doj oadr 2

8/20/2019 DOJ OADR 2

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%hilippine Institute of Arbitrators

8/20/2019 DOJ OADR 2


COMPREHENDING PARTY AUTONOMY IN THE RESOLUTION

OF PRIVATE DISPUTES AND COMPREHENDING

ARBITRATIONS

BY

MARIO E. VALDERRAMA LLB, FCIARb, FHKIArb, FPIArb

CIArb Approved Tutor

PDRCI Accredited Arbitrtor CIAC Accredited Arbitrtor

!E"M Accredited Arbitrtor

Appe#ed C$e$ Meditor

Co%tct Deti#$

Te# &o '() *++- Te#e/ '(0 1()Mobi#e +2) ** 32*

E45i# 65rv#.#7895i#.co5:

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OBJECTIVES OFPRESENTATION

&o present the fundamentals.

&o provide the foundation for subse'uent

presentations.

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PART ONE

()*%R+,+-DI- %AR& A0&)-)* I-&,+ R+1)20&I)- )3 %RI"A&+ DI1%0&+1

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PARTY AUTONOMY:CONCEPT AND NATURE

R.A. 4567 defined it as 8the freedom of the

party 9should be parties: to make their own

arran!ements to resolve their disputes; 9see

1ec. 5:.

It is contractual by nature.

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INHERENT OR GRANTEDRIGHT?

It is an inherent ri!ht. %arties entered into

contracts even before !overnments and

courts came into bein!.

Accordin!ly the law affirmed rather than

!ranted the ri!ht or freedom.

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BASIS

&he basis is the underlyin! concept behindthe freedom to contract< a party who reachedthe a!e of ma=ority is an adult and is

presumed to have sufficient discretion tomake informed decisions.

,e may therefore create le!al relations bycontract.

In the same manner he also has the freedomto make his own arran!ements in resolvin!his private disputes.

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TEST OF VALIDITY OFDISPUTE RESOLUTION

CLAUSES A!ain contractual.

It is valid if valid as a contract.

-ote< *ost of the !rounds to challen!e the

=urisdiction of an arbitral tribunal and many of

the !rounds to challen!e an award are

!rounds to attack a contract or based on

contractual precepts. &he other !rounds arebased on the =udicial constituent element of

an arbitration.

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THE PROPER APPROACH:ClearingU! "#e C$n%&'i$n

T;e proper pproc; i$ to pp#<co%trctu# precept$ rt;er t;% be

=#e9#i$tic>.

T;e 7ro%9 pproc; 7i## re$u#t to t;e

7ro%9 co%c#u$io%$.

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THE (RONG APPROACH:E)AMPLE

O% t;e vi#bi#it< o 5erit$ revie7 o rbitr#

7rd$ ?i% 9ree5e%t b$ed rbitrtio%@, or

e/5p#e, o%e 7i## co%c#ude t;t it i$ vi#b#e i;e 7ere to #oo t t;e #7 ir$t %d t;e

$tipu#tio% t;ereter.

&ote "ee Ru#e *' "ec. or t;e #7.

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THE CORRECT APPROACH T;e correct pproc; i$ to #oo t t;e co%trct

ir$t, %d t;ereter deter5i%e i t;e co%trct

co%trve%ed 5%dtor< provi$io%$ o #7.

I% 9ree5e%t b$ed rbitrtio%, our e/5p#e,

t;e co%trct i$ to bide b< t;e deci$io% o t;e

rbitr# tribu%#. T;e co%c#u$io%, t;ereore, i$

t;t 5erit$ revie7 i$ %ot vi#b#e.

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THE CORRECT APPROACH Pri%cip#e o Fi%#it< o A7rd i$ Co%trctu#

=/ / / rbitrtor$ re ud9e$ c;o$e% b< t;eprtie$ to decide t;e 5tter$ $ub5itted to . t;e5,i%##< %d 7it;out ppe# / / /> ?Burc;e## v

Mr$;, 31 .".. '**, 3 L.Ed. 2( ?13*@.

