DISPUTES COVERED BY RULES ON DOMESTIC ARBITRATION

SECTION 3. Controversies or Cases not Subject to the Provisions of this Act. — This Act shall not apply to
controversies and to cases which are subject to the jurisdiction of the Court of Industrial Relations or which have
been submitted to it as provided by Commonwealth Act Numbered One hundred and three, as amended.

ARTICLE 5.1. Scope of Application. — (a) Domestic arbitration, which is not international as defined in paragraph
C8 of Article 1.6 shall continue to be governed by Republic Act No. 876, otherwise known as "The Arbitration
Law", as amended by the ADR Act. Articles 8, 10, 11, 12, 13, 14, 18 and 19 and 29 to 32 of the Model Law and
Sections 22 to 31 of the ADR Act are specifically applicable to domestic arbitration.

In the absence of a specific applicable provision, all other rules applicable to international commercial arbitration
may be applied in a suppletory manner to domestic arbitration.

(b) This Chapter shall apply to domestic arbitration whether the dispute is commercial, as de􏰁ned in Section 21
of the ADR Act, or non-commercial, by an arbitrator who is a private individual appointed by the parties to hear
and resolve their dispute by rendering an award; Provided that, although a construction dispute may be
commercial, it shall continue to be governed by E.O. No. 1008, s. 1985 and the rules promulgated by the
Construction Industry Arbitration Commission.

(c) Two or more persons or parties may submit to arbitration by one or more arbitrators any controversy existing
between them at the time of the submission and which may be the subject of an action; or the parties to any
contract may in such contract agree to settle by arbitration a controversy thereafter arising between them. Such
submission or contract shall be valid, enforceable and irrevocable, save upon such grounds as exist at law for the
revocation of any contract.

Such submission or contract may include questions arising out of valuations, appraisals or other controversies
which may be collateral, incidental, precedent or subsequent to any dispute between the parties.

A controversy cannot be arbitrated where one of the parties to the controversy is an infant, or a person judicially
declared to be incompetent, unless the appropriate court having jurisdiction approved a petition for permission
to submit such controversy to arbitration made by the general guardian or guardian ad litem of the infant or of
the incompetent.

But where a person capable of entering into a submission or contract has knowingly entered into the same with
a person incapable of so doing, the objection on the ground of incapacity can be taken only in behalf of the
person so incapacitated. SDIaCT

DUE PROCESS IN DOMESTIC ARBITRATION

ARTICLE 5.17. Equal Treatment of Parties. — The parties shall be treated with equality and each party shall be
given a full opportunity of presenting his/her/its case.

PLACE OR VENUE OF ARBITRATION

ARTICLE 5.19. Place of Arbitration. —

(a) The parties are free to agree on the place of arbitration. Failing such agreement, the place of arbitration shall
be in Metro Manila unless the arbitral tribunal, having regard to the circumstances of the case, including the
convenience of the parties, shall decide on a different place of arbitration.

(b) The arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate
for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of goods,
other property or documents. cHCaIE

LANGUAGE

ARTICLE 5.21. Language. —

(a) The parties are free to agree on the language or languages to be used in the arbitral proceedings. Failing such
agreement, the language to be used shall be English or Filipino. The language/s agreed, unless otherwise
speci􏰁ed therein, shall be used in all hearings and all written statements, orders or other communication by the
parties and the arbitral tribunal.

If the arbitration agreement provides for the appointment of a sole

(b) The arbitral tribunal may order that any documentary evidence shall be accompanied by a translation into
the language or languages agreed upon by the parties in accordance with paragraph (a) of this Article.

CONFIDENTIALITY

ARTICLE 5.42. Confidentiality of Arbitration Proceedings. — The arbitration proceedings, including the records,
evidence and the arbitral award and other confidential information, shall be considered privileged and
confidential and shall not be published except — HTCaAD

(1) with the consent of the parties; or

(2) for the limited purpose of disclosing to the court relevant documents in cases where resort to the court is
allowed herein:

Provided, however, that the court in which the action or the appeal is pending may issue a protective order to
prevent or prohibit disclosure of documents or information containing secret processes, developments, research
and other information where it is shown that the applicant shall be materially prejudiced by an authorized
disclosure thereof.

RULES ON RECEIPT OF WRITTEN COMMUNICATION

ARTICLE 5.2. Delivery and Receipt of Written Communications. —

(a) Except as otherwise agreed by the parties, a written communication from one party to the other or to the
arbitrator or to an arbitration institution or from the arbitrator or arbitration institution to the parties shall be
delivered to the addressee personally, by registered mail or by courier service. Such communication shall be
deemed to have been received on the date it is delivered at the addressee's address of record, place of business,
residence or last known address. The communication, as appropriate, shall be delivered to each party to the
arbitration and to each arbitrator, and, in institutional arbitration, one copy to the administering institution.

(b) During the arbitration proceedings, the arbitrator may order a mode of delivery and a rule for receipt of
written communications different from that provided in paragraph (a) of this Article.

(c) If a party is represented by counselor a representative, written communications for that party shall be
delivered to the address of record of such counsel or representative.

(d) Except as the parties may agree or the arbitrator may direct otherwise, a written communication may be
delivered by electronic mail or facsimile transmission or by such other means that will provide a record of the
sending and receipt thereof at the recipient's mailbox (electronic inbox). Such communication shall be deemed
to have been received on the same date of its transmittal and receipt in the mailbox (electronic inbox).

WAIVER OF OBJECTION

ARTICLE 5.3. Waiver of Right to Object. —

(a) A party shall be deemed to have waived his right to object to non-compliance with any non-mandatory
provision of these Rules (from which the parties may derogate) or any requirement under the arbitration
agreement when: CTDacA

1. he/she/it knows of such non-compliance; and

2. proceeds with the arbitration without stating his/her/its objections to such non-compliance
without undue delay or if a time-limit is provided therefor, within such period of time.

(b) If an act is required or allowed to be done under this Chapter, unless the applicable rule or the agreement of
the parties provides a different period for the act to be done, it shall be done within a period of thirty (30) days
from the date when such act could have been done with legal effect.

EXTENT OF COURT INTERVENTION

ARTICLE 5.4. Extent of Court Intervention. — In matters governed by this Chapter, no court shall intervene except
in accordance with the Special ADR Rules.

ARTICLE 5.5. Court or Other Authority for Certain Functions of Arbitration Assistance and Supervision. — The
functions referred to in paragraphs (c) and (d) of Article 5.10 (Appointment of Arbitrators), paragraph (a) of
Article 5.11 (Grounds for Challenge), and paragraph (a) of Article 5.13 (Failure or Impossibility to Act), shall be
performed by the appointing authority, unless the latter shall fail or refuse to act within thirty (30) days from
receipt of the request in which case, the applicant may renew the application with the court.
REPRESENTATION

ARTICLE 5.41. Legal Representation in Domestic Arbitration. —(a) In domestic arbitration conducted in the
Philippines, a party may be represented by any person of his/her/its choice: Provided, that such representative,
unless admitted to the practice of law in the Philippines, shall not be authorized to appear as counsel in any
Philippine Court, or any other quasi-judicial body whether or not such appearance is in relation to the arbitration
in which he/she appears.

ARBITRATION AGREEMENT

ARTICLE 5.6. Form of Arbitration Agreement. — An arbitration agreement shall be in writing. An agreement is in
writing if it is contained in a document signed by the parties or in an exchange of letters, telex, telegrams or other
means of telecommunication which provide a record of the agreement, or in an exchange of statements of claim
and defense in which the existence of an agreement is alleged by one party and not denied by the other. The
reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement
provided that the contract is in writing and the reference is such as to make that clause part of the contract.
TDaAHS

ARTICLE 5.7. Arbitration Agreement and Substantive Claim Before Court. —

(a) A party to an action may request the court before which it is pending to stay the action and to refer the
dispute to arbitration in accordance with their arbitration agreement not later than the pre-trial conference.
Thereafter, both parties may make a similar request with the court. The parties shall be referred to arbitration
unless the court finds that the arbitration agreement is null and void, inoperative or incapable of being
performed.

(b) Where an action referred to in paragraph (a) of this Article has been brought, arbitral proceedings may
nevertheless be commenced or continued, and an award may be made, while the issue is pending before the
court.

(c) Where the action is commenced by or against multiple parties, one or more of whom are parties to an
arbitration agreement, the court shall refer to arbitration those parties who are bound by the arbitration
agreement although the civil action may continue as to those who are not bound by such arbitration agreement.

