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8/20/2019 DOJ OADR 2
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Involved in Arbitration / ADR?
We know the different processes.
We can help you dissect and analyze themrefine and combine them and create hybrid
procedures to make them suitable for
particular relationships as well as to develop
strate!ies and point you to the ri!ht direction.
"isit us at #www.philippinearbitrators.or!$
%hilippine Institute of Arbitrators
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COMPREHENDING PARTY AUTONOMY IN THE RESOLUTION
OF PRIVATE DISPUTES AND COMPREHENDING
ARBITRATIONS
BY
MARIO E. VALDERRAMA LLB, FCIARb, FHKIArb, FPIArb
CIArb Approved Tutor
PDRCI Accredited Arbitrtor CIAC Accredited Arbitrtor
!E"M Accredited Arbitrtor
Appe#ed C$e$ Meditor
Co%tct Deti#$
Te# &o '() *++- Te#e/ '(0 1()Mobi#e +2) ** 32*
E45i# 65rv#.#7895i#.co5:
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OBJECTIVES OFPRESENTATION
&o present the fundamentals.
&o provide the foundation for subse'uent
presentations.
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PART ONE
()*%R+,+-DI- %AR& A0&)-)* I-&,+ R+1)20&I)- )3 %RI"A&+ DI1%0&+1
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PARTY AUTONOMY:CONCEPT AND NATURE
R.A. 4567 defined it as 8the freedom of the
party 9should be parties: to make their own
arran!ements to resolve their disputes; 9see
1ec. 5:.
It is contractual by nature.
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INHERENT OR GRANTEDRIGHT?
It is an inherent ri!ht. %arties entered into
contracts even before !overnments and
courts came into bein!.
Accordin!ly the law affirmed rather than
!ranted the ri!ht or freedom.
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BASIS
&he basis is the underlyin! concept behindthe freedom to contract< a party who reachedthe a!e of ma=ority is an adult and is
presumed to have sufficient discretion tomake informed decisions.
,e may therefore create le!al relations bycontract.
In the same manner he also has the freedomto make his own arran!ements in resolvin!his private disputes.
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TEST OF VALIDITY OFDISPUTE RESOLUTION
CLAUSES A!ain contractual.
It is valid if valid as a contract.
-ote< *ost of the !rounds to challen!e the
=urisdiction of an arbitral tribunal and many of
the !rounds to challen!e an award are
!rounds to attack a contract or based on
contractual precepts. &he other !rounds arebased on the =udicial constituent element of
an arbitration.
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THE PROPER APPROACH:ClearingU! "#e C$n%&'i$n
T;e proper pproc; i$ to pp#<co%trctu# precept$ rt;er t;% be
=#e9#i$tic>.
T;e 7ro%9 pproc; 7i## re$u#t to t;e
7ro%9 co%c#u$io%$.
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THE (RONG APPROACH:E)AMPLE
O% t;e vi#bi#it< o 5erit$ revie7 o rbitr#
7rd$ ?i% 9ree5e%t b$ed rbitrtio%@, or
e/5p#e, o%e 7i## co%c#ude t;t it i$ vi#b#e i;e 7ere to #oo t t;e #7 ir$t %d t;e
$tipu#tio% t;ereter.
&ote "ee Ru#e *' "ec. or t;e #7.
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THE CORRECT APPROACH T;e correct pproc; i$ to #oo t t;e co%trct
ir$t, %d t;ereter deter5i%e i t;e co%trct
co%trve%ed 5%dtor< provi$io%$ o #7.
I% 9ree5e%t b$ed rbitrtio%, our e/5p#e,
t;e co%trct i$ to bide b< t;e deci$io% o t;e
rbitr# tribu%#. T;e co%c#u$io%, t;ereore, i$
t;t 5erit$ revie7 i$ %ot vi#b#e.