=T;e e$$e%ce o t;e rbitrtio% proce$$ i$ t;t %rbitr# 7rd $;## put t;e di$pute to re$t / / /.Arbitr# i%#it< i$ core co5po%e%t o t;eprtie$ 9ree5e%t to $ub5it to rbitrtio%. T;u$,% rbitrtio% deci$io% i$ i%# %d co%c#u$ivebecu$e t;e prtie$ ;ve 9reed t;t it be $o / //.> ?"t$ v "c;7b@.

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THE APPLICABLE RULES

&he applicable rules are the contractualprecepts.

)ur interest as a !eneral proposition should

be on< T;e 9e o co%$e%t, ru#e o% cpcit< to ct %d t;e

circu5$t%ce$ 5odi<i%9G#i5iti%9 cpcit< to ct T;e pri%cip#e o t;e uto%o5< o co%trct$

T;e ru#e t;t co%trctu# $tipu#tio%$ re t;e #7bet7ee% t;e prtie$ T;e 9e%er# #i5ittio% o% co%trctu# uto%o5< T;e ot;er #i5ittio%$ o% co%trctu# uto%o5<

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CORRELATIONS

A9e o co%$e%t or5er#< 0, but reducedto 1 b< R.A. (1+2.

Cpcit< to ct %d circu5$t%ce$#i5iti%9 cpcit< to ct $ee &CC Art$. ')%d '2. &ote t;e ru#e$ i%vo#vi%9corportio%$, 9over%5e%t e%titie$, t;eru#e o% 9e%c<. &ote #$o t;t cpcitie$re 9over%ed b< t;e %tio%#Gdo5ici#ir<#7 o t;e prt< i%vo#ved.

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CORRELATIONS

T;e uto%o5< o co%trct$

co%trcti%9 prtie$ 5< ree#< $tipu#te,

%d $ 9e%er# propo$itio% t;eir

$tipu#tio% i$ t;e #7 bet7ee% t;e5.

?$ee &CC Art$. 32 %d '+(@.

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CORRELATIONS

u$t #ie co%trctu# uto%o5<, prt<uto%o5< i% t;e re$o#utio% o di$pute$ i$

#$o %ot b$o#ute.

Corre#tio% T;e #i5it$ o co%trctu#uto%o5< T;e $tipu#tio% 5u$t %ot be

co%trr< to #7, 5or#$, 9ood cu$to5$,pub#ic order, %d pub#ic po#ic< ?"ee &CC Art.'+(@.

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Li*i"a"i$n' $n Par"+ A&"$n$*+ A$ 9e%er# propo$itio%, t;e #i5ittio% reer$ to

5tter$ t;t re %ot $ubect to co%trct, e.9. cri5i%#

?but %ot civi#@ #ibi#it<, 5tri5o%i# di$pute$ ot;er

t;% t;o$e i%vo#vi%9 propert< %d cu$tod< o

c;i#dre%, civi# $ttu$ o per$o%$, t;e uri$dictio% ocourt$, %d uture #e9iti5e ?$ee R.A. &o. 2013 "ec. (@.

I% certi% i%$t%ce$, it 5< ri$e ro5 t;e pub#ic

po#ic< to protect c#$$e$ 7it; =7e> br9i%i%9po$itio%$, e.9., t;e #bor co%trct$ e/ceptio% i

covered b< our Lbor Code ?ibid@.

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Li*i"a"i$n' $n Par"+ A&"$n$*+ Co%$u5er rbitrtio% u%der t;e Co%$u5er$

Act #$o #i5it$ prt< uto%o5< $ co%$u5er$

re c#$$e$ 7it; =7e> br9i%i%9

po$itio%$. T;i$ pub#ic po#ic< 5< #$opreve%t rbitrtio% o di$pute$ ##i%9 u%der

t;e HLRB %d DAR uri$dictio%$.

