Vous êtes sur la page 1sur 27

ALTERNATIVE DISPUTE RESOLUTION:

CONCEPTS, PRINCIPLES AND UPDATES


Judge Maritess Rana-Bernales
OUTLINE
I.
II.
III.
IV.
V.
VI.
VII.

Annotating a Movie: A Civil Action


Dispute Resolution: Paradigm Shift
Sources of Conflicts: Circle of Conflicts
A glimpse of the history of ADR
ADR in the Philippines
Barangay Mediation
Alternative Dispute Resolution
a. Definition
b. Characteristics
c. Benefits
VIII. Conflict resolution spectrum
IX.
Ways to resolve conflict
X.
Approaches in conflict management
XI.
Comparing Processes
a. Negotiation and Mediation
b. Adjudication and Mediation
c. Litigation, Arbitration and Mediation
XII.
ADR in the Philippine Judiciary
XIII. Are we succeeding in CAM and JDR?
XIV.
Negotiation
XV.
Some legal provisions regarding compromise agreement
XVI.
Domestic Arbitration
XVII. RA 9285 or the ADR Act of 2004
a. Salient Features
XVIII. Other ADR Forms
XIX.
Selected Laws on ADR
a. Special Rules of Court on ADR

DISCUSSION:
Annotating a Movie: A Civil Action

What are the positive attributes of Jan Schlictmann as a lawyer? Explain.


What are the negative characteristics of Mr.Schlictmann as a lawyer? Explain.
Had Mr.Schlictmann accepted the offer of Mr.Facher of $20 Million in behalf of his
clients, would that have solved everyones problems? Why or why not?
What was the potential of the Environmental Protection Agency (EPA) in solving the
problems of Woburn and its residents when the same was first brought to the attention of
Mr.Schlictmann?

Dispute Resolution: Paradigm Shift


Analyzing conflicts from new perspectives, finding new ways to solve them other than litigation.
Conflict is a fact of life.
It is hardly possible to grow up in a family, live in
a community, attend school, work, have an
intimate relationship, raise children or actively
participate in the world without experiencing
conflicts.
A Glimpse of the History of ADR

Bushmen of the Kalahari


o Mediation
o Consensus Building

Confucius taught that:


o Natural harmony should not be disrupted,
o and adversarial proceedings are the antithesis of harmony.
In present day China:
o There are 950,000 mediation committees
o with 6 million mediators.
o There are more mediators per 100 citizens in China than lawyers per 100 people
in the United States. (Note: As of 2002)
Ancient Greek Roots of Arbitration
o The Arbitrators first duty was to try to settle the matter amicably.
o If settlement was not reached, the Arbitrator would then call the witnesses and
require submission of evidence in writing.
o Then the Arbitrator would make a decision.
Aristotle (384 to 322 B.C.) said arbitration was introduced to give equity its due weight,
making possible a larger assessment of fairness.

ADR in the Philippines

Not new in the country


Barangay justice system
Indigenous dispute resolution practices
The establishment and operation of the Barangay Justice System is mandated by
Republic Act No. 7160 or the Local Government Code of 1991. Prior to this law,
however, the establishment of the Barangay Justice System had been covered by
Presidential Decree 1508 in 1978 and Batas PambansaBlg. 337 or the 1983 Local
Government Code.
NOT A BARANGAY COURT / LUPON MEMBERS ARE NOT JUDGES
Barangay officials do not have judicial powers. They are simply authorized to do
conciliation or mediation so that disputes that are within their jurisdiction will

no longer reach the courts and therefore will help in the declogging of court
dockets.
Barangay Mediation
Barangay mediation is done by the Barangay Captain by way of intervening Between TWO or
MORE contending parties in order to prevent or put an end to a dispute.
What is Barangay Conciliation
Barangy conciliation is done by Members of the Pangkat, as the conciliators, by
INTERVENING between TWO OR MORE Contending parties in order to prevent or put an
end to a dispute.
WHO ARE MEMBERS OF THE PANGKAT?
3 MEMBERS shall come from the LUPON and chosen by the Complainant and
Respondent
Barangay Arbitration

Can take place at any stage of the proceedings as long as parties agree in writing to abide
by the arbitration award of the LUPON or the PANGKAT.
Who can act as ARBITRATORS?
LUPON CHAIRPERSON
BARANGAY CAPTAIN
PANGKAT CHAIRPERSON

Steps

Filing of the complaint with the OFFICE OF THE BARANGAY CAPTAIN and payment of
the Filing Fee.
IF parties agree to submit themselves to arbitration process at ANY STAGE of the
mediation/conciliation, the conduct of an ARBITRATION HEARING can take place
immediately
After filling up the agreement, the parties are given FIVE DAYS to withdraw from
such an agreement by filling up a sworn statement stating his/her reasons that
such agreement was obtain through fraud, violence, and intimidation (if such is
the case)

Is there a need to proceed with the case in the Lupon if circumstances are present which justify
withdrawal from the agreement to submit to barangay arbitration?
NO.
Forward the case to court by issuing a CERTIFICATE TO FILE ACTION
IF THERE IS NO REPUDIATION?
Set the case for hearing
Parties to be officially notified of the hearing through a NOTICE OF HEARING
and SUMMONS.
Self-Assertion and Determination and IPRA

IPRA or RA 8371 Indigenous Peoples Right Act


Recognize and respect the cultures and traditions of the ICCs (Indigenous
Cultural Communities).
Preserve, protect, and promote the rights of the Indigenous Peoples over their
Ancestral Domain.

Special Features
Rights over the Ancestral Domain.
1. FPIC (Free-Prior and Informed Consent)
2. Benefit Sharing (royalties, etc.)
3. Respect of tribal institutions
System of Leadership

Datuship (Barangay, Municipality, Province, Clan and Tribal level)


Council of Elders (spirituality, economy, farm, youth, defense, justice)
Judiciary: Balaghusay, a member of the Council of elders

Feature: Always starts and ends with a ritual/prayer


Penalty: Money, Property,Carabaos, hard-labor and sometimes death through the Lupak ha
manumbilan
Some Forms of Settlement
SALA a form exacting penalty to anyone breaking tribal laws.
HUSAY-an arbitration among conflicting parties
TAMPUDA HU BALAGEN(Peace Pact) peace settlement in case of clan war or tribal war
A CASE ON FPIC AND CUSTOMARY GOVERNANCE OF THE TALAANDIGS IN THE
PHILIPPINES
On June 6, 2006, at about eight oclock in the morning, a ten wheeler truck entered the territory
of the Talaandig community in Tulugan, Sungko, Lantapan, Bukidnon to load logs of Gmelina
taken inside the area without the knowledge and consent of the Talaandig community. The ten
wheeler truck carried 37 people who were contracted to load the logs for P3,000.00 pesos. The
entry of the truck was noticed because Datu Migketay was doing some repairs in the community
house beside the street. Datu Migketay stopped working to follow up the truck. He reached the
loading area and found that several logs were ready be loaded.
Datu Migketay informed the Canvasser and the Driver of the ten wheeler truck that the tribe is
strictly enforcing the Free, Prior and Informed Consent (FPIC) provisions of Republic Act 8371
known as the Indigenous Peoples Rights Act of 1997. Relative to this, the community also
enforce penalties based on the Talaandig customary law against anybody who utilize resources
inside the Talaandig territory without consent from the Talaandig people
CUSTOMARY PROCEEDINGS
1.

