CIVIL PROCEDURE

ALTERNATIVE DISPUTE RESOLUTION (ADR) preferential use of voluntary modes in settling disputes,
including conciliation, and shall enforce their mutual
SPECIAL RULES OF COURT ON ADR compliance therewith to foster industrial peace (Sec.
(A.M. NO. 07-11-08-SC) 3(2), Art. XIII, 1987 Constitution).

Other modes of solving disputes aside from an Alternative Dispute Resolution System
adversarial proceeding before the court:
It means any process or procedure used to resolve a
1. Alternative Dispute Resolution (ADR) dispute or controversy, other than by adjudication of a
a. Arbitration presiding judge of a court or an officer of a government
i. Domestic Arbitration agency in which a neutral third party participates to
ii. Construction Disputes assist in the resolution of issues, which includes
iii. International Commercial Arbitration arbitration, mediation, conciliation, early neutral
b. Mediation evaluation, mini-trial, or any combination thereof (Sec.
c. Conciliation 3(a), RA No. 9285).
d. Early Neutral Evaluation
e. Mini-trial NOTE: Its purposes are to:
1. Actively promote party autonomy in the resolution
2. Court-Annexed Mediation of disputes or the freedom of the parties to make
3. Appellate Court Mediation their own arrangements to resolve their disputes;
4. Judicial Dispute Resolution 2. Achieve speedy and impartial justice; and
5. Katarungang Pambarangay Law 3. Unclog court dockets.

State Policy in ADR Cases in which the ADR law does NOT apply

The state policy in ADR is to actively promote party 1. Labor disputes covered by the LC;
autonomy in the resolution of disputes or the freedom of 2. The civil status of persons;
the parties to make their own arrangements in resolving 3. The validity of marriage;
their disputes (Sec. 2, RA 9285). 4. Any ground for legal separation;
5. The jurisdiction of courts;
Constitutional basis of ADR 6. Future legitime;
7. Criminal liability;
The State shall promote the principle of shared 8. Those which by law cannot be compromised.
responsibility between workers and employers and the

Different modes of ADR

Arbitration Mediation Conciliation Early Neutral Mini-Trial

Evaluation
Definition It is a voluntary It is a voluntary It is a process It is a process It is a structured
dispute resolution process in which whereby the wherein parties dispute resolution
process in which an impartial and parties request a and their lawyers method in which
one or more neutral third party third person or are brought the merits of a
arbitrators, (mediator), persons to assist together early in a case are argued
appointed in selected by the them in their pre-trial phase to before a panel
accordance with disputing parties, attempt to reach present comprising of
the agreement of facilitates an amicable summaries of their senior decision
the parties, or communication settlement of their cases and receive a makers with or
rules promulgated and negotiation, dispute arising non-binding without the
pursuant to RA and assists the out of or relating assessment by an presence of a
9285, resolve a parties in reaching to a contractual or experienced, neutral third
dispute by a voluntary other legal neutral person, person after which
rendering an agreement relationship (Art. with expertise in the parties seek a
award. It results in regarding a 1(3), UNCITRAL the subject or the negotiated
the adjudication of dispute. Model Law on substance of the settlement.
a dispute. Conciliation). dispute.

Functions Arbitrator acts as Mediator does not A conciliator Early neutral Panel renders a
out-of-court judge render an award participates only Evaluator assesses decision based on
and settles the but only arranges in the preliminary or reviews the the merits of the
dispute extra- the facts to be steps of issues submitted arguments of the
judicially. negotiated so that facilitating by the parties and parties.
parties can come discussion tenders its
He makes a to a compromise between the evaluation which
determination of agreement. parties and helps is non-binding.

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63 FACULTY OF CIVIL LAW
 REMEDIAL LAW

the facts and them frame the

applies the law to He assists the issues for
those facts to parties in reaching discussion.
resolve a dispute a mutually
independently of agreeable
the actual result settlement of their
desired by the dispute through
parties. direct
negotiations. He
actively
participates in
resolving the
dispute, and then
gives an opinion.

Effect of The award may be The decision or He does not The assessment is It need not be
decision final and binding if opinion is not render a decision. not binding upon confirmed by the
so agreed by the binding on the The dispute is left the parties. courts.
parties and to be parties. It is to be settled by the
executory, it must recommendatory parties
first be confirmed in nature. The themselves.
by the RTC. mediator merely
suggests a solution
to the dispute.