Furt;er #i5ittio%$ 5< #$o ri$e ro5 pub#ic

po#ic< dec#rtio%$, $uc; $ i% CIACrbitrtio%.

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SIDELIGHT: P&,li- P$li-+ inCrea"ing "#e CIAC

=T;ere i$ ;ereb< dec#red to be t;e po#ic< o

t;e "tte to e%cour9e t;e er#< %d

e/peditiou$ $ett#e5e%t o di$pute$ i% t;eP;i#ippi%e Co%$tructio% I%du$tr<> ?E.O. ++1,

"ec. 0, Dec#rtio% o Po#ic<@.

&ote T;ere re provi$io%$ i% R.A. 2013 re

CIAC rbitrtio%.

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SIDELIGHT: O"#erE.-l&'i$n' %r$* R/A/ 0123

Court A%%e/ed ADR

Br%9< "<$te5 o u$tice

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CONTRACTUAL PRECEPTS:DYNAMICS A!reements cannot contravene mandatory

provisions of law.

&he stipulation between the parties is the law

between them as lon! as the stipulation doesnot contravene any mandatory provision of

law.

*any provisions in contract law are 8default;provisions. &hey apply in the absence or

deficiency of a!reement.

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CONTRACTUAL PRECEPTS:DYNAMICS &OTE T;ere re t7o t<pe$ o 5%dtor<

provi$io%$ i% co%trct #7.

O%e t<pe re%der$ vio#ti%9 $tipu#tio% void but o%#<reJuire$ co5p#i%ce. E/5p#e t;e %ot #e$$ t;% <r.

#i5ittio% re pre$criptive period pp#icb#e to i%$ur%ce

co%trct$.

T;e ot;er t<pe i$ prt o t;e co%trct bet7ee% t;e

prtie$. E/5p#e t;e provi$io% 9r%ti%9 CIACe/c#u$ive %d pri5r< uri$dictio% over do5e$tic

co%$tructio% di$pute$ i % rbitrtio% c#u$e 7ere

pre$e%t. ?But $ee C;i% C;i%9 i%9@.

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CONTRACTUAL PRECEPTS:DYNAMICS &OTE I% #oc# te/t boo$, di$ti%ctio%$ re

dr7% bet7ee% =5%dtor<> %d =director<>

provi$io%$.

8Director<> provi$io%$ ;ve broder co%ceptt;% =deu#t> provi$io%$.

T;e co%cept o =deu#t> provi$io%$ i$ i%c#uded

7it;i% t;e co%cept o =director<> provi$io%$.

&ote Deu#t ru#e$ p#< $peci# ro#e i% crti%9

t;e procedure$ i% ADRGArbitrtio%.

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CONTRACTUAL PRECEPTS:DYNAMICS

In a!reement based arbitrations 0-(I&RA2*odel 2aw >467 Art. >4.5 introduced the

concept of arbitrator discretion.

-ote that arbitrator discretion is available onlyif 9>: its eercise will not contravene anymandatory provision of law@ 95: there is noa!reement on the matter@ and 9: there is no8default; provision of law.

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CONTRACTUAL PRECEPTS:DYNAMICS

0-(I&RA2 *odel 2aw >467 Art. >4.5<

3ailin! such a!reement 9re a!reement of the

parties as to the procedure: the arbitral

tribunal may sub=ect to the provisions of this

2aw conduct the arbitration in such manneras it considers appropriate.

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CONTRACTUAL PRECEPTS:DYNAMICS Order o Preere%ce i% A9ree5e%t B$ed

Arbitrtio%$

M%dtor< provi$io%$ A9ree5e%t Deu#t provi$io%$ Arbitrtor di$cretio%

&ote t;t rbitr# i%$titutio% ru#e$ 5< #$o co%ti%5%dtor< %d deu#t provi$io%$.

