CIAC Resolution No. 08-07 Directing Arbitrators to Advise Parties on the Waiver of the Right to Appeal

July 26, 2007

CIAC RESOLUTION NO. 08-07

DIRECTING THE ARBITRATORS TO ADVISE PARTIES ON THE WAIVER OF THE RIGHT TO APPEAL

WHEREAS, Section 19 of Executive Order No. 1008 (the Construction Industry Arbitration Law) provides that "(t)he arbitral award shall be binding upon the parties" and that "it shall be final and inappealable except on questions of law";

WHEREAS, on the other hand, Section 18.2, Rule 18 of the CIAC Rules provides for appeal/petition for review of an arbitral award "in accordance with the provisions of Rule 43 of the Rules of Court";

WHEREAS, more often than not, arbitral awards have been appealed even on questions of fact or mixed questions of fact and law as provided under Rule 43 of the Rules of Court but contrary to Section 19 of E.O. 1008 and in effect, prolonging the process of dispute resolution;

WHEREAS, to forest all delays in dispute resolution arising from appeals, the Philippine Institute of Construction Arbitrators and Mediators, Inc. (PICAM), under PICAM Resolution No. 01-2007, recommended amendments to the Revised CIAC Rules for among others, a provision on the finality of arbitral awards by agreement of the parties, or for a waiver of the right to appeal; HSAcaE

WHEREAS, during the 99th CIAC Regular Meeting held on 26 July 2007, the Commission decided that a provision of such waiver in the Revised CIAC Rules might be a source of problems in the future but agreed that a waiver of the right to appeal may be included in the Terms of Reference, subject to the agreement of the parties;

NOW, THEREFORE, WE THE UNDERSIGNED COMMISSIONERS, in the spirit of promoting and strengthening construction arbitration and by virtue of the powers vested in us by law, hereby RESOLVE, as it is HEREBY RESOLVED, to direct all CIAC abitrators to advise the parties during the Preliminary Conference that they may, in Terms of Reference, waive their right to appeal except on the following grounds:

a. The award was procured by corruption, fraud, or other undue means;

b. That there was evident partiality or corruption in the arbitrators or any of them; or

c. That one or more of the arbitrators was disqualified to act as such under the CIAC Rules and policies, and willfully refrained from disclosing such disqualifications;

d. That the arbitrators exceeded their powers, or so imperfectly executed them, that a mutual, final and definite award upon the subject matter submitted to them was not made. CDcaSA

UNANIMOUSLY APPROVED.

Adopted: July 26, 2007.

Date Filed: September 7, 2007.

(SGD.) SEDFREY A. ORDONEZChairman

(SGD.) ISAAC S. DAVID	(SGD.) SAMSON C. LAZO
Member	Member

Published in the National Administrative Register, Vol. XVIII No. 3 (July-September 2007).