Arbitration Arbitral award may be made upon issues already

Is 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 the ADR Act, resolve a dispute by rendering an award
(Sec. 3 (d), ADR Act, Art. 1.6, A(3), IRR).
Form of an Arbitration agreement
A contract to arbitrate a controversy thereafter arising
between the parties, as well as a submission to arbitrate
an existing controversy shall be in writing and
subscribed by the party sought to be charged, or by his
lawful agent (Sec. 4, RA 876).
Remedy of a party in case of violation of an
Arbitration agreement
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, A.M. No. 07-
11-08-SC).
When Request to the Court is made
If the arbitration agreement exists (arbitration clause)
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. If there is no existing arbitration
agreement at the time the case is filed but the parties
subsequently enter into an arbitration agreement
(submission agreement), they may request the court to
refer their dispute to arbitration at any time during the
proceedings (Rule 4.2, Ibid.).
submitted before the Court
Despite the pendency of the action referred to in Rule
4.1, above, 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,
Ibid.).
Requirements for Referral of a dispute to Arbitration
The request for referral shall be in the form of a motion,
which shall state that the dispute is covered by an
arbitration agreement. Apart from other submissions,
the movant shall attach to his motion an authentic copy
of the arbitration agreement. The request shall contain a
notice of hearing addressed to all parties specifying the
date and time when it would be heard. The party making
the request shall serve it upon the respondent to give
him the opportunity to file a comment or opposition
within 15 days from receipt (Rule 4.3, Ibid.).
Grounds for opposition
1. There is no agreement to refer the dispute to
arbitration; and/or
2. The agreement is null and void; and/or
3. The subject matter of the dispute is not capable of
settlement or resolution by arbitration in
accordance with Sec. 6 of the ADR Act (Rule 4.4,
Ibid.)
Instances which will not prevent the court from
referring the parties to Arbitration
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;

