Frequently
Asked Questions (FAQs)
Listed below are some of the questions frequently asked by domestic
parties.
1.
What is arbitration?
Arbitration means a voluntary dispute resolution process in which one
or more arbitrators, appointed in accordance with the agreement of the
parties, or rules promulgated pursuant to this Act, resolve a dispute
by rendering an award. Sec. 3(d), The ADR Act of 2004.
2.
What are some of the advantages of arbitration versus
court litigation?
a. Parties can choose the arbitrators, local or foreign.
b. Proceedings are private and confidential.
c. Compared to court litigation, arbitration is speedier and
more cost efficient.
d. Parties can choose the place of arbitration, and the
place where arbitration proceedings will be conducted.
e. In international commercial arbitration, parties can be
represented by local lawyers or foreign lawyers.
f. A foreign arbitral award can be enforced in any country
which has acceded to the New York Convention of 1958 (135 countries as
of March 30, 2005)
3.
What are the types of arbitration?
Institutional arbitration is one in which the arbitral process is
administered by regular arbitral center, e.g., the Philippine Dispute
Resolution Center, Inc. (PDRCI). An ad hoc arbitration is one in which
the parties themselves devise the rules of procedure.
4.
What are some of the advantages of institutional
arbitration versus ad hoc arbitration?
a. Arbitral centers have comprehensive rules of procedure.
b. Arbitral centers have panels of trained, experienced and
competent arbitrators, who, in the case of PDRCI, are both local and
foreign arbitrators.
c. Also, the arbitral center can provides the parties with a
competent Secretariat and physical facilities, such as hearing rooms,
conference rooms and the use of fax machines, computers, etc.
5.
How can a commercial dispute be arbitrated under the
administration of PDRCI?
a. In the absence of an arbitration clause embodied in the
contract which stipulates that any dispute or controversy arising from
the contract shall be resolve by arbitration under the rules of PDRCI,
the parties may execute an agreement to submit the dispute to a binding
arbitration to be administered by PDRCI under its rules of procedure.
b. It is, however, recommended that parties include in their
contract an arbitration clause. The recommended Model Arbitration
Clause is as follows:
“Any dispute, controversy or claim
arising out of or relating to this contract, or the breach, termination
or invalidity thereof, shall be settled by arbitration in accordance
with the PHILIPPINE DISPUTE RESOLUTION CENTER, INC. (PDRCI) Arbitration
Rules as at present in force.”
Note:
Parties may wish to consider adding:
(a) The number of arbitrator/s shall be…..(one or
three)
(b) The place of arbitration shall be….(city or
country)
(c) The language(s) to be used in the arbitral proceedings
shall be…..
©
2005 by Philippine Dispute Resolution Center, Inc. (PDRCI)
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us
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