PACV ARBITRATION ADOPTED RULES OF PROCEDURE

1.    The Philippine Arbitration Center in the Visayas (PACV) adopts  its 2021 Arbitration and  Mediation Rules of Procedure. (see link)

2.    SMALL CLAIMS.

a.    Cases where the claim is Php 2 million or less shall be categorized as a small claim thereby entitled to special procedures of disposition and reduced fees. A claim under this category shall be handled by a sole arbitrator whose fees shall be at a fix rate of 3% of the claim but not less than Php 10,000 or as maybe prescribe by PACV.All other prescribed fees as provided herein shall be reduced to 50%.

b.    The sole Arbitrator shall be agreed by the parties as provided by its contracted or from the list of accredited arbitrators, in the event of disagreement, The sole arbitrator shall be appointed by the President of the PACV or in case of his absence, incapacity or conflict of interest, by the Vice President, Secretary, Treasurer as may be provided. The claim shall be resolved within three (3)months from the appointment of the sole arbitrator.

c.     Small Claim Model clause

• Any dispute controversy or claim arising out of or relating to this contract, or the breach, termination or invalidity thereof shall be settled by arbitration following PACV Arbitration Adopted Rules of Procedure.

• In the event that the amount is Php 2 million or less it shall be considered as small claims under PACV adopted rules on small claims in force at the time of the commencement of the arbitration.

• The parties agree to (name) as Sole Arbitrator, in the event of no availability, or conflict, the sole arbitrator shall be appointed as provided by PACV.

• The place of Arbitration shall be at the PACV hearing office c/o Fray Luis De Leon Bldg. University of San Agustin Iloilo City.

• The language(s) to be used in the arbitral proceedings shall be (language)

• The arbitration claim shall be resolved within three (3)months from the appointment of the sole arbitrator.

As approved by the Board of Trustees of the Phil. Arbitration Center in the Visayas, the 2020 PACV Virtual Hearing Guidelines is hereto adopted as follows:

1.    In line with the intent of the PACV to be in the forefront of advancing dispute resolution procedures and advocating the use of technology in ADR here in the Philippines, the Board of Trustees of PACV. hereby approves the holding of ALL PACV Arbitration Hearings virtually unless parties will consent to a face to face hearing subject to Phil. government guidelines on the matter.

2.    In view thereof PACV recommends that in the drafting of contracts the arbitration clause shall provide the use of virtual hearings and the  adoption of the 2020 PACV Virtual Hearing Guidelines.

3.    Absent any provision thereof, parties with contracts that provides for an arbitration clause, may during the signing of the Terms of Reference agree to virtual hearings and adopt the 2020 PACV Virtual Hearing Guidelines.

4.    In any contract without an arbitration clause but where parties wishes to adopt Arbitration as their mode of dispute resolution, parties may enter into a submission agreement adopting virtual hearings and herein guidelines.

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The 2020 PACV Virtual Hearing Guidelines

1. Preparation for the Virtual Hearings

1.1. The platform to be used for the virtual hearings is Zoom using the account of the PACV.

1.2. The Parties are directed to familiarize themselves with the platform and to advise the Tribunal beforehand if they have any concerns or if they anticipate any issues in using the platform.

1.3. The attendees to the virtual hearings shall be limited to the following:

a.    Arbitral Tribunal

b.    PACV Secretariat Representative

c.    Parties' representatives

d.    Parties' counsels

e.    Parties' witnesses

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1.4. The PACV Secretariat will coordinate with the Parties and require the Parties to provide information to confirm their logistical, technological and security capabilities, availability of secure and suitable rooms for the participants/witnesses and other participants. Depending on the Agreement of Parties the requirements are as follow:

a.    Logistical Requirements

●   Enclosed room with only one entrance and exit

●   Minimal ambient noise

●   Desk and chair for the participant

●   Separate desk for desktop or laptop with camera

b.    Technical Requirements

●   Laptop with system compatible with Zoom, with suitable camera and microphone

●   Zoom application installed in the laptop

●   Headset / headphones preferably bluetooth capable

●   Stable internet connection with adequate speed

c.    Security Requirements

●   Room is in a private place located inside the residence or office of the participant or wherever the participant is taking the call