2.
3.

The Counsel of the buyer of the logs was Bai Kamayungan Soledad Canda. She is one of
the Barangay Officials and member of the mediation council. She is also a member of the
organization of the Talaandig mothers for peace and has been involved in the
documentation of the Talaandig tools and instruments for peace and conflict resolution.
As an elder of the community, Bai Kamayungan is familiar with the customs traditions
and history of the tribe.
Two chickens were brought by the buyer of the logs as an offering for the opening of the
customary process of dispute resolution.
The amount of the penalty will be determined according to the degree of the offense.
Datu Migketay further explained that the Talaandig customary law is based on the
authority of the Walu ha Pasagi (Council of Eight) who established the foundation of the
Talaandig customary justice. Grave violation of the Talaandig customary law simply
means that governance and authority of the Walu ha Pasagi was neglected and their
dignity was seriously offended. The honor and dignity of the Talaandig leadership based
on the framework of the Walu ha Pasagi is already equivalent to eight carabaos.

4.

Datu Migketay asked the Counsel of the buyer, the Barangay Official and the owner of he
logs if the decision is accepted. All of them accepted the decision so the following has
been agreed upon for the resolution of the case:
a. The penalty of the buyer of the logs is reduced to one carabao, seven chickens, rice
and coins to be submitted to the tribe on October 10, 2006 for the execution of the
reconciliation ritual during the celebration of the Talaandig annual festival.
b. The Barangay Council will also give their share of the penalty on the scheduled
Talaandig festival.
c. The logs that were cut are totally surrendered to the Talaandig community. Its
disposal shall be decided by the Council of Elders.
d. The ten wheeler truck which is supposedly used for the transport of the logs will be
released by the community.
e. The penalty of the owner of the logs of the penalty shall be deducted from the amount
of the logs which were surrendered.
f. The share of the Counsel of the buyer of the logs on the penalty is settled in exchange
of her effort to promote customary justice and the respect of her dignity as an elder
and leader of the people.

ADR: Definition

Entire range of dispute resolution options


Outside the traditional administrative, judicial, or legislative decision-making bodies

Any process or procedure used to resolve a dispute or controversy, other than by adjudication of a
presiding judge of a court or an officer of a government agency, as defined in this Act, in which a
neutral third party participates to assist in the resolution of issues, which includes arbitration,
mediation, conciliation, early neutral evaluation, mini-trial, or any combination thereof.
Characteristics

Process is voluntary.
It is not restricted by formal rules of procedure.
It offers opportunity for both transparency & confidentiality.
It has ample room for flexibility & creativity.
It focuses on problem-solving & consensus-building.
Parties have direct participation in the process.
They may seek the assistance of 3rd parties in arriving at mutually satisfactory outcomes.
Parties are willing to be bound by their decisions.
It provides speedy settlement of disputes.
It enables the parties to understand each others issues & concerns.
It allows the parties to address several issues.
It allows the parties to arrive at decisions through collaborative efforts.
It helps the parties to preserve relationships.

Benefits

It is less expensive compared to the costs of litigation & other forms of conflict resolution.
It enables parties to reach settlements speedily.
It enables the parties to know & understand the other parties interests & concerns.
Parties are generally more satisfied with the agreements they themselves crafted.
Parties are able to address more concerns.
Parties have the opportunity to directly participate in the process, with minimum
assistance of a legal counsel.
Relationships of the parties are often preserved.

Negotiation
A non-compulsory process where
Two or more parties
Identify issues of concern together and
Discuss between themselves possible
solutions
And then decide on a mutually acceptable
solution.

Adjudication
Parties persuade neutral
Neutral decides
Adversarial
Win-lose
Retrospective

Litigation
Judge
Decision/Judgment
Procedure by State
Public

Mediation
A non-compulsory process where
The negotiating parties
Select a neutral intervenor who ..
Helps them identify the issues
and facilitates brains-storming of possible
solutions
For the parties to find a mutually
acceptable solution.
Mediation
Parties persuade each other
Neutral helps parties decide
Collaborative
Win-win
Future-oriented

Arbitration
Arbitrator
Arbitral Award
Procedure by Parties
Confidential

Mediation
Mediator
Compromise Agreement
No rigid procedure
Confidential

FORMS:
Ad hoc
Institutional
ADR in the Philippine Judiciary

A.M. No. 11-1-6-SC, 11 January 2011 (previously A.M. No. 01-10-5-SC-PhilJA, A.M.
No. 04-1-12-SC-PHILJA, A.M. No. 08-9-10-SC-PhilJA)

Consolidated & Revised Guidelines to Implement the Expanded Coverage of CourtAnnexed Mediation (CAM) and Judicial Dispute Resolution (JDR)
A.M. No. 11-1-6-SC (2011)

Court Diversion of Pending Cases


To put an end to pending litigation through compromise agreement & thereby help
solve the problem of court docket congestion
To empower the parties to resolve their own disputes & give practical effect to
ADR Act of 2004

3 Stages of Court Diversion

Stage 1: Court-Annexed Mediation (CAM)


Stage 2: Judicial Dispute Resolution (JDR)
Stage 3: Appellate Court Mediation (ACM)

MISSION OF CAM AND JDR:

Empowerment of parties
Restoration of civil relations of parties
De-clogging of court dockets
Paradigm shift in dispute resolution

Are succeeding in CAM and JDR?


PHILIPPINE JUDICIAL ACADEMY
PHILIPPINE MEDIATION CENTER OFFICE
CAM STATISTICAL REPORT AS OF DECEMBER 2013
YEAR

NO. OF
NO. OF PMC
COURTS
UNITS
COVERED

2002

26

2003

26

2004

30

2005

37

2006

40

2007

53

2008

70

2009

97

2010

97

2011

106

2012

107

442
442
601
675
730
931
1105
1380
1380
1496
1540

TOTAL
TOTAL
TOTAL
NUMBER OF NUMBER OF NUMBER OF SUCCESS
CASES
CASES
SUCCESSFUL RATE
REFERRED MEDIATED MEDIATION
4,118

3,559

4,246

3,097

20,277

7,490

25,745

11,717

21,211

13,050

38,816

20,145

62,678

45,684

49,702

31,225

50,558

33,810

49,497

29,720

56,498

32,280

3,000

84.29%

2,410

77.82%

5,899

78.76%

7,626

65.08%

8,159

62.52%

13,633

67.67%

29,148

63.80%

19,406

62.15%

20,304

60.05%

18,029

60.66%

19,266

59.68%

2013

115

TOTAL

115

1623
1623

57,563

32,633

440,909

264,410

20,108

61.62%

166,988

63.15%

PHILIPPINE JUDICIAL ACADEMY


PHILIPPINE MEDIATION CENTER OFFICE
JDR STATISTICAL REPORT AS OF DECEMBER 2013
TOTAL
TOTAL
TOTAL
NUMBER OF NUMBER OF NUMBER OF SUCCESS
CASES
CASES
SUCCESSFUL RATE
REFERRED MEDIATED MEDIATION