SECTION 2. Persons and Matters Subject to Arbitration. — Two or more persons or parties may submit to the
arbitration of one or more arbitrators any controversy existing between them at the time of the submission and
which may be the subject of an action, or the parties to any contract may in such contract agree to settle by
arbitration a controversy thereafter arising between them. Such submission or contract shall be valid,
enforceable and irrevocable, save upon such grounds as exist at law for the revocation of any contract.

Such submission or contract may include question arising out of valuations, appraisals or other controversies
which may be collateral, incidental, precedent or subsequent to any issue between the parties.

A controversy cannot be arbitrated where one of the parties to the controversy is an infant, or a person judicially
declared to be incompetent, unless the appropriate court having jurisdiction approve a petition for permission
to submit such controversy to arbitration made by the general guardian or guardian ad litem of the infant or of
the incompetent.

But where a person capable of entering into a submission or contract has knowingly entered into the same with
a person incapable of so doing, the objection on the ground of incapacity can be taken only in behalf of the
person so incapacitated.

SECTION 4. Form of Arbitration Agreement. — A contract to arbitrate a controversy thereafter arising between
the parties, as well as a submission to arbitrate an existing controversy shall be in writing and subscribed by the
party sought to be charged, or by his lawful agent.

The making of a contract or submission for arbitration described in section two hereof, providing for arbitration
of any controversy, shall be deemed a consent of the parties to the jurisdiction of the Court of First Instance of
the province or city where any of the parties resides, to enforce such contract or submission.

DETERMINATION OF APPLICABLE RULES OF PROCEDURE

ARTICLE 5.18. Determination of Rules of Procedure. —

(a) Subject to the provisions of these Rules, the parties are free to agree on the procedure to be followed by the
arbitral tribunal in conducting the proceedings.

(b) Failing such agreement, the arbitral tribunal may, subject to the provision of the ADR Act, conduct the
arbitration in such manner as it considers appropriate. The power conferred upon the arbitral tribunal includes
the power to determine admissibility, relevance, materiality and weight of evidence.

COMMENCEMENT OF ARBITRAL PROCEEDINGS

ARTICLE 5.20. Commencement of Arbitral Proceedings. —

(a) Where there is a prior arbitration agreement between the parties, arbitration is deemed commenced as
follows:

(i) In institutional arbitration, arbitration is commenced in accordance with the arbitration rules of the
institution agreed upon by the parties.
(ii) In ad hoc arbitration, arbitration is commenced by the claimant upon delivering to the respondent a
demand for arbitration. A demand may be in any form stating:
a. the name, address, and description of each of the parties;
a description of the nature and circumstances of the dispute
b. giving rise to the claim; a statement of the relief sought, including the amount of the claim;
c. the relevant agreements, if any, including the arbitration agreement, a copy of which shall be
attached; and
d. appointment of arbitrators and/or demand to appoint.
(b) if the arbitration agreement provides for the appointment of a sole arbitrator, the demand shall include an
invitation of the claimant to the respondent to meet and agree upon such arbitrator at the place, time and date
stated therein which shall not be less than thirty (30) days from receipt of the demand.

(c) If the arbitration agreement provides for the establishment of an arbitral tribunal of three (3) arbitrators, the
demand shall name the arbitrator appointed by the claimant. It shall include the curriculum vitae of the arbitrator
appointed by the claimant and the latter's acceptance of the appointment. aTAEHc

(d) Where there is no prior arbitration agreement, arbitration may be initiated by one party through a demand
upon the other to submit their dispute to arbitration. Arbitration shall be deemed commenced upon the
agreement by the other party to submit the dispute to arbitration.

(e) The demand shall require the respondent to name his/her/its arbitrator within a period which shall not be
less than 15 days from receipt of the demand. This period may be extended by agreement of the parties. Within
said period, the respondent shall give a written notice to the claimant of the appointment of the respondent's
arbitrator and attach to the notice the arbitrator's curriculum vitae and the latter's acceptance of the
appointment. TSIDaH

SECTION 5. Preliminary Procedure. — An arbitration shall be instituted by:

(a) In the case of a contract to arbitrate future controversies by the service by either party upon the other of a
demand for arbitration in accordance with the contract. Such demand shall be set forth the nature of the
controversy, the amount involved, if any, and the relief sought, together with a true copy of the contract
providing for arbitration. The demand shall be served upon any party either in person or by registered mail. In
the event that the contract between the parties provides for the appointment of a single arbitrator, the demand
shall set forth a specific time within which the parties shall agree upon such arbitrator. If the contract between
the parties provides for the appointment of three arbitrators, one to be selected by each party, the demand shall
name the arbitrator appointed by the party making the demand; and shall require that the party upon whom the
demand is made shall within fifteen days after receipt thereof advise in writing the party making such demand
of the name of the person appointed by the second party; such notice shall require that the two arbitrators so
appointed must agree upon the third arbitrator within ten days from the date of such notice.

ARBITRATORS AND ARBITRAL TRIBUNALS

SECTION 8. Appointment of Arbitrators. — If, in the contract for arbitration or in the submission described in
section two, provision is made for a method of naming or appointing an arbitrator or arbitrators, such method
shall be followed; but if no method be provided therein the Court of First Instance shall designate an arbitrator
or arbitrators.

The Court of First Instance shall appoint an arbitrator or arbitrators, as the case may be, in the following
instances:

(i) If the parties to the contract or submission are unable to agree upon a single arbitrator; or
(ii) 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; or
(iii) If either party to the contract fails or refuses to name his arbitrator within fifteen days after receipt
of the demand for arbitration; or
 (iv) 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.
(v) The court shall, in its discretion appoint one or three arbitrators, according to the importance of the
controversy involved in any of the preceding cases in which the agreement is silent as to the number
of arbitrators.
(vi) Arbitrators appointed under this section shall either accept or decline their appointments within
seven days of the receipt of their appointments. In case of declination or the failure of an arbitrator
or arbitrators to duly accept their appointments the parties or the court, as the case may be, shall
proceed to appoint a substitute or substitutes for the arbitrator or arbitrators who decline or failed
to accept his or their appointments.

SECTION 9. Appointment of Additional Arbitrators. — Where a submission or contract provides that two or more
arbitrators therein designated or to be thereafter appointed by the parties, may select or appoint a person as an
additional arbitrator, the selection or appointment must be in writing. Such additional arbitrator must sit with
the original arbitrators upon the hearing.

SECTION 10. Qualifications of Arbitrators. — Any person appointed to serve as an arbitrator must be of legal age,
in full-enjoyment of his civil rights and know how to read and write. No person appointed to served as an
arbitrator shall be related by blood or marriage within the sixth degree to either party to the controversy. No
person shall serve as an arbitrator in any proceeding if he has or has had financial, fiduciary or other interest in
the controversy or cause to be decided or in the result of the proceeding, or has any personal bias, which might
prejudice the right of any party to a fair and impartial award.

No party shall select as an arbitrator any person to act as his champion or to advocate his cause.

If, after appointment but before or during hearing, a person appointed to serve as an arbitrator shall discover
any circumstances likely to create a presumption of bias, or which he believes might disqualify him as an impartial
arbitrator, the arbitrator shall immediately disclose such information to the parties. Thereafter the parties may
agree in writing:

(a) to waive the presumptive disqualifying circumstances; or

(b) to declare the office of such arbitrator vacant. Any such vacancy shall be filled in the same manner as
the original appointment was made.

SECTION 11. Challenge of Arbitrators. — The arbitrators may be challenged only for the reasons mentioned in
the preceding section which may have arisen after the arbitration agreement or were unknown at the time of
arbitration.

The challenge shall be made before them.

If they do not yield to the challenge, the challenging party may renew the challenge before the Court of First
Instance of the province or city in which the challenged arbitrator, or, any of them, if there be more than one,
resides. While the challenging incident is discussed before the court, the hearing on arbitration shall be
suspended, and it shall be continued immediately after the court has delivered an order on the challenging
incident.
SECTION 13. Oath of Arbitrators. — Before hearing any testimony, arbitrators must be sworn, by any officer
authorized by law to administer an oath, faithfully and fairly to hear and examine the matters in controversy and
to make a just award according to the best of their ability and understanding. Arbitrators shall have the power
to administer the oaths to all witnesses requiring them to tell the whole truth and nothing but the truth in any
testimony which they may give in any arbitration hearing. This oath shall be required of every witness before any
of his testimony is heard.

ARTICLE 5.9. Number of Arbitrators. — The parties are free to determine the number of arbitrators. Failing such
determination, the number of arbitrators shall be three (3).

