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Republic of the PhilippinesCongress of the Philippines

Metro Manila

Twelfth CongressThird Regular Session

Begun and held in Metro Manila, on Monday, the twenty-eight day of July, twothousand three.

Republic Act No. 9285 April 2 2!!"AN ACT T# $NST$T%T$#NA&$'( T)( %S( #* AN A&T(RNAT$+( ,$SP%T(

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Be it enacted by the Senate and House of Representatives of the Philippines inCongress assembled:

C)APT(R 0 1 (N(RA& PR#+$S$#NS

S(CT$#N 0.Title.- This act shall be known as the "Alternative is!ute esolutionAct of #$$%."

S(C. 2.Declaration of Policy.- it is hereby declared the !olicy of the &tate toactively !ro'ote !arty autono'y in the resolution of dis!utes or the freedo' of the!arty to 'ake their own arrange'ents to resolve their dis!utes. Towards this end,the &tate shall encourage and actively !ro'ote the use of Alternative is!ute

esolution (A) as an i'!ortant 'eans to achieve s!eedy and i'!artial *ustice anddeclog court dockets. As such, the &tate shall !rovide 'eans for the use of A asan e+cient tool and an alternative !rocedure for the resolution of a!!ro!riate cases.ikewise, the &tate shall enlist active !rivate sector !artici!ation in the settle'ent ofdis!utes through A. This Act shall be without !re*udice to the ado!tion by the&u!re'e ourt of any A syste', such as 'ediation, conciliation, arbitration, orany co'bination thereof as a 'eans of achieving s!eedy and e+cient 'eans ofresolving cases !ending before all courts in the hili!!ines which shall be governedby such rules as the &u!re'e ourt 'ay a!!rove fro' ti'e to ti'e.

S(C. 3.Denition of Terms.- /or !ur!oses of this Act, the ter':

(a) "Alternative is!ute esolution &yste'" 'eans any !rocess or!rocedure used to resolve a dis!ute or controversy, other than byad*udication of a !residing *udge of a court or an o+cer of agovern'ent agency, as de0ned in this Act, in which a neutral third

!arty !artici!ates to assist in the resolution of issues, which includesarbitration, 'ediation, conciliation, early neutral evaluation, 'ini-trial,or any co'bination thereof1

(b) "A rovider" 'eans institutions or !ersons accredited as 'ediator,conciliator, arbitrator, neutral evaluator, or any !erson e2ercisingsi'ilar functions in any Alternative is!ute esolution syste'. This iswithout !re*udice to the rights of the !arties to choose nonaccreditedindividuals to act as 'ediator, conciliator, arbitrator, or neutralevaluator of their dis!ute.

3. 4henever re5ered to in this Act, the ter' "A !ractitioners" shallrefer to individuals acting as 'ediator, conciliator, arbitrator orneutral evaluator1

(c) "Authenticate" 'eans to sign, e2ecute or ado!t a sy'bol, or encry!t a

record in whole or in !art, intended to identity the authenticating !artyand to ado!t, acce!t or establish the authenticity of a record or ter'1

(d) "Arbitration" 'eans a voluntary dis!ute resolution !rocess in whichone or 'ore arbitrators, a!!ointed in accordance with the agree'entof the !arties, or rules !ro'ulgated !ursuant to this Act, resolve adis!ute by rendering an award1

(e) "Arbitrator" 'eans the !erson a!!ointed to render an award, alone orwith others, in a dis!ute that is the sub*ect of an arbitrationagree'ent1

(f) "Award" 'eans any !artial or 0nal decision by an arbitrator in resolvingthe issue in a controversy1

(g) "o''ercial Arbitration" An arbitration is "co''ercial if it covers'atter arising fro' all relationshi!s of a co''ercial nature, whethercontractual or not1

