where
he was appointed as Assistant Prosecutor for the city of Pasay. After his stint
in government, he went on to establish Oraa and Associates in Manila, now
known as Oraa Ruaro and TolentinoLaw Offices.
The PDRCI Board also approved the inclusion of two applicants in the
Panel of Foreign Arbitrators: Mr. Randall A. Whitecotton of the United
States and Mr. Hugh D. McArdle of Australia.
Mr. Whitecotton obtained his Juris Doctor degree from the Whittier
College School of Law. After obtaining his license to practice in all California
and federal courts in 1991, he joined Hagenbaugh and Murphy as an insur-
ance defense associate. He became a partner of CBH Law Corp. in 2000,
where he honed his expertise in litigation. In 2004, joined MBW Swim,
LLC, a manufacturing company as general corporate counsel, a position he
held until 2009. Mr. Whitecotton is based in Huntington Beach, California.
Mr. McArdle is an Australian arbitrator, lawyer and mediator based in
Kew, Victoria, Australia. He holds Bachelor of Jurisprudence and Bachelor of
Laws degrees as well as a Masters degree in Law and a Professional Certificate
in Arbitration. He is a Barrister and Solicitor of the Supreme Court of Victo-
ria and the High Court of Austra-
The Philippine ADR Review is a publica-
lia. Mr. McArdle is a member of tion of the Philippine Dispute Resolution
several professional associations, Center, Inc. All rights reserved. No part of
including the Institute of Arbitra- the newsletter may be reproduced in any
tors and Mediators Australia, the form without the written permission of the
Chartered Institute of Arbitrators authors.
(UK), the Australian Centre for
Roberto N. Dio, Editor
International Commercial Arbi-
tration, the Law Institute of Vic- Shirley Alinea, Donemark Calimon, Ra-
toria and the Industrial Relations mon Samson, Contributors
Society of Victoria.
Juan Paolo P. Colet, Frances Cyrille F.
Tandog, Erdelyne C. Go, Sta Writers