ARTICLE 5.10. Appointment of Arbitrators. —

(a) Any person appointed to serve as an arbitrator must be of legal age, in full enjoyment of his/her civil rights
and knows how to read and write. No person appointed to serve as an arbitrator shall be related by blood or
marriage within the sixth degree to either party to the controversy. No person shall serve as an arbitrator in any
proceeding if he/she has or has had financial, fiduciary or other interest in the controversy or cause to be decided
or in the result of the proceeding, or has any personal bias, which might prejudice the right of any party to a fair
and impartial award.

No party shall select as an arbitrator any person to act as his/her champion or to advocate his/her cause. SaCIDT

(b) The parties are free to agree on a procedure of appointing the arbitrator or arbitrators. If, in the contract for
arbitration or in the submission, a provision is made for a method of appointing an arbitrator or arbitrators, such
method shall be followed.

(c) Failing such agreement,

(i) in an arbitration with three (3) arbitrators, each party shall appoint one (1) arbitrator, and the two
(2) arbitrators thus appointed shall appoint the third arbitrator; if a party fails to appoint the
arbitrator within thirty (30) days of receipt of a request to do so from the other party, or if the two
arbitrators fail to agree on the third arbitrator within thirty (30) days of their appointment, the
appointment shall be made, upon request of a party, by the appointing authority;
(ii) in an arbitration with a sole arbitrator, if the parties are unable to agree on the arbitrator, he/she
shall be appointed, upon request of a party, by the appointing authority.

(d) Where, under an appointment procedure agreed upon by the parties,

(i) a party fails to act or appoint an arbitrator as required under such procedure, or
(ii) the parties, or two (2) arbitrators, are unable to appoint an arbitrator or reach an agreement
expected of them under such procedure, or
(iii) a third party, including an institution, fails to appoint an arbitrator or to perform any function
entrusted to it under such procedure, or EIDTAa
(iv) The multiple claimants or the multiple respondents is/are unable to appoint its/their respective
arbitrator,

any party may request the appointing authority to appoint an arbitrator.

In making the appointment, the appointing authority shall summon the parties and their respective counsel to
appear before said authority on the date, time and place set by it, for the purpose of selecting and appointing a
sole arbitrator. If a sole arbitrator is not appointed in such meeting, or the meeting does not take place because
of the absence of either or both parties despite due notice, the appointing authority shall appoint the sole
arbitrator.

(e If the default appointment of an arbitrator is objected to by a party on whose behalf the default appointment
is to be made, and the defaulting party requests the appointing authority for additional time to appoint his/her
arbitrator, the appointing authority, having regard to the circumstances, may give the requesting party not more
than thirty (30) days to make the appointment.

If the objection of a party is based on the ground that the party did not fail to choose and appoint an arbitrator
for the arbitral tribunal, there shall be attached to the objection the appointment of an arbitrator together with
the latter's acceptance thereof and curriculum vitae. Otherwise, the appointing authority shall appoint the
arbitrator for that party.

(f) In making a default appointment, the appointing authority shall have regard to such considerations as are
likely to secure the appointment of an independent and impartial arbitrator. In order to achieve speedy and
impartial justice and to moderate the cost of arbitration, in choosing an arbitrator, the appointing authority shall
give preference to a quali􏰁ed person who has a place of residence or business in the same general locality as the
agreed venue of the arbitration and who is likely to accept the arbitrator's fees agreed upon by the parties, or as
􏰁xed in accordance either with the internal guidelines or the Schedule of Fees approved by the administering
institution or by the appointing authority.

(g) The appointing authority shall give notice in writing to the parties of the appointment made or its inability to
comply with the Request for Appointment and the reasons why it is unable to do so, in which later case, the
procedure described under Article 5.5 (Court or Other Authority for Certain Functions of Arbitration Assistance
and Supervision) shall apply.

(h)A decision on a matter entrusted by this Article to the appointing authority shall be immediately executory
and not subject to appeal or motion for reconsideration. The appointing authority shall be deemed to have been
given by the parties discretionary authority in making the appointment but in doing so, the appointing authority
shall have due regard to any quali􏰁cation or disquali􏰁cation of an arbitrator/s under paragraph (a) of Article 5.10
(Appointment of Arbitrators)as well as any quali􏰁cations required of the arbitrator/s by the agreement of the
parties and to such considerations as are likely to secure the appointment of an independent and impartial
arbitrator.

(i) The chairman of the arbitral tribunal shall be selected in accordance with the agreement of the parties and/or
the rules agreed upon or, in default thereof, by the arbitrators appointed.

(j) Any clause giving one of the parties the power to choose more arbitrators than the other is void. However,
the rest of the agreement, if otherwise valid, shall be construed as permitting the appointment of one (1)
arbitrator by all claimants and one (1) arbitrator by all respondents. The third arbitrator shall be appointed as
provided above.

If all the claimants or all the respondents cannot decide among themselves on an arbitrator, the appointment
shall be made for them by the appointing authority.

(k) The appointing authority may adopt Guidelines for the making of a Request for Appointment.
(l) Except as otherwise provided in the Guidelines of the appointing authority, if any, a Request for Appointment
shall include, as applicable, the following:

(i) the demand for arbitration;

the name/s and curricula vitae of the appointed arbitrator/s;
(ii) the acceptance of his/her/its appointment of the appointed arbitrator/s;
(iii) any qualification or disqualification of the arbitrator as provided in the arbitration agreement;
(iv) an executive summary of the dispute which should indicate the nature of the dispute and the parties
thereto;
(v) principal office and officers of a corporate party;
the person/s appearing as counsel for the party/ies; and
(vi) information about arbitrator's fees where there is an agreement between the parties with respect
thereto.

In institutional arbitration, the request shall include such further information or particulars as the administering
institution shall require.

(m) A copy of the Request for Appointment shall be delivered to the adverse party. Proof of such delivery shall
be included in, and shall form part of, the Request for Appointment filed with the appointing authority.

(n) A party upon whom a copy of the Request for Appointment is communicated may, within seven (7) days of
its receipt, file with the appointing authority his/her/its objection/s to the Request or ask for an extension of
time, not exceeding thirty (30) days from receipt of the request, to appoint an arbitrator or act in accordance
with the procedure agreed upon or provided by these Rules.

Within the aforementioned periods, the party seeking the extension shall provide the appointing authority and
the adverse party with a copy of the appointment of his/her arbitrator, the latter's curriculum vitae, and the
latter's acceptance of the appointment. In the event that the said party fails to appoint an arbitrator within said
period, the appointing authority shall make the default appointment.

(o) An arbitrator, in accepting an appointment, shall include, in his/her acceptance letter, a statement that:

(i) he/she agrees to comply with the applicable law, the arbitration rules agreed upon by the parties,
or in default thereof, these Rules, and the Code of Ethics for Arbitrators in Domestic Arbitration, if
any;
(ii) he/she accepts as compensation the arbitrator's fees agreed upon by the parties or as determined
in accordance with the rules agreed upon by the parties, or in default thereof, these Rules; and
(iii) he agrees to devote as much time and attention to the arbitration as the circumstances may require
in order to achieve the objective of a speedy, effective and fair resolution of the dispute.

ARTICLE 5.11. Grounds for Challenge. —

(a) When a person is approached in connection with his/her possible appointment as an arbitrator, he/she shall
disclose any circumstance likely to give rise to justifiable doubts as to his/her impartiality, independence,
qualifications and disqualifications. An arbitrator, from the time of his/her appointment and throughout the
arbitral proceedings, shall, without delay, disclose any such circumstances to the parties unless they have already
been informed of them by him/her.

A person, who is appointed as an arbitrator notwithstanding the disclosure made in accordance with this Article,
shall reduce the disclosure to writing and provide a copy of such written disclosure to all parties in the arbitration.

(b) An arbitrator may be challenged only if:

(i) circumstances exist that give rise to justifiable doubts as to his/her impartiality or independence;
(ii) he/she does not possess qualifications as provided for in this Chapter or those agreed to by the
parties;
(iii) he/she is disqualified to act as arbitration under these Rules;
(iv) he refuses to respond to questions by a party regarding the nature and extent of his professional
dealings with a party or its counsel.

(c) if, after appointment but before or during hearing, a person appointed to serve as an arbitrator shall discover
any circumstance likely to create a presumption of bias, or which he/she believes might disqualify him/her as an
impartial arbitrator, the arbitrator shall immediately disclose such information to the parties. Thereafter, the
parties may agree in writing:

(i) to waive the presumptive disqualifying circumstances; or IDcHCS

(ii) to declare the office of such arbitrator vacant. Any such vacancy shall be filled in the same manner
the original appointment was made.

