The parties are free to stipulate in a written agreement the time within which the arbitrators must render their award.

If there is no stipulation the law fixes the period to thirty (30) days either after the closing of the hearings or after the arbitrators declared such proceedings closed.

This period may be extended by mutual consent of the parties.^[1]

When can a hearing be considered “closed”?

The “closing” of the hearing does not necessarily mean the date when the presentation of evidence by both parties is concluded.

It is often taken to mean the last day for either party to make their submissions.^[2]

This is in consonance with the last sentence of Section 18 of RA 876 which provides that:

“Upon delivery to the arbitrators of all statements and documents, together with any reply statements, the arbitrators shall declare the proceedings closed.”

A hearing is “closed” for the purpose of computing the time for rendering an award when the tribunal declares that it is closed.

Is the 30-day period extendible?

Yes, this 30-day period can be extended by mutual consent of the parties.^[3]

It is not required that the parties explicitly agree or they put their agreement in writing.

The mutual consent may also be implied from the failure of the parties to object to the delay.

Whatever errors committed related to the deadlines are deemed either waived or harmless when neither party objected at the crucial time to the arbitral tribunal’s conduct of the proceedings.^[4]

^[1] Sec. 19, RA 876

^[2] Parlade, C. (2022). International and Domestic Arbitration, p. 627

^[3] Art. 5.29, IRR of RA 9285

^[4] Parlade, C. (2022). International and Domestic Arbitration, pp. 629-630

The following are the form and contents of an arbitral award:

• In writing and signed by the arbitral tribunal
  • The signatures of the majority of all members of the arbitral tribunal are needed if the proceeding has more than one arbitrator. The reason for any omitted signature must be stated. ^[1]
• The award must state the reasons upon which it is based unless:
  • The parties have agreed that no reasons are to be given or
  • The award is an award on agreed terms or
  • Consent award or award was based on compromise under Article 5.30 (Settlement) of IRR of RA 9285

In case the parties settle the dispute, they can request the arbitral tribunal to record the settlement in the form of an arbitral award on the agreed terms, consent award or award based on compromise.

The award based on the settlement has the same status and effect as any other award on the merits of the case.^[2]

• The award must state the date and place of arbitration
  • The award shall be deemed to have been made at that place.^[3]

After the award is made, a copy signed by the arbitrators must be delivered to each party.^[4]

^[1] Art. 5.31(a), IRR of RA 9285

^[2] Art. 5.31(b), IRR of RA 9285

^[3] Art. 5.31(c), IRR of RA 9285

^[4] Art. 5.31(d), IRR of RA 9285

No, the award of the arbitral tribunal need not be acknowledged, sworn to under oath, or affirmed by the arbitral tribunal unless so required in writing by the parties.^[1]

If there parties did agree that it must be verified, notarized or acknowledged and arbitral tribunal failed to do this, the party or parties may request the arbitral tribunal to supply the omission.^[2]

This should be requested within thirty (30) days from receipt of the award.^[3]

If the parties fail to make the request within the required period, this shall be deemed a waiver of such a requirement. The parties may no longer raise this as a ground to invalidate the award.^[4]

^[1] Art. 5.31(e), IRR of RA 9285

^[2] Id.

^[3] Id.

^[4] Id.

The fees of the arbitrators shall be agreed upon by the parties and the arbitrator/s in writing prior to the arbitration.^[1]

Aside from the arbitrator’s fees, the parties shall also be responsible for the payment of administrative fees of an arbitration institution administering the arbitration and the cost of arbitration.^[2]

The arbitrators shall have the power to assess in their award the expenses of any party against another party, when such assessment is deemed necessary.^[3]

Although the parties may be required to share the cost of arbitration, the arbitrators may decide in their award whether such costs shall be borne by both parties and in what proportion payment of costs should be shared by them.

The IRR of RA 8295 provides that the costs include only:

• The fees of the arbitral tribunal to be stated separately as to each arbitrator and to be fixed by the arbitral tribunal itself.
• The travel and other expenses incurred by the arbitrators
• Costs of expert advice and assistance required by the arbitral tribunal. Examples of these would be site inspection and expenses for the recording and transcription of the arbitration proceedings.
• Travel and other expenses of witnesses to the extent such expenses are approved by the arbitral tribunal.
• Costs for legal representation and assistance of the successful party if such costs were claimed during the arbitral proceedings. This is only to the extent that the arbitral tribunal determines that the amount of such costs is reasonable.
• Any fees and expenses of the appointing authority.

For institutional arbitration, the costs are generally as follows:

• Registration fees – these may or may not be counted towards the administrative costs by the institution
• Administrative costs – these are the fees charged by the institution to run and manage the case and which are often, but not always, capped
• Arbitrators’ fees – these generally consist of the remuneration of the sole arbitrator or the arbitral tribunal^[4]

The fees of the arbitral tribunal must be reasonable in amount.

The arbitral tribunal must take into account the following:

• Amount in dispute
• Complexity of the subject matter
• Time spent by the arbitrators
• Any other relevant circumstances of the case^[5]

If there is an appointing authority agreed upon by the parties and such appointing authority has issued a schedule of fees, the arbitral tribunal shall also take that schedule of fees into account.^[6]

On its establishment, the arbitral tribunal may request each party to deposit an equal amount as an advance of the costs.

