International Commercial Arbitration at Philippines
Certainly! Here’s a detailed overview of International Commercial Arbitration in the Philippines:
International Commercial Arbitration in the Philippines
1. Legal Framework:
Arbitration Law:
The primary law governing arbitration in the Philippines is the Republic Act No. 9285, also known as the Alternative Dispute Resolution Act of 2004. This law adopts the UNCITRAL Model Law on International Commercial Arbitration (1985) with modifications suited to the Philippine context.
International Treaties:
The Philippines is a signatory to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which allows for the recognition and enforcement of foreign arbitration awards.
Other relevant laws:
The Civil Code and the Rules of Court contain supplemental provisions relevant to arbitration.
2. Scope and Applicability:
The ADR Act applies to both domestic and international commercial arbitration.
Arbitration is deemed international if:
The parties have their places of business in different countries,
The place of arbitration is outside the country of the parties,
The commercial relationship is international in nature.
3. Arbitration Agreement:
Arbitration agreements must be in writing and may be included as an arbitration clause in contracts or as a separate arbitration agreement.
Electronic communications are accepted as valid forms of writing.
The agreement must clearly indicate the parties’ intent to resolve disputes through arbitration.
4. Arbitral Tribunal:
The parties are free to agree on the number of arbitrators, usually one or three.
Arbitrators must be impartial and independent.
If the parties fail to agree on arbitrators, the appointment can be made by a court or an appointing authority specified in the arbitration agreement.
5. Arbitration Procedure:
The ADR Act emphasizes party autonomy in determining the procedure.
In absence of an agreement, the arbitral tribunal may conduct the arbitration in such manner as it considers appropriate, ensuring fair treatment and equality of parties.
Proceedings are generally confidential, though this is subject to the agreement of the parties.
6. Arbitration Institutions in the Philippines:
Philippine Dispute Resolution Center, Inc. (PDRCI): The leading arbitration institution in the Philippines.
Other ADR providers may be chosen or parties may opt for ad hoc arbitration.
7. Arbitration Awards:
Awards must be in writing and signed by the arbitrators.
They are final and binding on the parties.
Philippine courts have limited grounds to set aside an arbitral award, including:
Incapacity of a party,
Invalidity of arbitration agreement,
Lack of due process,
Excess of authority by arbitrators,
Violation of public policy.
Awards can be enforced through the courts by filing a petition for confirmation.
8. Enforcement of Foreign Arbitral Awards:
Enforcement is governed by the New York Convention.
Foreign awards can be recognized and enforced upon filing a petition, unless grounds for refusal exist (e.g., lack of jurisdiction, procedural irregularities, or conflict with Philippine public policy).
Practical Insights:
The Philippines promotes arbitration as a cost-effective and efficient means of resolving international commercial disputes.
The ADR Act encourages use of arbitration and other alternative dispute resolution mechanisms.
The judiciary generally supports arbitration and enforces arbitration agreements and awards.
Arbitration can be conducted in English or Filipino, or other languages agreed upon by the parties.
The Philippines is increasingly recognized as a neutral and effective seat for international arbitration in Southeast Asia.
RELATED Blog
0 comments