The Philippine Arbitration Law and the UNCITRAL Model Law

Introduction

This paper presents a comparative analysis of two arbitration laws, namely, Republic Act No. 876, otherwise known as the “Philippine Arbitration Law” and the United Nations Commission on International Trade Law Model Law on International Commercial Arbitration. The former was enacted on June 19, 1953 while the latter was approved by the United Nations General Assembly on December 11, 1985.

The growing need for a law regulating arbitration in general was acknowledged when R.A. No. 876 was passed. Said Act was adopted to supplement and not to supplant the New Civil Code provisions on arbitration. With its enactment, the Philippine Supreme Court stated in a case that Congress had officially adopted the modern view that arbitration as an inexpensive, speedy and amicable method of settling disputes and as a means of avoiding litigation should receive every encouragement from the courts.

On the other hand, the UN General Assembly recommended that all states give due consideration to the Model Law in view of the desirability of uniformity of the law of and the specific needs of international commercial arbitration practice. The twin objectives of the law are the harmonization of national arbitration laws for international arbitration and the setting up of rules which will meet the present requirements of international arbitration.

Ii. Major Differences