Special Rules On ADR - Rule 19
Special Rules On ADR - Rule 19
Special Rules On ADR - Rule 19
Q. What are prohibited subjects of a motion for reconsideration from the ruling of the RTC?
A. Paragraph 2 of Rule 19.1 states that: No motion for reconsideration shall be allowed
from the following rulings of the Regional Trial Court:
a. A prima facie determination upholding the existence, validity or enforceability of an
arbitration agreement pursuant to Rule 3.1 (A);
b. An order referring the dispute to arbitration;
c. An order appointing an arbitrator;
d. Any ruling on the challenge to the appointment of an arbitrator;
e. Any order resolving the issue of the termination of the mandate of an arbitrator; and
f. An order granting assistance in taking evidence.
Rule 19.7. No appeal or certiorari on the merits of an arbitral award. - An agreement to refer a
dispute to arbitration shall mean that the arbitral award shall be final and binding. Consequently,
a party to an arbitration is precluded from filing an appeal or a petition for certiorari
questioning the merits of an arbitral award.
Rule 19.9. Prohibited alternative remedies. - Where the remedies of appeal and certiorari are
specifically made available to a party under the Special ADR Rules, recourse to one remedy
shall preclude recourse to the other.
Q. When can the court vacate a decision of the arbitral tribunal in the Philippines?
A. The general rule is the court can only vacate or set aside the decision of an arbitral tribunal
upon a clear showing that the award suffers from any of the infirmities or grounds for vacating
an arbitral award under Section 24 of Republic Act No. 876 or under Rule 34 of the Model
Law in a domestic arbitration, or for setting aside an award in an international arbitration
under Article 34 of the Model Law, or for such other grounds provided under these Special
Rules.
If the Regional Trial Court is asked to set aside an arbitral award in a domestic or
international arbitration on any ground other than those provided in the Special ADR
Rules, the court shall entertain such ground for the setting aside or non-recognition of the arbitral
award only if the same amounts to a violation of public policy.
The court shall not set aside or vacate the award of the arbitral tribunal merely on the
ground that the arbitral tribunal committed errors of fact, or of law, or of fact and law, as
the court cannot substitute its judgment for that of the arbitral tribunal.
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The court shall not set aside or vacate the award of the arbitral tribunal merely on the
ground that the arbitral tribunal committed errors of fact, or of law, or of fact and law,
as the court cannot substitute its judgment for that of the arbitral tribunal. (Emphasis
supplied)
The above rule embodied the stricter standard in deciding appeals from arbitral awards
established by jurisprudence. In the case of Asset Privatization Trust v. Court of
Appeals, this Court held:
As a rule, the award of an arbitrator cannot be set aside for mere errors of judgment either
as to the law or as to the facts. Courts are without power to amend or overrule merely
because of disagreement with matters of law or facts determined by the arbitrators. They will
not review the findings of law and fact contained in an award, and will not undertake to
substitute their judgment for that of the arbitrators, since any other rule would make an
award the commencement, not the end, of litigation. Errors of law and fact, or an erroneous
decision of matters submitted to the judgment of the arbitrators, are insufficient to invalidate
an award fairly and honestly made. Judicial review of an arbitration is, thus, more limited
than judicial review of a trial.
Rule 19.14. When to appeal. - The petition for review shall be filed within fifteen (15) days from
notice of the decision of the Regional Trial Court or the denial of the petitioners motion for
reconsideration.
Q: How to appeal?
A: Rule 19.15. How appeal taken. - Appeal shall be taken by filing a verified petition for review in
seven (7) legible copies with the Court of Appeals, with proof of service of a copy thereof on the
adverse party and on the Regional Trial Court. The original copy of the petition intended for the
Court of Appeals shall be marked original by the petitioner.
Upon the filing of the petition and unless otherwise prescribed by the Court of Appeals, the
petitioner shall pay to the clerk of court of the Court of Appeals docketing fees and other lawful
fees of P3,500.00 and deposit the sum of P500.00 for costs.
Exemption from payment of docket and other lawful fees and the deposit for costs may be granted
by the Court of Appeals upon a verified motion setting forth valid grounds therefor. If the Court of
Appeals denies the motion, the petitioner shall pay the docketing and other lawful fees and deposit
for costs within fifteen days from the notice of the denial.
Rule 19.20. Due course. - If upon the filing of a comment or such other pleading or documents
as may be required or allowed by the Court of Appeals or upon the expiration of the period for the
filing thereof, and on the basis of the petition or the records, the Court of Appeals finds prima facie
that the Regional Trial Court has committed an error that would warrant reversal or modification
of the judgment, final order, or resolution sought to be reviewed, it may give due course to the
petition; otherwise, it shall dismiss the same.
A copy thereof shall be served on the petitioner, and proof of such service shall be filed with the
Court of Appeals.
Q: Can the CA require the transmittal of the entire record of the proceeding under review?
A: Rule 19.21. Transmittal of records. - Within fifteen (15) days from notice that the petition has
been given due course, the Court of Appeals may require the court or agency concerned to
transmit the original or a legible certified true copy of the entire record of the proceeding under
review. The record to be transmitted may be abridged by agreement of all parties to the
proceeding. The Court of Appeals may require or permit subsequent correction of or addition to
the record.
We find no reversible error or grave abuse of discretion in the CAs denial of the application for
stay order or TRO upon its finding that BDO failed to establish the existence of a clear legal right
to enjoin execution of the Final Award confirmed by the Makati City RTC, Branch 148, pending
resolution of its appeal. It would be premature to address on the merits the issues raised by BDO
in the present petition considering that the CA still has to decide on the validity of said court's
orders confirming the Final Award. But more important, since BOO had already paid
P637,941,185.55 manager's check, albeit under protest, and which payment was accepted by
RCBC as full and complete satisfaction of the writ of execution, there is no more act to be
enjoined.
