Enforcing a Foreign Arbitral Award in the Philippines: RTC Rules Under RA 9285

A foreign arbitral award is recognized and enforced in the Philippines by filing a petition with the Regional Trial Court (RTC), which treats the matter as a special proceeding. Where the award was made in a New York Convention state, the New York Convention governs, as provided by Section 42 of Republic Act No. 9285, the Alternative Dispute Resolution Act of 2004. The applicant must file the original or authenticated copy of the award and the arbitration agreement, with a certified translation if these are not in an accepted language, and must establish that the country where the award was made is a Convention State.

What counts as a foreign arbitral award

Under Section 3 of RA 9285, a Convention Award is a foreign arbitral award made in a Convention State, meaning a State that is a member of the New York Convention. A Non-Convention Award is a foreign arbitral award made in a State that is not a member of the New York Convention.

The same section defines the New York Convention as the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards approved in 1958 and ratified by the Philippine Senate under Senate Resolution No. 71. An award itself is any partial or final decision by an arbitrator in resolving the issue in a controversy.

The award is enforced as an award, not as a foreign judgment

Section 44 of RA 9285 draws a clear line: a foreign arbitral award, even when confirmed by a court of a foreign country, shall be recognized and enforced as a foreign arbitral award and not as a judgment of a foreign court. Once confirmed by the RTC, it is enforced in the same manner as final and executory decisions of Philippine courts of law.

This distinction matters because the confirming foreign court judgment is not the thing being enforced. The arbitral award is.

How to file: the requirements under Section 42

Section 42 provides that the New York Convention governs the recognition and enforcement of awards covered by it, and that the application is filed with the Regional Trial Court in accordance with rules of procedure to be promulgated by the Supreme Court.

The same section states that the party relying on the award, or applying for its enforcement, shall file with the court:

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

If the award or the agreement is not made in an accepted language, the party shall supply a duly certified translation into any of such languages. The applicant must also establish that the country in which the foreign arbitration award was made is a party to the New York Convention.

Where to file and who gets notice

Section 47 of RA 9285 provides that proceedings for recognition and enforcement of an arbitration agreement, or for vacation, setting aside, correction or modification of an arbitral award, and any application for arbitration assistance and supervision, are deemed special proceedings. These are filed with the Regional Trial Court:

1. where the arbitration proceedings are conducted;
2. where the asset to be attached or levied upon, or the act to be enjoined, is located;
3. where any of the parties to the dispute resides or has his place of business; or
4. in the National Judicial Capital Region, at the option of the applicant.

RA 9285 also requires the court to send notice to the parties at their address of record in the arbitration, or at their last known address if service at that address cannot be made. The notice must be sent at least fifteen (15) days before the date set for the initial hearing of the application. The specific section number for this notice requirement is not reproduced in the source text available for this article, so it is described here in general terms only.

Grounds to oppose enforcement are limited

Section 45 of RA 9285 states that a party to a foreign arbitration proceeding may oppose an application for recognition and enforcement of the arbitral award only on those grounds enumerated under Article V of the New York Convention. Any other ground raised shall be disregarded by the Regional Trial Court.

In other words, opposition is not an open-ended appeal on the merits. If the application for rejection or suspension of enforcement has been made, the RTC may, if it considers it proper, vacate its decision and may also, on the application of the party claiming recognition or enforcement, order the other party to provide appropriate security.

Awards not covered by the New York Convention

Section 43 of RA 9285 governs foreign arbitral awards not covered by the New York Convention. Their recognition and enforcement is done in accordance with procedural rules to be promulgated by the Supreme Court. The Court may, on grounds of comity and reciprocity, recognize and enforce a non-Convention award as a Convention award.

Appeal and the counterbond requirement

Under 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 in accordance with rules of procedure to be promulgated by the Supreme Court.

The same provision requires the losing party who appeals from the judgment confirming an arbitral award to post a counterbond in favor of the prevailing party, equal to the amount of the award, in accordance with the rules to be promulgated by the Supreme Court. The specific section number for this appeal and counterbond rule is not reproduced in the source text available for this article, so it is described here in general terms only.

Frequently asked questions

Can a foreign arbitral award be enforced in the Philippines? Yes. Under Section 42 of RA 9285, the New York Convention governs the recognition and enforcement of covered foreign arbitral awards, and the application is filed with the Regional Trial Court.

What documents must be filed to enforce a foreign arbitral award? The original or authenticated copy of the award and the arbitration agreement, plus a duly certified translation if these are not in an accepted language, and proof that the country where the award was made is a party to the New York Convention.

On what grounds can enforcement be opposed? Only on the grounds enumerated under Article V of the New York Convention. Section 45 states that any other ground raised shall be disregarded by the Regional Trial Court.

Practical takeaways

• Enforcement of a foreign arbitral award is a special proceeding filed with the Regional Trial Court, not an ordinary civil action.
• The applicant must establish that the award was made in a New York Convention state and must file the award and the arbitration agreement, with a certified translation where required.
• Venue is flexible: the applicant may choose the RTC where arbitration was conducted, where the asset or act is located, where a party resides or has its place of business, or in the National Judicial Capital Region.
• Opposition is limited to the Article V grounds of the New York Convention; other grounds will be disregarded.
• A party appealing a confirmation ruling must post a counterbond equal to the amount of 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

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