●   Set up and acoustics of room allows for privacy of communication

●   Personal or home internet connection

d.    Room Layout Requirement for Witnesses

●   Room layout below is intended to ensure (a) that communications during the hearing will be kept private and confidential; and (b) that witnesses will not be coached throughout the hearing.

2. Pre-Hearing Technical Run

2.1. A Pre-Hearing Technical Run shall be agreed upon by Parties to ensure that all participants are able to participate in a proper manner. During the Technical Run, the Parties, their representatives and witnesses should all be present.

2.2. The Arbitral Tribunal/Secretariat will ask the Parties to confirm the following:

a.    Their agreement to hold the virtual hearings in accordance with these Guidelines.

b.    The holding of virtual hearings will not unduly disadvantage the Parties to the arbitration.

c.    The applicable arbitration law/rules allow the holding of virtual hearings expressly or impliedly.

d.    The Arbitral Tribunal consulted the Parties prior to deciding to hold the virtual hearings.

e.    The minimum logistical, technological and security requirements described in 1.4 above, or their substantial equivalent, are met by the Parties and their respective witnesses.

2.3. The Arbitral Tribunal/Secretariat shall assess the Parties' ability to properly participate in the proceedings. It will determine, among others, the following:

a.    The devices the participants are using;

b.    Whether those devices have suitable video and audio capability;

c.    Adequate internet connection (speed and stability); and

d.    Whether the parties are familiar with the video conferencing platform to be used.

2.4. The Arbitral Tribunal/Secretariat and all the participants will take turns testing their ability to share their screens and the Witnesses’ ability to see the same and to be heard.

2.5. The Witnesses will be instructed as to how questions will be presented to them.

2.6. Preliminary matters may be considered/performed, e.g. administration of oath.

2.7. The Parties will designate one representative each who will, together with the Secretariat, monitor the persons present during the virtual hearing and inform the Arbitral Tribunal if any issues arise.

2.8. The Arbitral Tribunal  assigns the Secretariat the responsibility of admitting allowed participants or removing unauthorized attendees from the virtual hearing.

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3.  Conduct of Virtual Hearings

3.1. The Virtual Hearings shall take place as mutually agreed upon by the Parties and the Arbitral Tribunal, subject to any particular and applicable guidelines issued by the Government or relevant authorities in relation to the ongoing COVID-19 pandemic.

3.2. Unless waived by the Parties, each Party shall be entitled to make an Opening Statement for a maximum of thirty (30) minutes. Each Party shall submit their Written Opening Submissions, together with any corresponding material or visual presentation thereto, on a date to be agreed by them.

3.3. The time of the Hearings shall be as may be agreed by parties. 

3.4. Unless otherwise agreed upon, the schedule/order of presentation of Witnesses shall be as follows:

3.4.1. Witnesses for the Claimant:

3.4.2. Witnesses for the Respondent:

3.5. The Parties agree that the whole proceeding shall be recorded by the PACV Secretariat.  An online case record shall be created by the Secretariat for the purpose of this case in consultation with the Parties. If Parties request that such recording be transcribed, the Parties shall coordinate with the Secretariat to agree on the appointment of a stenographer or allow the Secretariat to do the transcription. The Arbitral Tribunal is not bound to wait for said transcription in order to issue an award. Any recording or visual copying of the proceeding, or any part thereof, including screen-shots by any of the Parties is absolutely prohibited.

3.6. The Witness Affidavits as filed before the Arbitral Tribunal shall take the place of the witnesses’ direct testimonies.

