What procedure must be followed regarding an intra-corporate court case if an arbitration agreement is discovered?
If an intra-corporate dispute is filed with a Regional Trial Court, the court is mandated to take action if it determines that an arbitration agreement is written in the corporation’s articles of incorporation, bylaws, or a separate agreement (SEC. 181, Revised Corporation Code of the Philippines). The court shall dismiss the case before the termination of the pretrial conference. This strict dismissal mandate ensures that parties adhere to their agreed-upon method of dispute resolution, thereby promoting the efficiency and finality of corporate arbitration. The arbitral tribunal, once formed, possesses the power to rule on its own jurisdiction and on questions relating to the validity of the arbitration agreement.
31 October 2025
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