Amending Section 18.6, Rule 18 of the Revised CIAC Rules

October 30, 2006

CIAC RESOLUTION NO. 19-06

AMENDING SECTION 18.6 (STAY OF EXECUTION PENDING REVIEW), RULE 18 OF THE REVISED CIAC RULES

WHEREAS, Sections 6 and 21 of Executive Order No. 1008 empowers the Construction Industry Arbitration Commission (CIAC) "to enunciate policies and prescribe rules and procedures for construction arbitration" and to "to formulate necessary rules and procedures for construction arbitration" respectively;

WHEREAS, Section 18.6, Rule 18 of the Revised CIAC Rules provides, among others, that the Surety Company posting a bond to stay the execution of an award shall be agreed upon by the parties during the preliminary conference and that upon failure to agree, the Surety company's acceptability shall be decided upon by the CIAC;

WHEREAS, during the 89th CIAC Regular Meeting held on 31 August 2006, Atty. Victor P. Lazatin proposed the deletion from Section 18.6 of the Revised CIAC Rules the requirement for the parties to agree during the preliminary conference on the Surety Company posting a bond to give the parties flexibility in negotiating with other Surety Companies which may have lower rates at the time of posting of the bond;

WHEREAS, the Commission, finding the above proposal to be in order, approved the same.

WHEREAS, in its 91st Regular Meeting held on 30 October 2006, the Commission RESOLVED to amend Section 18.6 Rule 18 of the Revised CIAC Rules by deleting the last two sentences of the provision and replacing these with the requirement that the Surety Company posting the bond must be in the latest roster of bonding companies accredited by the Supreme Court.

NOW, THEREFORE, WE, THE UNDERSIGNED COMMISSIONERS, by virtue of the powers vested in us by law, RESOLVE, as it hereby resolved, to amend Section 18.6 (Stay of execution pending review), Rule 18 of the Revised Rules of CIAC, to read as follows:

"SECTION 18.6 Stay of execution pending review. — Execution issued under the preceding Section may be stayed upon approval by the Arbitral Tribunal, with the concurrence of CIAC, of a bond posted by the petitioner in an amount equal to the award, conditioned upon the performance of the judgment of the appellate court in case it upholds the award in whole or in part. Such bond shall be posted within such period of time, which shall in no case be less than fifteen (15) days as may be granted by the Arbitral Tribunal during the hearing on the motion for execution and the opposition thereto. The Surety Company posting the bond must be included in the latest list of surety companies accredited by the Supreme Court and must comply with the requirements set by the CIAC for bond approval, concurrence, and/or acceptance, such as, but not limited to, the prescribed Surety Undertaking "form."

The foregoing revision shall take effect fifteen (15) days from receipt of a copy hereof by the Office of the National Administrative Register, U.P. Law Center, pursuant to Memorandum Circular No. 11 from the Office of the President. AIHDcC

UNANIMOUSLY APPROVED.

Adopted: 30 Oct. 2006

 

(SGD.) SEDFREY A. ORDONEZChairman

(SGD.) ISAAC S. DAVIDMember

(SGD.) SAMSON C. LAZOMember