YEAR

NO. OF JDR NO. OF


SITES
COURTS
(CLUSTERS) COVERED

2004

101

22

22

15

68.18%

2005

101

487

487

205

42.09%

2006

166

1,437

1,171

454

38.77%

2007

195

6,370

3,982

1,660

41.69%

2008

232

8,569

5,447

2,010

36.90%

2009

232

5,727

3,470

1,487

42.85%

2010

377

6,032

3,734

1,320

35.35%

2011

421

8,140

4,653

1,924

41.35%

2012

13

636

9,218

4,378

1,513

34.56%

2013

18

836

9,678

4,699

1,917

40.80%

TOTAL

18

836

55,680

32,043

12,505

39.03%

PHILIPPINE JUDICIAL ACADEMY


PHILIPPINE MEDIATION CENTER OFFICE
ACM STATISTICAL REPORT AS OF DECEMBER 2013
YEAR

2005
2006
2007
2008
2009

NO. OF
NO. OF ACM
DIVISIONS
UNITS
COVERED

TOTAL
TOTAL
TOTAL
NUMBER OF NUMBER OF NUMBER OF SUCCESS
CASES
CASES
SUCCESSFUL RATE
REFERRED MEDIATED MEDIATION

17

17

50.00%

17

23

18

38.89%

17

161

82

30

36.59%

20

391

208

70

33.65%

2010

20

748

392

141

35.97%

20

1,106

341

111

32.55%

23

1,238

747

231

30.92%

3
TOTAL 3

23
23

1,400

606
2,396

2011
2012
2013

5,071

213 35.15%
804 33.56%

Supreme Court of the Philippines


Philippine Judicial Academy
Philippine Mediation Center Office

MEDIATION AREA

CAM STATISTICAL REPORT (2002 - 2013*)


as of December 2013
2002-2013
Total Number Total Number Number of
Number of
of Cases
of Cases
Successful
Unsuccessful
Referred
Mediated
Mediation
Mediation

NCR

219,379

131,349

Cebu

24,462

Davao del Norte

Success
Rate

86,000 45,349

65%

13,063

8,411 4,652

64%

12,123

7,159

4,281 2,878

60%

Davao del Sur

8,018

3,695

2,149 1,546

58%

Misamis Oriental

12,876

7,219

5,218 2,001

72%

Pampanga

17,280

11,323

6,319 5,004

56%

Negros Occidental

11,792

7,832

4,249 3,583

54%

Leyte

9,412

5,519

3,190 2,329

58%

South Cotabato

7,125

5,068

2,735 2,333

54%

Sarangani

448

366

111 255

30%

Supreme Court of the Philippines


PHILIPPINE JUDICIAL ACADEMY
PHILIPPINE MEDIATION CENTER OFFICE
JDR STATISTICAL REPORT (2004-2013)
as of December 2013
JDR SITE

2004-2013
Total Number Total Number Number of
of Cases
of Cases
Successful
Referred
Mediated
Mediation

Number of
Success
Unsuccessful
Rate
Mediation

NCR

21,359

7,437

11,679

4,242

36%

La Union

1,783

1,258

280

978 22%

Benguet

7,378

3,413

1,139

2,274 33%

Pampanga

7,688

4,799

1,685

3,114 35%

297

246

102

144 41%

Negros Occidental

6,586

4,772

2,902

1,870 61%

Misamis Oriental

8,522

5,513

2,092

3,421 38%

41

26

10

16 38%

2,026

337

53

284 16%

Cavite

Camiguin
Davao
TOTAL

55,680

32,043

12,505

19,538

39%

Supreme Court of the Philippines


PHILIPPINE JUDICIAL ACADEMY
PHILIPPINE MEDIATION CENTER OFFICE
ACM STATISTICAL REPORT (2005*-2013)
as of December 2013

ACM AREA

2005-2013
Total Number Total Number Number of
of Cases
of Cases
Successful
Referred
Mediated
Mediation

Number of
Success
Unsuccessful
Rate
Mediation

Manila

4,397

2,056

649

1,407

32%

Cagayan de Oro City 559

305

141

164

46%

Cebu

115

35

14

21

40%

TOTAL

5,071

2,396

804

1,592

34%

Negotiation

There are NO LAWS concerning when and how to do private negotiation, which is
voluntary.
However, there are SKILLS useful to the art of negotiation (which will not be discussed in
this lecture).
COMPROMISES are often the result of private negotiation (between the parties) or
mediation (involving a neutral third party.

Other government agencies w/ ADR rules

COSLAP Rules of Procedure


CDA Revised Rules of Procedure for Mediation & Conciliation at the Cooperative Level
(2006)
DOLE
DTI for consumer complaints
HLURB Amended Rules of Procedure
NCIP Procedures

OGCC Implementing Rules & Regulations


PCUP

ADR policy initiatives in the last 10 years


Court-annexed mediation & other ADR mechanisms (2001)
RA 9285 - ADR Act of 2004
EO 523 - Admin. Justice Reform of 2006
Ombudsman Rules of Procedure on Mediation 2008
IRR of ADR Act DOJ and OADR (2010)

Some legal provisions regarding compromise agreement

Arts. 151, and Title XIV, Chapter 1, Civil Code of the Philippines
Persons and Family Relations
o Art. 151. No suit between members of the same family shall prosper unless it
should appear from the verified complaint of petition that earnest efforts toward a
compromise have been made, but that the same have failed. If it is shown that no
such efforts were in fact made, the case must be dismissed.
o This rule shall not apply to cases which may not be the subject of compromise
under the Civil Code. (222a)
***NOTE: see Art. 2035, Civil Code
Civil Code
o Art. 2028. A compromise is a contract whereby the parties, by making reciprocal
concessions, avoid a litigation or put an end to one already commenced. (1809a)
o Art. 2030. Every civil action or proceeding shall be suspended:
If willingness to discuss a possible compromise is expressed by one or
both parties (NOTE: during the pendency of the action); or
If it appears that one of the parties , before the commencement of the
action or proceeding, offered to discuss a possible compromise but the
other party refused the offer.
x xx . (n)
(NOTE: Now we have mandatory CAM and JDR.
o Art. 2034. There may be a compromise upon the civil liability arising from an
offense; but such compromise shall not extinguish the public action for the
imposition of the legal penalty. (1813)
o Art. 2035. No compromise upon the following questions shall be valid:
1. The civil status of persons;
2. The validity of a marriage or a legal separation;
3. Any ground for legal separation
4. Future support;
5. The jurisdiction of courts;
6. Future legitime. (1814a)
o Art. 2038. A compromise in which there is mistake, fraud, violence, intimidation,
undue influence, or falsity of documents, is subject to the provisions of Article
1330 of this Code.
(NOTE: Art. 1330, effect = voidable contract)
However, one of the parties cannot set up a mistake of fact as against the
other if the latter, by virtue of the compromise, has withdrawn from a litigation
already commenced. (1817a)
o Art. 2041. If one of the parties fails or refuses to abide by the compromise, the
other party may either enforce the compromise or regard it as rescinded and insist
upon his original demand. (n)

Domestic Arbitration
- An arbitration that is NOT international
Examples:
Dispute is between parties who have their places of business in the Philippines; AND

No stipulation in their arbitration agreement that the subject matter of the arbitration
agreement relates to another country

Governing Laws:

RA 876 (The Arbitration Law)


Chapter 2, Title XIV, Civil Code
RA 9285 (Alternative Dispute Resolution Act of 2004)

Ways to Arbitrate:
Submission by two or more parties to one or more arbitrators
Stipulation in contract
Cases

NOT subject to Arbitration:


Infant
Judicially declared incompetent unless approved by the Court
CIR cases (labor cases are not subject to private arbitration; but they can be subject of
other modes of ADR)

Form:

In writing
Subscribed by the parties concerned
Demand:
Single Arbitrator specific time that
parties agree upon
Three Arbitrators
Appointment of Arbitrators:
As provided in the method agreed on
If no method, the CFI (RTC) designates
the arbitrator/s
CFI (RTC) designates arbitrators when:

Parties unable to agree upon a single arbitrator


Arbitrator chosen is unwilling and unable to serve and there is no successor
Either party fails or refuses to name his chosen arbitrator
Arbitrators fail to agree or select the third arbitrator
Courts discretion
Decline or failure to accept appointment

Qualifications of Arbitrators:

legal age
full enjoyment of civil rights
able to read and write
not related by blood or marriage within the 6th degree to either party
no financial, fiduciary or other interest in the controversy
not a champion or advocate of any party

Hearing by Arbitrators:

statement of facts
issues
evidence

not bound by the Rules of Court


sole judge of the relevancy and materiality of evidence
ocular inspection

Grounds for Vacating Awards:

procured by corruption, fraud or undue means


evident partiality in the arbitrators
guilty of misconduct
exceeded their powers

Grounds for Modifying or Correcting Awards:

evident miscalculation or evident mistake


award on matters not submitted to them
award is imperfect

RA 9285 or the ADR Act of 2004


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
State Policy

Actively promote party autonomy in the resolution of disputes.


or the freedom of the party to make their own arrangements to resolve their disputes.

Means to an End

Encourage and actively promote the use of Alternative Dispute Resolution (ADR) as an
important means to achieve speedy and impartial justice and declog court dockets.
Provide means for the use of ADR as an efficient tool and an alternative procedure for the
resolution of appropriate cases.
Enlist active private sector participation in the settlement of disputes through ADR.

Deference to Judicial Authority


This Act shall be without prejudice to the adoption by the Supreme Court of any ADR system,
such as mediation, conciliation, arbitration, or any combination thereof as a means of achieving
speedy and efficient means of resolving cases pending before all courts in the Philippines which
shall be governed by such rules as the Supreme Court may approve from time to time.
Liability of ADR Provider and Practitioner
Lifted from Section 38 (1), Chapter 9, Book of the Administrative Code of 1987.
(1) A public officer shall not be civilly liable for acts done in the performance of his official
duties, unless there is a clear showing of bad faith, malice or gross negligence.
(2) Any public officer who, without just cause, neglects to perform a duty within a period fixed by
law or regulation, or within a reasonable period if none is fixed, shall be liable for damages to the
private party concerned without prejudice to such other liability as may be prescribed by law.
(3) A head of a department or a superior officer shall not be civilly liable for the wrongful acts,
omissions of duty, negligence, or misfeasance of his subordinates, unless he has actually
authorized by written order the specific act or misconduct complained of.
Exceptions to its Application
(a) labor disputes covered by the Labor Code of the Philippines, as amended and its
Implementing Rules and Regulations;

(b) the civil status of persons;


(c) the validity of a marriage;
(d) any ground for legal separation;
(e) the jurisdiction of courts;
(f) future legitime;
(g) criminal liability; and
(h) those which by law cannot be compromised
ADR Provider - Institutions or persons accredited as mediator, conciliator, arbitrator, neutral
evaluator, or any person exercising similar functions in any Alternative Dispute Resolution
system. This is without prejudice to the rights of the parties to choose non-accredited individuals
to act as mediator, conciliator, arbitrator, or neutral evaluator of their dispute.
Whenever referred to in this Act, the term "ADR practitioners" shall refer to individuals acting as
mediator, conciliator, arbitrator.
Arbitration - A voluntary dispute resolution process in which one or more arbitrators, appointed in
accordance with the agreement of the parties, or rules promulgated pursuant to this Act, resolve
a dispute by rendering an award.
Award - Any partial or final decision by an arbitrator in resolving the issue in a controversy.
Confidential Information - Any information, relative to the subject of mediation or arbitration,
expressly intended by the source not to be disclosed, or obtained under circumstances that
would create a reasonable expectation on behalf of the source that the information shall not be
disclosed.
It shall include (1) communication, oral or written, made in a dispute resolution
proceedings, including any memoranda, notes or work product of the neutral party or non-party
participant, as defined in this Act; (2) an oral or written statement made or which occurs during
mediation or for purposes of considering, conducting, participating, initiating, continuing of
reconvening mediation or retaining a mediator; and (3) pleadings, motions manifestations,
witness statements, reports filed or submitted in an arbitration or for expert evaluation .
Court Annexed Mediation - Any mediation process conducted under the auspices of the court,
after such court has acquired jurisdiction of the dispute.
Court Referred Mediation - Mediation - ordered by a court to be conducted in accordance with
the Agreement of the Parties when as action is prematurely commenced in violation of such
agreement.
Mediation - A voluntary process in which a mediator, selected by the disputing parties, facilitates
communication and negotiation, and assist the parties in reaching a voluntary agreement
regarding a dispute.
Mediation
Scope and Application
Covers voluntary mediation, whether ad hoc or institutional, other than court-annexed.
Mediation shall include conciliation.
Confidentiality of Information
Information obtained through mediation shall be privileged and confidential.
A party, a mediator, or a nonparty participant may refuse to disclose and may prevent any
other person from disclosing a mediation communication.
Confidential Information shall not be subject to discovery and shall be inadmissible.
However, evidence or information that is otherwise admissible or subject to discovery does not
become inadmissible or protected from discovery solely by reason of its use in a mediation.
The protections of this Act shall continue to apply even of a mediator is found to have
failed to act impartially.

A mediator may not be called to testify to provide information gathered in mediation. A