(d) after initial disclosure is made and in the course of the arbitration proceedings, when the arbitrator discovers
circumstances that are likely to create a presumption of bias, he/she shall immediately disclose those
circumstances to the parties. A written disclosure is not required where it is made during the arbitration and it
appears in a written record of the arbitration proceedings.

(e) An arbitrator who has or has had financial or professional dealings with a party to the arbitration or to the
counsel of either party shall disclose in writing such fact to the parties, and shall, in good faith, promptly respond
to questions from a party regarding the nature, extent and age of such financial or professional dealings.

ARTICLE 5.12. Challenge Procedure. —

(a) The parties are free to agree on a procedure for challenging an arbitrator, subject to the provisions of
paragraph (c) of this Article.

(b) Failing such agreement, a party who intends to challenge an arbitrator shall, within 15 days after becoming
aware of the constitution of the arbitral tribunal or after becoming aware of any circumstance referred to in
paragraph (b) of Article 5.11 (Grounds for Challenge), send a written statement of the reasons for the challenge
to the arbitral tribunal. Unless the challenged arbitrator withdraws from his/her office or the other party agrees
to the challenge, the arbitral tribunal shall decide on the challenge.

(c) If a challenge under any procedure agreed upon by the parties or under the procedure of paragraph (b) of
this Article is not successful, the challenging party may request the appointing authority, within thirty (30) days
after having received notice of the decision rejecting the challenge, to decide on the challenge, which decision
shall be immediately executory and not subject to appeal or motion for reconsideration. While such a request is
pending, the arbitral tribunal, including the challenged arbitrator, may continue the arbitral proceedings and
make an award.

4. (d) If a request for inhibition is made, it shall be deemed as a challenge.

5. (e) A party may challenge an arbitrator appointed by him/her/it, or in whose

appointment he/she/it has participated, only for reasons of which he/she/it becomes aware after the
appointment has been made.

(f) The challenge shall be in writing and it shall state specific facts that provide the basis for the ground relied
upon for the challenge. A challenge shall be made within 15 days from knowledge by a party of the existence of
a ground for a challenge or within 15 days from the rejection by an arbitrator of a party's request for his/her
inhibition.

(g) Within 15 days of receipt of the challenge, the challenged arbitrator shall decide whether he/she shall accept
the challenge or reject it. If he/she accepts the challenge, he/she shall voluntarily withdraw as arbitrator. If
he/she rejects it, he/she shall communicate, within the same period of time, his/her rejection of the challenge
and state the facts and arguments relied upon for such rejection.

(h) An arbitrator who does not accept the challenge shall be given an opportunity to be heard.

(i) Notwithstanding the rejection of the challenge by the arbitrator, the parties may, within the same fifteen (15)
day period, agree to the challenge.

(j) In default of an agreement of the parties to agree on the challenge thereby replacing the arbitrator, the arbitral
tribunal shall decide on the challenge within thirty (30) days from receipt of the challenge.

(k) If the challenge procedure as agreed upon by the parties or as provided in this Article is not successful, or a
party or the arbitral tribunal shall decline to act, the challenging party may request the appointing authority in
writing to decide on the challenge within thirty (30) days after having received notice of the decision rejecting
the challenge. The appointing authority shall decide on the challenge within 15 days from receipt of the request.
If the appointing authority shall fail to act on the challenge within thirty (30) days from the date of its receipt or
within such further time as it may fix, with notice to the parties, the requesting party may renew the request
with the court.

(l) Every communication required or agreement made under this Article in respect of a challenge shall be
delivered, as appropriate, to the challenged arbitrator, to the parties, to the remaining members of the arbitral
tribunal and to the institution administering the arbitration, if any.

(m) A challenged arbitrator shall be replaced if:

(i) he/she withdraws as arbitrator, or

(ii) the parties agree in writing to declare the office of arbitrator vacant, or
(iii) the arbitral tribunal decides the challenge and declares the office of the challenged arbitrator vacant,
or
(iv) the appointing authority decides the challenge and declares the office of the challenged arbitrator
vacant, or
 (v) in default of the appointing authority, the court decides the challenge and declares the office of the
challenged arbitrator vacant.

(n) The decision of the parties, the arbitral tribunal, the appointing authority, or in proper cases, the court, to
accept or reject a challenge is not subject to appeal or motion for reconsideration.

(o) Until a decision is made to replace the arbitrator under this Article, the arbitration proceeding shall continue
notwithstanding the challenge, and the challenged arbitrator shall continue to participate therein as an
arbitrator. However, if the challenge incident is raised before the court, because the parties, the arbitral tribunal
or appointing authority failed or refused to act within the period provided in paragraphs (j) and (k) of this Article,
the arbitration proceeding shall be suspended until after the court shall have decided the incident. The
arbitration shall be continued immediately after the court has delivered an order on the challenging incident. If
the court agrees that the challenged arbitrator shall be replaced, the parties shall immediately replace the
arbitrator concerned. CScTDE

(p) The appointment of a substitute arbitrator shall be made pursuant to the procedure applicable to the
appointment of the arbitrator being replaced.

ARTICLE 5.13. Failure or Impossibility to Act. —

(a) If an arbitrator becomes de jure or de facto unable to perform his/her functions or for other reasons fails to
act without undue delay, his/her mandate terminates if he/she withdraws from his/her office or if the parties
agree on the termination. Otherwise, if a controversy remains concerning any of these grounds, any party may
request the appointing authority to decide on the termination of the mandate, which decision shall be
immediately executory and not subject to appeal or motion for reconsideration.

(b) If, under this Article or Article 5.12 (Challenge Procedure), an arbitrator withdraws from his/her office or a
party agrees to the termination of the mandate of an arbitrator, this does not imply acceptance of the validity of
any ground referred to in this Article or in Article 5.12.

ARTICLE 5.14. Appointment of Substitute Arbitrator. — Where the mandate of an arbitrator terminates under
Articles 5.12 (Challenge Procedure) or 5.13 (Failure or Impossibility) or because of his withdrawal from office for
any other reason or because of the revocation of his mandate by agreement of the parties or in any other case
of termination of his/her mandate, a substitute arbitrator shall be appointed according to the rules applicable to
the appointment of the arbitrator being replaced.

ARBITRAL PROCEEDINGS

ARTICLE 5.21. Language. —

(a) The parties are free to agree on the language or languages to be used in the arbitral proceedings. Failing such
agreement, the language to be used shall be English or Filipino. The language/s agreed, unless otherwise
specified therein, shall be used in all hearings and all written statements, orders or other communication by the
parties and the arbitral tribunal.

(b) The arbitral tribunal may order that any documentary evidence shall be accompanied by a translation into
the language or languages agreed upon by the parties in accordance with paragraph (a) of this Article.
ARTICLE 5.22. Statements of Claim and Defense. —

(a) Within the period of time agreed by the parties or determined by the arbitral tribunal, the claimant shall state
the facts supporting his/her claim, the points at issue and the relief or remedy sought, and the respondent shall
state his/her defense in respect of these particulars, unless the parties may have otherwise agreed as to the
required elements of such statements. The parties may submit with their statements all documents they consider
to be relevant or may add a reference to the documents or other evidence they will submit. EaCDAT

(b)Unless otherwise agreed by the parties, either party may amend or supplement his/her/its claim or defense
during the course of the arbitral proceedings, unless the arbitral tribunal considers it inappropriate to allow such
amendments having regard to the delay in making it.

ARTICLE 5.23. Hearing and Written Proceedings. —

(a) In ad hoc arbitration, the procedure determined by the arbitrator, with the agreement of the parties, shall be
followed. In institutional arbitration, the applicable rules of procedure of the arbitration institution shall be
followed. In default of agreement of the parties, the arbitration procedure shall be as provided in this Chapter.

