Arbitration Submission Agreement Template for the Philippines
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What is a Arbitration Submission Agreement?
The Arbitration Submission Agreement is a crucial document used when parties have an existing dispute they wish to resolve through arbitration rather than court litigation. Unlike arbitration clauses in commercial contracts that address future disputes, this agreement is crafted specifically for known disputes that have already arisen. The document must comply with Philippine law, particularly the Alternative Dispute Resolution Act of 2004 (RA 9285) and related regulations. It typically includes detailed provisions about the dispute's nature, the arbitration process, appointment of arbitrators, and procedural rules. The agreement is particularly relevant in the Philippine business context where arbitration is increasingly favored as an efficient dispute resolution mechanism, especially for complex commercial disputes. The document must be carefully drafted to ensure enforceability under Philippine law while maintaining alignment with international arbitration standards, as many disputes may have cross-border elements.
Frequently Asked Questions
Is an Arbitration Submission Agreement legally binding in the Philippines?
Yes, an Arbitration Submission Agreement is legally binding in the Philippines under the Alternative Dispute Resolution Act of 2004 (Republic Act No. 9285). The agreement must be in writing and signed by both parties to be enforceable. Philippine courts will generally enforce arbitration awards unless there are specific procedural violations or the agreement violates public policy.
Can I use arbitration if my contract doesn't have an arbitration clause?
Yes, you can still use arbitration through an Arbitration Submission Agreement even if your original contract lacks an arbitration clause. This agreement allows parties with existing disputes to voluntarily submit to arbitration after the conflict has arisen. Both parties must consent in writing to the arbitration process under Philippine law.
How long does it take to prepare an Arbitration Submission Agreement in the Philippines?
A basic Arbitration Submission Agreement can typically be prepared within 3-7 business days in the Philippines. However, complex commercial disputes or agreements requiring extensive negotiation of arbitration rules and procedures may take 2-4 weeks. The timeline depends on the complexity of the dispute and how quickly parties agree on arbitrator selection and procedural rules.
How is an Arbitration Submission Agreement different from an arbitration clause in a contract?
An Arbitration Submission Agreement is created after a dispute has already arisen, while an arbitration clause is included in the original contract before any dispute occurs. The submission agreement is specifically tailored to the existing dispute and allows parties to choose arbitrators and procedures based on the particular conflict, whereas arbitration clauses provide general advance consent to arbitration.
Does my Arbitration Submission Agreement need to specify the arbitration rules to follow in the Philippines?
Yes, your Arbitration Submission Agreement should specify which arbitration rules will govern the proceedings, such as Philippine Dispute Resolution Center (PDRC) rules or ICC rules. Under RA 9285, if no rules are specified, the arbitration will be conducted according to the UNCITRAL Arbitration Rules. Clear procedural guidelines help ensure smooth proceedings and enforceability.
Can arbitration awards from Arbitration Submission Agreements be enforced by Philippine courts?
Yes, arbitration awards from properly executed Arbitration Submission Agreements can be enforced by Philippine courts under RA 9285. The winning party can petition the Regional Trial Court for enforcement within three years. Courts can only refuse enforcement in limited circumstances, such as procedural violations, incapacity of parties, or awards contrary to public policy.
Common mistakes people make when drafting Arbitration Submission Agreements in the Philippines?
Common mistakes include failing to clearly define the dispute scope, not specifying the number and qualifications of arbitrators, omitting the governing law and arbitration seat, and inadequate language regarding cost allocation. Many also forget to include timelines for arbitrator appointment and fail to address confidentiality requirements, which can lead to enforcement issues later.
About the Arbitration Submission Agreement
An Arbitration Submission Agreement is a specialized legal document that enables you to resolve existing disputes through arbitration rather than pursuing lengthy court proceedings. When you and another party have a conflict that has already emerged, this agreement provides a structured pathway to settlement while avoiding the complexities and delays of traditional litigation. The document serves as a mutual commitment to alternative dispute resolution, establishing the terms and conditions under which your dispute will be arbitrated.
When do you need this document?
You should consider using an Arbitration Submission Agreement when you have an active dispute with another business entity, partner, or contractor that requires resolution. This document is particularly valuable in commercial disagreements involving contract breaches, partnership disputes, joint venture conflicts, or professional service disagreements. Unlike arbitration clauses written into contracts before disputes arise, this agreement addresses conflicts that have already materialized and need immediate attention. You may find this document essential when both parties recognize that court litigation would be too costly, time-consuming, or potentially damaging to ongoing business relationships. It's also commonly used when international companies operating in the Philippines need to resolve disputes while maintaining compliance with both local and international arbitration standards.
Key legal considerations
When drafting your Arbitration Submission Agreement, you must carefully define the scope of the dispute being submitted to arbitration, ensuring all relevant issues are clearly identified and included. The agreement should specify the number of arbitrators, their qualifications, and the selection process, as this directly impacts the legitimacy and enforceability of any resulting award. You need to establish clear procedural rules, including timelines for submissions, evidence presentation, and hearing schedules. The document must include provisions for arbitrator fees, administrative costs, and how these expenses will be allocated between parties. Additionally, you should address confidentiality requirements, the governing law for substantive issues, and the seat of arbitration, which determines the procedural law that will apply to your proceedings.
Legal requirements in Philippines
Under Philippine law, your Arbitration Submission Agreement must comply with the Alternative Dispute Resolution Act of 2004 (Republic Act No. 9285) and the Special Rules of Court on Alternative Dispute Resolution. The agreement must be in writing and signed by all parties to be legally enforceable. You must ensure that the dispute falls within the scope of arbitrable matters under Philippine law, as certain disputes involving public policy or criminal matters cannot be arbitrated. The document should reference applicable institutional rules if you choose to conduct arbitration under organizations like the Philippine Dispute Resolution Center Inc. If your dispute involves international elements, you must consider the Philippines' obligations under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which ensures that arbitral awards will be recognized and enforced across international borders.
GOVERNING LAW
Applicable law
This Arbitration Submission Agreement is drafted to comply with Philippines law. Key legislation includes:
New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (1958): International treaty ratified by the Philippines that ensures the recognition and enforcement of foreign arbitral awards and arbitration agreements in contracting states.
Special Rules of Court on Alternative Dispute Resolution (A.M. No. 07-11-08-SC): Provides detailed procedural rules for court-related proceedings in arbitration, including the recognition and enforcement of arbitration agreements and awards.
Civil Code of the Philippines (Republic Act No. 386): Contains general provisions on contracts and obligations that apply to arbitration agreements, including requirements for validity, consent, and enforcement.
UNCITRAL Model Law on International Commercial Arbitration: International framework law adopted by the Philippines through RA 9285, providing standards for international commercial arbitration procedures.
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