(h) "on0dential infor'ation" 'eans any infor'ation, relative to thesub*ect of 'ediation or arbitration, e2!ressly intended by the sourcenot to be disclosed, or obtained under circu'stances that would createa reasonable e2!ectation on behalf of the source that the infor'ationshall not be disclosed. 6t shall include (3) co''unication, oral orwritten, 'ade in a dis!ute resolution !roceedings, including any'e'oranda, notes or work !roduct of the neutral !arty or non-!arty!artici!ant, as de0ned in this Act1 (#) an oral or written state'ent'ade or which occurs during 'ediation or for !ur!oses of considering,conducting, !artici!ating, initiating, continuing of reconvening'ediation or retaining a 'ediator1 and (7) !leadings, 'otions

'anifestations, witness state'ents, re!orts 0led or sub'itted in anarbitration or for e2!ert evaluation1

(i) "onvention Award" 'eans a foreign arbitral award 'ade in aonvention &tate1

(*) "onvention &tate" 'eans a &tate that is a 'e'ber of the 8ew 9orkonvention1

(k) "ourt" as referred to in Article of the Model aw shall 'ean aegional Trial ourt1

(l) "ourt-Anne2ed Mediation" 'eans any 'ediation !rocess conductedunder the aus!ices of the court, after such court has ac;uired

*urisdiction of the dis!ute1

(') "ourt-eferred Mediation" 'eans 'ediation ordered by a court to beconducted in accordance with the Agree'ent of the arties when as

action is !re'aturely co''enced in violation of such agree'ent1

(n) "

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#. The ter' foreigner arbitrator shall 'ean a !erson who is not anational of the hili!!ines.

(;) "Mediation" 'eans a voluntary !rocess in which a 'ediator, selectedby the dis!uting !arties, facilitates co''unication and negotiation,and assist the !arties in reaching a voluntary agree'ent regarding adis!ute.

(r) "Mediator" 'eans a !erson who conducts 'ediation1

(s) "Mediation arty" 'eans a !erson who !artici!ates in a 'ediation andwhose consent is necessary to resolve the dis!ute1

(t) "Mediation-Arbitration" or Med-Arb is a ste! dis!ute resolution !rocessinvolving both 'ediation and arbitration1

(u) "Mini-Trial" 'eans a structured dis!ute resolution 'ethod in which the'erits of a case are argued before a !anel co'!rising senior decision'akers with or without the !resence of a neutral third !erson afterwhich the !arties seek a negotiated settle'ent1

(v) "Model aw" 'eans the Model aw on 6nternational o''ercialArbitration ado!ted by the >nited 8ations o''ission on 6nternational

Trade aw on #3 June 3?@1

(w) "8ew 9ork onvention" 'eans the >nited 8ations onvention on theecognition and

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!re*udices another !erson in the !roceeding and it is necessary for the !erson!re*udiced to res!ond to the re!resentation of disclosure.

S(C. 00.Ece!tions to Privilege.-

(a) There is no !rivilege against disclosure under &ection ? if 'ediationco''unication is:

(3) in an agree'ent evidenced by a record authenticated by all!arties to the agree'ent1

(#) available to the !ublic or that is 'ade during a session of a'ediation which is o!en, or is re;uired by law to be o!en, tothe !ublic1

(7) a threat or state'ent of a !lan to inGict bodily in*ury orco''it a cri'e of violence1

(%) internationally used to !lan a cri'e, atte'!t to co''it, orco''it a cri'e, or conceal an ongoing cri'e or cri'inalactivity1

() sought or o5ered to !rove or dis!rove abuse, neglect,abandon'ent, or e2!loitation in a !roceeding in which a!ublic agency is !rotecting the interest of an individual!rotected by law1 but this e2ce!tion does not a!!ly where achild !rotection 'atter is referred to 'ediation by a court or a!ublic agency !artici!ates in the child !rotection 'ediation1

() sought or o5ered to !rove or dis!rove a clai' or co'!laint of!rofessional 'isconduct or 'al!ractice 0led against 'ediatorin a !roceeding1 or

() sought or o5ered to !rove or dis!rove a clai' of co'!laint of!rofessional 'isconduct of 'al!ractice 0led against a !arty,non!arty !artici!ant, or re!resentative of a !arty based onconduct occurring during a 'ediation.

