Friday, August 7, 2009

Comm Arb: July 31, 2009 lecture

TIPS: sir calls on those who were absent the last meeting for recitation

*we go by 7: mag-aayos pa sila

Does Arbitrators have power to grant interim reliefs?
YES. SEC 14

What is its equivalent in ROC?
Provisional reliefs

If the arbitration is ongoing, may a party obtain interim relief
From arbitrators: YES
From COURT: YES...

DISSECT Section 14 (last sentence on interim relief):
The arbitrator or arbitrators shall have the power at any time, before rendering the award, without prejudice to the rights of any party to petition the court to take measures to safeguard and/or conserve any matter which is the subject of the dispute in arbitration.

Power of arbitrator to grant interim relief:
The arbitrator or arbitrators shall have the power at any time, before rendering the award, without prejudice to the rights of any party to petition the court to take measures to safeguard and/or conserve any matter which is the subject of the dispute in arbitration.

Power of court to grant interim relief:
The arbitrator or arbitrators shall have the power at any time, before rendering the award, without prejudice to the rights of any party to petition the court to take measures to safeguard and/or conserve any matter which is the subject of the dispute in arbitration.

SIR: arbitration is a choice of forum. Even if you have chosen arbitration, and even if proceedings is going on, you could still ask court to grant interim relief.

Is there a hierarchy of remedies? Should you first obtain interim remedies from Arb panel before Court? Or is it exclusive?
SIR: NO hierarchy of remedies.

If you're a party to an arb proceeding trying to obtain arbitral relief from arb panel, DENIED, can you go to the court to obtain the SAME interim relief?
YES under SECTION 14
SIR: it would actually depend on the governing law. SO since this is Philippine Law, isn't this forum shopping???? (SO IMPLICITLY, NO?)
-forum shopping: even if there is no identity of parties, as long as there is IDENTITY OF INTEREST, IT IS FORUM SHOPPING!!!

*WHAT ABOUT SECTION 29: ON APPEAL
Sec. 29. Appeals. An appeal may be taken from an order made in a proceeding under this Act, or from a judgment entered upon an award through certiorari proceedings, but such appeals shall be limited to questions of law. The proceedings upon such an appeal, including the judgment thereon shall be governed by the Rules of Court in so far as they are applicable.
-BUT you cannot make an appeal from an interlocutory order!!!! You need to file a petition for certiorari under R65

*MERALCO CASE: On court saying that Arb clause valid as long as it allows resort to courts!
-SIR: Case would change! If Arb panel denies provisional remedies, Court would be allowed to permit it???
-resort to RA 9285 (SECTION 28)
SEC. 28. Grant of Interim Measure of Protection. -
(a) It is not incompatible with an arbitration agreement for a party to request, before constitution of the tribunal, from a Court an interim measure of protection and for the Court to grant such measure. After constitution of the arbitral tribunal and during arbitral proceedings, a request for an interim measure of protection or modification thereof, may be made with the arbitral tribunal or to the extent that the arbitral tribunal has no power to act or is unable to act effectively, the request may be made with the Court. The arbitral tribunal is deemed constituted when the sole arbitrator or the third arbitrator who has been nominated, has accepted the nomination and written communication of said nomination and acceptance has been received by the party making request.
(b) The following rules on interim or provisional relief shall be observed:
(1) Any party may request that provision relief be granted against the adverse party:
(2) Such relief may be granted:
(i) to prevent irreparable loss or injury:
(ii) to provide security for the performance of any obligation;
(iii) to produce or preserve any evidence; or
(iv) to compel any other appropriate act or omission.
(3) The order granting provisional relief may be conditioned upon the provision of security or any act or omission specified in the order.
(4) Interim or provisional relief is requested by written application transmitted by reasonable means to the Court or arbitral tribunal as the case may be and the party against whom the relief is sought, describing in appropriate detail the precise relief, the party against whom the relief is requested, the grounds for the relief, and evidence supporting the request.
(5) The order shall be binding upon the parties.
(6) Either party may apply with the Court for assistance in Implementing or enforcing an interim measure ordered by an arbitral tribunal.
(7) A party who does not comply with the order shall be liable for all damages resulting from noncompliance, including all expenses, and reasonable attorney's fees, paid in obtaining the order's judicial enforcement.

*UNDER SECTION 28, you can apply before the court for interim relief: YES. "unable to act effectively" -
GR: cannot go to court for the same relief to be prayed for
X: Arb has no power to act or unable to act effectively

WHEN ARB tribunal have no power to grant interim relief?
WHEN ARB CLAUSE DOES NOT PROVIDE FOR SAID POWER
-yey! Tama! When parties stipulate themselves that arb shall have no such powers. Arbitration is consensual!

What if in the course of arbitration, the need to seek injunction/ attachment arises and the arbitrators have no power to grant such relief?
COURT WOULD have power to grant such relief - RA 9285, Section 28

What do you do when you obtain a reward from the arbitral panel but the losing party refuses to comply with it? (FINAL AWARD RENDERED BY ARBITRAL PANEL)
-apply for confirmation of the FINAL AWARD
Sec. 23. Confirmation of award. At any time within one month after the award is made, any party to the controversy which was arbitrated may apply to the court having jurisdiction, as provided in section twenty-eight, for an order confirming the award; and thereupon the court must grant such order unless the award is vacated, modified or corrected, as prescribed herein. Notice of such motion must be served upon the adverse party or his attorney as prescribed by law for the service of such notice upon an attorney in action in the same court.

what is the effect of the judicial effect of a confirmation of a FINAL AWARD?
It would have the same force of a judgment of the court!
Therefore, you could now apply for a writ of execution from the court to enforce the award!





"you could read it like Souija Boy"

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