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DYNAMICS: ILLUSTRATION

In their arbitration a!reement the parties

a!reed that one of them can appoint two out

of the three arbitrators. "alid? Answer< -o. &his contravenes the principle of

e'uality between the parties a mandatory

rule B see *A2 Art. >6 also -(( Art. 5C7.9*a!ellan (apital *ana!ement (orporation

vs. Eosa 77 1(RA >7F G5CC>H:

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In an arbitration the parties cannot a!ree on

whether or not the award shall be a reasoned

award. *ay the arbitrator in the eercise ofhis discretion insist that the award shall be

without reason?

Answer< -o. &he default le!al provision isthat the award should be with reasons. B see

*A2 Art. >.5@ also R.A. 4567 1ec. .

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In an I(( arbitration the parties a!reed that

the award shall be without reason. "alid?

Answer< -o. 0nder I(( Rules the rule that

the award should be with reasons is

mandatory. B see 9old: I(( Rule Art. 57.5.

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S"e!' in E.er-i'ing Par"+ A&"$n$*+

C;oo$e t;e 5ode o di$pute

re$o#utio%

A9ree o% t;e ru#e$ %d procedure$

t;t 7i## 9over% t;e c;o$e% 5ode.

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FIRST STEP

&he first step involves makin! a choice from

amon! the different modes of dispute resolution.

-ote that the choices involve varyin! de!rees ofparty control from almost unlimited to almost

none.

-ote also that in certain instances the parties

have limited choices or no choice at all.

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FIRST STEP: T#e Di'!&"eRe'$l&"i$n S!e-"r&*

-onJurisdictional and ADR Avoid%ce, vio#e%ce, c;%ce

&e9otitio%

Co%ci#itio% %d Meditio% Ot;er ADR or5$

"peci# Me%tio% Adudictio%

uri$dictio%#

Arbitrtio% "ttutor< Arbitrtio%

Liti9tio%

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SECOND STEP

&he second step is more complicated.

1ample (lause<

8A%< di$pute ri$i%9 out o or i%re#tio% to t;i$ co%trct $;## ir$t be

reerred to 5editio% beore %< ot;e prtie$ cou#d 9o to court ?or torbitrtio%, $ t;e c$e 5<be@.>

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SAMPLE CLAUSE:MEDIATION T;e c#u$e #et 5%< u%%$7ered Jue$tio%$

t;t 5< beco5e bo%e$ o co%te%tio% o%ce di$pute ri$e$. It cou#d i% ct be u$ed b< rec#citr%t to de#< t;e re$o#utio% o t;e

di$pute. It i$ ctu##< 7or$e i% P;# becu$e o t;e

dei%itio% o court reerred 5editio% i% R.A.2013 "ec. '.5.

&ote "o5e curtive provi$io%$ re i% t;eIRR.

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SAMPLE CLAUSE: ARBITRATION

Is the followin! clause in an

international contract workable?

8Dispute resolution< arbitration in the

%hilippines.;

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SAMPLE CLAUSE: ARBITRATION

&he clause also left several

unanswered 'uestions.

&he difference is that this time our

arbitration law provided defaultprovisions.

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R$le $% La4 Pr$!$'ing "$Pr$*$"ePar"+ A&"$n$*+ &he 8default; provisions are the rules

that will apply in the absence or incase of deficiency of a!reement

between the parties. &hey B the

default provisions B 8fillin; the blanksto make the choice of the parties

workable.

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R$le $% "#e La4

+amples of 8default; provisions<

E%9#i$; $ t;e deu#t #%9u9e i%

i%ter%tio%# rbitrtio%- E%9#i$; or Fi#ipi%oi% do5e$tic rbitrtio%- i% bot; c$e$ #$o

9ivi%9 t;e rbitr# tribu%# $o5e #ee7< b<

providi%9 it 7it; di$cretio% to de$i9%te t;e

#%9u9e o rbitrtio% ?R.A. 2013, "ec. '%d ''@.