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THE CORRECT APPROACH Pri%cip#e o Fi%#it< o A7rd i$ Co%trctu#
=/ / / rbitrtor$ re ud9e$ c;o$e% b< t;eprtie$ to decide t;e 5tter$ $ub5itted to . t;e5,i%##< %d 7it;out ppe# / / /> ?Burc;e## v
Mr$;, 31 .".. '**, 3 L.Ed. 2( ?13*@.
=T;e e$$e%ce o t;e rbitrtio% proce$$ i$ t;t %rbitr# 7rd $;## put t;e di$pute to re$t / / /.Arbitr# i%#it< i$ core co5po%e%t o t;eprtie$ 9ree5e%t to $ub5it to rbitrtio%. T;u$,% rbitrtio% deci$io% i$ i%# %d co%c#u$ivebecu$e t;e prtie$ ;ve 9reed t;t it be $o / //.> ?"t$ v "c;7b@.
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THE APPLICABLE RULES
&he applicable rules are the contractualprecepts.
)ur interest as a !eneral proposition should
be on< T;e 9e o co%$e%t, ru#e o% cpcit< to ct %d t;e
circu5$t%ce$ 5odi<i%9G#i5iti%9 cpcit< to ct T;e pri%cip#e o t;e uto%o5< o co%trct$
T;e ru#e t;t co%trctu# $tipu#tio%$ re t;e #7bet7ee% t;e prtie$ T;e 9e%er# #i5ittio% o% co%trctu# uto%o5< T;e ot;er #i5ittio%$ o% co%trctu# uto%o5<
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CORRELATIONS
A9e o co%$e%t or5er#< 0, but reducedto 1 b< R.A. (1+2.
Cpcit< to ct %d circu5$t%ce$#i5iti%9 cpcit< to ct $ee &CC Art$. ')%d '2. &ote t;e ru#e$ i%vo#vi%9corportio%$, 9over%5e%t e%titie$, t;eru#e o% 9e%c<. &ote #$o t;t cpcitie$re 9over%ed b< t;e %tio%#Gdo5ici#ir<#7 o t;e prt< i%vo#ved.
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CORRELATIONS
T;e uto%o5< o co%trct$
co%trcti%9 prtie$ 5< ree#< $tipu#te,
%d $ 9e%er# propo$itio% t;eir
$tipu#tio% i$ t;e #7 bet7ee% t;e5.
?$ee &CC Art$. 32 %d '+(@.
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CORRELATIONS
u$t #ie co%trctu# uto%o5<, prt<uto%o5< i% t;e re$o#utio% o di$pute$ i$
#$o %ot b$o#ute.
Corre#tio% T;e #i5it$ o co%trctu#uto%o5< T;e $tipu#tio% 5u$t %ot be
co%trr< to #7, 5or#$, 9ood cu$to5$,pub#ic order, %d pub#ic po#ic< ?"ee &CC Art.'+(@.
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Li*i"a"i$n' $n Par"+ A&"$n$*+ A$ 9e%er# propo$itio%, t;e #i5ittio% reer$ to
5tter$ t;t re %ot $ubect to co%trct, e.9. cri5i%#
?but %ot civi#@ #ibi#it<, 5tri5o%i# di$pute$ ot;er
t;% t;o$e i%vo#vi%9 propert< %d cu$tod< o
c;i#dre%, civi# $ttu$ o per$o%$, t;e uri$dictio% ocourt$, %d uture #e9iti5e ?$ee R.A. &o. 2013 "ec. (@.
I% certi% i%$t%ce$, it 5< ri$e ro5 t;e pub#ic
po#ic< to protect c#$$e$ 7it; =7e> br9i%i%9po$itio%$, e.9., t;e #bor co%trct$ e/ceptio% i
covered b< our Lbor Code ?ibid@.
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Li*i"a"i$n' $n Par"+ A&"$n$*+ Co%$u5er rbitrtio% u%der t;e Co%$u5er$
Act #$o #i5it$ prt< uto%o5< $ co%$u5er$
re c#$$e$ 7it; =7e> br9i%i%9
po$itio%$. T;i$ pub#ic po#ic< 5< #$opreve%t rbitrtio% o di$pute$ ##i%9 u%der
t;e HLRB %d DAR uri$dictio%$.