(b) Within thirty (30) days from the appointment of the arbitrator or the constitution of an arbitral tribunal, the
arbitral tribunal shall call the parties and their respective counsels to a pre-hearing conference to discuss the
following matters:

(i) The venue or place/s where the arbitration proceeding may be conducted in an office space, a
business center, a function room or any suitable place agreed upon by the parties and the arbitral
tribunal, which may vary per session/hearing/conference;
(ii) The manner of recording the proceedings;
(iii) The periods for the communication of the statement of claims, answer to the claims with or without
counterclaims, and answer to the counterclaim/s and the form and contents of such pleadings;
STcEIC
(iv) The definition of the issues submitted to the arbitral tribunal for determination and the summary of
the claims and counterclaims of the parties;
(v) The manner by which evidence may be offered if an oral hearing is required, the submission of sworn
written statements in lieu of oral testimony, the cross-examination and further examination of
witnesses;
(vi) The delivery of certain types of communications such as pleadings, terms of reference, order
granting interim relief, final award and the like that, if made by electronic or similar means, shall
require further confirmation in the form of a hard copy or hard copies delivered personally or by
registered post;
(vii) The issuance of a subpoena or a subpoena duces tecum by the arbitral tribunal to compel the
production of evidence if either party shall or is likely to request it; TAHcCI
(viii) The manner by which expert testimony will be received if a party will or is likely to request the arbitral
tribunal to appoint one or more experts, and in such case, the period for the submission to the
arbitrator by the requesting party of the proposed terms of reference for the expert, the fees to be
paid, the manner of payment to the expert and the deposit by the parties or of the requesting party
of such amount necessary to cover all expenses associated with the referral of such issues to the
expert before the expert is appointed;
(ix) The possibility of either party applying for an order granting interim relief either with the arbitral
tribunal or with the court, and, in such case, the nature of the relief to be applied for; EAISDH
 (x) The possibility of a site or ocular inspection, the purpose of such inspection, and in such case, the
date, place and time of the inspection and the manner of conducting it, and the sharing and deposit
of any associated fees and expenses;
(xi) The amount to be paid to the arbitral tribunal as fees and the associated costs, charges and expenses
of arbitration and the manner and timing of such payments; and
(xii) Such other relevant matters as the parties and the arbitral tribunal may consider necessary to
provide for a speedy and efficient arbitration of the dispute. HcT

(C To the extent possible, the arbitral tribunal and the parties shall agree upon any such matters and in default
of agreement, the arbitral tribunal shall have the discretion and authority to make the decision, although in
making a decision, regard shall be given to the views expressed by both parties.

(d) The arbitral tribunal shall, in consultation with the parties, fix the date/s and the time of hearing, regard being
given to the desirability of conducting and concluding an arbitration without undue delay.

(e) The hearing set shall not be postponed except with the conformity of the arbitrator and the parties and only
for a good and sufficient cause. The arbitral tribunal may deny a request to postpone or to cancel a scheduled
hearing on the ground that a party has requested or is intending to request from the court or from the arbitrator
an order granting interim relief.

(f) A party may, during the proceedings, represent himself/herself/itself or be represented or assisted by a
representative as defined by these Rules.

(g) The hearing may proceed in the absence of a party who fails to obtain an adjournment thereof or who, despite
due notice, fails to be present, by himself/herself/itself or through a representative, at such hearing.

(h) Only parties, their respective representatives, the witnesses and the administrative staff of the arbitral
tribunal shall have the right to be present during the hearing. Any other person may be allowed by the arbitrator
to be present if the parties, upon being informed of the presence of such person and the reason for his/her
presence, interpose no objection thereto.

(i) Issues raised during the arbitration proceeding relating to (a) the jurisdiction of the arbitral tribunal over one
or more of the claims or counter-claims, or (b) the arbitrability of a particular claim or counter-claim, shall be
resolved by the arbitral tribunal as threshold issues, if the parties so request, unless they are intertwined with
factual issues that they cannot be resolved ahead of the hearing on the merits of the dispute. ADCIca

(j) Each witness shall, before giving testimony, be required to take an oath/a􏰁rmation before the arbitral tribunal,
to tell the whole truth and nothing but the truth during the hearing.

(k) The arbitral tribunal shall arrange for the transcription of the recorded testimony of each witness and require
each party to share the cost of recording and transcription of the testimony of each witness.

(l) Each party shall provide the other party with a copy of each statement or document submitted to the arbitral
tribunal and shall have an opportunity to reply in writing to the other party's statements and proofs.

(m) The arbitral tribunal may require the parties to produce such other documents or provide such information
as in its judgment would be necessary for it to render a complete, fair and impartial award.
(n) The arbitral tribunal shall receive as evidence all exhibits submitted by a party properly marked and identified
at the time of submission.

(o) At the close of the hearing, the arbitral tribunal shall specifically inquire of all parties whether they have
further proof or witnesses to present; upon receiving a negative reply, the arbitral tribunal shall declare the
hearing closed.

(p) After a hearing is declared closed, no further motion or manifestation or submission may be allowed except
for post-hearing briefs and reply briefs that the parties have agreed to submit within a fixed period after the
hearing is declared closed, or when the arbitral tribunal, motu proprio or upon request of a party, allows the
reopening of the hearing.

(q) Decisions on interlocutory matters shall be made by the sole arbitrator or by the majority of the arbitral
tribunal. The arbitral tribunal may authorize its chairman to issue or release, on behalf of the arbitral tribunal, its
decision on interlocutory matters.

(r) Except as provided in Section 17 (d) of the ADR Act, no arbitrator shall act as a mediator in any proceeding in
which he/she is acting as arbitrator even if requested by the parties; and all negotiations towards settlement of
the dispute must take place without the presence of the arbitrators.

(s) Before assuming the duties of his/her office, an arbitrator must be sworn by any officer authorized by law to
administer an oath or be required to make an affirmation to faithfully and fairly hear and examine the matters
in controversy and to make a just award according to the best of his/her ability and understanding. A copy of the
arbitrator's oath or affirmation shall be furnished each party to the arbitration.

(t) Either party may object to the commencement or continuation of an arbitration proceeding unless the
arbitrator takes an oath or affirmation as required in this Chapter. If the arbitrator shall refuse to take an oath
or affirmation as required by law and this Rule, he/she shall be replaced. The failure to object to the absence of
an oath or affirmation shall be deemed a waiver of such objection and the proceedings shall continue in due
course and may not later be used as a ground to invalidate the proceedings.

(u) The arbitral tribunal shall have the power to administer oaths to, or require affirmation from, all witnesses
directing them to tell the truth, the whole truth and nothing but the truth in any testimony, oral or written, which
they may give or offer in any arbitration hearing. The oath or affirmation shall be required of every witness before
his/her testimony, oral or written, is heard or considered.

(v) The arbitral tribunal shall have the power to require any person to attend a hearing as a witness. It shall have
the power to subpoena witnesses, to testify and/or produce documents when the relevancy and materiality
thereof has been shown to the arbitral tribunal. The arbitral tribunal may also require the exclusion of any
witness during the testimony of any other witness. Unless the parties otherwise agree, all the arbitrators
appointed in any controversy must attend all the hearings and hear the evidence of the parties.

ARTICLE 5.24. Power of Arbitral Tribunal to Order Interim Measures. —

(a) Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party and in accordance
with this Article, order any party to take such interim measures of protection as the arbitral tribunal may consider
necessary in respect of the subject matter of the dispute or the procedure. Such interim measures may include,
but shall not be limited, to preliminary injunction directed against a party, appointment of receivers or detention
of property that is the subject of the dispute in arbitration or its preservation or inspection.
(b) After the constitution of the arbitral tribunal, and during the arbitration proceedings, a request for interim
measures of protection, or modification thereof, may be made with the arbitral tribunal. The arbitral tribunal is
deemed constituted when the sole arbitrator or the third arbitrator, who has been nominated, has accepted the
nomination and written communication of said nomination and acceptance has been received by the party
making the request. HAEDIS

(C The following rules on interim or provisional relief shall be observed:

(i) Any party may request that provisional or interim relief be granted against the adverse party.
(ii) Such relief may be granted:
a. To prevent irreparable loss or injury;
b. To provide security for the performance of an obligation;
c. To produce or preserve evidence; or
d. To compel any other appropriate act or omissions.
(iii) The order granting provisional relief may be conditioned upon the provision of security or any act or
omission specified in the order.
(iv) Interim provisional relief is requested by written application transmitted by reasonable means to the
arbitral tribunal and the party against whom relief is sought, describing in appropriate detail of the
precise relief, the party against whom the relief is requested, the ground for the relief, and the
evidence supporting the request.
(v) The order either granting or denying an application for interim relief shall be binding upon the
parties.
(vi) Either party may apply with the court for assistance in implementing or enforcing an interim measure
ordered by an arbitral tribunal. aADSIc
(vii) A party who does not comply with the order shall be liable for all damages, resulting from
noncompliance, including all expenses, and reasonably attorney's fees, paid in obtaining the order's
judicial enforcement.

(d) The arbitral tribunal shall have the power at any time, before rendering the award, without prejudice to the
rights of any party to petition the court to take measures to safeguard and/or conserve any matter which is the
subject of the dispute in arbitration.

