Enforcing a Foreign Arbitral Award in the Philippines: How It Works

Enforcing a foreign arbitral award in the Philippines is done by filing a petition for recognition and enforcement with the Regional Trial Court, governed by the New York Convention and Republic Act No. 9285, the Alternative Dispute Resolution Act of 2004. The award is not treated as a foreign judgment; once confirmed, it is enforced like a final and executory decision of a Philippine court. The opposing party may resist only on the grounds listed in Article V of the New York Convention. This article explains who may file, where, what to submit, and how the process unfolds.

Which awards are covered

Republic Act No. 9285 distinguishes between two kinds of foreign awards.

A "Convention Award" is a foreign arbitral award made in a Convention State — that is, a State that is a member of the New York Convention. Under Section 42 of RA 9285, the New York Convention governs the recognition and enforcement of these awards.

A "Non-Convention Award" is a foreign arbitral award made in a State that is not a member of the New York Convention. Under Section 43 of RA 9285, these are recognized and enforced under procedural rules promulgated by the Supreme Court, and the Philippine court may, on grounds of comity and reciprocity, recognize and enforce a non-convention award as a convention award.

Under Section 44 of RA 9285, a foreign arbitral award confirmed by a foreign court is still recognized and enforced as a foreign arbitral award — not as a judgment of a foreign court.

Where and how to file

Under Section 42 of RA 9285, the application for recognition and enforcement is filed with the Regional Trial Court, in accordance with rules of procedure promulgated by the Supreme Court.

Section 47 of RA 9285 fixes the venue. The proceeding is treated as a special proceeding and may be filed with the Regional Trial Court:

• where the arbitration proceedings were conducted;
• where the asset to be attached or levied upon, or the act to be enjoined, is located;
• where any of the parties to the dispute resides or has its place of business; or
• in the National Capital Region — at the option of the applicant.

Under Section 48 of RA 9285, the court sends notice to the parties at their address of record in the arbitration, or at their last known address, at least fifteen (15) days before the date set for the initial hearing.

What the applicant must establish and submit

Under Section 42 of RA 9285, the party relying on the award or applying for its enforcement must file with the court:

• the original or authenticated copy of the award; and
• the original or authenticated copy of the arbitration agreement.

If the award or the agreement is not in a language accepted by the court, the party must supply a duly certified translation into that language.

The applicant must also establish that the country in which the foreign arbitration award was made is a party to the New York Convention.

Grounds to oppose enforcement

Under Section 45 of RA 9285, a party to a foreign arbitration proceeding may oppose the application only on the grounds enumerated under Article V of the New York Convention. Any other ground raised must be disregarded by the Regional Trial Court.

If an application for rejection or suspension of enforcement is made, the Regional Trial Court may, if it considers it proper, vacate its decision and may also, on the application of the party claiming recognition or enforcement, order the party to provide appropriate security (Section 42, RA 9285).

Effect of confirmation and appeal

Under Section 44 of RA 9285, once a foreign arbitral award is confirmed by the Regional Trial Court, it is enforced in the same manner as final and executory decisions of courts of law of the Philippines.

Under Section 46 of RA 9285, a decision of the Regional Trial Court confirming, vacating, setting aside, modifying, or correcting an arbitral award may be appealed to the Court of Appeals. The losing party who appeals from a judgment confirming an award must post a counterbond in favor of the prevailing party equal to the amount of the award.

Practical steps for a creditor

1. Confirm that the award qualifies as a Convention Award — verify that the seat of arbitration is in a New York Convention State.
2. Assemble the original or authenticated award and arbitration agreement, plus certified translations if needed.
3. Choose the proper Regional Trial Court based on the venue options in Section 47 of RA 9285.
4. File the petition for recognition and enforcement and serve notice in accordance with Section 48 of RA 9285.
5. Anticipate opposition limited to Article V grounds, and be prepared to seek security if the other side moves to suspend enforcement.

Frequently asked questions

Is a foreign arbitral award automatically enforceable in the Philippines? No. It must first be recognized and enforced by a Regional Trial Court. Once confirmed, it is enforced like a final and executory Philippine court decision.

Can a Philippine company stop enforcement of a foreign arbitral award? It may oppose the application, but only on the grounds enumerated under Article V of the New York Convention. Other grounds are disregarded by the Regional Trial Court.

Where do I file a petition to enforce a foreign arbitral award? With the Regional Trial Court, at any of the venues in Section 47 of RA 9285 — including where the arbitration was conducted, where the assets are located, where a party resides or has its place of business, or in the National Capital Region.

Practical takeaways

• Foreign arbitral awards are enforced through a petition for recognition and enforcement with the Regional Trial Court, not by suing on the award.
• Convention Awards are governed by the New York Convention under Section 42 of RA 9285.
• The applicant must file the original or authenticated award and arbitration agreement, with certified translations where needed.
• Opposition is limited to Article V of the New York Convention.
• A confirming decision may be appealed to the Court of Appeals, but the appealing loser must post a counterbond equal to the award.

Primary sources

The rules discussed above are drawn from the following primary sources, as published in the Official Gazette and the national statute book.

• REPUBLIC ACT NO. 9285 - AN ACT TO INSTITUTIONALIZE THE USE OF AN ALTERNATIVE DISPUTE RESOLUTION SYSTEM IN THE PHILIPPINES AND TO ESTABLISH THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION, AND FOR OTHER PURPOSES

• REPUBLIC ACT NO. 643 - AN ACT TO AMEND SECTION NINETY OF REPUBLIC ACT NUMBERED TWO HUNDRED AND NINETY-SIX, OTHERWISE KNOWN AS THE JUDICIARY ACT OF NINETEEN HUNDRED AND FORTY-EIGHT, AND SECTION ONE OF RULE NINETY-THREE OF THE RULES OF COURT IN THE PHILIPPINES.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.