Furt;er #i5ittio%$ 5< #$o ri$e ro5 pub#ic
po#ic< dec#rtio%$, $uc; $ i% CIACrbitrtio%.
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SIDELIGHT: P&,li- P$li-+ inCrea"ing "#e CIAC
=T;ere i$ ;ereb< dec#red to be t;e po#ic< o
t;e "tte to e%cour9e t;e er#< %d
e/peditiou$ $ett#e5e%t o di$pute$ i% t;eP;i#ippi%e Co%$tructio% I%du$tr<> ?E.O. ++1,
"ec. 0, Dec#rtio% o Po#ic<@.
&ote T;ere re provi$io%$ i% R.A. 2013 re
CIAC rbitrtio%.
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SIDELIGHT: O"#erE.-l&'i$n' %r$* R/A/ 0123
Court A%%e/ed ADR
Br%9< "<$te5 o u$tice
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CONTRACTUAL PRECEPTS:DYNAMICS A!reements cannot contravene mandatory
provisions of law.
&he stipulation between the parties is the law
between them as lon! as the stipulation doesnot contravene any mandatory provision of
law.
*any provisions in contract law are 8default;provisions. &hey apply in the absence or
deficiency of a!reement.
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CONTRACTUAL PRECEPTS:DYNAMICS &OTE T;ere re t7o t<pe$ o 5%dtor<
provi$io%$ i% co%trct #7.
O%e t<pe re%der$ vio#ti%9 $tipu#tio% void but o%#<reJuire$ co5p#i%ce. E/5p#e t;e %ot #e$$ t;% <r.
#i5ittio% re pre$criptive period pp#icb#e to i%$ur%ce
co%trct$.
T;e ot;er t<pe i$ prt o t;e co%trct bet7ee% t;e
prtie$. E/5p#e t;e provi$io% 9r%ti%9 CIACe/c#u$ive %d pri5r< uri$dictio% over do5e$tic
co%$tructio% di$pute$ i % rbitrtio% c#u$e 7ere
pre$e%t. ?But $ee C;i% C;i%9 i%9@.
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CONTRACTUAL PRECEPTS:DYNAMICS &OTE I% #oc# te/t boo$, di$ti%ctio%$ re
dr7% bet7ee% =5%dtor<> %d =director<>
provi$io%$.
8Director<> provi$io%$ ;ve broder co%ceptt;% =deu#t> provi$io%$.
T;e co%cept o =deu#t> provi$io%$ i$ i%c#uded
7it;i% t;e co%cept o =director<> provi$io%$.
&ote Deu#t ru#e$ p#< $peci# ro#e i% crti%9
t;e procedure$ i% ADRGArbitrtio%.
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CONTRACTUAL PRECEPTS:DYNAMICS
In a!reement based arbitrations 0-(I&RA2*odel 2aw >467 Art. >4.5 introduced the
concept of arbitrator discretion.
-ote that arbitrator discretion is available onlyif 9>: its eercise will not contravene anymandatory provision of law@ 95: there is noa!reement on the matter@ and 9: there is no8default; provision of law.
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CONTRACTUAL PRECEPTS:DYNAMICS
0-(I&RA2 *odel 2aw >467 Art. >4.5<
3ailin! such a!reement 9re a!reement of the
parties as to the procedure: the arbitral
tribunal may sub=ect to the provisions of this
2aw conduct the arbitration in such manneras it considers appropriate.
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CONTRACTUAL PRECEPTS:DYNAMICS Order o Preere%ce i% A9ree5e%t B$ed
Arbitrtio%$
M%dtor< provi$io%$ A9ree5e%t Deu#t provi$io%$ Arbitrtor di$cretio%
&ote t;t rbitr# i%$titutio% ru#e$ 5< #$o co%ti%5%dtor< %d deu#t provi$io%$.