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R$le $% "#e La4


Metro M%i# $ t;e deu#t p#ce o

rbitrtio% but 9ivi%9 t;e rbitr# tribu%#$o5e #ee7< b< providi%9 it 7it; di$cretio%

to de$i9%te t;e p#ce ?R.A. 2013 "ec$. '+

%d ''@.

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R$le $% "#e La4


T;e %u5ber o rbitrtor$ ?'@- t;e 5%%er

o ppoi%t5e%t ?ec; prt< ppoi%t$ o%e,%d t;e ppoi%ted rbitrtor$ ppoi%t t;e

t;ird@- t;e i%$titutio% o t;e ppoi%ti%9

ut;orit< 7;o 7i## ppoi%t t;e rbitrtor or

rec#citr%t or t;e t;ird or $o#e rbitrtori% deu#t o 9ree5e%t ?Mode# L7 Art$. +

%d @.

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R$le $% "#e La4


A7rd$ i% i%ter%tio%# rbitrtio%$re #7 b$ed ?Mode# L7 Art. ''.@-

R.A. 1)( i5p#ie$ t;t 7rd$ i%

do5e$tic rbitrtio%$ re eJuit<b$ed.

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R$le $% "#e La4

A%d t;u$, t;e u%%$7ered

Jue$tio%$ i% t;e $5p#e c#u$e7ere %$7ered b< t;e deu#t

provi$io%$ o #7.

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R$le $% "#e La4

Ro#e o #7 propo$i%9 to pro5ote prt<uto%o5<

To ##o7 vib#e c;oice$

To provide t;e ru#e$, c##ed =deu#t> ru#e$,t;t 7i## pp#< $;ou#d t;e 9ree5e%t be

deicie%t i% t;e i5port%t cte9orie$ oc;oice $o $ to 5e t;e c;oice o t;eprtie$ 7orb#e.

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RE5UIREMENT FORDEFAULT RULE6PROCEDURE

T;e deu#t ru#e or procedure 5u$tbe vib#e.

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I$ t;e o##o7i%9 rbitrtio% c#u$e i% domestic co%trct pt;o#o9ic#

=A%< di$pute ri$i%9 out o or i%co%%ectio% 7it; t;i$ co%trct $;## be

reerred to rbitrtio%.;

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R.A. 1)( "ec. 0. Fee$ o rbitrtio%. T;e ee$ o t;e rbitrtor$ $;## be it<

pe$o$ per d< u%#e$$ t;e prtie$ 9reeot;er7i$e i% 7riti%9 prior to t;erbitrtio%.

&OTE Curtive provi$io%$ re i% t;e IRR.

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COUNTERPART OF PARTY AUTONOMY

=Freedo5 $e#do5 co5e$

7it;out re$po%$ibi#it<.>

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PARTY AUTONOMY AND THEPROBLEMS OF THE

JUDICIARY Prt< uto%o5< ;$ 5ore to do 7it;

ri9;t$ o c;oice, #e$$ 7it; t;e prob#e5$

o t;e udicir<. It i$ %ot i%te%ded to$o#ve t;e prob#e5$ o t;e udicir<.

=Privte di$pute$ bet7ee% privteprtie$ ou9;t to be re$o#ved t;rou9;privte 5e%$.>

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PARTY AUTONOMY AND THEPROBLEMS OF THE

JUDICIARY T;e co%%ectio% i$ i%direct %dco%$eJue%ti#, rt;er t;% direct.

=To t;e e/te%t t;t prtie$ 7ou#d vi# odi$pute re$o#utio% 5et;od$ ot;er t;%#iti9tio% i% re$o#vi%9 t;eir di$pute$, tot;t e/te%t #$o 7i## court$ ;ve ti5e or

t;eir 5ore proper u%ctio%, 7;ic; i$ tore$o#ve di$pute$ i%vo#vi%9 pub#ic po#ic<%d i%tere$t.>

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BIBLIOGRAPHY

(IArb &eachin! *anual 9culled from various

sources:

%IArb &eachin! *anual 9culled from various

sources: R.A. 6FK@ 0-(I&RA2 *odel 2aw >467@

0-(I&RA2 R02+1 >4FK@ I(( Rules@ R.A.