3.7. The witnesses may be cross-examined by the adverse party, which examination shall be limited to matters stated in the witnesses’ Written Affidavits or connected therewith, any direct testimony at the hearing, and matters affecting the witnesses’ credibility.

3.8. After the cross-examination of the witness has been concluded, he/she may be re-examined by the party calling him, to explain or supplement his answers during the cross-examination. On re-direct-examination, questions on matters not dealt with during the cross-examination shall not be allowed.

3.9. Upon the conclusion of the re-direct examination, the adverse party may re-cross-examine the witness on matters stated in his re-direct examination. On re-cross examination, questions on matters not dealt with during the re-direct examination shall not be allowed.

3.10. Except with respect to duly authorized representatives of the Parties, other witnesses may be excluded from the hearing room during the examination of a witness.

3.11. Despite the agreed dates of named witnesses to be presented, Parties are advised to have their witnesses present and ready before their scheduled testimony, in case there is time to receive additional evidence as determined by the Arbitral Tribunal.

3.12. The principle of equality of time to present and examine witnesses shall be applied with flexibility. The Secretariat shall take note of the time used by each party, with questions propounded by the Arbitral Tribunal not being taken against either Party.

3.13.  If a named witness cannot be presented on the date duly designated for said witness, the Claimant or Respondent may include another named witness on that date. The previously absent witness may be presented on a later date duly designated to the Party or may be waived by them as they see fit.

3.14.  Any objections by the Parties shall be made after the close of each witness testimony, which the Tribunal shall duly note. No objections that shall interrupt the questioning of a party or the answering of a witness shall be allowed.

3.15. Demeanor that suggest intimidation or harassment of a witness shall not be allowed by the Arbitral Tribunal.

3.16. All online meetings and virtual hearings shall be recorded by the Secretariat. The recording shall be uploaded, as a read-only file, to the online case record after each virtual hearing session.

3.17. The Arbitral Tribunal, Secretariat and the Parties shall have full video and audio access to the witness being examined.

3.18. The Arbitral Tribunal, the Parties, Secretariat and witness being examined shall have full access to any portion of the online case record and share it onscreen during the virtual hearing.

3.19. Prior to being examined, the witness shall be sworn to an oath or affirmation by a member of the Tribunal as may be designated by the Chairman.

3.20. While under examination, the witness may refer to his or her notes or references but shall not be aided by any person during the testimony. The witness shall participate in the virtual hearing using an electronic device separate from that used by the Parties or by the Arbitral Tribunal.

3.21. During the testimony, the witness shall not open or use any other electronic device or application apart from the device and application used to connect to the virtual hearing. Likewise, while under examination, the witness shall not communicate, or attempt to communicate, with the Arbitral Tribunal, the Parties, or any other person except to respond to the examination questions.

3.22. The Arbitral Tribunal may exclude or remove from the virtual hearing any witness or any other person, except a Party or its authorized Representative.

3.23.  Any witness who has no access to adequate telecommunications facilities shall apprise their counsels of the matter which the Party’s shall resolve.

3.24. During oral arguments, unless the Arbitral Tribunal requires written submissions or responses by the Parties, oral submissions and responses shall suffice. Written submissions may be responded to orally or in writing, while oral submissions shall only be responded to orally.

3.25. Where appropriate, the Arbitral Tribunal may allow further oral or written statements such as position papers or memoranda on any issue raised during the virtual hearing. A party shall have at least one (1) day to make written submissions or responses, when allowed by the Arbitral Tribunal.

3.26. The Parties shall be responsible for their attendance and those of their witnesses during the virtual hearing. The Parties and their witnesses shall also be responsible for the adequacy and stability of their respective telecommunications and Internet connections for the duration of the virtual hearings. Any interruption of the connection shall not result in the cancellation, suspension, or rescheduling of the virtual hearing, except in case of force majeure such as fire, earthquake, power outage extending more than one (1) hour, or similar acts or events beyond the control of the Parties or the Arbitral Tribunal.