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DYNAMICS: ILLUSTRATION
In their arbitration a!reement the parties
a!reed that one of them can appoint two out
of the three arbitrators. "alid? Answer< -o. &his contravenes the principle of
e'uality between the parties a mandatory
rule B see *A2 Art. >6 also -(( Art. 5C7.9*a!ellan (apital *ana!ement (orporation
vs. Eosa 77 1(RA >7F G5CC>H:
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DYNAMICS: ILLUSTRATION
In an arbitration the parties cannot a!ree on
whether or not the award shall be a reasoned
award. *ay the arbitrator in the eercise ofhis discretion insist that the award shall be
without reason?
Answer< -o. &he default le!al provision isthat the award should be with reasons. B see
*A2 Art. >.5@ also R.A. 4567 1ec. .
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DYNAMICS: ILLUSTRATION
In an I(( arbitration the parties a!reed that
the award shall be without reason. "alid?
Answer< -o. 0nder I(( Rules the rule that
the award should be with reasons is
mandatory. B see 9old: I(( Rule Art. 57.5.
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S"e!' in E.er-i'ing Par"+ A&"$n$*+
C;oo$e t;e 5ode o di$pute
re$o#utio%
A9ree o% t;e ru#e$ %d procedure$
t;t 7i## 9over% t;e c;o$e% 5ode.
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FIRST STEP
&he first step involves makin! a choice from
amon! the different modes of dispute resolution.
-ote that the choices involve varyin! de!rees ofparty control from almost unlimited to almost
none.
-ote also that in certain instances the parties
have limited choices or no choice at all.
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FIRST STEP: T#e Di'!&"eRe'$l&"i$n S!e-"r&*
-onJurisdictional and ADR Avoid%ce, vio#e%ce, c;%ce
&e9otitio%
Co%ci#itio% %d Meditio% Ot;er ADR or5$
"peci# Me%tio% Adudictio%
uri$dictio%#
Arbitrtio% "ttutor< Arbitrtio%
Liti9tio%
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SECOND STEP
&he second step is more complicated.
1ample (lause<
8A%< di$pute ri$i%9 out o or i%re#tio% to t;i$ co%trct $;## ir$t be
reerred to 5editio% beore %< ot;e prtie$ cou#d 9o to court ?or torbitrtio%, $ t;e c$e 5<be@.>
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SAMPLE CLAUSE:MEDIATION T;e c#u$e #et 5%< u%%$7ered Jue$tio%$
t;t 5< beco5e bo%e$ o co%te%tio% o%ce di$pute ri$e$. It cou#d i% ct be u$ed b< rec#citr%t to de#< t;e re$o#utio% o t;e
di$pute. It i$ ctu##< 7or$e i% P;# becu$e o t;e
dei%itio% o court reerred 5editio% i% R.A.2013 "ec. '.5.
&ote "o5e curtive provi$io%$ re i% t;eIRR.
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SAMPLE CLAUSE: ARBITRATION
Is the followin! clause in an
international contract workable?
8Dispute resolution< arbitration in the
%hilippines.;
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SAMPLE CLAUSE: ARBITRATION
&he clause also left several
unanswered 'uestions.
&he difference is that this time our
arbitration law provided defaultprovisions.
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R$le $% La4 Pr$!$'ing "$Pr$*$"ePar"+ A&"$n$*+ &he 8default; provisions are the rules
that will apply in the absence or incase of deficiency of a!reement
between the parties. &hey B the
default provisions B 8fillin; the blanksto make the choice of the parties
workable.
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R$le $% "#e La4
+amples of 8default; provisions<
E%9#i$; $ t;e deu#t #%9u9e i%
i%ter%tio%# rbitrtio%- E%9#i$; or Fi#ipi%oi% do5e$tic rbitrtio%- i% bot; c$e$ #$o
9ivi%9 t;e rbitr# tribu%# $o5e #ee7< b<
providi%9 it 7it; di$cretio% to de$i9%te t;e
#%9u9e o rbitrtio% ?R.A. 2013, "ec. '%d ''@.
