Philippines - Chapter 11 - International Commercial Arbitration in Asia - 3rd Edition

Victor P. Lazatin is a Senior Partner of Angara Abello Concepcion Regala & Cruz, Manila. Mr. Lazatin is a Construction Arbitrator and faculty member of the Construction Industry Arbitration Commission; Former President and Director of the Philippine Institute of Construction Arbitrators; President of the Philippine Dispute Resolution Center, Inc.; and, accredited arbitrator of the Singapore International Arbitration Centre.

Patricia-Ann T. Prodigalidad is a Partner of Angara Abello Concepcion Regala & Cruz, Manila. She is a member and trained arbitrator of the Philippine Dispute Resolution Center, Inc.; member of the Standing Committee on ADR of the Philippine Chapter of the ASEAN Law Association; and the Assistant National Secretary of the Integrated Bar of the Philippines.

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Originally from: International Commercial Arbitration in Asia - 3rd Edition

I. INTRODUCTION

Globalization has become the buzzword of the new millennium as developing countries seek to expand international trade and attract foreign investment. Quite understandably, the opening of domestic doors to foreign investors will inevitably result in more conflicts arising from the intrinsic complexity of international commerce as well as the inherent cultural and legal differences among trading nations. This chapter will discuss the role of commercial arbitration in resolving these disputes in the Philippines.

Perhaps owing to their non-confrontational nature, the Filipino people are generally averse to adversarial proceedings. As such, and considering also the costly and slow process of litigation, commercial arbitration as an alternative mode of dispute resolution has gained popularity at lightning speed over the past two decades and has earned, in recent years, the reputation as the better alternative to litigation. Philippine legislation on commercial dispute resolution, however, severely lagged behind the fast-paced growth and innovation in international trade. Fortunately, in recent years, developments in arbitration law in the Philippines have transpired in breakneck speed. As a result, the present state of arbitration law in the Philippines is highly supportive of the resort to arbitration, whether for domestic or international arbitration. More importantly, the current legal framework and policy environment evidence that all ingredients for a successful arbitration regime are in place.

Table of Contents:

Chapter 11

Arbitration in the Philippines
I. Introduction
A. History of Arbitration in the Philippines
B. The Practice of Arbitration in the Philippines Today
C. Sources of Law
D. Traditional and Cultural Modes of Dispute Resolution in the Philippines
II. Choice of Philippine Law: Consequences For the Arbitration Agreement And Arbitrability of the Dispute
A. Arbitration Agreement: Intrinsic and Extrinsic Validity
B. Arbitrability of Disputes
1. Subject Matter Involved
2. Parties’ Capacity to Arbitrate
3. Scope of Arbitration Agreement/Clause
III. The Philippines as the Place of Arbitration
A. Law Applicable to the Proceedings
B. Law Applicable to the Merits
IV. Consequences of Philippine Law as the Law Applicable to the Proceedings
A. Enforcement of the Arbitration Agreement
1. Binding Effect of Arbitral Agreements
2. Petition to Compel Arbitration
3. Ex Parte Proceedings
B. Establishment of the Arbitral Tribunal
1. Number of Arbitrators
2. Role of the Arbitrators
3. Manner of Appointment
4. Qualifications
5. Disclosure
6. Challenge and Replacement
7. Jurisdiction and Competence
8. Interim Measures of Protection
9. Code of Ethics
C. Arbitration Proceedings Proper
1. Commencement
a. Basic Pleadings
b. Contents of the Submission Agreement or Request for Notice of Arbitration
c. Answer and Counterclaim
d. Reply
2. Statements of Claim and Defense
3. Written and/or Oral Proceedings
4. Lis Alibi Pendens
5. Interim Measures of Protection
D. The Arbitral Award
1. Time Limits
2. Content and Form
3. Voting
4. Award by Consent
E. Participation of Foreign Lawyers
F. Fees
V. Enforcement and Execution of Arbitral Awards
A. Enforcement of Awards in Domestic Arbitration
B. Enforcement of Awards in International Commercial Arbitration in the Philippines
1. Definition of International Commercial Arbitration
2. Procedure
C. Enforcement of Foreign Awards
1. Application of the New York Convention
2. Enforcement of Convention Awards
3. Enforcement of Non-Convention Awards
D. Judicial Remedies against Enforcement and Execution
1. Domestic Arbitral Awards
a. Vacating the Award
b. Modifying or Correcting the Award
c. Appeal
d. Special Civil Action for Certiorari
2. International Commercial Arbitral Awards
a. Setting Aside the Award
b. Appeal
c. Special Civil Action for Certiorari
3. Foreign Arbitral Awards
a. Grounds to Refuse (or Oppose the) Recognition and Enforcement under the New York Convention
b. Appeal and Special Civil Action for Certiorari
c. Philippine Jurisprudence on Enforcement of Foreign Arbitral Awards
E. Other Means of Judicial Interference and Review
VI. Conclusion