ARTICLE 5.25. Default of a Party. — Unless otherwise agreed by the parties, if, without showing sufficient cause,

(i) the claimant fails to communicate his/her/its statement of claim in accordance with paragraph (a)
of Article 5.22 (Statements of Claim and Defense), the arbitral tribunal shall terminate the
proceedings;
(ii) the respondent fails to communicate his/her/its statement of defense in accordance with paragraph
(a) of Article 5.22 (Statements of Claim and Defense), the arbitral tribunal shall continue the
proceedings without treating such failure in itself as an admission of the claimant's allegations;
(iii) any party fails to appear at a hearing or to produce documentary evidence, the arbitral tribunal may
continue the proceedings and make the award based on the evidence before it.

ARTICLE 5.26. Expert Appointed by the Arbitral Tribunal. —

(a) Unless otherwise agreed by the parties, the arbitral tribunal,

 1. may appoint one or more experts to report to it on specific issues to be determined by the arbitral
tribunal; or TcEAIH
2. may require a party to give the expert any relevant information or to produce, or to provide access to,
any relevant documents, goods or other property for his/her inspection.

(b) Unless otherwise agreed by the party, if a party so request or if the arbitral tribunal considers it necessary,
the expert shall, after delivery of his/her written or oral report, participate in a hearing where the parties have
the opportunity to put questions to him/her and to present expert witnesses in order to testify on the points at
issue.

(c) Upon agreement of the parties, the finding of the expert engaged by the arbitral tribunal on the matter/s
referred to him shall be binding upon the parties and the arbitral tribunal.

ARTICLE 5.27. Court Assistance in Taking Evidence and Other Matters. —

(a) The arbitral tribunal or a party, with the approval of the arbitral tribunal may request from a court, assistance
in taking evidence such as the issuance of subpoena ad testificandum and subpoena duces tecum, deposition
taking, site or ocular inspection, and physical examination of properties. The court may grant the request within
its competence and according to its rules on taking evidence.

(b) The arbitral tribunal or a party to the dispute interested in enforcing an order of the arbitral tribunal may
request from a competent court, assistance in enforcing orders of the arbitral tribunal, including but not limited,
to the following:

1. Interim or provisional relief;

2. Protective orders with respect to confidentiality;
3. Orders of the arbitral tribunal pertaining to the subject matter of the dispute that may affect third
persons and/or their properties; and/or DIECTc
4. Examination of debtors.

ARTICLE 5.28. Rules Applicable to the Substance of Dispute. —

(a) The arbitral tribunal shall decide the dispute in accordance with such law as is chosen by the parties. In the
absence of such agreement, Philippine law shall apply.

(b) The arbitral tribunal may grant any remedy or relief which it deems just and equitable and within the scope
of the agreement of the parties, which shall include, but not be limited to, the specific performance of a contract.

(c) In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and shall take into
account the usages of the trade applicable to the transaction.

ARTICLE 5.29. Decision Making by the Arbitral Tribunal. —

(a) In arbitration proceedings with more than one arbitrator, any decision of the arbitral tribunal shall be made,
unless otherwise agreed by the parties, by a majority of all its members. However, questions of procedure may
be decided by the chairman of the arbitral tribunal, if so authorized by the parties or all members of the arbitral
tribunal.
(b) Unless otherwise agreed upon by the parties, the arbitral tribunal shall render its written award within thirty
(30) days after the closing of the hearings and/or submission of the parties' respective briefs or if the oral hearings
shall have been waived, within thirty (30) days after the arbitral tribunal shall have declared such proceedings in
lieu of hearing closed. This period may be further extended by mutual consent of the parties. aAHISE

ARTICLE 5.30.Settlement. —

(a) If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the
proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement
in the form of an arbitral award on agreed terms, consent award or award based on compromise.

(b) An award as rendered above shall be made in accordance with the provisions of Article 5.31 (Form and
Contents of Award) and shall state that it is an award. Such an award has the same status and effect as any other
award on the merits of the case.

ARTICLE 5.31. Form and Contents of Award. —

(a) The award shall be made in writing and shall be signed by the arbitral tribunal. In arbitration proceedings
with more than one arbitrator, the signatures of the majority of all members of the arbitral tribunal shall suffice,
provided that the reason for any omitted signature is stated.

(b) The award shall state the reasons upon which it is based, unless the parties have agreed that no reasons are
to be given or the award is an award on agreed terms, consent award or award based on compromise under
Article 5.30 (Settlement).

(c) The award shall state its date and the place of arbitration as determined in accordance with paragraph (a) of
Article 5.19 (Place of Arbitration). The award shall be deemed to have been made at that place.

(d) After the award is made, a copy signed by the arbitrators in accordance with paragraph (a) of this Article shall
be delivered to each party.

(e) The award of the arbitral tribunal need not be acknowledged, sworn to under oath, or affirmed by the arbitral
tribunal unless so required in writing by the parties. If despite such requirement, the arbitral tribunal shall fail to
do as required, the parties may, within thirty days from receipt of said award, request the arbitral tribunal to
supply the omission. The failure of the parties to make an objection or make such request within the said period
shall be deemed a waiver of such requirement and may no longer be raised as a ground to invalidate the award.
cETCID

ARTICLE 5.32. Termination of Proceedings. —

(a) The arbitration proceedings are terminated by the final award or by an order of the arbitral tribunal in
accordance with paragraph (b) of this Article.

b) The arbitral tribunal shall issue an order for the termination of the arbitration proceedings when:

1. The claimant withdraws his claim, unless the respondent objects thereto for the purpose of prosecuting
his counterclaims in the same proceedings or the arbitral tribunal recognizes a legitimate interest on his
part in obtaining a final settlement of the dispute; or
2. The parties agree on the termination of the proceedings; or
 3. The arbitral tribunal finds that the continuation of the proceedings has for any other reason become
unnecessary or impossible; or
4. The required deposits are not paid in full in accordance with paragraph (d) of Article 5.46 (Fees and
Costs).

(c) the mandate of the arbitral tribunal ends with the termination of the arbitration proceedings, subject to the
provisions of Article 5.33 (Correction and Interpretation of Award, Additional Award) and Article 5.34
(Application for Setting Aside an Exclusive Recourse Against Arbitral Award). CAaD

(d) Except as otherwise provided in the arbitration agreement, no motion for reconsideration, correction and
interpretation of award or additional award shall be made with the arbitral tribunal. The arbitral tribunal, by
releasing its final award, loses jurisdiction over the dispute and the parties to the arbitration. However, where it
is shown that the arbitral tribunal failed to resolve an issue submitted to him for determination, a verified motion
to complete a final award may be made within thirty (30) days from its receipt.

(e) Notwithstanding the foregoing, the arbitral tribunal may, for special reasons, reserve in the final award or
order, a hearing to quantify costs and determine which party shall bear the costs or apportionment thereof as
may be determined to be equitable. Pending determination of this issue, the award shall not be deemed final for
purposes of appeal, vacation, correction, or any post-award proceedings.

INTERIM MEASURES

ARTICLE 5.8. Arbitration Agreement and Interim Measures by Court. —

(a) It is not incompatible with an arbitration agreement for a party to request from a court, before the
constitution of the arbitral tribunal or during arbitral proceedings, an interim measure of protection and for a
court to grant such measure.

(b) After the constitution of the arbitral tribunal and during arbitral proceedings, a request for an interim
measure of protection, or modification thereof, may be made with the arbitral tribunal or to the extent that the
arbitral tribunal has no power to act or is unable to act effectively, the request may be made with the court.

(C The following rules on interim or provisional relief shall be observed: STcEIC

1. Any party may request that interim or provisional relief be granted against the adverse party.
2. Such relief may be granted:
a. To prevent irreparable loss or injury;
b. To provide security for the performance of an obligation;
c. To produce or preserve evidence; or
d. To compel any other appropriate act or omissions.
3. The order granting provisional relief may be conditioned upon the provision of security or any act or
omission specified in the order.
4. Interim or provisional relief is requested by written application transmitted by reasonable means to the
arbitral tribunal and the party against whom relief is sought, describing in appropriate detail of the
precise relief, the party against whom the relief is requested, the ground for the relief, and the evidence
supporting the request.
5. The order either granting or denying an application for interim relief shall be binding upon the parties.
 6. Either party may apply with the court for assistance in implementing or enforcing an interim measure
ordered by an arbitral tribunal. IETCAS
7. A party who does not comply with the order shall be liable for all damages, resulting from
noncompliance, including all expenses, and reasonable attorney's fees, paid in obtaining the order's
judicial enforcement.

