Updated: Dec 18, 2020
20 June 2005
MEMO TO : All Clearing Banks/Institutions
SUBJECT : AMENDMENTS TO THE ARBITRATION RULES OF PROCEDURES (ARP)
1. Pursuant to Resolution No. 13-2005 of the Board of Directors, adopted on 22 April 2005, certain identified Sections
of the PCHC Arbitration Rules of Procedure are hereby amended as indicated by underscoring in Annex A hereof.
2. For ease of reference, following are Highlights of the Amendments to the Arbitration Rules:
a) SEC. 3 -A measure was installed to forestall delaying tactics at the preliminary conference stage.
b) SEC. 4 -Reworded so that the President may now designate any qualified incumbent or retired senior bank
officer, and/or any duly accredited attorney-at-law to sit as Substitute Arbitrator and/or Law Member
respectively, whenever the designated Arbitrator and/or Law Member is unavailable for any hearing
and such unavailability would cause a lack of quorum to proceed with a scheduled hearing Case-amount
that shall be heard by a Sole Arbitrator is raised to P1.0 million from P300,000.00 or less
c) SEC. 7 -Now provides that the parties shall be represented at the hearings by any duly authorized officer
knowledgeable of the facts of the case and the issues involved. The assistance of legal counsel at
hearings is now optional.
d) SEC. 8 -Deals with the postponement or resetting of hearings and imposing penalties accordingly
Likewise, a party who fails repeatedly to appear at the preliminary conference or resetting thereof and/or
at any of the scheduled hearings may be non-suited or considered as in default.
e) SEC. 10 -Deals with the procedures in filing and/or non-filing of Motion for Reconsideration and now prescribing
a filing fee therefor.
f) SEC. 13 -Now stipulates that “should any of the litigants elevate the case at hand to the trial courts, all expenses
incurred by the PCHC relative to the court litigation shall be chargeable to the party who loses the case in
3. The applicability of the affected Sections shall be as follows:
a) Section 3 amendment shall be prospective in application; provided, where an arbitration case is currently in its
preliminary conference stage, the requirement for a written document of Lawyer’s Authority therefor
b) Section 4 amendments are applicable to ongoing cases in arbitration and all new cases; provided, the paragraph
pertaining to the new threshold of jurisdiction of the Sole Arbitrator (i.e. up to PESOS: One Million) shall
not apply to ongoing cases.
c) Section 7 amendment is immediately applicable.
d) Section 8 amendments are likewise immediately applicable.
e) Section 10 amendments shall be prospective in application only insofar as the Reconsideration Fee is concerned.
Hence, any pending Motion for Reconsideration shall not be subject to the Reconsideration Fee required
f) Section 13 amendment shall apply to all Petitions for Review currently pending in the trial courts.
4. Resolution No. 13-2005 shall be effective immediately, subject only to the provisos specified in item 3 above.
5. For information and guidance.