4567@ -ew (ivil (ode@ +.). >CC6

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PART T(O

COMPREHE&DI& ARBITRATIO&"

CLEARING THE CONFUSION

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CLEARING THE CONFUSION: ARBITRATION AND STATUTE BASED

ARBITRATIONS &here are several processes called

8arbitration; in the %hilippines.

(lasses<

a. Arbitration 9traditional/a!reement based:

b. 1tatute based arbitrations B based on law


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CO&CEPT OF ARBITRATIO& ?AREEME&TBA"ED@

Arbitrtio% i$ device 7;ereb< t;e $ett#e5e%t o Jue$tio%, 7;ic; i$ o i%tere$t or t7o or 5ore

per$o%$, i$ e%tru$ted to o%e or 5ore ot;erper$o%$ t;e rbitrtor or rbitrtor$4 7;oderive t;eir po7er$ ro5 privte 9ree5e%t,%ot ro5 t;e ut;oritie$ o "tte, %d 7;o re

to proceed %d decide t;e c$e o% t;e b$i$ o$uc; % 9ree5e%t Fouc;rd, i##rd,o#d5% o% I%ter%tio%# Co55erci#Arbitrtio% pr ) citi%9 $ever# ut;or$.

AGREEMENT BASED

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AGREEMENT BASED ARBITRATION

E#e5e%t$

=A co%$e%$u# 5ode o di$pute

re$o#utio% b< t;ird prt< %eutr# c;o$e%b< t;e prtie$ #edi%9 to i%# %dbi%di%9 7rd.>

It i$ %ot =true> rbitrtio% i %< o t;ee#e5e%t$ i$ %ot pre$e%t.

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CLEARING THE

CONFUSION: "TATTE BA"ED ARBITRATIO&"

1ub (lassification

Optio%# 4 %eed$ $tipu#tio% to rbitrte, e.9.CIAC %d vo#u%tr< #bor rbitrtio%$

I5po$ed doe$ %ot reJuire 9ree5e%t torbitrte, e.9. co%$u5er %d co5pu#$or< #borrbitrtio%$

OC S O SC SS O

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FOCUS OF DISCUSSION

Our ocu$ i$ o% 9ree5e%t b$ed

rbitrtio%.

T;i$ i$ =true> rbitrtio%, b$ed o% co%$e%t %d%ot o% #7. =Co%$e%$u# u$tice>.

I% rbitrtio% t;e prtie$ crt t;e procedure.T;o$e 7;o do %ot %o7 7;t to do ;ve %o

recour$e e/cept to re#< o% t;e rbitrtor.

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CLEARING THE CONFUSION: AGREEMENT BASED ARBITRATION

Co%trctu#- $<%o%<5ou$ 7it; t;e co%cept o

prt< uto%o5< i% t;e re$o#utio% o di$pute$

Tribu%# % i%$tru5e%t#it< o t;e prtie$

A7rd i$ product o privte di$pute re$o#utio%proce$$e$, ;e%ce t;e %eed or udici#

reco9%itio% o co%ir5tio%

Pri%cip#e o i%#it< o 7rd$ i$ b$ed o%

co%trct core co5po%e%t o t;e proce$$ V#idit< i$$ue$ 7rd treted u$t #ie

co%trctu# $tipu#tio%

ARBITRATION

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ARBITRATION

(ontractual -ature

Arbitration is a creature of contract not of

law. It is based on the contract principle ofparty autonomy or the will of the partiesepressed as the freedom to contract.

,ence the !overnin! law affirmed ratherthan !ranted the ri!ht to choose arbitration.