mediator who is wrongfully subpoenaed shall be reimbursed the full cost of his attorney's fees
and related expenses.
Persons Entitled to the Privilege
(1) The parties to the dispute
(2) The mediator or mediators
(3) The counsel for the parties
(4) The nonparty participants
(5) Any persons hired or engaged in connection with the mediation as secretary, stenographer,
clerk or assistant
(6) Any other person who obtains or possesses confidential information by reason of his/her
profession
Waiver of Confidentiality
The confidentiality of information may be waived in a record, or orally during a
proceeding by the mediator and the mediation parties.
A privilege arising from the confidentiality of information may likewise be waived by a
nonparty participant if the information is provided by such nonparty participant.
A person who discloses confidential information shall be precluded from asserting the
privilege thus granted.
THUS:
(1) Such person cannot disclose the rest of the information necessary to a complete
understanding of the previously disclosed information.
(2) Such person cannot disclose communication which prejudices another person in the
proceeding and it is necessary for the latter to respond to the representation of disclosure.
Exceptions to the Privilege
(1) An agreement evidenced by a record authenticated by all parties to the agreement;
(2) Available to the public or that is made during a session of a mediation which is open, or is
required by law to be open, to the public;
(3) A threat or statement of a plan to inflict bodily injury or commit a crime of violence;
(4) Internationally used to plan a crime, attempt to commit, or commit a crime, or conceal an
ongoing crime or criminal activity;
(5) Sought or offered to prove or disprove abuse, neglect, abandonment, or exploitation in a
proceeding in which a public agency is protecting the interest of an individual protected by law;
but this exception does not apply where a child protection matter is referred to mediation by a
court or a public agency participates in the child protection mediation;
(6) Sought or offered to prove or disprove a claim or complaint of professional misconduct or
malpractice filed against mediator in a proceeding; or
(7) Sought or offered to prove or disprove a claim of complaint of professional misconduct of
malpractice filed against a party, nonparty participant, or representative of a party based on
conduct occurring during a mediation.
Extent of the Privilege
There is no privilege if a court or administrative agency, finds, after a hearing in camera, that:
(1) the party seeking discovery of the proponent of the evidence has shown that the evidence is
not otherwise available;
(2) that there is a need for the evidence that substantially outweighs the interest in protecting
confidentiality,: and
(3) the mediation communication is sought or offered in:
(a) a court proceeding involving a crime or felony; or
(b) a proceeding to prove a claim or defense that under the law is sufficient to reform or avoid
a liability on a contract arising out of the mediation.
Only the portion of the communication necessary for the application of the exception for
nondisclosure may be admitted. The admission of particular evidence for the limited purpose of
an exception does not render that evidence, or any other mediation communication, admissible
for any other purpose.

Mediator
QUALIFICATIONS
This Act does not require that a mediator shall have special qualifications by background or
profession unless the special qualifications of a mediator are required in the mediation
agreement or by the mediation parties.
OBLIGATIONS
A mediator may not make a report, assessment, evaluation, recommendation, finding, or other
communication regarding a mediation to a court or agency or other authority that make a ruling
on a dispute that is the subject of a mediation,
except:
(a) where the mediation occurred or has terminated, or where a settlement was reached; and
(b) (b) when there is a need for disclosure due to conflict of interest.
Testimonial Disqualification
A mediator may not be compelled to provide evidence of a mediation communication or testify in
such proceeding.
Operative Principles
(1) There must be a reasonable inquiry, tending to show such facts that a reasonable individual
would consider likely to affect the impartiality of the mediator.
(2) Disclosure to the mediation parties any such fact known or learned as soon as is practical
before accepting a mediation.
(3) At the request of a mediation party, an individual who is requested to serve as mediator shall
disclose his/her qualifications to mediate a dispute.
Venue
The parties are free to agree on the place of mediation. Failing such agreement, the place of
mediation shall be any place convenient and appropriate to all parties.
Participation
Except as otherwise provided in this Act, a party may designate a lawyer or any other
person to provide assistance in the mediation.
A lawyer of this right shall be made in writing by the party waiving it.
A waiver of participation or legal representation may be rescinded at any time.
Effect of Agreement to Submit Dispute to Mediation
An agreement to submit a dispute to mediation by any institution shall include an agreement to
be bound by the internal mediation and administrative policies of such institution. Further, an
agreement to submit a dispute to mediation under international mediation rule shall be deemed
to include an agreement to have such rules govern the mediation of the dispute and for the
mediator, the parties, their respective counsel, and nonparty participants to abide by such rules.
In case of conflict between the institutional mediation rules and the provisions of this Act, the
latter shall prevail.
Enforcement of Mediated Settlement Agreement
(a) A settlement agreement following successful mediation shall be prepared by the parties with
the assistance of their respective counsel, if any, and by the mediator.
The parties and their respective counsels shall endeavor to make the terms and condition thereof
complete and make adequate provisions for the contingency of breach to avoid conflicting
interpretations of the agreement.

(b) The parties and their respective counsels, if any, shall sign the settlement agreement. The
mediator shall certify that he/she explained the contents of the settlement agreement to the
parties in a language known to them.
(c) If the parties so desire, they may deposit such settlement agreement with the appropriate
Clerk of a Regional Trial Court of the place where one of the parties resides. Where there is a
need to enforce the settlement agreement, a petition may be filed by any of the parties with the
same court, in which case, the court shall proceed summarily to hear the petition, in accordance
with such rules of procedure as may be promulgated by the Supreme Court.
(d) The parties may agree in the settlement agreement that the mediator shall become a sole
arbitrator for the dispute and shall treat the settlement agreement as an arbitral award which
shall be subject to enforcement under Republic Act No. 876, otherwise known as the Arbitration
Law, notwithstanding the provisions of Executive Order No. 1008 for mediated dispute outside of
the CIAC.
Other ADR Forms
Referral of Dispute to other ADR Forms
The parties may agree to refer one or more or all issues arising in a dispute or during its
pendency to other forms of ADR such as but not limited to (a) the evaluation of a third person or
(b) a mini-trial; (c) mediation-arbitration, or a combination thereof.
Early Neutral Evaluation
An ADR process wherein parties and their lawyers are brought together early in a pre-trial phase
to present summaries of their cases and receive a nonbinding assessment by an experienced,
neutral person, with expertise in the subject in the substance of the dispute.
Mini Trial
A structured dispute resolution method in which the merits of a case are argued before a panel
comprising senior decision makers with or without the presence of a neutral third person after
which the parties seek a negotiated settlement.
Mediation-Arbitration
A step dispute resolution process involving both mediation and arbitration.
Selected Laws on ADR
Special Rules of Court on Alternative Dispute Resolution
Applicability
Relief on the issue of Existence, Validity, or Enforceability of the Arbitration Agreement
Referral to ADR
(Rule 1.1)
Interim Measures of Protection
(Rule 1.1)
Appointment of Arbitrator
Challenge to Appointment of Arbitrator
Termination of Mandate of Arbitrator
(Rule 1.1)
Assistance in Taking Evidence
(Rule 1.1)
Confirmation, Correction or Vacation of Award in Domestic Arbitration

Recognition and Enforcement or Setting Aside of an Award in International Commercial


Arbitration
Recognition and Enforcement of a Foreign Arbitral Award
(Rule 1.1)
Confidentiality/Protective Orders
(Rule 1.1)
Deposit and Enforcement of Mediated Settlement Agreements
(Rule 1.1)
General Provisions
Any pleading, motion, opposition, comment, defense or claim shall be supported by verification
(Rule 1.4)
Verification shall mean a certification under oath by a party or a person who has authority to
act for a party that he has read the pleading/motion, and that he certifies to the truth of the facts
stated therein on the basis of his own personal knowledge or authentic documents in his
possession. When made by a lawyer, verification shall mean a statement under oath by a lawyer
signing a pleading/motion for delivery to the Court or to the parties that he personally prepared
the pleading/motion, that there is sufficient factual basis for the statements of fact stated
therein, that there is sufficient basis in the facts and the law to support the prayer for relief
therein, and that the pleading/motion is filed in good faith and is not interposed for delay.
(Rule 1.11[f])
A certification against forum shopping shall be appended to all initiatory pleadings except a
Motion to Refer the Dispute to Alternative Dispute Resolution
(Rule 1.5)
Prohibited Motions
Motion to dismiss
Motion for bill of particulars
Motion for new trial or for reopening of trial
Petition for relief from judgment
(Rule 1.6)