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R$le $% "#e La4
+amples of 8default; provisions<
Metro M%i# $ t;e deu#t p#ce o
rbitrtio% but 9ivi%9 t;e rbitr# tribu%#$o5e #ee7< b< providi%9 it 7it; di$cretio%
to de$i9%te t;e p#ce ?R.A. 2013 "ec$. '+
%d ''@.
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R$le $% "#e La4
+amples of 8default; provisions<
T;e %u5ber o rbitrtor$ ?'@- t;e 5%%er
o ppoi%t5e%t ?ec; prt< ppoi%t$ o%e,%d t;e ppoi%ted rbitrtor$ ppoi%t t;e
t;ird@- t;e i%$titutio% o t;e ppoi%ti%9
ut;orit< 7;o 7i## ppoi%t t;e rbitrtor or
rec#citr%t or t;e t;ird or $o#e rbitrtori% deu#t o 9ree5e%t ?Mode# L7 Art$. +
%d @.
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R$le $% "#e La4
+amples of 8default; provisions<
A7rd$ i% i%ter%tio%# rbitrtio%$re #7 b$ed ?Mode# L7 Art. ''.@-
R.A. 1)( i5p#ie$ t;t 7rd$ i%
do5e$tic rbitrtio%$ re eJuit<b$ed.
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R$le $% "#e La4
A%d t;u$, t;e u%%$7ered
Jue$tio%$ i% t;e $5p#e c#u$e7ere %$7ered b< t;e deu#t
provi$io%$ o #7.
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R$le $% "#e La4
Ro#e o #7 propo$i%9 to pro5ote prt<uto%o5<
To ##o7 vib#e c;oice$
To provide t;e ru#e$, c##ed =deu#t> ru#e$,t;t 7i## pp#< $;ou#d t;e 9ree5e%t be
deicie%t i% t;e i5port%t cte9orie$ oc;oice $o $ to 5e t;e c;oice o t;eprtie$ 7orb#e.
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RE5UIREMENT FORDEFAULT RULE6PROCEDURE
T;e deu#t ru#e or procedure 5u$tbe vib#e.
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RE5UIREMENT FORDEFAULT RULE6PROCEDURE
I$ t;e o##o7i%9 rbitrtio% c#u$e i% domestic co%trct pt;o#o9ic#
=A%< di$pute ri$i%9 out o or i%co%%ectio% 7it; t;i$ co%trct $;## be
reerred to rbitrtio%.;
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RE5UIREMENT FORDEFAULT RULE6PROCEDURE
R.A. 1)( "ec. 0. Fee$ o rbitrtio%. T;e ee$ o t;e rbitrtor$ $;## be it<
pe$o$ per d< u%#e$$ t;e prtie$ 9reeot;er7i$e i% 7riti%9 prior to t;erbitrtio%.
&OTE Curtive provi$io%$ re i% t;e IRR.
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COUNTERPART OF PARTY AUTONOMY
=Freedo5 $e#do5 co5e$
7it;out re$po%$ibi#it<.>
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PARTY AUTONOMY AND THEPROBLEMS OF THE
JUDICIARY Prt< uto%o5< ;$ 5ore to do 7it;
ri9;t$ o c;oice, #e$$ 7it; t;e prob#e5$
o t;e udicir<. It i$ %ot i%te%ded to$o#ve t;e prob#e5$ o t;e udicir<.
=Privte di$pute$ bet7ee% privteprtie$ ou9;t to be re$o#ved t;rou9;privte 5e%$.>
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PARTY AUTONOMY AND THEPROBLEMS OF THE
JUDICIARY T;e co%%ectio% i$ i%direct %dco%$eJue%ti#, rt;er t;% direct.