(b) There is no !rivilege under &ection ? if a court or ad'inistrativeagency, 0nds, after a hearing in ca'era, that the !arty seekingdiscovery of the !ro!onent of the evidence has shown that theevidence is not otherwise available, that there is a need for theevidence that substantially outweighs the interest in !rotectingcon0dentiality, and the 'ediation co''unication is sought or o5eredin:

(3) a court !roceeding involving a cri'e or felony1 or

(#) a !roceeding to !rove a clai' or defense that under the law issu+cient to refor' or avoid a liability on a contract arising outof the 'ediation.

(c) A 'ediator 'ay not be co'!elled to !rovide evidence of a 'ediationco''unication or testify in such !roceeding.

(d) 6f a 'ediation co''unication is not !rivileged under an e2ce!tion insubsection (a) or (b), only the !ortion of the co''unication necessaryfor the a!!lication of the e2ce!tion for nondisclosure 'ay be ad'itted.

The ad'ission of !articular evidence for the li'ited !ur!ose of ane2ce!tion does not render that evidence, or any other 'ediationco''unication, ad'issible for any other !ur!ose.

S(C. 02.Pro"ibited %ediator Re!orts. - A 'ediator 'ay not 'ake a re!ort,assess'ent, evaluation, reco''endation, 0nding, or other co''unication

regarding a 'ediation to a court or agency or other authority that 'ake a ruling ona dis!ute that is the sub*ect of a 'ediation, e2ce!t:

(a) 4here the 'ediation occurred or has ter'inated, or where asettle'ent was reached.

(b) As !er'itted to be disclosed under &ection 37 of this ha!ter.

S(C. 03.%ediator&s Disclosure and Con'ict of #nterest.- The 'ediation shallbe guided by the following o!erative !rinci!les:

(a) Before acce!ting a 'ediation, an individual who is re;uested to serveas a 'ediator shall:

(3) 'ake an in;uiry that is reasonable under the circu'stances todeter'inate whether there are any known facts that areasonable individual would consider likely to a5ect thei'!artiality of the 'ediator, including a 0nancial or !ersonalinterest in the outco'e of the 'ediation and any e2isting or!ast relationshi! with a !arty or foreseeable !artici!ant in the'ediation1 and

(#) disclosure to the 'ediation !arties any such fact known orlearned as soon as is !ractical before acce!ting a 'ediation.

(b) 6f a 'ediation learns any fact described in !aragra!h (a) (3) of thissection after acce!ting a 'ediation, the 'ediator shall disclose it assoon as !racticable.

At the re;uest of a 'ediation !arty, an individual who is re;uested to serve as'ediator shall disclose hisFher ;uali0cations to 'ediate a dis!ute.

This Act does not re;uire that a 'ediator shall have s!ecial ;uali0cations bybackground or !rofession unless the s!ecial ;uali0cations of a 'ediator are re;uiredin the 'ediation agree'ent or by the 'ediation !arties.

S(C. 0".Partici!ation in %ediation.-

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(c) The !arties and their res!ective counsels shall endeavor to 'ake theter's and condition thereof co'!lete and 'ake ade;uate !rovisionsfor the contingency of breach to avoid conGicting inter!retations of theagree'ent.

(b) The !arties and their res!ective counsels, if any, shall sign thesettle'ent agree'ent. The 'ediator shall certify that heFshe e2!lainedthe contents of the settle'ent agree'ent to the !arties in a languageknown to the'.

(c) 6f the !arties so desire, they 'ay de!osit such settle'ent agree'entwith the a!!ro!riate lerk of a egional Trial ourt of the !lace whereone of the !arties resides. 4here there is a need to enforce thesettle'ent agree'ent, a !etition 'ay be 0led by any of the !artieswith the sa'e court, in which case, the court shall !roceed su''arilyto hear the !etition, in accordance with such rules of !rocedure as 'aybe !ro'ulgated by the &u!re'e ourt.

