FROM COURTS TO ARBITRATIONS: NAVIGATING ARBITRATIONS AND THE IMPROTANCE OF LEGAL REPRESENTATION

Court docket congestion is one of the prevailing issues affecting all levels of the judiciary. The overwhelming number of cases, often due to indiscriminate filing, limits the time judges have to thoroughly review, analyze, and decide each case. As a result, the quality of justice delivered is significantly compromised.

In an effort to ease court docket congestion, the State has promoted the use of Alternative Dispute Resolution (ADR) mechanisms, including, but not limited to, arbitration. This initiative was formally enacted through Republic Act No. 9285, also known as the “Alternative Dispute Resolution Act of 2004.” Arbitration in the Philippines is also governed by Republic Act No. 876, or “The Arbitration Law.

The purpose of this law is to streamline the process of delivering impartial justice while also serving as a tool to help decongest court dockets. Moreover, it reflects the State’s commitment to promoting party autonomy in dispute resolution, allowing parties the freedom to determine their own methods for resolving conflicts.

According to the aforementioned law, arbitration is a voluntary dispute resolution process in which one or more arbitrators review and analyze the conflict between the parties, facilitate possible agreements, and ultimately resolve the dispute by rendering an award. Furthermore, under the Arbitration Law, arbitrators are authorized to hear and decide only the matters submitted to them, and the scope of the award is limited to those issues. They also have the authority to assess, within their award, the expenses of one party against another when deemed necessary.

This authority by the Arbitrators is recently recognized in the recent decision of the Supreme Court, upholding the Arbitral Ruling of the Bases Conversion and Development Authority in the case G.R. No. 219421, entitled “Bases Conversion and Development Authority, Petitioner, v. CJH Development Corporation, et al. Respondents.”. 

This case centers on the arbitration between the Bases Conversion and Development Authority (BCDA) and CJH Development Corporation (CJH DevCo), which arises from a dispute over a lease agreement for developing part of Camp John Hay, a former military base that was converted and designated a special economic zone. The Supreme Court explained

 “x x x it is established that the merits of the award are beyond the scope of review of the courts. There is no law granting the judiciary authority to review the merits of an arbitral award. Our hands are tied; if the Court were to insist on reviewing the correctness of the award (or consent to the CA’s doing so), it would be tantamount to expanding our jurisdiction without the benefit of legislation.”

This recognition by the Court reinforces the authority and purpose of arbitration. It provides an effective avenue for resolving legal disputes efficiently, without compromising the quality of justice. For the judiciary, arbitration also helps ease court docket congestion, allowing judges more time to thoroughly review cases and deliver well-reasoned decisions, which contributes to enhancing the overall quality of justice.

As arbitration continues to gain prominence as an effective and efficient method of dispute resolution, it is strongly advisable for individuals and parties involved to be represented by their own legal counsel. While arbitration is generally less formal than court litigation, it still involves complex procedures, legal principles, and strategic considerations that require professional expertise. Having dedicated legal representation ensures that a party’s rights, interests, and objectives are properly advocated for and safeguarded throughout the process.

Legal counsel plays a critical role in evaluating the strengths and weaknesses of a case, presenting persuasive arguments, and ensuring compliance with procedural rules. Furthermore, a skilled lawyer can negotiate favorable terms, propose fair settlement options, and help clients understand the implications of an arbitral award. Having a legal counsel ensures that it can maximize the client’s benefits and minimize potential risks or disadvantages. Engaging a competent attorney can significantly increase the likelihood of achieving a fair and just outcome in arbitration proceedings.