II. Definition NEGOTIATION - any form of direct or indirect communication whereby parties who have opposing interests discuss the form of any joint action which they might take to manage and ultimately resolve the dispute between them MEDIATION - means a voluntary process in which a mediator, selected by the disputing parties, facilitates communication and negotiation, and assist the parties in reaching a voluntary agreement regarding a dispute.” (R.A. 9285, Sec. 3 [q]) CONCILIATION –uses a neutral third party to clarify issues in dispute so that the parties concerned may themselves arrive at a mutually acceptable agreement. MINI-TRIAL - a structured dispute resolution method in which the merits of a case are argued before a panel comprising senior decision makers with or without the presence of a neutral third person after which the parties seek a negotiated settlement.” (R.A. 9285, Sec. 3 [u]) ARBITRATION - A voluntary dispute resolution process in which one or more arbitrators, appointed in accordance with the agreement of the parties resolve a dispute by rendering an award. It is the reference by mutual agreement or consent of the parties of a controversy or dispute to selected persons for an informal hearing and extra-judicial determination and resolution. The hearing is usually held in private and the decision of the persons selected will be a substitute for a court judgment. This avoids the formalities, delay and expenses of ordinary litigation. III. RA 876 – Arbitration Law SUBJECT MATTER: a. Controversy arising from contract with arbitration clause b. Any controversy between two or more persons which may be the subject of an action c. Includes valuation, appraisals or other controversies which may be collateral, incidental, precedent, subsequent to any issue between the parties. Exceptions: a. Cases subject to jurisdiction of CIR (Court of Industrial Relations) FORM – a contract to arbitrate shall be in writing and subscribed by the party sought to be charged, or by his lawful agent. PROCEDURE If in the contract for arbitration or in the submission to arbitration, a provision is made for a method of naming or appointing an arbitrator or arbitrators – such method shall be followed. Otherwise, the CFI shall designate an arbitrator or arbitrators. The CFI shall appoint an arbitrator or arbitrators in the following instances: a) If the parties are unable to agree upon a single arbitrator 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 c) If either party to the contract fails or refuses to name his arbitrator within 15 days after receipt of the demand for arbitration 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) Where the agreement is silent as to number of arbitrators in the preceding cases, the court shall appoint the third arbitrator f) Arbitrators appointed under this section shall either accept or decline their appointments within seven days of the receipts of their appointments. In case of declination or the failure of an arbitrators to duly accept their appointment the parties or court shall appoint their substitute. QUALIFICATIONS OF ARBITRATOR (LFK) 1. Legal age 2. Full-enjoyment of his civil rights 3. Know how to read and write. DISQUALIFICATIONS: (Reasons for challenge) (PFR) 1. Related by blood or marriage within the sixth degree to either party to the controversy. 2. Financial, fiduciary or other interest in the controversy or cause to be decided or in the result of the proceeding, 3. Personal bias, which might prejudice the right of any party to a fair and impartial award.
