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RA 876: Arbitration Law Overview

The Arbitration Law establishes the procedures for arbitration in the Philippines. It provides that arbitration agreements must be in writing and signed by the parties. It also lays out procedures for appointing arbitrators, conducting hearings, rendering awards, and confirming or vacating arbitration awards in court. The key aspects covered include the forms of arbitration agreements, qualifications of arbitrators, conduct of arbitration hearings and submissions, and the limited grounds for modifying or vacating an arbitration award in court.

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374 views18 pages

RA 876: Arbitration Law Overview

The Arbitration Law establishes the procedures for arbitration in the Philippines. It provides that arbitration agreements must be in writing and signed by the parties. It also lays out procedures for appointing arbitrators, conducting hearings, rendering awards, and confirming or vacating arbitration awards in court. The key aspects covered include the forms of arbitration agreements, qualifications of arbitrators, conduct of arbitration hearings and submissions, and the limited grounds for modifying or vacating an arbitration award in court.

Uploaded by

Ruby Casas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

REPUBLIC ACT NO.

876
The Arbitration Law
Sec. 2 Persons and Subject Matter

Two Kinds:
1. Submission agreement;
2. Arbitration contract
Sec. 4 Form

Whether submission agreement or arbitration


contract:
• In writing;
• Subscribed
Sec. 5 Procedure
Arbitration Contract

1. Service of demand;
- Demand shall state nature, amount & relief
with copy of contract
- Name of arbitrator or time/ date to agree

2. In case of default, file petition with RTC


Submission Agreement

1. File the submission agreement with RTC


- Set forth nature & amount
Sec. 6 Hearing
1. Petition filed with notice to other party;
2. Court shall hear the parties;
3. Upon being satisfied that: (1) there is such
and agreement; and (2) failure comply, then
direct parties to proceed to arbitration.
4. If the court finds that: (1) there is no such
agreement; OR (2) no default, then petition is
dismissed.
Sec. 7 Stay of civil action

If there is a pending action involving an


issue arising of an agreement , the same shall
be stayed until the arbitration has been had.
Sec. 8 Appointment of Arbitrator(s)
General rule: pursuant to agreement of the
parties.

RTC will appoint in the following instances:


1. Parties are unable to agree on single
arbitrator;
2. Arbitrator chosen Is unwilling or unable;
3. A party fails or refuses;
4. If two (2) arbitrators fail to agree on 3 rd.
Sec. 10 Qualifications & Disqualifications
Qualifications
• Legal age;
• Full enjoyment of civil rights;
• Read and write

Disqualifications
• Relative within 6th civil degree;
• Has financial, fiduciary or other interests;
• Has personal bias
Sec. 12 Procedure

Arbitrators shall:

1. Set time & place for hearing;


2. Notify the parties thereof;
3. Conduct the hearing within period fixed by
parties;
4. Render the award

NB: parties may be represented by counsel


Secs. 13 & 14 Oath & Subpoena

• Arbitrators to take their oaths:


• 1. Faithfully and fairly to hear & examine the
matters in controversy;
• 2. To make a just award according to the best of
their ability and understanding.

Power to subpoena witnesses and documents


(subpoena duces tecum & ad testificandum)
Secs. 15 & 16 Hearing & Briefs

1. Brief opening statements;


2. Reception of evidence;
- Not bound by Rules of Court;
- May hear testimonies;
- May receive documents;
- May conduct ocular inspection, etc.
3. After close of hearing, parties may submit briefs/
memoranda
Sec. 18 In lieu of Oral Hearing

Parties may submit:


• Agreed statement of facts;
• Their respective contentions in writing with
documentary proof;
• Respective reply statements
Sec. 20 Award

• In writing;
• Signed & acknowledged by majority of arbitrators
or by sole arbitrator, as the case may be;
• Furnish each party a copy of the award

NB: Arbitrators shall decide only those matters


submitted to them. They may award the expenses
of party against another party.
Sec. 23 Confirmation of award

Any party may petition the court (RTC)


to issue an order confirming the award
within one (1) month.
Sec. 24 Grounds for Vacating Award
The Court may order an award vacated on the
following grounds:
1. Corruption, fraud or other undue means;
2. Evident partiality or corruption;
3. Misconduct on the part of the arbitrators in
refusing to postpone hearing upon sufficient
cause; to hear material evidence; to disclose
disqualification;
4. Arbitrators exceeded their powers or imperfectly
executed them
Sec. 25 Grounds for Modifying
Award
The Court may order an award modified on the following
grounds:
1. Evident miscalculation of figures or evident mistake in
description of person, thing or property referred to in
award;
2. Arbitrators have awarded a matter not submitted to
them;
3. Award is imperfect in a matter of form not affecting the
merits of the controversy;
4. To effect the intent thereof & promote justice between
the parties

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