(d) The !arties 'ay agree in the settle'ent agree'ent that the 'ediatorshall beco'e a sole arbitrator for the dis!ute and shall treat thesettle'ent agree'ent as an arbitral award which shall be sub*ect toenforce'ent under e!ublic Act 8o. @, otherwise known as theArbitration aw, notwithstanding the !rovisions of nited 8ations o''ission on 6nternational Trade aw on June #3, 3?@ (>nited8ations ocu'ent AF%$F3) and reco''ended a!!roved on ece'ber 33, 3?@,co!y of which is hereto attached as A!!endi2 "A".

S(C. 2!.#nter!retation of %odel La+.- 6n inter!reting the Model aw, regardshall be had to its international origin and to the need for unifor'ity in itsinter!retation and resort 'ay be 'ade to the travaux preparatoriesand the re!ortof the &ecretary =eneral of the >nited 8ations o''ission on 6nternational Tradeaw dated March #, 3?@ entitled, "6nternational o''ercial Arbitration: Analyticalo''entary on raft Trade identi0ed by reference nu'ber AF8. ?F#%."

S(C. 20.Commercial Arbitration.- An arbitration is "co''ercial" if it covers'atters arising fro' all relationshi!s of a co''ercial nature, whether contractual ornot. elationshi!s of a transactions: any trade transaction for the su!!ly ore2change of goods or services1 distribution agree'ents1 construction of works1co''ercial re!resentation or agency1 factoring1 leasing, consulting1 engineering1licensing1 invest'ent1 0nancing1 banking1 insurance1 *oint venture and other for'sof industrial or business coo!eration1 carriage of goods or !assengers by air, sea,rail or road.

S(C. 22.Legal Re!resentation in #nternational Arbitration.- 6n internationalarbitration conducted in the hili!!ines, a !arty 'ay be !resented by any !erson of

his choice. Provided, that such re!resentative, unless ad'itted to the !ractice of lawin the hili!!ines, shall not be authoriCed to a!!ear as counsel in any hili!!inecourt, or any other ;uasi-*udicial body whether or not such a!!earance is in relationto the arbitration in which he a!!ears.

S(C. 23.Condential of Arbitration Proceedings.- The arbitration !roceedings,including the records, evidence and the arbitral award, shall be consideredcon0dential and shall not be !ublished e2ce!t (3) with the consent of the !arties, or(#) for the li'ited !ur!ose of disclosing to the court of relevant docu'ents in caseswhere resort to the court is allowed herein. rovided, however, that the court inwhich the action or the a!!eal is !ending 'ay issue a !rotective order to !revent or

!rohibit disclosure of docu'ents or infor'ation containing secret !rocesses,develo!'ents, research and other infor'ation where it is shown that the a!!licantshall be 'aterially !re*udiced by an authoriCed disclosure thereof.

S(C. 2".Referral to Arbitration.- A court before which an action is brought in a'atter which is the sub*ect 'atter of an arbitration agree'ent shall, if at least one!arty so re;uests not later that the !re-trial conference, or u!on the re;uest of both!arties thereafter, refer the !arties to arbitration unless it 0nds that the arbitrationagree'ent is null and void, ino!erative or inca!able of being !erfor'ed.

S(C. 25.#nter!retation of t"e Act.- 6n inter!reting the Act, the court shall havedue regard to the !olicy of the law in favor of arbitration. 4here action isco''enced by or against 'ulti!le !arties, one or 'ore of who' are !arties who arebound by the arbitration agree'ent although the civil action 'ay continue as tothose who are not bound by such arbitration agree'ent.

S(C. 24.%eaning of ,A!!ointing Aut"ority,.- "A!!ointing Authority" as usedin the Model aw shall 'ean the !erson or institution na'ed in the arbitrationagree'ent as the a!!ointing authority1 or the regular arbitration arbitrationinstitution under whose rules the arbitration is agreed to be conducted. 4here the!arties have agreed to sub'it their dis!ute to institutional arbitration rules, andunless they have agreed to a di5erent !rocedure, they shall be dee'ed to haveagreed to !rocedure under such arbitration rules for the selection and a!!oint'entof arbitrators. 6n ad hoc arbitration, the default a!!oint'ent of an arbitrator shall be'ade by the 8ational resident of the 6ntegrated Bar of the hili!!ines (6B) or hisduly authoriCed re!resentative.