Settled is the rule that injunctive reliefs are preservative remedies for the protection of substantive
rights and interests. Injunction is not a cause of action in itself, but merely a provisional remedy,
an adjunct to a main suit. When the act sought to be enjoined has become fait accompli, the
prayer for provisional remedy should be denied.
Thus, the Court ruled in Gov. Looyuko107 that when the events sought to be prevented by
injunction or prohibition have already happened, nothing more could be enjoined or prohibited.
Indeed, it is a universal principle of law that an injunction will not issue to restrain the performance
of an act already done. This is so for the simple reason that nothing more can be done in reference
thereto. A writ of injunction becomes moot and academic after the act sought to be enjoined has
already been consummated.
The similarity lies in the fact that both remedies are based on the same ground, i.e., the
Regional Trial Court has acted without or in excess of its jurisdiction, or with grave abuse of
Unlike in a Petition for Certiorari under Rule 65 of the 1997 Rules of Civil Procedure which
can cover any and all kinds of grave abuse of discretion committed by a tribunal, board or officer
exercising judicial or quasi-judicial functions, the special civil action for certiorari under the Special
ADR Rules is limited to grave abuse of discretion in the following orders of the Regional Trial
Court in ADR related proceedings:
g. Suspending the proceedings to set aside an international commercial arbitral award and
referring the case back to the arbitral tribunal;
Rule 19.28 of the Special ADR Rules provides that the petition must be filed with the Court
of Appeals within fifteen (15) days from the notice of judgment, order or resolution sought to be
annulled or set aside. However, in a Petition for Certiorari under the Rule 65 of the 1997 Rules of
Civil Procedure the petition should be filed within sixty (60) days from the notice of the judgment,
order or resolution sought to be assailed.
1
Rule 19.26, Special ADR Rules; Section 1, Rule 65, 1997 Rules of Civil Procedure (as amended).
In a Petition under Rule 65, the tribunal that issued the assailed judgment, order or
resolution shall be named as a public respondent to the petition although he is considered merely
as a nominal party. Hence, it is the duty of the private respondent to appear and defend in his
behalf and behalf of the public respondent.2 Further, unless specifically required by the reviewing
court, the public respondent shall not appear in or file an answer or comment to the petition or
any pleading therein.
This is almost the same with a Special Civil Action for Certiorari under the Special ADR
Rules. The arbitral tribunal shall be named as a party albeit it is merely a nominal party. Being as
such, the arbitral tribunal is not required to file any pleading or written submission to the Court
except if such filing or submission will serve the interest of justice.3
Under Rule 65, the filing of a special action for certiorari under the Special ADR Rules
does not stay the proceedings of the lower court or arbitral tribunal. Thus, the arbitral tribunal or
the lower court notwithstanding the filing and pendency of a special civil action for certiorari may
continue with the arbitral proceedings and render an award thereon. 4
Remedy is available only for orders, decisions or judgments of the Regional Trial Courts
in ADR related cases
Rule 65 of the 1997 Rules of Civil Procedure covers the institution of petitions for certiorari
over orders and judgments of any inferior court. The silence of the special ADR Rules and the
exclusionary rule under Rule 22.1 thereof preclude the filing of special civil actions for certiorari
from orders, decisions or judgments of the Court of Appeals to the Supreme Court. Besides the
availability of the remedy of a petition for review on certiorari from orders, decisions or judgments
of the Court of Appeals to the Supreme Court under Rules 19.36 to 19.42 of the Special ADR
Rules, constituting as it does a speedy and adequate remedy under the ordinary course of law,
precludes a special civil action for certiorari. Thus, the remedy of a party aggrieved by a final
resolution or decision of the Court of Appeals in an ADR related case is to file a petition for review
on certiorari with the SC under the ADR Act.
Rule 19.27. Form. - The petition shall be accompanied by a certified true copy of
the questioned judgment, order or resolution of the Regional Trial Court, copies of
2
Section 5, Rule 65, 1997 Rules of Civil Procedure.
3
Rule 19.29, Special ADR Rules.
4
Rule 19.32, Special ADR Rules.
Upon the filing of the petition and unless otherwise prescribed by the Court of
Appeals, the petitioner shall pay to the clerk of court of the Court of Appeals
docketing fees and other lawful fees of P3,500.00 and deposit the sum of P500.00
for costs. Exemption from payment of docket and other lawful fees and the deposit
for costs may be granted by the Court of Appeals upon a verified motion setting
forth valid grounds therefor. If the Court of Appeals denies the motion, the
petitioner shall pay the docketing and other lawful fees and deposit for costs within
fifteen (15) days from the notice of the denial.
Q: What will happen if the petitioner fails to comply with Rule 19.27 and 19.28?
A:
The petition will be dismissed. Rule 19.30 provides that the court shall dismiss the petition
if it fails to comply with Rules 19.27 and 19.28 above, or upon consideration of the ground alleged
and the legal briefs submitted by the parties, the petition does not appear to be prima facie
meritorious.
Q: What if the petition is sufficient in form and substance what will happen next?
A:
If the petition is sufficient in form and substance to justify such process, the Court of
Appeals shall immediately issue an order requiring the respondent or respondents to comment
on the petition within a non-extendible period of fifteen (15) days from receipt of a copy thereof.
Such order shall be served on the respondents in such manner as the court may direct, together
with a copy of the petition and any annexes thereto.5
5
Rule 19.31, Special ADR Rules.