(d) Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party, order any party
to take such interim measures of protection as the arbitral tribunal may consider necessary in respect of the
subject matter of the dispute following the Rules in this Article. Such interim measures may include but shall not
be limited to preliminary injunction directed against a party, appointment of receivers or detention,
preservation, inspection of property that is the subject of the dispute in arbitration. Either party may apply with
the court for assistance in implementing or enforcing an interim measure ordered by an arbitral tribunal.

ARTICLE 5.16. Power of Arbitral Tribunal to Order Interim Measures. —

(a) Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party, order any party
to take such interim measures of protection as the arbitral tribunal may consider necessary in respect of the
subject matter of the dispute following the rules in this Article. Such interim measures may include, but shall not
be limited to preliminary injunction directed against a party, appointment of receivers or detention,
preservation, inspection of property that is the subject of the dispute in arbitration.

(b) After the constitution of the arbitral tribunal, and during arbitral proceedings, a request for interim measures
of protection, or modification thereof, shall be made with the arbitral tribunal. The arbitral tribunal is deemed
constituted when the sole arbitrator or the third arbitrator, who has been nominated, has accepted the
nomination and written communication of said nomination and acceptance has been received by the party
making the request.

(c The following rules on interim or provisional relief shall be observed:

1. Any party may request that provisional or interim relief be granted against the adverse party.
2. Such relief may be granted:
a. To prevent irreparable loss or injury;
b. To provide security for the performance of an obligation;
c. To produce or preserve evidence; or
d. To compel any other appropriate act or omissions.
3. The order granting provisional relief may be conditioned upon the provision of security or any act or
omission specified in the order.
4. Interim or provisional relief is requested by written application transmitted by reasonable means to the
arbitral tribunal and the party against whom relief is sought, describing in appropriate detail the precise
relief, the party against whom the relief is requested, the ground for the relief and the evidence
supporting the request.
5. The order either granting or denying an application for interim relief shall be binding upon the parties.
6. Either party may apply with the court for assistance in implementing or enforcing an interim measure
ordered by an arbitral tribunal. I
7. A party who does not comply with the order shall be liable for all damages, resulting from
noncompliance, including all expenses, and reasonable attorney's fees paid in obtaining the order's
judicial enforcement.

ARTICLE 5.24. Power of Arbitral Tribunal to Order Interim Measures. —

(a) Unless otherwise agreed by the parties, the arbitral tribunal may, at the request of a party and in accordance
with this Article, order any party to take such interim measures of protection as the arbitral tribunal may consider
necessary in respect of the subject matter of the dispute or the procedure. Such interim measures may include,
but shall not be limited, to preliminary injunction directed against a party, appointment of receivers or detention
of property that is the subject of the dispute in arbitration or its preservation or inspection.

(b) After the constitution of the arbitral tribunal, and during the arbitration proceedings, a request for interim
measures of protection, or modification thereof, may be made with the arbitral tribunal. The arbitral tribunal is
deemed constituted when the sole arbitrator or the third arbitrator, who has been nominated, has accepted the
nomination and written communication of said nomination and acceptance has been received by the party
making the request. HAEDIS

(c The following rules on interim or provisional relief shall be observed:

1. Any party may request that provisional or interim relief be granted against the adverse party.
2. Such relief may be granted:
a. To prevent irreparable loss or injury;
b. To provide security for the performance of an obligation;
c. To produce or preserve evidence; or
d. To compel any other appropriate act or omissions.
3. The order granting provisional relief may be conditioned upon the provision of security or any act or
omission specified in the order.
4. Interim provisional relief is requested by written application transmitted by reasonable means to the
arbitral tribunal and the party against whom relief is sought, describing in appropriate detail of the
precise relief, the party against whom the relief is requested, the ground for the relief, and the evidence
supporting the request.
5. The order either granting or denying an application for interim relief shall be binding upon the parties.
6. Either party may apply with the court for assistance in implementing or enforcing an interim measure
ordered by an arbitral tribunal. aADSIc
7. A party who does not comply with the order shall be liable for all damages, resulting from
noncompliance, including all expenses, and reasonably attorney's fees, paid in obtaining the order's
judicial enforcement.

(d) The arbitral tribunal shall have the power at any time, before rendering the award, without prejudice to the
rights of any party to petition the court to take measures to safeguard and/or conserve any matter which is the
subject of the dispute in arbitration.

MULTI-PARTY ARBITRATION

ARTICLE 5.44. Multi-Party Arbitration. —

(a) When a single arbitration involves more than two parties, these Rules, to the extent possible, shall be used
subject to such modifications consistent with Articles 5.17 (Equal Treatment of Parties) and 5.18 (Determination
of Rules of Procedure) as the arbitral tribunal shall deem appropriate to address possible complexities of a multi-
party arbitration.

(b) When a claimant includes persons who are not parties to or otherwise bound by the arbitration agreement,
directly or by reference, between him/her and the respondent as additional claimants or additional respondents,
the respondent shall be deemed to have consented to the inclusion of the additional claimants or the additional
respondents unless not later than the date of communicating his/her answer to the request for arbitration, either
by motion or by a special defense in his answer, he objects, on jurisdictional grounds, to the inclusion of such
additional claimants or additional respondents. The additional respondents shall be deemed to have consented
to their inclusion in the arbitration unless, not later than the date of communicating their answer to the request
for arbitration, either by motion or a special defense in their answer, they object, on jurisdictional grounds, to
their inclusion.

FEES AND COSTS

ARTICLE 5.46. Fees and Costs. —

(a) The fees of the arbitrators shall be agreed upon by the parties and the arbitrator/s in writing prior to the
arbitration.

In default of agreement of the parties as to the amount and manner of payment of arbitrator's fees, the
arbitrator's fees shall be determined in accordance with the applicable internal rules of the regular arbitration
institution under whose rules the arbitration is conducted; or in ad hoc arbitration, the Schedule of Fees
approved by the IBP, if any, or in default thereof, the Schedule of Fees that may be approved by the OADR.HDIATS

(b) In addition to arbitrator's fees, the parties shall be responsible for the payment of the administrative fees of
an arbitration institution administering an arbitration and cost of arbitration. The latter shall include, as
appropriate, the fees of an expert appointed by the arbitral tribunal, the expenses for conducting a site
inspection, the use of a room where arbitration proceedings shall be or have been conducted, and expenses for
the recording and transcription of the arbitration proceedings.

(c) The arbitral tribunal shall 􏰁x the costs of arbitration in its award. The term "costs" include only:

1. The fees of the arbitral tribunal to be stated separately as to each arbitrator and to be fixed by the arbitral
tribunal itself in accordance with this Article;
2. The travel and other expenses incurred by the arbitrators;
3. The costs of expert advice and of other assistance required by the arbitral tribunal, such as site inspection
and expenses for the recording and transcription of the arbitration proceedings;
4. The travel and other expenses of witnesses to the extent such expenses are approved by the arbitral
tribunal;
5. The costs for legal representation and assistance of the successful party if such costs were claimed during
the arbitral proceedings, and only to the extent that the arbitral tribunal determines that the amount of
such costs is reasonable;
6. Any fees and expenses of the appointing authority.

(d) The fees of the arbitral tribunal shall be reasonable in amount, taking into account the amount in dispute, the
complexity of the subject matter, the time spent by the arbitrators and any other relevant circumstances of the
case. TSEcAD

If an appointing authority has been agreed upon by the parties and if such appointing authority has issued a
schedule of fees for arbitrators in domestic cases which it administers, the arbitral tribunal, in fixing its fees shall
take that schedule of fees into account to the extent that it considers appropriate in the circumstances of the
case.
If such appointing authority has not issued a schedule of fees for arbitrators in international cases, any party
may, at any time request the appointing authority to furnish a statement setting forth the basis for establishing
fees which is customarily followed in international cases in which the authority appoints arbitrators. If the
appointing authority consents to provide such a statement, the arbitral tribunal, in fixing its fees shall take such
information into account to the extent that it considers appropriate in the circumstances of the case.

In cases referred to in paragraph (d) of this Article, when a party so requests and the appointing authority
consents to perform the function, the arbitral tribunal shall fix its fees only after consultation with the appointing
authority which may make any comment it deems appropriate to the arbitral tribunal concerning the fees.

(e) Except as provided in the next paragraph, the costs of arbitration shall, in principle, be borne by the
unsuccessful party. However, the arbitral tribunal may apportion each of such costs between the parties if it
determines that apportionment is reasonable, taking into account the circumstances of the case. TEcADS

With respect to the costs of legal representation and assistance referred to in paragraph (c) (iii) of this Article,
the arbitral tribunal, taking into account the circumstances of the case, shall be free to determine which party
shall bear such costs or may apportion such costs between the parties if it determines that appointment is
reasonable.