S(C. 2.$"at *unctions %ay be Performed by A!!ointing Aut"ority.- Thefunctions referred to in Articles 33(7), 33(%), 37(7) and 3%(3) of the Model aw shallbe !erfor'ed by the A!!ointing Authority, unless the latter shall fail or refuse to actwithin thirty (7$) days fro' recei!t of the re;uest in which case the a!!licant 'ayrenew the a!!lication with the ourt.

S(C. 28.Grant of #nterim %easure of Protection.-

(a) 6t is not inco'!atible with an arbitration agree'ent for a !arty tore;uest, before constitution of the tribunal, fro' a ourt an interi''easure of !rotection and for the ourt to grant such 'easure. Afterconstitution of the arbitral tribunal and during arbitral !roceedings, are;uest for an interi' 'easure of !rotection or 'odi0cation thereof,'ay be 'ade with the arbitral tribunal or to the e2tent that the arbitraltribunal has no !ower to act or is unable to act e5ectively, the re;uest'ay be 'ade with the ourt. The arbitral tribunal is dee'edconstituted when the sole arbitrator or the third arbitrator who hasbeen no'inated, has acce!ted the no'ination and writtenco''unication of said no'ination and acce!tance has been receivedby the !arty 'aking re;uest.

(b) The following rules on interi' or !rovisional relief shall be observed:

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(3) Any !arty 'ay re;uest that !rovision relief be granted againstthe adverse !arty:

(#) &uch relief 'ay be granted:

(i) to !revent irre!arable loss or in*ury:

(ii) to !rovide security for the !erfor'ance of anyobligation1

(iii) to !roduce or !reserve any evidence1 or

(iv) to co'!el any other a!!ro!riate act or

o'ission.

(7) The order granting !rovisional relief 'ay be conditioned u!onthe !rovision of security or any act or o'ission s!eci0ed inthe order.

(%) 6nteri' or !rovisional relief is re;uested by written a!!licationtrans'itted by reasonable 'eans to the ourt or arbitraltribunal as the case 'ay be and the !arty against who' therelief is sought, describing in a!!ro!riate detail the !reciserelief, the !arty against who' the relief is re;uested, thegrounds for the relief, and evidence su!!orting the re;uest.

() The order shall be binding u!on the !arties.

() nless otherwise agreed by the !arties, the arbitral tribunal 'ay, atthe re;uest of a !arty, order any !arty to take such interi' 'easures of !rotectionas the arbitral tribunal 'ay consider necessary in res!ect of the sub*ect 'atter ofthe dis!ute following the rules in &ection #@, !aragra!h #. &uch interi' 'easures'ay include but shall not be li'ited to !reli'inary in*uction directed against a !arty,a!!oint'ent of receivers or detention, !reservation, ins!ection of !ro!erty that isthe sub*ect of the dis!ute in arbitration.

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S(C. 39.Court to Dismiss Case #nvolving a Construction Dis!ute.- A regionaltrial court which a construction dis!ute is 0led shall, u!on beco'ing aware, not laterthan the !retrial conference, that the !arties had entered into an arbitration to beconducted by the 6A, unless both !arties, assisted by their res!ective counsel,shall sub'it to the regional trial court a written agree'ent e2clusive for the ourt,rather than the 6A, to resolve the dis!ute.

C)APT(R 1 6%,$C$A& R(+$(7 #* AR/$TRA& A7AR,S

A. ,#(ST$C A7AR,S

S(C. "!.Conrmation of A+ard.- The con0r'ation of a do'estic arbitral award

shall be governed by &ection #7 of .A. @.

