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WHEREAS, Section 16 of Executive Order No. 1008, the Construction Industry Arbitration Law, provides for “arbitration expenses” which shall include the “filing fee, administrative charges, arbitrator’s fees, fee and expenses of the expert and others which may be imposed by the CIAC” pursuant to its power under Section 13 of the law “to determine and collect fees, deposits, costs of arbitration, as well as administrative and other charges as may be necessary in the performance of its functions and responsibilities”;

WHEREAS, Section 16 of E.O. 1008 provides further that “the administrative charges and the arbitrator’s fees shall be computed on the basis of percentage of the sum in dispute to be fixed in accordance with the Table of Administrative Charges and Arbitrator’s Fees” or the CIAC Table or Arbitration and Mediation Fees;

WHEREAS, consistent with Section 16 of E.O. 1008, Rule 22 (Costs) of the CIAC Revised Rules of Procedures Governing Construction Arbitration (CIAC Rules) also provides, among others, that the “arbitration expenses shall include the filing and administrative fees, arbitrator’s fees, ADF charges and fee and expenses of the expert, and others which may be imposed by CIAC” and that said  fees/charges  for  monetary,  non-monetary  and  small  claims  and  the schedules of payment therefore shall be in accordance with the CIAC Table of Arbitration and Mediation Fees which was adjusted under CIAC Resolution No.
07-2013;

WHEREAS, Annex A of CIAC Resolution No. 07-2013, as amended by CIAC Resolution  No.  04-2016,  provides  for  the  Rules  for  Computing  the  Sum  in Dispute (SID) as follows:

“1.  The  sum  of  the  total  claims  made  by  claimant/s  and  the  total counterclaims posed by Respondent/s shall constitute the sum in dispute (SID)

1.1  All counterclaims posed by the Respondent/s in a case shall be added to the claims regardless of whether or not such counterclaims are permissive or compulsory

2.   Where two Respondents are sued by Claimant and a cross-claim is made by Respondents 1 against Respondent 2:

2.1 amount of a cross-claim that seeks only to pass on the liability of Respondent 1 to Respondent 2, shall not be added to the computation of the SID

2.2  amount  sought  by  Respondent  1  against  Respondent  2  that  is based on a different cause of action shall be added to compute the SID

2.3  amount  sought  by  Respondent  1  that  is  not  merely  intended to defeat the cross-claim but seeks the award of amounts based on different cause of action, shall be added to compute the SID”;

WHEREAS, under the law and the CIAC Rules, arbitration fees, expert fees and expenses, and other charges imposed by CIAC are classified as arbitration expenses/costs which shall “either be shared equally by the parties or be paid by any of them” (Section 17, E.O. 1008) in the amounts determined and fixed by the Commission pursuant to the authority vested in it under Section 13 of E.O. 1008;

WHEREAS, said fees/charges classified as arbitration expenses/costs do not constitute claims, counterclaims, and crossclaims of the parties which, under Annex A of CIAC Resolution No. 07-2013, as amended, are to be included in the computation of the SID; and

WHEREAS, the inclusion of arbitration expenses in the computation of the SID and the resultant undue increase in arbitration fees would be contrary to CIAC law, rules, and policy;

NOW THEREFORE, THE COMMISSION, by virtue of the powers vested in it by law and after due deliberation in its 208th  Regular Meeting held on 29 August 2018, RESOLVES, as it is hereby RESOLVED, to clarify the CIAC Rules for Computing the Sum in Dispute (SID) under Annex A of CIAC Resolution No. 07-2013, as amended by CIAC Resolution No. 04-2016, as follows:

1.    The arbitration expenses/costs which include the filing fee, administrative charges, Arbitrator’s fees, fee and expenses of the expert, and others which may be imposed by the CIAC as provided in Section 16 of E.O. 1008 and Rule 22 of the CIAC Rules, shall not be included in the computation of the Sum in Dispute (SID);

2.    The Arbitral Tribunal shall defer the inclusion of a claim, counterclaim, or crossclaim in the computation of the SID until the deposit of arbitration fees and/or charges imposed by the CIAC therefore shall have been fully paid; and

3.    Claims, counterclaims and/or crossclaims for which the arbitration fees are unpaid shall not be entitled to affirmative relief and evidence presented/submitted  to  support  the  same  shall  only  be  considered  for defense purposes.

This resolution shall take effect fifteen (15) days from receipt of certified copies thereof by the Office of the National Register, U.P. Law Center.

UNANIMOUSLY APPROVED.

29 August 2018, Makati City