Rule 5 – Conduct of

Arbitral Proceedings
 1. On Treatment of
Parties.
Article 4.18 provides that the parties shall be
treated with equality and each shall be given a
full opportunity of presenting his/her case.
2. On Determination of
the Rules of Procedure:
a. The parties have the freedom to agree on the
procedure;
b. Failing such agreement, arbitral tribunal may
conduct the arbitration in such manner as it
considers appropriate; and,
c. The arbitral tribunal shall have the power to
determine the admissibility, relevance,
materiality and weight of any evidence.
3. On Venue of
Arbitration:
a. The paties have the freedom to agree on the
place of arbitration; failing such agreement,
the place shall be in Metro Manila or at the
convenience of the parties; and,
b. The 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.
4. On Commencement of
Arbitral Proceedings.
Unless otherwise agreed by the parties, the
arbitral proceedings in respect of a particular
dispute commence on the date on which a
request for that dispute to be referred to
arbitration is received by the respondent. (Art.
4.21)
5. On Language to be used:
a. The parties are free to agree on the language
or languages to be used; failing such
agreement, the language shall be English;
and,
b. That the documentary evidence shall be
accompanied by a translation into the
language or languages agreed upon.
6. On Statements of Claim
and Defense:
a. The claimant shall state the facts supporting
his claim, points at issue and the relief or
remedy sought; the defendant shall state his
defense in respect to these particulars, unless
the have agreed as to the required elements
of such statements; and,
b. Either party may amend or supplement
his/her claim or defense during the course of
the arbitral proceedings unless the arbitral
tribunal considers it inappropriate.
7. On Hearing and Written
Proceedings:
a. Arbitral Tribunal shall decide whether to hold
oral hearings or the same be conducted on
the basis of documents and other materials ;
however, the parties may agree or request
that no hearings at an appropriate stage of
the proceedings;
b. Sufficient advance notice of any hearing and
of any meeting of the arbitral tribunal; and,
c. All statements, documents or other
information supplied to the arbitral by one
party shall be communicated to the other
party.
8. On Default of a Party:

a. If the claimant fails to communicate his

statement, the arbitral tribunal shall
terminate proceedings;
b. If respondent fails to communicate his
statement of defense, the arbitral tribunal
shall continue the proceedings without
treating such failure as an admission of the
claimant’s allegation; and,
c. If any party’s failure to appear at a hearing or
to produce documentary evidence, the
arbitral tribunal may continue the
proceedings and make the award on the
evidence before it.
9. On expert appointed by
the Arbitral Tribunal.
Unless otherwise agreed by the parties, the
arbitral tribunal may:

a. Appoint one or more experts to report to it on

specific issues to be determined by the
arbitral tribunal; and,
b. Require a party to give the expert any
relevant information or produce or provide
access to any relevant documents, goods or
other property for his/her inspection.
10. On Court Assistance in
Taking evidence.
Arbitral tribunal or a party, with the approval of
the tribunal, may request from a court an
assistance in taking evidence.

Power of the arbitral tribunal;

a. Require persons to attend hearings; and,
b. Subpoena witnesses.
11. On Rules Applicable to
the Substance of Dispute:
a. The arbitral tribunal shall decide the dispute
in accordance with the rules of law as are
chosen by the parties;
b. Failing any designation by the paties, the
arbitral tribunal shall apply the law
determined by the conflict of laws rules,
which it considers applicable;
c. The arbitral tribunal shall decide ex aequo et
bono or as amiable compositeur only if the
parties have expressly authorized it to do so;
and,
d. The arbitral tribunal shall decide in
accordance with the terms of the contract and
shall take into account and usages of the
trade applicable to the transaction.
12. Decision Making by
Panel of Arbitrators.
1. In arbritral proceedings with more than one
arbitrator, the decision shall be made, unless
otherwise agreed by the parties, by a majority of all
its members.

2. Question of procedure may be decided by a

presiding arbitrator, if so authorized by the parties
or all members of the arbitral tribunal.
13. On Settlement:
a. If the parties settle the dispute, the
proceedings shall be terminated; and,

b. If requested by the parties and not objected to

by the arbitral tribunal, the settlement shall be
recorded in the form of an arbitral award on
agreed terms.
14. On Form and Contents
of Award:
a. Award shall be made in writing and shall be
signed by the arbitrator/s;
b. Award shall state its basis;
c. Award shall state its date and the place of
arbitration; and,
d. Copy of the award shall be delivered to each
party.
15. On Termination of
Proceedings:
a. The proceedings are terminated by final
award;
b. Order of termination on following grounds;
and,
i. Claimant withdraws his claim, unless
respondent objects;
ii. Parties agreed the termination;
iii. Proceedings become unnecessary or
impossible;
16. On 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;
i. A party may, with notice to the other party, request
the arbitral tribunal to correct in the award any errors
in computation, any clerical or typographical errors or
any errors of similar nature.
ii. A party may, if so agreed by the parties and with
notice to the other party, request the arbitral tribunal
to give an interpretation of a specific point or part of the
award.
b. 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;

c. The arbitral tribunal may correct any error of the type

referred to in paragraph (a) of this Article on its own
initiative within 30 days from the date of the award; and,

d. Unless otherwise agreed by the parties, a party may,

with notice to the other party, request, within 30 days
receipt of the award, the arbitral tribunal to make an
additional award as to claims presented in the arbitral
tribunal considers the request to be justified, it shall make
the additional award within 60 days;
e. 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 (b) of this Article; and,

f. The provisions of Article 4.31 (form and contents of

award) shall apply to a correction or interpretation of the
award or to an additional award.
17. On Application for Setting
Aside an Exclusive Recourse
against Arbitral Award:
a. Recourse to a court against an arbitral award may be
made only by application for setting aside in accordance with
second and third paragraphs of this Article;
b. An arbitral award may be set aside by the Regional Trial Court
only on the grounds enumerated by law, such as, if the
agreement is unlawful, the applicant was not notified of the
appointment of arbitrator or of the aebitral proceedings or he
was not able to present his case;
c. An application for setting aside may not be made after three
(3) months have elapsed for the date on which the party
making that application had received the award or, if a
request had been made under Article 4.33 (Correction and
Interpretation of Award, Additional Award) from the date on
which that request has been disposed of by the Arbitral
tribunal;
d. 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 take
such other action as in the arbitral tribunal’s opinion will
eliminate the grounds from setting aside; and,

e. A party may bring a petition under this Article before

the court in accordance with the Special ADR Rules.