Prescribing Arbitrators' Fees for Motions to Dismiss and Increasing the Required Deposit for Arbitration Fees

August 26, 2007

CIAC RESOLUTION NO. 09-07

PRESCRIBING ARBITRATORS' FEES FOR MOTIONS TO DISMISS AND INCREASING THE REQUIRED DEPOSIT FOR ARBITRATION FEES

WHEREAS, Section 2.4 Rule 2 of the Revised CIAC Rules provides that a motion to dismiss based on lack of jurisdiction shall be resolved by the appointed arbitrator/s;

WHEREAS, the resolution of motions to dismiss by arbitrators is part of the activities under the first stage of arbitral proceedings which, if completed, would entitle the arbitrators to 22% of their fees;

WHEREAS, although the dismissal of the case for lack of jurisdiction terminates the proceedings at the first stage, the arbitrators should be compensated for services rendered in resolving the motion to dismiss;

WHEREAS, the amount or percentage of fees to compensate the arbitrators in cases where the motion to dismiss is granted, has not been prescribed;

WHEREAS, the Philippine Institute of Construction Arbitrators and Mediators, Inc. (PICAM) has recommended 6% of arbitrators' fees for dismissed cases which the Commission, however, believes should be increased to 10%;

WHEREAS, pursuant to its authority to collect fees and deposits for, among others, arbitrators' fees under Sections 13 and 16 of Executive Order No. 1008, the Commission has prescribed a Table of Arbitration Fees requiring upon filing, an initial deposit consisting of 10% of arbitrators' fees based on the amount of claim or P5,000.00, whichever is higher but not to exceed P50,000.00, and P3,600 as preliminary filing fee; ASIDTa

WHEREAS, said initial deposit might not be sufficient to cover filing, administrative, and Arbitrators' fees for dismissed cases as well as cases jointly withdrawn by the parties during or immediately after the first stage of proceedings;

WHEREAS, to address this problem, the PICAM has recommended an increase in the initial deposit for arbitrators' fees from 10% to 25% upon filing which the Commission finds in order;

NOW, THEREFORE, WE THE UNDERSIGNED COMMISSIONERS, after due deliberations in the 99th CIAC Regular Meeting and by virtue of the powers vested in us by law, HEREBY RESOLVE as it is HEREBY RESOLVED, to prescribe 10% of arbitrators' fees as compensation in cases where the motion to dismiss is granted and to adjust the deposit for arbitration fees as follows:

Filing Fees	-	100%
Arbitrators' Fees	-	25%
Administrative Fees	-	25%
Arbitration Development Fund	-	25%

 

UNANIMOUSLY APPROVED.

Adopted: August 26, 2007.

Date Filed: September 7, 2007.

THE COMMISSION:

(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).