Commercial Arbitration in the Philippines Frandsco Ed. Lim*

,. INTRODUCTION . . . . • • . . . . . . . . . . . . . . . ...........••....... ; . 396 L HISTORICAL BACKGROUND ........................••..... ( . 396

A. Pre-Hispanic Period B. Spanish Regime C. American Regime

.,p. Post-American Regime I. Civil Code of the Philippines

\ 2. The Arbitration Law 1• 3. New York Convention

E.'·, Marcos Regime F. Post-EDSA Revolution

II. THE ARBITRATION. LAW ................................... 402

A. Arbitral Agreement I. Consensual Nature 2. ·Form 3. Autonomy .of the Arbitral Agreement

B. Arbitral Disputes C. Scope of Arbitration D. Enforcement cif Arbitral Agreement E. Stay of Court Proceedings F. Interim/Conservatory Measures G. The Arbitrators

LL.B. '81, Ateneo de Manila University School of Law; LL.M., University of Pennsylvania. The author is a senior partner in the Abello Concepcion Regala & Cruz Law Offices (ACCRALA W), and a member of the law faculty of the Ateneo Law School, where he currently teaches Arbitration Law and Evidence. This essay is a comprehensively updated version of the lecture delivered by the author in a seminar entitled Arbitration: How to Use It to Resolve Business Disputes Effectively, at The Peninsula, Makati City, Philippines on Nov. 27,

1998.

The author was Editor-in-Chief of Volumes 24 and ·25, Ateneo Law journal. His past works published by the Journal include: Litigation in E-Commerce: Proving a Case with Electronic Documents, 45 ATENEO LJ. 355 (:wor); Client Identity: Is it Protected ·Information Under the Attorney-Client Privilege?, 39 ATENEO LJ. j199S);..,Collec!J¥L !largaining for Government Employees: A Constitutional Rtiflection, 24 A LJ. 48 (1979); a~ Other Side of the New Law on Bouncing Checks, 23 ATENEO LJ. 25 (1978). ·

Cite as 46 ATENEO LJ. 394 (2oor).

2001] COMMERCIAL ARBITRATION

I. . Nwnber of arbitrators 2. Qualifications/Disqualifications 3- Jurisdiction and Competence

H. The Arbitral Proceedings I. Expedited Proceedings 2. Confidentiality of the Proceedings 3- Conduct of the Hearings

1. The Arbitral Award I. Forms and Contents 2. Voting 3. Enforcing the Arbitral Award 4· Vacating the Arbitral Award 5- Modif)ringor Correcting the Arbitral Award 6. Judicial Review

395

III. CONVENTION ON THE RECOGNI'fiON AND ENFORCEMENT OF FOREIGN

ARBITRAL AWARDS .............................•.•...... 42I

A. Philippine Reservations B. Obligatio_n if a Contracting State to Recog11ize a Written Agreement to Refer a

Dispute to Arbitration · C. Recognition and Enforcement if Arbitral Awards in a Contracting State D. Grounds for Opposing the Recognition or Etiforcement if a Foreign Arbitral

Award under the New York Conveniion E. No Implementing Local Legislation

IV.RECENT DEVELOPMENTS ••.............•.........•..••.... -427

A .. Arbitrable Disputes B. The Arbitration Agreement C. The Arbitral Proceedings

I. Request for Arbitration 2. Statement of Claims and Defenses

D. Making if Award and Termi~tation if the Proceedings I. The Applicable Rules . 2. Form and Contents of the Award 3. Termination of Proceedings . . 4. Correction and Interpretation of the Award and Additional Awards

E. The Arbitral Tribunal I. The Arbitrators 2. Challenf'je of an Arbitrator

F. Extent if Court Intervention I. Referral to Arbitration 2. Interim Measures 3- Court Assistance in Taking Evidence 4· Appeals Regarding Preliminary Questions 5. Recognition and Enforcem~nt 6. Application for Setting Aside the Arbitral Award

G. Recognition and Enforcement of Awards