AN ACT TO AUTHORIZE THE MAKING OF ARBITRATION AND SUBMISSION AGREEMENTS

Case Overview and Summary

Summary of Republic Act No. 876 (The Arbitration Law):

Title: An Act to authorize arbitration agreements, provide for appointment of arbitrators and arbitration procedure in civil controversies.

Persons and matters subject to arbitration (Section 2):
- Two or more parties can submit existing or future controversies to arbitration, except:
  - Controversies involving infants or incompetent persons, unless permitted by court
  - Controversies under jurisdiction of Court of Industrial Relations
- Arbitration agreement must be in writing and signed by the party (Section 4)

Preliminary procedure for arbitration (Section 5):
- For future controversies, by serving demand for arbitration with contract copy
  - Demand to specify controversy nature, amount, relief sought, arbitrator appointed
  - Other party to appoint arbitrator within 15 days
- For existing controversies, by filing submission agreement with court
  - To specify controversy nature and amount

Court proceedings (Sections 6-7):
- Court can order parties to proceed with arbitration if agreement exists
- Court to stay civil action if issue is referable to arbitration

Appointment of arbitrators (Sections 8-10):
- Parties can agree on method, otherwise court appoints
- Court appoints if parties cannot agree, arbitrator unable to serve, party fails to appoint
- Arbitrators must be impartial, without interest in controversy (Section 10)

Arbitration procedure (Sections 11-18):
- Arbitrators can be challenged for bias or disqualification (Section 11)
- Arbitrators to set hearing time/place, give notice to parties (Section 12)
  - Hearing can proceed if party fails to appear
  - Parties can be represented by attorneys
  - Arbitrators can require witnesses, documents, site inspections (Section 14)
- Arbitrators have power to receive evidence, not bound by court rules (Section 15)
- Parties can submit briefs, arbitrators can reopen hearing (Sections 16-17)
- Parties can agree to submit dispute without oral hearing (Section 18)

Award (Sections 19-21):
- Award to be rendered within 30 days after hearing closed, unless extended (Section 19)
- Award in writing, signed by majority of arbitrators (Section 20)
  - Can grant any relief, including specific performance
  - Cannot exceed scope of parties' agreement
  - Can assess expenses against party
- Arbitrators' fees $50 per day, unless agreed otherwise (Section 21)

Confirmation, vacation, modification of award (Sections 23-27):
- Party can apply to court for confirmation within 1 month (Section 23)
- Grounds for vacating award include corruption, partiality, misconduct, exceeding powers (Section 24)
- Grounds for modifying award include miscalculation, matter not submitted (Section 25)
- Court can enter judgment on confirmed/modified award (Section 27)

Appeals and other provisions (Sections 28-32):
- Appeals limited to questions of law (Section 29)
- Proceedings can continue if party dies (Section 30)
- Repeals inconsistent laws, takes effect 6 months after approval (Sections 31-32)