Motion for extension, except in cases where an ex-parte temporary order of protection has
been issued
Rejoinder to reply
Motion to declare a party in default
Any other pleading specifically disallowed under any provision of the Special ADR Rules
(Rule 1.6)
Shall not be allowed and shall not be accepted for filing by the Clerk of Court
(Rule 1.6)
Court shall motu proprio order a dilatory pleading/motion to be expunged from the records
(Rule 1.6)
Court shall motu proprio order a dilatory pleading/motion to be expunged from the records
(Rule 1.6)
Summary Proceedings

Judicial Relief Involving the Issue of Existence, Validity or Enforceability of the


Arbitration Agreement
Referral to ADR
Interim Measures of Protection

(Rule 1.3)
Appointment of Arbitrator
Challenge to Appointment of Arbitrator
Termination of Mandate of Arbitrator
(Rule 1.3)
Assistance in Taking Evidence
Confidentiality/Protective Orders
Deposit and Enforcement of Mediated Settlement Agreements
(Rule 1.3)
Before filing petition, petitioner shall serve copy of petition upon respondent
Service of copy by personal service or courier
Proof of service to be attached to petition when filed
(Rule 1.3[A])
If petition sufficient in form and substance, court sends notice
(Rule 1.3[B])
notice of hearing
notice of filing opposition or comment
hearing date not later than 5 days from lapse of period to file opposition/comment
opposition/comment to be filed within 15 days from notice
(Rule 1.3[B])

BUT in the case of Referral to ADR or Confidentiality/Protective Orders, it is the


movant that sets the hearing in compliance with Rule 15 of the Rules of Court on
motions
(Rule 1.3[B])
Summary hearing in 1 day and only for purposes of clarifying facts
(Rule 1.3[C])
Court shall resolve within 30 days from hearing date
(Rule 1.3[D])
Non-Summary Proceedings

After filing initiatory pleading, court to cause service by personal service or courier
Where action is already pending, pleadings, motions and other papers shall be filed
and/or served by personal service or courier
(Rule 1.8)
Registered mail allowed only where courier service not available
(Rule 1.8)

Filing and service of pleadings by electronic transmission may be allowed by agreement


of the parties approved by the court
(Rule 1.8)
No Summons

A court acquires authority to act on a petition or motion upon proof that the respondent
was furnished a copy of the petition and the notice of hearing.
Technical rules on service of summons do not apply.
(Rule 1.9)

General Policy Statement


To actively promote the use of various modes of ADR
(Rule 2.1)

To respect party autonomy or the freedom of the parties to make their own arrangements
in the resolution of disputes
with the greatest cooperation of and the least intervention from the courts.
(Rule 2.1)

To encourage and promote the use of ADR, particularly arbitration and mediation, as an
important means to achieve speedy and efficient resolution of disputes, impartial justice,
curb a litigious culture and to de-clog court dockets.
(Rule 2.1)
Courts shall intervene only in the cases allowed by law or these Special ADR Rules
(Rule 2.1)
Specific Policy Statement on Arbitration

Where the parties have agreed to submit their dispute to arbitration, courts shall refer the
parties to arbitration pursuant to Republic Act No. 9285 bearing in mind that such
arbitration agreement is the law between the parties and that they are expected to abide
by it in good faith.
(Rule 2.2)

Courts shall not refuse to refer parties to arbitration for reasons including, but not limited
to, the following:
o The referral tends to oust a court of its jurisdiction
o The court is in a better position to resolve the dispute subject of arbitration
o The referral would result in multiplicity of suits
o The arbitration proceeding has not commenced
(Rule 2.2[A])

Courts shall not refuse to refer parties to arbitration for reasons including, but not limited
to, the following:
o The place of arbitration is in a foreign country
o One or more of the issues are legal and one or more of the arbitrators are not
lawyers
o One or more of the arbitrators are not Philippine nationals
o One or more of the arbitrators are alleged not to possess the required qualification
under the arbitration agreement or law
(Rule 2.2[A])

Where court intervention is allowed, courts shall not refuse to grant relief for any of the
following reasons:
that prior to the constitution of the arbitral tribunal, the court finds that the principal
action is the subject of an arbitration agreement
(Rule 2.2[B])

Where court intervention is allowed, courts shall not refuse to grant relief for any of the
following reasons:
that the principal action is already pending before an arbitral tribunal.
(Rule 2.2[B])
Recognition of Competence-Competence Principle

The arbitral tribunal shall be accorded the first opportunity or competence to rule on the
issue of whether or not it has the competence or jurisdiction to decide a dispute

submitted to it for decision, including any objection with respect to the existence or
validity of the arbitration agreement.
(Rule 2.4)

The court must exercise judicial restraint and defer to the competence or jurisdiction of
the arbitral tribunal by allowing the arbitral tribunal the first opportunity to rule upon
such issues, whether before or after the arbitral tribunal is constituted.
(Rule 2.4)

Where the court is asked to make a determination of whether the arbitration agreement is
null and void, inoperative or incapable of being performed, under this policy of judicial
restraint, the court must make no more than a prima facie determination of that issue.
Unless the court, pursuant to such prima facie determination, concludes that the
arbitration agreement is null and void, inoperative or incapable of being performed, the
court must suspend the action before it and refer the parties to arbitration.
(Rule 2.4)
Recognition of the Principle of Separability

Arbitration clause shall be treated as an agreement independent of the other terms of the
contract of which it forms part.
A decision that the contract is null and void shall not entail ipso jure the invalidity of the
arbitration clause.
(Rule 2.2)
Policy on Mediation

The Special ADR Rules do not apply to Court-Annexed Mediation, which shall be
governed by issuances of the Supreme Court
(Rule 2.5)

Where the parties have agreed to submit their dispute to mediation, a court before which
that dispute was brought shall suspend the proceedings and direct the parties to submit
their dispute to private mediation.
If the parties subsequently agree, however, they may opt to have their dispute settled
through Court-Annexed Mediation.
(Rule 2.5)
Policy on Arb-Med or Med-Arb

No arbitrator shall act as a mediator in any proceeding in which he is acting as arbitrator;


and all negotiations towards settlement of the dispute must take place without the
presence of that arbitrator.
Conversely, no mediator shall act as arbitrator in any proceeding in which he acted as
mediator.
(Rule 2.6)
Policy on Conversion of Settlement Agreement to Arbitral Award

Where the parties to mediation have agreed in the written settlement agreement that the
mediator shall become the sole arbitrator for the dispute or that the settlement agreement
shall become an arbitral award, the sole arbitrator shall issue the settlement agreement
as an arbitral award, which shall be subject to enforcement under the law.
(Rule 2.7)
Judicial Relief Before Commencement of Arbitration

Any party to an arbitration agreement may petition the court to determine any question
concerning the existence, validity and enforceability of such arbitration agreement