The arbitral tribunal may also request supplementary deposits from the parties even during the course of the arbitral proceedings.

The required deposits must be paid in full within thirty (30) days after receipt of the request.

If the deposits were not paid in full, the arbitral tribunal must inform the parties so that they can make the required payment within such period or a reasonable extension, as determined by the arbitral tribunal.

If the payment is still not made, the arbitral tribunal may order the termination of the arbitral proceedings.

After the arbitral award has been made, the arbitral tribunal shall render an accounting to the parties of all the deposits received and return any unexpended balance to the parties.^[7]

^[1] Art. 5.46(a), IRR of RA 9285

^[2] Art. 5.46(b), IRR of RA 9285

^[3] Sec. 20, RA 876

^[4] PIArb Commercial Arbitration Handbook, 2nd Ed., pp.76

^[5] Art. 5.46(d), IRR of RA 9285

^[6] Id.

^[7] Art. 5.46(f), IRR of RA 9285

Yes, the arbitral tribunal generally has the power to award costs against a party or parties.

Allocation of costs is determined in accordance with the agreement of the parties, the relevant arbitration rules or the law governing the arbitration as determined by the parties.

In general, the costs of arbitration shall be borne by the unsuccessful party unless the arbitral tribunal determines the apportionment is more reasonable, taking into account the circumstances of the case.^[1]

^[1] Art. 5.46(e), IRR of RA 9285

Interest is generally awarded in arbitration as a form of damages.

The issue of awarding interest may also be a matter to be determined by the parties’ agreement and/or the applicable law as determined by the arbitral tribunal.^[1]

^[1] PIArb Commercial Arbitration Handbook, 2nd Ed., pp.7

The ADR Act defines an award to be “any partial or final decision by an arbitrator in resolving the issue in a controversy”.^[1]

Based on this definition, it is possible in an arbitration proceeding to render a partial decision.

A partial award is one that finally settles a portion of the dispute that can be separated from the remainder of the dispute but does not necessarily terminate the arbitration or the mandate of the arbitrators to consider the remaining portions of the dispute.^[2]

^[1] Sec. 3(f), RA 9285

^[2] PIArb Commercial Arbitration Handbook, 2nd Ed., pp.73-74

Yes, an arbitral award can still be corrected upon request by one party.

It can also be corrected by the arbitral tribunal on its own initiative within thirty (30) days of the date of the award.^[1]

^[1] Art. 5.33(b), IRR of RA 9285

A party may request for a correction or an interpretation of an arbitral award on the following instances:

• A party may request the arbitral tribunal to correct in the award any errors in computation, any clerical or typographical errors or any errors of similar nature. This request must be with notice to the other party.^[1]
• A party may, if so agreed by the parties and with notice to the other party, also request the arbitral tribunal to give an interpretation of a specific point or part of the award.^[2]

In both these instances, the request must be filed within thirty (30) days from receipt of the award unless another period of time has been agreed upon by the parties.^[3]

The arbitral tribunal shall make the correction or give the interpretation if it considers the request to be justified. The correction or interruption must be made within thirty (30) days from receipt of the request.^[4]

A party may also request the arbitral tribunal to make an additional award as to claims presented during the proceedings but omitted from the award. The request must be made within thirty (30) days from receipt of the award.

If the arbitral tribunal finds this request to be justified, it shall make the additional award within sixty (60) days.^[5]

An arbitral tribunal may also correct any errors in computation, clerical or typographical errors or any errors of similar nature on its own initiative. This correction must be made within thirty (30) days from the date of the award.^[6]

The arbitral tribunal may extend the period of time within which to make a correction, interpretation or additional award, if necessary.^[7]

^[1] Art. 4.33(a)(i), IRR of RA 9285

^[2] Art. 4.33(a)(ii), IRR of RA 9285

^[3] Art. 4.33(a), IRR of RA 9285

^[4] Art. 4.33(b), IRR of RA 9285

^[5] Art. 4.33(d), IRR of RA 9285

^[6] Art. 4.33(c), IRR of RA 9285

^[7] Art. 4.33(e), IRR of RA 9285

An award is considered final when it disposes of the merits and with finality all claims and issues that were submitted to the arbitral tribunal for resolution.

An award may also be considered final in the sense that no further issues are left unresolved by the arbitral tribunal.

No motion for reconsideration, correction and interpretation of award or additional award shall be made with the arbitral tribunal unless there is a provision in the arbitration agreement allowing this.

When the arbitral tribunal releases the final award, it loses jurisdiction over the dispute and the parties to the arbitration.

That is because the mandate of the arbitral tribunal ends with the termination of the arbitration proceedings.[1]

Is there an exception to this?

Yes, if it is shown that the arbitral tribunal failed to resolve an issue submitted for determination.

The party may file a verified motion to complete a final award within thirty (30) days from its receipt.[2]

For special reasons, the arbitral tribunal may still reserve in the final award or order, a hearing to quantify costs and determine which party shall bear the costs or apportionment.

Pending the determination of this issue, the award shall not be deemed final for purposes of appeal, vacation, correction, or any post-award proceedings.[3]

[1] Art. 5.32(c), IRR of RA 9285

[2] Art. 5.32(d), IRR of RA 9285

[3] Art. 5.32(e), IRR of RA 9285