ARBITRATION

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ARBITRATION

Co%trctu# &ture B$i$

A% du#t i$ pre$u5ed to ;ve $uicie%t

di$cretio% ;e%ce cpb#e o 5i%9 i%or5eddeci$io%$.

He c%, t;ereore, 5e rr%9e5e%t$ 7it; ;i$

cou%terprt to re$o#ve t;eir di$pute$ i% t;e $5e5%%er t;t ;e %d ;i$ cou%terprt c% crete

#e9# re#tio%$ b< co%trct.

ARBITRATION

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ARBITRATION

(ontractual -ature<

&he process is !overned more by contractual

precepts less by law.

A9e o 5orit<

Auto%o5< o co%trct$

Li5ittio%$ o% t;e reedo5 to co%trct

ARBITRATION

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ARBITRATION

(ontractual -ature<

A common mistake is to look at the law first

instead of applyin! contractual precepts.

Doin! so B takin! the le!al approach B will

most likely result to the wron! ideas.

ARBITRATION

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ARBITRATION

Tribu%# % I%$tru5e%t#it< o t;e Prtie$

I% rbitrtio% t;e prtie$ b< co%trct crete t;eiro7% tribu%# ?$ee Mode# L7 provi$io%$@. T;e<ppoi%t t;eir =ud9e$>- crt t;e procedure-

9ree o% $ever# cte9orie$ o c;oice. A$cretor$ t;e< o7% t;e tribu%#- $ o7%er$ %dcretor$ t;e< c% $;pe t;e tribu%# to 7;t t;e<7%t it to be. A$ o7%er$ %d cretor$ t;e< p<

t;e e/pe%$e$ o t;e tribu%# t;t t;e< creted.T;e rbitrtor$ re i% to te5porr< e5p#o<ee$7;o$e ob de$criptio% i$ to re$o#ve t;e di$putebet7ee% t;e prtie$.

ARBITRATION

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ARBITRATION

Award a %roduct of %rivate DisputeResolution %rocess@ -eed for(onfirmation/Reco!nition

8A vacated award 8 was an internationalaward which was not inte!rated in the le!alsystem of that 1tate ; 9,ilmarton v )&"

>44 L022 (I". A -o. >C (ourt de(assation *arch 5 >44. 3rom(arbonneu:.

ARBITRATION

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ARBITRATION

Pri%cip#e o Fi%#it< o A7rd i$ Co%trctu#

=/ / / rbitrtor$ re ud9e$ c;o$e% b< t;eprtie$ to decide t;e 5tter$ $ub5itted to . t;e5,i%##< %d 7it;out ppe# / / /> ?Burc;e## v

Mr$;, 31 .".. '**, 3 L.Ed. 2( ?13*@.

=T;e e$$e%ce o t;e rbitrtio% proce$$ i$ t;t %rbitr# 7rd $;## put t;e di$pute to re$t / / /.Arbitr# i%#it< i$ core co5po%e%t o t;e

prtie$ 9ree5e%t to $ub5it to rbitrtio%. T;u$,% rbitrtio% deci$io% i$ i%# %d co%c#u$ivebecu$e t;e prtie$ ;ve 9reed t;t it be $o / //.> ?"t$ v "c;7b@.

ARBITRATION

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ARBITRATION

V#idit< I$$ue$ "u55r< &ture oE%orce5e%tGReco9%itio% Proce$$e$

T;e $<##o9i$5 T;e co%trct bet7ee% t;e prtie$

i$ to bide b< t;e 7rd or deci$io% o t;eTribu%#- t;e $ubect o t;e petitio% i$ t;e 7rd-er9o t;e 7rd 5u$t be e%orced.

Cutio%r< &ote $e9re9te ro5 t;e 5erit$ o t;e7rd t;e 9rou%d$ to vcte t;e Greu$ereco9%itio% o t;e 7rd 7;ere i$$ue$ o ct%d #7 5< ri$e.