AWARD Time for rendering award Unless the parties shall have stipulated by written agreement the time within which the arbitrators must render their award, the written award of the arbitrators shall be rendered within thirty days after the closing of the hearings. This period may be extended by mutual consent of the parties. The award must be made how? In writing and signed and acknowledged by a majority of the arbitrators, if more than one; and by the sole arbitrator, if there is only one. CONFIRMATION May apply to the court having jurisdiction, as provided in section twenty-eight, for an order confirming the award. at any time within one month GROUNDS FOR VACATING (MiPaCoPo) (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 (PHD) (1) postpone the hearing upon sufficient cause shown, or in refusing to (2) hear evidence pertinent and material to the controversy; that one or more of the arbitrators was (3) disqualified to act as such under section nine hereof, and wilfully refrained from disclosing such disqualifications or of any other misbehavior by which the rights of any party have been materially prejudiced; or (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. GROUNDS FOR MODIFYING (ImMaMi) (a) Evident MISCALCULATION of figures, or an evident mistake in the description of any person, thing or property referred to in the award; or (b) Where the arbitrators have awarded upon a MATTER not submitted to them, not affecting the merits of the decision upon the matter submitted; or (c) Where the award is IMPERFECT in a matter of form not affecting the merits of the controversy, and if it had been a commissioner's report, the defect could have been amended or disregarded by the court. IV. EO 1008 CONFIDENTIALITY SECTION 7.1 Confidentiality of proceedings – The arbitration proceedings shall be considered confidential and shall not be published except (i) with the consent of the parties, or (ii) when necessary in case resort to the Court is made under the Rules of Court. The term “arbitration proceedings” shall include communications to or from CIAC, the pleadings, applications and other papers filed with CIAC, sworn statements, documentary and testimonial evidence, reports and minutes taken of the proceedings, and other orders, decision, award or resolution issued by the Arbitrator(s). SECTION 7.2 Violation of confidentiality – Any person who violates the immediately preceding confidentiality provision shall be subject to the following sanctions: 7.2.1 If the violator is a lawyer, administrative action or proceeding to be conducted by CIAC, with proper notice and hearing, for inhibition or prohibition from appearing as counsel for any party in any arbitration case before CIAC for a period not exceeding six (6) months; without prejudice to suspension or disbarment action before the Integrated Bar of the Philippines (IBP), at the instance of CIAC. 7.2.2 If the violator is a duly licensed and registered professional, administrative/ disciplinary action before the Professional Regulation Commission (PRC), at the instance of CIAC. QUALIFICATIONS OF ARBITRATORS SECTION 8.1 General qualification of arbitrators - The Arbitrators shall be men of distinction in whom the business sector and the government can have confidence. They shall be technically qualified to resolve any construction dispute expeditiously and equitably. The Arbitrators shall come from different professions. They
may include engineers, architects, construction managers, engineering consultants, and businessmen familiar with the construction industry and lawyers who are experienced in construction disputes. SECTION 8.2 The Arbitrators must be CIAC-accredited - Only CIAC-accredited arbitrators may be nominated by parties or by the first two arbitrators appointed as the third member of a Tribunal and appointed by CIAC as arbitrator. A replacement arbitrator shall likewise be a CIAC-accredited arbitrator. However, as an exception to this rule, CIAC may appoint to an Arbitral Tribunal an arbitrator who is not CIAC - accredited PROVIDED that the nominee: 1) is the parties’ common nominee; 2) possesses the technical/legal competence to handle the construction dispute involved; and 3) has signified his availability/acceptance of his possible appointments. DISQUALIFICATION / CHALLENGE SECTION 9.6 Challenge - An Arbitrator may be challenged by a party at any time after his appointment but before the lapse of the original 10-day period for submission of memoranda or draft decision under Section 13.16, Rule 13 hereof. Any extensions of time to file memoranda or draft decisions will not EXTEND the 10-day period to file a challenge or motion for inhibition. The challenge shall be based upon the following grounds: a) relationship by blood or marriage within the sixth degree of either party to the controversy, or to counsels within the fourth degree, computed according to the rules of civil law. b) financial, fiduciary or other interest in the controversy c) partiality or bias; d) incompetence, or professional misconduct. A party may also request the inhibition of an arbitrator upon other just and valid reasons affecting independence, integrity, impartiality and interest. SECTION 9.7 Disqualification of mediator as arbitrator - An Arbitrator who acted as conciliator/mediator in a case previously brought before him for conciliation/mediation cannot act as arbitrator for the same case when brought to arbitration, unless both parties consent to his appointment in writing. VENUE SECTION 12.1 Venue, Date and Time of Hearing - The venue, date and time of the arbitral proceedings shall be mutually agreed upon by the parties and the Arbitral Tribunal. In the event of disagreement, the choice of venue made by the Arbitral Tribunal shall prevail.