=To t;e e/te%t t;t prtie$ 7ou#d vi# odi$pute re$o#utio% 5et;od$ ot;er t;%#iti9tio% i% re$o#vi%9 t;eir di$pute$, tot;t e/te%t #$o 7i## court$ ;ve ti5e or
t;eir 5ore proper u%ctio%, 7;ic; i$ tore$o#ve di$pute$ i%vo#vi%9 pub#ic po#ic<%d i%tere$t.>
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BIBLIOGRAPHY
(IArb &eachin! *anual 9culled from various
sources:
%IArb &eachin! *anual 9culled from various
sources: R.A. 6FK@ 0-(I&RA2 *odel 2aw >467@
0-(I&RA2 R02+1 >4FK@ I(( Rules@ R.A.
4567@ -ew (ivil (ode@ +.). >CC6
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PART T(O
COMPREHE&DI& ARBITRATIO&"
CLEARING THE CONFUSION
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CLEARING THE CONFUSION: ARBITRATION AND STATUTE BASED
ARBITRATIONS &here are several processes called
8arbitration; in the %hilippines.
(lasses<
a. Arbitration 9traditional/a!reement based:
b. 1tatute based arbitrations B based on law
CLEARING THE CONFUSION
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CLEARING THE CONFUSION
CO&CEPT OF ARBITRATIO& ?AREEME&TBA"ED@
Arbitrtio% i$ device 7;ereb< t;e $ett#e5e%t o Jue$tio%, 7;ic; i$ o i%tere$t or t7o or 5ore
per$o%$, i$ e%tru$ted to o%e or 5ore ot;erper$o%$ t;e rbitrtor or rbitrtor$4 7;oderive t;eir po7er$ ro5 privte 9ree5e%t,%ot ro5 t;e ut;oritie$ o "tte, %d 7;o re
to proceed %d decide t;e c$e o% t;e b$i$ o$uc; % 9ree5e%t Fouc;rd, i##rd,o#d5% o% I%ter%tio%# Co55erci#Arbitrtio% pr ) citi%9 $ever# ut;or$.
AGREEMENT BASED
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AGREEMENT BASED ARBITRATION
E#e5e%t$
=A co%$e%$u# 5ode o di$pute
re$o#utio% b< t;ird prt< %eutr# c;o$e%b< t;e prtie$ #edi%9 to i%# %dbi%di%9 7rd.>
It i$ %ot =true> rbitrtio% i %< o t;ee#e5e%t$ i$ %ot pre$e%t.
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CLEARING THE
CONFUSION: "TATTE BA"ED ARBITRATIO&"
1ub (lassification
Optio%# 4 %eed$ $tipu#tio% to rbitrte, e.9.CIAC %d vo#u%tr< #bor rbitrtio%$
I5po$ed doe$ %ot reJuire 9ree5e%t torbitrte, e.9. co%$u5er %d co5pu#$or< #borrbitrtio%$
OC S O SC SS O
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FOCUS OF DISCUSSION
Our ocu$ i$ o% 9ree5e%t b$ed
rbitrtio%.
T;i$ i$ =true> rbitrtio%, b$ed o% co%$e%t %d%ot o% #7. =Co%$e%$u# u$tice>.
I% rbitrtio% t;e prtie$ crt t;e procedure.T;o$e 7;o do %ot %o7 7;t to do ;ve %o
recour$e e/cept to re#< o% t;e rbitrtor.
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CLEARING THE CONFUSION: AGREEMENT BASED ARBITRATION
Co%trctu#- $<%o%<5ou$ 7it; t;e co%cept o
prt< uto%o5< i% t;e re$o#utio% o di$pute$
Tribu%# % i%$tru5e%t#it< o t;e prtie$
A7rd i$ product o privte di$pute re$o#utio%proce$$e$, ;e%ce t;e %eed or udici#
reco9%itio% o co%ir5tio%
Pri%cip#e o i%#it< o 7rd$ i$ b$ed o%
co%trct core co5po%e%t o t;e proce$$ V#idit< i$$ue$ 7rd treted u$t #ie
co%trctu# $tipu#tio%
ARBITRATION
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ARBITRATION
(ontractual -ature
Arbitration is a creature of contract not of
law. It is based on the contract principle ofparty autonomy or the will of the partiesepressed as the freedom to contract.