When the arbitral tribunal issues an order for the termination of the arbitral proceedings or makes an award on
agreed terms, it shall fix the costs of arbitration referred to in paragraph (a) of this Article in the context of that
order or award.

Except as otherwise agreed by the parties, no additional fees may be charged by the arbitral tribunal for
interpretation or correction or completion of its award under these Rules.

(f) The arbitral tribunal, on its establishment, may request each party to deposit an equal amount as an advance
for the costs referred to in paragraphs (i), (ii) and (iii) of paragraph (c) of this Article.

During the course of the arbitral proceedings, the arbitral tribunal may request supplementary deposits from the
parties.

If an appointing authority has been agreed upon by the parties, and when a party so requests and the appointing
authority consents to perform the function, the arbitral tribunal shall fix the amounts of any deposits or
supplementary deposits only after consultation with the appointing authority which may make any comments
to the arbitral tribunal which it deems appropriate concerning the amount of such deposits and supplementary
deposits.

If the required deposits are not paid in full within thirty (30) days after receipt of the request, the arbitral tribunal
shall so inform the parties in order that one of them may make the required payment within such a period or
reasonable extension thereof as may be determined by the arbitral tribunal. If such payment is not made, the
arbitral tribunal may order the termination of the arbitral proceedings.

After the award has been made, the arbitral tribunal shall render an accounting to the parties of the deposits
received and return any unexpended balance to the parties.

CORRECTION, INTERPRETATION AND ADDITIONAL AWARD

ARTICLE 5.33. Correction and Interpretation of Award, Additional Award. —

(a) Within thirty (30) days from receipt of the award, unless another period of time has been agreed upon by the
parties:

1. A party may, with notice to the other party, the arbitral tribunal to correct in the award any errors in
computation, any clerical or typographical errors or any errors of similar nature.
2. If so agreed by the parties, a party, with notice to the other party, may request the arbitral tribunal to
give an interpretation of a specific point or part of the award.

If the arbitral tribunal considers the request to be justified, it shall make the correction or give the interpretation
within thirty (30) days from receipt of the request. The interpretation shall form part of the award.

(b) The arbitral tribunal may correct any error of the type referred to in paragraph (a) of this Article on its own
initiative within thirty (30) days of the date of the award.CEIHcT

(c) Unless otherwise agreed by the parties, a party may, with notice to the other party, may request, within thirty
(30) days of receipt of the award, the arbitral tribunal to make an additional award as to claims presented in the
arbitral proceedings but omitted from the award. If the arbitral tribunal considers the request to be justified, it
shall make the additional award within sixty (60) days.

(d) The arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction,
interpretation or an additional award under paragraphs (a) and (c) of this Article.

(e) The provisions of Article 5.31 (Form and Contents of Award) shall apply to a correction or interpretation of
the award or to an additional award.

SECTION 17. Reopening of Hearing. — The hearing may be reopened by the arbitrators on their own motion or
upon the request of any party, upon good cause, shown at any time before the award is rendered. When hearings
are thus reopened the effective date for the closing of the hearings shall be the date of the closing of the
reopened hearing.

SECTION 25. Grounds for Modifying or Correcting Award. — In any one of the following cases, the court must
make an order modifying or correcting the award, upon the application of any party to the controversy which
was arbitrated:

1. Where there was an evident miscalculation of figures, or an evident mistake in the description of any
person, thing or property referred to in the award; or
2. Where the arbitrators have awarded upon a matter not submitted to them, not affecting the merits of
the decision upon the matter submitted; or
3. 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.

The order may modify and correct the award so as to effect the intent thereof and promote justice between the
parties.

SECTION 26. Motion to Vacate, Modify or Correct Award: When Made. — Notice of a motion to vacate, modify
or correct the award must be served upon the adverse party or his counsel within thirty days after the award is
􏰁led or delivered, as prescribed by law for the service upon an attorney in an action.
SETTING ASIDE AN ARBITRAL AWARD

ARTICLE 5.34. Application for Setting Aside an Exclusive Recourse against Arbitral Award. — The court, when
asked to set aside an award, may, where appropriate and so requested by a party, suspend the setting aside
proceedings for a period of time determined by it in order to give the arbitral tribunal an opportunity to resume
the arbitral proceedings or to take such other action as in the arbitral tribunal's opinion will eliminate the grounds
for setting aside an award.

SECTION 24. Grounds for Vacating Award. — In any one of the following cases, the court must make an order
vacating the award upon the petition of any party to the controversy when such party proves affirmatively that
in the arbitration proceedings:

1. The award was procured by corruption, fraud, or other undue means; or

2. That there was evident partiality or corruption in the arbitrators or any of them; or
3. That the arbitrators were guilty of misconduct in refusing to postpone the hearing upon sufficient cause
shown, or in refusing to hear evidence pertinent and material to the controversy; that one or more of
the arbitrators was disqualified to act as such under section nine hereof, and willfully refrained from
disclosing such disqualifications or of any other misbehavior by which the rights of any party have been
materially prejudiced; or
4. 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.

Where an award is vacated, the court, in its discretion, may direct a new hearing either before the same
arbitrators or before a new arbitrator or arbitrators to be chosen in the manner provided in the submission or
contract for the selection of the original arbitrator or arbitrators, and any provision limiting the time in which the
arbitrators may make a decision shall be deemed applicable to the new arbitration and to commence from the
date of the court's order.

Where the court vacates an award, costs, not exceeding fifty pesos and disbursements may be awarded to the
prevailing party and the payment thereof may be enforced in like manner as the payment of costs upon the
motion in an action.

CONFIRMATION OF DOMESTIC ARBITRAL AWARDS

SECTION 22. Arbitration Deemed a Special Proceeding. — Arbitration under a contract or submission shall be
deemed a special proceeding, of which the court specified in the contract or submission, or if none be specified,
the Court of First Instance for the province or city in which one of the parties resides or is doing business, or in
which the arbitration was held, shall have jurisdiction. Any application to the court, or a judge thereof, hereunder
shall be made in the manner provided for the making and hearing of motions, except as otherwise herein
expressly provided.cdt

SECTION 23. Confirmation of Award. — At any time within one month after the award is made, any party to the
controversy which was arbitrated may apply to the court having jurisdiction, as provided in section twenty-eight,
for an order confirming the award; and thereupon the court must grant such order unless the award is vacated,
modified or corrected, as prescribed herein. Notice of such motion must be served upon the adverse party or his
attorney as prescribed by law for the service of such notice upon an attorney in action in the same court.
SECTION 29. Appeals. — An appeal may be taken from an order made in a proceeding under this Act, or from a
judgment entered upon an award through certiorari proceedings, but such appeals shall be limited to questions
of law. The proceedings upon such an appeal, including the judgment thereon shall be governed by the Rules of
Court in so far as they are applicable.cdt

RULE ON Recognition and Enforcement of Awards

ARTICLE 5.36. Confirmation of Award. — The party moving for an order confirming, modifying, correcting, or
vacating an award, shall, at the time that such motion is filed with the court for the entry of judgment thereon,
also file the original or verified copy of the award, the arbitration or settlement agreement, and such papers as
may be required by the Special ADR Rules.

ARTICLE 5.37. Judgment. — Upon the grant of an order confirming, modifying or correcting an award, judgment
may be entered in conformity therewith in the court where said application was 􏰁led. Costs of the application
and the proceedings subsequent thereto may be awarded by the court in its discretion. If awarded, the amount
thereof must be included in the judgment. Judgment will be enforced like court judgments.

ARTICLE 5.38. Appeal. — A decision of the court confirming, vacating, setting aside, modifying or correcting an
arbitral award may be appealed to the Court of Appeals in accordance with Special ADR Rules.

The losing party who appeals from the judgment of the Court confirming an arbitral award shall be required by
the Court of Appeals to post a counter-bond executed in favor of the prevailing party equal to the amount of the
award in accordance with the Special ADR Rules.

ARTICLE 5.39. Venue and Jurisdiction. — Proceedings for recognition and enforcement of an arbitration
agreement or for vacation or setting aside of an arbitral award, and any application with a court for arbitration
assistance and supervision, except appeal, shall be deemed as special proceedings and shall be 􏰁led with the
court

1. where the arbitration proceedings are conducted;

2. where the asset to be attached or levied upon, or the act to be enjoined is located;
3. where any of the parties to the dispute resides or has its place of business; or
4. in the National Capital Judicial Region at the option of the applicant.