A do'estic arbitral award when con0r'ed shall be enforced in the sa'e 'anner as0nal and e2ecutory decisions of the egional Trial ourt.

The con0r'ation of a do'estic award shall be 'ade by the regional trial court inaccordance with the ules of rocedure to be !ro'ulgated by the &u!re'e ourt.

A 6A arbitral award need not be con0r'ed by the regional trial court to bee2ecutory as !rovided under

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(d) To charge fees for their services1 and

(e) To !erfor' such acts as 'ay be necessary to carry into e5ect the!rovisions of this Act.

S(C. 50.A!!ro!riations.- The a'ount necessary to carry out the !rovisions ofthis Act shall be included in the =eneral A!!ro!riations Act of the year following itsenact'ent into law and thereafter.

S(C. 52.#m!lementing Rules and Regulations 7#RR8.- 4ithin one (3) 'onthafter the a!!roval of this Act, the secretary of *ustice shall convene a co''ittee thatshall for'ulate the a!!ro!riate rules and regulations necessary for the

i'!le'entation of this Act. The co''ittee, co'!osed of re!resentatives fro':(a) the e!art'ent of Justice1

(b) the e!art'ent of Trade and 6ndustry1

(c) the e!art'ent of the 6nterior and ocal =overn'ent1

(d) the !resident of the 6ntegrated Bar of the hili!!ines1

(e) A re!resentative fro' the arbitration !rofession1 and

(f) A re!resentative fro' the 'ediation !rofession1 and

(g) A re!resentative fro' the A organiCations

shall within three (7) 'onths after convening, sub'it the 6 to the Jointongressional Hversight o''ittee for review and a!!roval. The Hversighto''ittee shall be co'!osed of the chair'an of the &enate o''ittee on Justice

and Eu'an ights, chair'an of the Eouse o''ittee on Justice, and one (3)'e'ber each fro' the 'a*ority and 'inority of both Eouses.

The Joint Hversight o''ittee shall beco'e functus o+cio u!on a!!roval of the6.

S(C. 53.A!!licability of t"e 9atarungan Pambarangay.- This Act shall not beinter!reted to re!eal, a'end or 'odify the *urisdiction of the atarungana'barangay under e!ublic Act 8o. 3$, otherwise known as the ocal=overn'ent ode of 3??3.

S(C. 5".Re!ealing Clause.- All laws, decrees, e2ecutive orders, rules andregulations which are inconsistent with the !rovisions of this Act are herebyre!ealed, a'ended or 'odi0ed accordingly.

S(C. 55.Se!arability Clause. - 6f for any reason or reasons, any !ortion or!rovision of this Act shall be held unconstitutional or invalid, all other !arts or

!rovisions not a5ected shall thereby continue to re'ain in full force and e5ect.

S(C. 54.E(ectivity.- This act shall take e5ect 0fteen days (3) after its!ublication in at least two (#) national news!a!ers of general circulation.

A!!roved,

*RAN&$N ,R$Nresident of the &enate

6#S( ,( +(N(C$A 6R.&!eaker of the Eouse of e!resentatives

This Act which is a consolidation of Senate Bill No. 2671 and House

Bill No. 5654 was finally passed by the Senate and the House of

ep!esentati"es on #eb!ua!y 4$ 2%%4.

#SCAR . -A/(S R#/(RT# P. NA'AR(N#

&ecretary of &enate &ecretary =eneralEouse of e!resenatives

A!!roved: A!ril #, #$$%

R$A ACAPAA&1ARR#-#President of the Philippines

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onvention on the ecognition and 86TA Arbitration ules of 3? and the >86TA Model awon 6nternational o''ercial Arbitration of 3?@ (as a'ended in #$$). The 8ew

9ork onvention is !robably the 'ain reason why arbitration is the !referred 'ethodfor the resolution of international business dis!utes.

Related aterials

rotocol on Arbitration lauses, =eneva, #% &e!te'ber 3?#7, eague of8ations, !reaty Series, vol. #, !. 3.

onvention on the