,ence the !overnin! law affirmed ratherthan !ranted the ri!ht to choose arbitration.
ARBITRATION
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ARBITRATION
Co%trctu# &ture B$i$
A% du#t i$ pre$u5ed to ;ve $uicie%t
di$cretio% ;e%ce cpb#e o 5i%9 i%or5eddeci$io%$.
He c%, t;ereore, 5e rr%9e5e%t$ 7it; ;i$
cou%terprt to re$o#ve t;eir di$pute$ i% t;e $5e5%%er t;t ;e %d ;i$ cou%terprt c% crete
#e9# re#tio%$ b< co%trct.
ARBITRATION
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ARBITRATION
(ontractual -ature<
&he process is !overned more by contractual
precepts less by law.
A9e o 5orit<
Auto%o5< o co%trct$
Li5ittio%$ o% t;e reedo5 to co%trct
ARBITRATION
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ARBITRATION
(ontractual -ature<
A common mistake is to look at the law first
instead of applyin! contractual precepts.
Doin! so B takin! the le!al approach B will
most likely result to the wron! ideas.
ARBITRATION
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ARBITRATION
Tribu%# % I%$tru5e%t#it< o t;e Prtie$
I% rbitrtio% t;e prtie$ b< co%trct crete t;eiro7% tribu%# ?$ee Mode# L7 provi$io%$@. T;e<ppoi%t t;eir =ud9e$>- crt t;e procedure-
9ree o% $ever# cte9orie$ o c;oice. A$cretor$ t;e< o7% t;e tribu%#- $ o7%er$ %dcretor$ t;e< c% $;pe t;e tribu%# to 7;t t;e<7%t it to be. A$ o7%er$ %d cretor$ t;e< p<
t;e e/pe%$e$ o t;e tribu%# t;t t;e< creted.T;e rbitrtor$ re i% to te5porr< e5p#o<ee$7;o$e ob de$criptio% i$ to re$o#ve t;e di$putebet7ee% t;e prtie$.
ARBITRATION
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ARBITRATION
Award a %roduct of %rivate DisputeResolution %rocess@ -eed for(onfirmation/Reco!nition
8A vacated award 8 was an internationalaward which was not inte!rated in the le!alsystem of that 1tate ; 9,ilmarton v )&"
>44 L022 (I". A -o. >C (ourt de(assation *arch 5 >44. 3rom(arbonneu:.
ARBITRATION
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ARBITRATION
Pri%cip#e o Fi%#it< o A7rd i$ Co%trctu#
=/ / / rbitrtor$ re ud9e$ c;o$e% b< t;eprtie$ to decide t;e 5tter$ $ub5itted to . t;e5,i%##< %d 7it;out ppe# / / /> ?Burc;e## v
Mr$;, 31 .".. '**, 3 L.Ed. 2( ?13*@.
=T;e e$$e%ce o t;e rbitrtio% proce$$ i$ t;t %rbitr# 7rd $;## put t;e di$pute to re$t / / /.Arbitr# i%#it< i$ core co5po%e%t o t;e
prtie$ 9ree5e%t to $ub5it to rbitrtio%. T;u$,% rbitrtio% deci$io% i$ i%# %d co%c#u$ivebecu$e t;e prtie$ ;ve 9reed t;t it be $o / //.> ?"t$ v "c;7b@.
ARBITRATION
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ARBITRATION
V#idit< I$$ue$ "u55r< &ture oE%orce5e%tGReco9%itio% Proce$$e$
T;e $<##o9i$5 T;e co%trct bet7ee% t;e prtie$
i$ to bide b< t;e 7rd or deci$io% o t;eTribu%#- t;e $ubect o t;e petitio% i$ t;e 7rd-er9o t;e 7rd 5u$t be e%orced.
Cutio%r< &ote $e9re9te ro5 t;e 5erit$ o t;e7rd t;e 9rou%d$ to vcte t;e Greu$ereco9%itio% o t;e 7rd 7;ere i$$ue$ o ct%d #7 5< ri$e.