(Rule 3.2)
Contents of Petition:
1. legal capacity to sue or be sued
2. nature and substance of dispute
3. grounds/circumstances relied upon
4. relief sought
Attach authentic copy of arbitration agreement
(Rule 3.6)
Despite the pendency of the petition, arbitral proceedings may nevertheless be
commenced and continue to the rendition of an award, while the issue is pending before
the court.
(Rule 3.3)
A prima facie determination by the court upholding the existence, validity or
enforceability of an arbitration agreement shall not be subject to a motion for
reconsideration, appeal or certiorari
(Rule 3.11)
Such prima facie determination will not, however, prejudice the right of any party to raise
the issue of the existence, validity and enforceability of the arbitration agreement before
the arbitral tribunal or the court in an action to vacate or set aside the arbitral award
(Rule 3.11)
Judicial Relief After Arbitration Commences

Any party to arbitration may petition the appropriate court for judicial relief from the
ruling of the arbitral tribunal on a preliminary question upholding or declining its
jurisdiction
(Rule 3.12)
Should the ruling of the arbitral tribunal declining its jurisdiction be reversed by the
court, the parties shall be free to replace the arbitrators or any one of them in accordance
with the rules that were applicable for the appointment of arbitrator sought to be replaced
(Rule 3.12)
No injunction of arbitration proceedings
The court shall not enjoin the arbitration proceedings during the pendency of the petition
(Rule 3.18[B])
Judicial recourse to the court shall not prevent the arbitral tribunal from continuing the
proceedings and rendering its award
(Rule 3.18[B])
Relief against court action
The aggrieved party may file a motion for reconsideration of the order of the court. The
decision of the court shall, however, not be subject to appeal.
(Rule 3.19)
Relief against court action
The ruling of the court affirming the arbitral tribunals jurisdiction shall not be subject to
a petition for certiorari
(Rule 3.19)
Relief against court action
The ruling of the court that the arbitral tribunal has no jurisdiction may be the subject of
a petition for certiorari
(Rule 3.19)
Deferment of Ruling on Jurisdiction
Where the arbitral tribunal defers its ruling on preliminary question regarding its
jurisdiction until its final award, the aggrieved party cannot seek judicial relief to
question the deferral and must await the final arbitral award before seeking appropriate
judicial recourse
(Rule 3.20)
Deferment of Ruling on Jurisdiction
A ruling by the arbitral tribunal deferring resolution on the issue of its jurisdiction until
final award, shall not be subject to a motion for reconsideration, appeal or a petition for
certiorari

(Rule 3.20)
Deferment of Ruling on Jurisdiction
If the arbitral tribunal renders a final arbitral award and the Court has not rendered a
decision on the petition from the arbitral tribunals preliminary ruling affirming its
jurisdiction, that petition shall become ipso facto moot and academic and shall be
dismissed
(Rule 3.21)
Deferment of Ruling on Jurisdiction
The dismissal shall be without prejudice to the right of the aggrieved party to raise the
same issue in a timely petition to vacate or set aside the award
(Rule 3.21)
Referral to ADR

A party to a pending action filed in violation of the arbitration agreement, whether


contained in an arbitration clause or in a submission agreement, may request the court to
refer the parties to arbitration in accordance with such agreement.
(Rule 4.1)
Where the arbitration agreement exists BEFORE the action is filed
The request for referral shall be made not later than the pre-trial conference.
After the pre-trial conference, the court will only act upon the request for referral if it is
made with the agreement of all parties to the case.
(Rule 4.2[A])
If there is no existing arbitration agreement at the time the case is filed but the parties
subsequently enter into an arbitration agreement, they may request the court to refer their
dispute to arbitration at any time during the proceedings.
(Rule 4.2[B])
Despite the pendency of the action, arbitral proceedings may nevertheless be commenced
or continued, and an award may be made, while the action is pending before the court.
(Rule 4.8)
An order referring the dispute to arbitration shall be immediately executory and shall not
be subject to a motion for reconsideration, appeal or petition for certiorari.
(Rule 4.6)
An order denying the request to refer the dispute to arbitration shall not be subject to an
appeal, but may be the subject of a motion for reconsideration and/or a petition for
certiorari.
(Rule 4.6)
Multiple Action - Parties
The court shall not decline to refer some or all of the parties to arbitration for any of the
following reasons:
1. Not all of the disputes subject of the civil action may be referred to arbitration
(Rule 4.7)
The court shall not decline to refer some or all of the parties to arbitration for any of the
following reasons:
2. Not all of the parties to the civil action are bound by the arbitration agreement and
referral to arbitration would result in multiplicity of suits
(Rule 4.7)
The court shall not decline to refer some or all of the parties to arbitration for any of the
following reasons:
3. The issues raised in the civil action could be speedily and efficiently resolved in its
entirety by the court rather than in arbitration
(Rule 4.7)
The court shall not decline to refer some or all of the parties to arbitration for any of the
following reasons:
4. Referral to arbitration does not appear to be the most prudent action
(Rule 4.7)
The court shall not decline to refer some or all of the parties to arbitration for any of the
following reasons:

5. The stay of the action would prejudice the rights of the parties to the civil action who
are not bound by the arbitration agreement
(Rule 4.7)
The court may issue an order directing the inclusion in arbitration of those parties who
are not bound by the arbitration agreement but who agree to such inclusion provided
those originally bound by it do not object to their inclusion.
(Rule 4.7)
Interim Measures of Protection
may be made
1. before arbitration is commenced
(Rule 5.2)
2. after arbitration is commenced, but before the constitution of the arbitral tribunal
(Rule 5.2)
3. after the constitution of the arbitral tribunal and at any time during arbitral
proceedings but, at this stage, only to the extent that the arbitral tribunal has no power to
act or is unable to act effectively
(Rule 5.2)
Type of interim measure of protection that a court may grant
1. preliminary injunction directed against a party to arbitration
2. preliminary attachment against property or garnishment of funds in the custody of a
bank or a third person
3. appointment of a receiver
4. detention, preservation, delivery or inspection of property
5. assistance in the enforcement of an interim measure of protection granted by the
arbitral tribunal, which the latter cannot enforce effectively
(Rule 5.6)
The court shall resolve the matter within thirty (30) days from (a) submission of the
opposition, or (b) upon lapse of the period to file the same, or (c) from termination of the
hearing that the court may set only if there is a need for clarification or further argument.
(Rule 5.9)
In cases where, based solely on the petition, the court finds that there is an urgent need
to either (a) preserve property, (b) prevent the respondent from disposing of, or
concealing, the property, or (c) prevent the relief prayed for from becoming illusory
because of prior notice, it shall issue an immediately executory temporary order of
protection. The ex-parte temporary order of protection shall be valid only for a period of
twenty (20) days from the service on the party required to comply with the order.
(Rule 5.9)
The order granting or denying any application for interim measure of protection in aid of
arbitration must indicate that it is issued without prejudice to subsequent grant,
modification, amendment, revision or revocation by an arbitral tribunal.
(Rule 5.9)
Conflict or inconsistency between court and arbitral tribunal
Any question involving a conflict or inconsistency between an interim measure of
protection issued by the court and by the arbitral tribunal shall be immediately referred
by the court to the arbitral tribunal which shall have the authority to decide such
question.
(Rule 5.14)
Confirmation of Domestic Arbitral Award

At any time after the lapse of thirty (30) days from receipt by the petitioner of the arbitral
award, he may petition the court to confirm that award.
(Rule 11.2)

Vacating Domestic Arbitral Award

Not later than thirty (30) days from receipt of the arbitral award, a party may petition the
court to vacate that award.
(Rule 11.2)
Confirming/Vacating Domestic Arbitral Award

