The Arbitration Law of 1958 An Act to Authorize the Making of Arbitration and Submission Agreements, to Provide for the

Appointment of Arbitrators and the Procedure for Arbitration in Civil Controversies, and for Other Purposes

 Section 32 of RA 9825:
SEC. 32. Law Governing Domestic Arbitration. -

Domestic arbitration shall continue to be governed by Republic Act No. 876, otherwise known as "The Arbitration Law" as amended by this Chapter. The term "domestic arbitration" as used herein shall mean an arbitration that is not international as defined in Article (3) of the Model Law.

 Ancient practice in common law

Brought to our shores by Spain and embodied in the

Spanish Law of Civil Procedure (Ley de Enjuiciamiento) Ley de Enjuiciamiento was repealed due to Philippine Independence from Spain No rules for more than 50 years but some parties still availed of arbitration through the Civil Code of 1889 Supreme Court, more often than not, struck down the arbitration agreements as invalid

 The New Civil Code of 1949 contained new provisions

for arbitration, to wit:

Art. 2043. Any stipulation that the arbitrators award or

decision shall be final, is valid, without prejudice

to articles 2038, 2039, and 2040.

Art. 2044. Any clause giving one of the parties power to

choose more arbitrators than the other is void and of no effect. Art. 2046. The appointment of arbitrators and the procedure forarbitration shall be governed by the provisions

 RA 876 was enacted on 1958 which laid the Rules

governing arbitration proceedings The Phils. acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards in 1967 The enactment of RA 9285 in 2004

 Any controversy existing between the parties at the

time of the submission A controversy arising from a contract wherein the parties agree to settle any dispute arising therefrom through arbitration May include valuations, appraisals or other controversies which may be collateral, incidental, precedent or subsequent to any issue between the parties.

 It recognized the freedom of the parties to enter

into an arbitration agreement and specified that parties may enter into an arbitration agreement either before or after a dispute arises(Sec.2) It specified the form of the arbitration agreement (i.e., it must be in writing and subscribed)(Sec 4) It provided the procedure in case one of the parties refused to cooperate or participate in the arbitration(Secs. 5&6)

 It defined the qualifications of the arbitrators and

set forth guidelines for their appointment and challenge.(Secs. 8,9,10&11) It empowered the arbitrators to issue subpoenas and gave the parties the right to petition the court to take measures to safeguard and/or conserve any matter which is the subject of the dispute in arbitration(Sec.14)

 Significantly, it limited the grounds for vacating an

arbitral award to the following:

(a) The award was procured by corruption, fraud, or other

undue means; or (b) That there was evident partiality or corruption in the arbitrators or any of them; or (c) That the arbitrators were guilty of misconduct in refusing to postpone the hearing upon sufficient cause shown, or in refusing to hear evidence pertinent and material to the controversy; that one or more of the arbitrators was disqualified to act as such under section nine hereof, and willfully refrained from disclosing such disqualifications or of any other misbehavior by which the rights of any party have been materially prejudiced; or

 Significantly, it limited the grounds for vacating an

arbitral award to the following:

(d) That the arbitrators exceeded their powers, or so

imperfectly executed them, that a mutual, final and definite award upon the subject matter submitted to them was not made.

 When an award is vacated, the court, in its discretion,

may direct a new hearing either before the same arbitrators or before a new arbitrator or arbitrators to be chosen in the manner provided in the submission or contract for the selection of the original arbitrator or arbitrators, and any provision limiting the time in which the arbitrators may make a decision shall be deemed applicable to the new arbitration to commence from the date of the court's order.

 SECTION 29. Appeals. An appeal may be taken

from an order made in a proceeding under this Act, or from a judgment entered upon an award through certiorari proceedings, but such appeals shall be limited to questions of law. The proceedings upon such an appeal, including the judgment thereon shall be governed by the Rules of Court in so far as they are applicable.

 Section 8. Appointment of arbitrators. - If,

in the contract for arbitration or in the submission described in section two, provision is made for a method of naming or appointing an arbitrator or arbitrators, such method shall be followed; but if no method be provided therein the Court of First Instance shall designate an arbitrator or arbitrators.

 (a) If the parties to the contract or submission are unable to

agree upon a single arbitrator; or (b) If an arbitrator appointed by the parties is unwilling or unable to serve, and his successor has not been appointed in the manner in which he was appointed; or (c) If either party to the contract fails or refuses to name his arbitrator within fifteen days after receipt of the demand for arbitration; or (d) If the arbitrators appointed by each party to the contract, or appointed by one party to the contract and by the proper Court, shall fail to agree upon or to select the third arbitrator.

 (e) The court shall, in its discretion appoint one or three

arbitrators, according to the importance of the controversy involved in any of the preceding cases in which the agreement is silent as to the number of arbitrators. (f ) Arbitrators appointed under this section shall either accept or decline their appointments within seven days of the receipt of their appointments. In case of declination or the failure of an arbitrator or arbitrators to duly accept their appointments the parties or the court, as the case may be, shall proceed to appoint a substitute or substitutes for the arbitrator or arbitrators who decline or failed to accept his or their appointments.

 Section 10. Qualifications of arbitrators

Of legal age
In full enjoyment of civil rights Knows how to read and write Not related by blood or marriage to any party w/n the 6th

degree Has no financial, fiduciary or other interest in controversy, cause or result of the dispute Has no personal bias which might prejudice the right of any party to a fair and impartial award

 No party shall select as an arbitrator any person to act as his

champion or to advocate his cause. If, after appointment but before or during hearing, a person appointed to serve as an arbitrator shall discover any circumstances likely to create a presumption of bias, or which he believes might disqualify him as an impartial arbitrator, the arbitrator shall immediately disclose such information to the parties. Thereafter the parties may agree in writing:
(a) to waive the presumptive disqualifying circumstances; or (b) to declare the office of such arbitrator vacant. Any such

vacancy shall be filled in the same manner as the original appointment was made.

 Only for the reasons in section 10 which may

have arisen after the arbitration agreement or unknown at the time of arbitration Challenge is made before the arbitrators If the arbitrator does not yield, challenge is renewed in the CFI(RTC) of the resident of the arbitrator Hearing of the challenge in court suspends arbitration

 Confidentiality of Information
no provision on confidentiality under R.A. No. 876. At

most, R.A. No. 876 merely provided that only persons having a direct interest in the arbitration shall have the right to attend the hearings
Qualifications of an Arbitrator
R.A. No. 9285 provides that, unless otherwise agreed by

the parties, the arbitrator may be of any nationality. R.A. No. 876 was silent on this point

 Suspension of Arbitration in Case of of a Challenge on

the Qualifications of an Arbitrator

Automatic in RA 876 In RA 9285, the arbitral tribunal, including the

challenged arbitrator, may, during the pendency of the challenge before the courts, continue the arbitration proceeding and make an award

 Powers of the Arbitrators

In RA 876, only the power to issue subpoenas
In RA 9285, in addition to the power to issue subpoenas,

the arbitral tribunal has the power to issue interim measures of protection, like:
Preliminary injunction;
Appointment of receivers or detention; Inspection of the property in dispute.

 A domestic arbitral award is not self-executory. In

order to convert the domestic arbitral award into an enforceable judgment, the winning party has to file with the courts a petition for confirmation of the arbitral award within thirty (30) days from receipt of the arbitral award. The court should, as a matter of course, grant the petition, unless there are grounds to vacate the award.