ARBITRATION
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ARBITRATION
V#idit< I$$ue$ A7rd i$ Treted u$t Lie
Co%trctu# "tipu#tio%
A% 7rd i$ i9%ored or vcted i bd-reco9%ied or co%ir5ed %d e%orced i 9ood-
$ubect to t;e pri%cip#e o $eprbi#it<.
A% dded $vi%9 9rce i$ reerr# bc to t;eTribu%# 7;ic; 7$ i%troduced b< rbitrtio%
#7$.
ARBITRATION
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ARBITRATION
rou%d$ To VcteGReu$e Reco9%itio%
re 5i%#< b$ed o% t;e t7o co%$titue%t
e#e5e%t$ o % rbitrtio%, %5e#<
Co%trctu#
udici#
The Constituent Elements of an
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The Constituent Elements of an
Arbitration
Judicial B &he arbitral tribunal decides the
dispute/s like a =ud!e or collective =ud!es as the
case may be. &his distin!uishes 8consensual;
arbitration from mediation and other ADR forms. (ontractual B &he power of the tribunal arises
from contract. &his distin!uishes 8consensual;
arbitration from liti!ation and statutory
arbitration.G1ee 3ouchard etc. on pa!e >>H
STATUTE BASED
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STATUTE BASED ARBITRATIONS E$tb#i$;ed b< $ttute H<brid proce$$e$ Freedo5 o prtie$ to $e#ect rbitrtor$ %d
crt procedure ;evi#< curti#ed Tribu%# % i%$tru5e%t#it< o over%5e%t Re$u#t%t 7rd dee5ed i%te9rted i%to t;e
#e9# $<$te5 Merit$ revie7 o 7rd$ i$ vi#b#e.
STATUTE BASE
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STATUTE BASE
ARBITRATIONS
(reated by statute<
8&here is hereby established in the (IA%
a body to be known as the (onstruction
Industry Arbitration (ommission; 9+.). >CC61ection :.
STATUTE BASE
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STATUTE BASE
ARBITRATIONS
,ybrid %rocesses
A perusal of the procedures will show a
combination of the precepts of a!reementbased arbitration and liti!ation.
STATUTE BASE
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STATUTE BASE
ARBITRATIONS
(urtailment of freedom to choose arbitrators<
enerally only (IA( accredited arbitrators
may be appointed in (IA( panels.
STATUTE BASE
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STATUTE BASE
ARBITRATIONS
(urtailment of freedom to craft procedure<
8&he Arbitral &ribunal shall at all times adopt the
most epeditious procedure for the introduction and
reception of evidence and 1,A22 ,A"+
()*%2+&+ ()-&R)2 )"+R &,+
%R)(++DI-1 but in any case shall afford full
and e'ual opportunity to all parties to present
relevant evidence; 9(IA( Rules 1ec. >.:.
STATUTE BASE
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STATUTE BASE
ARBITRATIONS
&ribunal an instrumentality of the
overnment
(IA( was created by statute inimplementation of a public interest
declaration. 1o (IA( &ribunals are
obviously instrumentalities of theovernment.
STATUTE BASE
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STATUTE BASE
ARBITRATIONS
Resultant award inte!rated into the le!al
system
-o need for confirmation for enforceability.
STATUTE BASE
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STATUTE BASE
ARBITRATIONS
Award sub=ect to appeal
Rule 1ection >. 1cope. B &his Rule shall
apply to appeals from awards . Amon!these a!encies are the (onstruction
Industry Arbitration (ommission.;
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(ANT TO 7NO( MORE? A""en8 $&r -$&r'e' an8'e*inar'/
C$n"a-" &' %$r '-#e8&le'/
Vi'i" &' a" 444/!#ili!!inear,i"ra"$r'/$rg
%hilippine Institute of Arbitrators
c/o Atty. *ario +. "alderrama
&el. -o. 9K5: KF CC>