A petition to vacate the arbitral award may be filed, in opposition to a petition to confirm
the arbitral award, not later than thirty (30) days from receipt of the award by the
petitioner. A petition to vacate the arbitral award filed beyond the reglementary period
shall be dismissed.
(Rule 11.2)
A petition to confirm the arbitral award may be filed, in opposition to a petition to vacate
the arbitral award, at any time after the petition to vacate such arbitral award is filed. The
dismissal of the petition to vacate the arbitral award for having been filed beyond the
reglementary period shall not result in the dismissal of the petition for the confirmation of
such arbitral award.
(Rule 11.2)
The filing of a petition to confirm an arbitral award shall not authorize the filing of a
belated petition to vacate or set aside such award in opposition thereto.
(Rule 11.2)
Grounds for Vacating Domestic Arbitral Award

1. The arbitral award was procured through corruption, fraud or other undue means
(Rule 11.4)
2. There was evident partiality or corruption in the arbitral tribunal or any of its members
(Rule 11.4)
3. The arbitral tribunal was guilty of misconduct or any form of misbehavior that has
materially prejudiced the rights of any party such as refusing to postpone a hearing upon
sufficient cause shown or to hear evidence pertinent and material to the controversy
(Rule 11.4)
4. One or more of the arbitrators was disqualified to act as such under the law and
willfully refrained from disclosing such disqualification
(Rule 11.4)
5.
The arbitral tribunal exceeded its powers, or so imperfectly executed them, such
that a complete, final and definite award upon the subject matter submitted to them was
not made
(Rule 11.4)
6. The arbitration agreement did not exist, or is invalid for any ground for the revocation
of a contract or is otherwise unenforceable
(Rule 11.4)
7. A party to arbitration is a minor or a person judicially declared to be incompetent
(Rule 11.4)

International Commercial Arbitration Award

Recognition and enforcement


Any party to an international commercial arbitration in the Philippines may petition the
proper court to recognize and enforce or set aside an arbitral award.
(Rule 12.1)
Recognition/Enforcement of International Commercial Arbitration Award

When to file?
o The petition for enforcement and recognition of an arbitral award may be filed
anytime from receipt of the award.
(Rule 12.2)

If a timely petition to set aside an arbitral award is filed, the opposing party must file
therein and in opposition thereto the petition for recognition and enforcement of the
same award within the period for filing an opposition.
(Rule 12.2)

Presumption in Favor of Confirmation

It is presumed that an arbitral award was made and released in due course and is subject
to enforcement by the court, unless the adverse party is able to establish a ground for
setting aside or not enforcing an arbitral award.
(Rule 12.12)

Exclusive Recourse Against International Commercial Arbitration Award

Recourse to a court against an arbitral award shall be made only through a petition to set
aside the arbitral award and on grounds prescribed by the law that governs international
commercial arbitration. Any other recourse from the arbitral award, such as by appeal or
petition for review or petition for certiorari or otherwise, shall be dismissed by the court.
(Rule 12.5)

Setting Aside International Commercial Arbitration Award

When to file?
The petition to set aside an arbitral award may only be filed within three (3) months from
the time the petitioner receives a copy thereof.
(Rule 12.2)
A petition to set aside can no longer be filed after the lapse of the three (3) month
period. The dismissal of a petition to set aside an arbitral award for being time-barred
shall not automatically result in the approval of the petition filed therein and in
opposition thereto for recognition and enforcement of the same award. Failure to file a
petition to set aside shall preclude a party from raising grounds to resist enforcement of
the award.
(Rule 12.2)

Grounds to Set Aside or Resist Enforcement of International Commercial Arbitration Award

1. A party to the arbitration agreement was under some incapacity, or the agreement is
not valid under the law to which the parties have subjected it or, failing any indication
thereof, under Philippine law
(Rule 12.4)
2. The party making the application to set aside or resist enforcement was not given
proper notice of the appointment of an arbitrator or of the arbitral proceedings or was
otherwise unable to present his case
(Rule 12.4)
3. The award deals with a dispute not contemplated by or not falling within the terms of
the submission to arbitration, or contains decisions on matters beyond the scope of the
submission to arbitration
(Rule 12.4)
provided that, if the decisions on matters submitted to arbitration can be separated
from those not so submitted, only that part of the award which contains decisions on
matters not submitted to arbitration may be set aside or only that part of the award which
contains decisions on matters submitted to arbitration may be enforced
(Rule 12.4)
4. The composition of the arbitral tribunal or the arbitral procedure was not in accordance
with the agreement of the parties, unless such agreement was in conflict with a provision
of Philippine law from which the parties cannot derogate, or, failing such agreement, was
not in accordance with Philippine law
(Rule 12.4)

5. The subject-matter of the dispute is not capable of settlement by arbitration under the
law of the Philippines
(Rule 12.4)
6. The recognition or enforcement of the award would be contrary to public policy
(Rule 12.4)
In deciding the petition to set aside, the Court shall disregard any other ground to set
aside or enforce the arbitral award other than those enumerated above
(Rule 12.4)

EXECUTIVE ORDER NO. 1008


CREATING AN ARBITRATION MACHINERY IN THE CONSTRUCTION INDUSTRY OF THE
PHILIPPINES

Sec. 2. Declaration of Policy. It is hereby declared to be the policy of the State to


encourage the early and expeditious settlement of disputes in the Philippine construction
industry.
Sec. 3. Creation. There is hereby established in the CIAP a body to be known as the
Construction Industry Arbitration Commission (CIAC). The CIAC shall be under the
administrative supervision of the PDCB.
Sec. 4. Jurisdiction. The CIAC shall have original and exclusive jurisdiction over disputes
arising from, or connected with, contracts entered into by parties involved in construction
in the Philippines, whether the dispute arises before or after the completion of the
contract, or after the abandonment or breach thereof. These disputes may involve
government or private contracts. For the Board to acquire jurisdiction, the parties to a
dispute must agree to submit the same to voluntary arbitration.
Sec. 14. Arbitrators. A sole arbitrator or three arbitrators may settle a dispute.
Where the parties agree that the dispute shall be settled by a sole arbitrator, they may, by
agreement, nominate him from the list of arbitrators accredited by the CIAC for
appointment and confirmation. If the parties fail to agree as to the arbitrator, the CIAC
taking into consideration the complexities and intricacies of the dispute/s has the option
to appoint a single arbitrator or an Arbitral Tribunal.
If the CIAC decides to appoint an Arbitral Tribunal, each party may nominate one
(1) arbitrator from the list of arbitrators accredited by the CIAC for appointment and for
confirmation. The third arbitrator who is acceptable to both parties confirmed in writing
shall be appointed by the CIAC and shall preside over the Tribunal.
Sec. 19. Finality of Awards. The arbitral award shall be binding upon the parties. It shall
be final and inappealable except on questions of law which shall be appealable to the
Supreme Court.
Sec. 20. Execution and Enforcement of Awards. As soon as a decision, order to award has
become final and executory, the Arbitral Tribunal or the single arbitrator with the
occurrence of the CIAC shall motu propio, or on motion of any interested party, issue a
writ of execution requiring any sheriff or other proper officer to execute said decision,
order or award.