ARBITRATION

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ARBITRATION

V#idit< I$$ue$ A7rd i$ Treted u$t Lie

Co%trctu# "tipu#tio%

A% 7rd i$ i9%ored or vcted i bd-reco9%ied or co%ir5ed %d e%orced i 9ood-

$ubect to t;e pri%cip#e o $eprbi#it<.

A% dded $vi%9 9rce i$ reerr# bc to t;eTribu%# 7;ic; 7$ i%troduced b< rbitrtio%

#7$.

ARBITRATION

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ARBITRATION

rou%d$ To VcteGReu$e Reco9%itio%

re 5i%#< b$ed o% t;e t7o co%$titue%t

e#e5e%t$ o % rbitrtio%, %5e#<

Co%trctu#

udici#

The Constituent Elements of an

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The Constituent Elements of an

Arbitration

Judicial B &he arbitral tribunal decides the

dispute/s like a =ud!e or collective =ud!es as the

case may be. &his distin!uishes 8consensual;

arbitration from mediation and other ADR forms. (ontractual B &he power of the tribunal arises

from contract. &his distin!uishes 8consensual;

arbitration from liti!ation and statutory

arbitration.G1ee 3ouchard etc. on pa!e >>H

STATUTE BASED

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STATUTE BASED ARBITRATIONS E$tb#i$;ed b< $ttute H<brid proce$$e$ Freedo5 o prtie$ to $e#ect rbitrtor$ %d

crt procedure ;evi#< curti#ed Tribu%# % i%$tru5e%t#it< o over%5e%t Re$u#t%t 7rd dee5ed i%te9rted i%to t;e

#e9# $<$te5 Merit$ revie7 o 7rd$ i$ vi#b#e.

STATUTE BASE

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STATUTE BASE

ARBITRATIONS

(reated by statute<

8&here is hereby established in the (IA%

a body to be known as the (onstruction

Industry Arbitration (ommission; 9+.). >CC61ection :.

STATUTE BASE

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STATUTE BASE

ARBITRATIONS

,ybrid %rocesses

A perusal of the procedures will show a

combination of the precepts of a!reementbased arbitration and liti!ation.

STATUTE BASE

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STATUTE BASE

ARBITRATIONS

(urtailment of freedom to choose arbitrators<

enerally only (IA( accredited arbitrators

may be appointed in (IA( panels.

STATUTE BASE

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STATUTE BASE

ARBITRATIONS

(urtailment of freedom to craft procedure<

8&he Arbitral &ribunal shall at all times adopt the

most epeditious procedure for the introduction and

reception of evidence and 1,A22 ,A"+

()*%2+&+ ()-&R)2 )"+R &,+

%R)(++DI-1 but in any case shall afford full

and e'ual opportunity to all parties to present

relevant evidence; 9(IA( Rules 1ec. >.:.

STATUTE BASE

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STATUTE BASE

ARBITRATIONS

&ribunal an instrumentality of the

overnment

(IA( was created by statute inimplementation of a public interest

declaration. 1o (IA( &ribunals are

obviously instrumentalities of theovernment.

STATUTE BASE

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STATUTE BASE

ARBITRATIONS

Resultant award inte!rated into the le!al

system

-o need for confirmation for enforceability.

STATUTE BASE

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STATUTE BASE

ARBITRATIONS

Award sub=ect to appeal

Rule 1ection >. 1cope. B &his Rule shall

apply to appeals from awards . Amon!these a!encies are the (onstruction

Industry Arbitration (ommission.;

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(ANT TO 7NO( MORE? A""en8 $&r -$&r'e' an8'e*inar'/

C$n"a-" &' %$r '-#e8&le'/

Vi'i" &' a" 444/!#ili!!inear,i"ra"$r'/$rg

%hilippine Institute of Arbitrators

c/o Atty. *ario +. "alderrama

&el. -o. 9K5: KF CC>

doj oadr 2

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