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2016 GOLDEN NOTES
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 CIVIL PROCEDURE
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;
3. The issues raised in the civil action could be
speedily and efficiently resolved in its entirety by
the court rather than in arbitration;
4. Referral to arbitration does not appear to be the
most prudent action; or
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.
The court may, however, 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, Ibid.).
Summons NOT required under the Special ADR Rules
The technical rules on service of summons do not apply
to the proceedings under the Special ADR Rules. A court
acquires authority to act on the petition or motion upon
proof of jurisdictional facts, i.e., that the respondent was
furnished a copy of the petition and the notice of hearing.
The burden of showing that a copy of the petition and
the notice of hearing were served on the respondent
rests on the petitioner. In instances where the
respondent, whether a natural or a juridical person, was
not personally served with a copy of the petition and
notice of hearing in the proceedings, the method of
service resorted to must be such as to reasonably ensure
receipt thereof by the respondent to satisfy the
requirement of due process (Rule 1.9, Ibid.).
Remedy of the aggrieved party after the dispute is
referred by the Court to Arbitration and in case of
denial of the request for arbitration
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. 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, Ibid.).
Remedy in case of failure or refusal to comply with
the Arbitration agreement
The party may petition the court for an order directing
that such arbitration proceed in the manner provided for
in such agreement (Sec. 6, RA 876).
Effect of the petition filed before commencement of
the arbitration proceeding
Despite the pendency of the petition, the arbitral
proceedings may nevertheless be commenced and
continued until the rendition of an award, while the issue
is pending before the court (Rule 3.3, A.M. No. 07-11-08-
SC).
65
Effect of the petition filed after commencement of
the arbitration proceeding
Judicial recourse to the court shall not prevent the
arbitral tribunal from continuing the proceedings and
rendering its award. The court shall not enjoin the
arbitration proceedings during the pendency of the
petition (Rule 3.18(B), Ibid.).
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 anyone of them in
accordance with the rules that were applicable for the
appointment of arbitrator sought to be replaced (Rule
3.12, Ibid.).
Effect of the rendition of an arbitral award before
court decides on the petition from the arbitral
tribunal’s preliminary ruling affirming its
jurisdiction
The petition shall become ipso facto moot and academic
and shall be dismissed by the RTC however, 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, Ibid.).
Competence-competence principle
The Special ADR Rules recognize the principle of
competence-competence, which means that the arbitral
tribunal may initially rule on its own jurisdiction,
including any objections with respect to the existence or
validity of the arbitration agreement or any condition
precedent to the filing of a request for arbitration.
When a court is asked to rule upon issue/s affecting the
competence or jurisdiction of an arbitral tribunal in a
dispute brought before it, either before or after the
arbitral tribunal is constituted, 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.
Unless the court, pursuant to a prima facie
determination, 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 pursuant to the arbitration
agreement (Rules 2.2 & Rule 2.4, Ibid.).
Principle of Separability of the Arbitration Clause
The Special ADR Rules recognize the principle of
separability of the arbitration clause, which means that
said 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, Ibid.).
Q: Korea Technologies (KOGIES) entered into a
contract with PGSMC for the supply and installation
of LPG manufacturing plant. The contact was
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 REMEDIAL LAW
perfected in the Philippines. After the installation of
the plant, initial operation could not be conducted
due to financial difficulties. PGSMC issued checks for
payment but was dishonored. Thus KOGIES
threatened to file a criminal case against the latter.
Hence, PGSMC unilaterally cancelled their contract.
KOGIES filed a Complaint for Specific Performance
against PGSMC alleging that it violated Art. 15 of
their contact by unilaterally rescinding the contract
without resorting to arbitration. The arbitration
clause in their contract provides: “The award
rendered by the arbitrators shall be final and
binding upon both parties concerned.” Is the
stipulation valid?
A: Yes. The law of the place where the contract is made
governs. Therefore, our laws ought to govern. The
arbitration clause has not been shown to be contrary to
any law, morals, or public policy. There is no reason why
the arbitration clause should not be respected and
complied with by both parties. There are no vices of
consent shown in this case (Korea Technologies Co., Ltd.
v. Lerma, G.R. No. 143581, January 7, 2008).
Foreign arbitral awards, while mutually stipulated
by parties to be final and binding, NOT immediately
enforceable
Foreign arbitral awards cannot be implemented
immediately. Art. 36 of the UNCITRAL Model Law
specifies the grounds for an arbitral award to be
recognized by a competent court. It can be gleaned that
the concept of a final and binding arbitral award is
similar to judgments or awards given by some of our
quasi-judicial bodies, like the NLRC, whose final
judgments are stipulated to be final and binding, but not
immediately executory in the sense that they may still be
judicially reviewed, upon the instance of any party.
Therefore, the final foreign arbitral awards are similarly
situated in that they need first to be confirmed by the
RTC. Such arbitration clause does not operate to oust the
court of its jurisdiction (Korea Technologies Ltd. v. Lerma,
G.R. No. 143581, January 7, 2008).
Period for filing a petition for the confirmation,
modification or vacation of an award
1. For confirmation – at any time after the lapse of 30
days from receipt by the petitioner of the arbitral
award, he may petition the court to confirm that
award;
NOTE: 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.
2. For correction or modification – not later than 30
days from receipt of the arbitral award, a party may
petition the court to correct/modify that award;
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2016 GOLDEN NOTES
66
NOTE: A petition to correct an arbitral award may
be included as part of a petition to confirm the
arbitral award or as a petition to confirm that award
(Rule 11.2, A.M. No. 07-11-08-SC).
3. For vacation – not later than 30 days from receipt of
the arbitral award, a party may petition the court to
vacate that award.
When to confirm an Arbitral Award
At any time within 1 month after the arbitral award is
made, any party to the controversy subject of arbitration
may file a motion to the court having jurisdiction for an
order confirming the award. The court must grant such
order unless the award is vacated, modified or corrected.
Notice of such motion must be served upon the adverse
party or his attorney (Sec. 23, RA 876).
NOTE: Unless a ground to vacate an arbitral award
under Rule 11.5 above is fully established, the court shall
confirm the award. An arbitral award shall enjoy the
presumption that it was made and released in due
course of arbitration and is subject to confirmation by
the court. In resolving the petition or petition in
opposition thereto in accordance with these Special ADR
Rules, the court shall either confirm or vacate the
arbitral award. The court shall not disturb the arbitral
tribunal’s determination of facts and/or interpretation of
law (Rule 11.9, A.M. No. 07-11-08-SC).
Remedies against arbitral awards
Under Art. 2044, NCC, the validity of any stipulation on
the finality of the arbitrators’ award or decision is
recognized. However, where the conditions described in
Arts. 2038, 2039 and 2040 applicable to both
compromises and arbitrations are obtaining, the
arbitrators’ award may be annulled or rescinded.
Consequently, the decision of the Arbitration Committee
is subject to judicial review.
The proper recourse of petitioner from the denial of its
motion for reconsideration by the Arbitration Committee
is to file either a motion to vacate the arbitral award with
the RTC, a petition for review with the CA under Rule 43,
or a petition for certiorari under Rule 65. The RTC will
only have jurisdiction over an arbitral award in cases of
motions to vacate the same. Otherwise, the CA retains
jurisdiction in petitions for review or in petitions for
certiorari (Insular Savings Bank v. Far East Bank and
Trust Company, G.R. No. 141818, June 22, 2006).
 CIVIL PROCEDURE
Grounds for vacating an arbitral award v. the grounds for modifying or correcting an arbitral award
Grounds for Vacating an Arbitral Award
1. The award was procured by corruption, fraud, or other
undue means;
2. There was evident partiality or corruption in the
arbitrators or any of them;
3. The arbitrators were guilty of misconduct in refusing to
postpone the hearing upon sufficient cause shown, or in
refusing to hear evidence pertinent and material to the
controversy;
4. One or more of the arbitrators was disqualified to act as
such and willfully refrained from disclosing such
disqualifications or of any other misbehavior by which
the rights of any party have been materially prejudiced;
5. The arbitrators exceeded their powers, or so
imperfectly executed them, that a mutual, final and
definite award upon the subject matter submitted to
them was not made (Sec. 24, RA 876);
6. The arbitration agreement did not exist, or is invalid for
any ground for revocation of a contract, or is otherwise
unenforceable; or
7. A party to arbitration is a minor or a person judicially
declared to be incompetent (Rule 11.4(A), A.M. No. 07-
11-08-SC).
NOTE: In deciding the petition to vacate the arbitral
award, the court shall disregard any other ground than
those enumerated above (Rule 11.4(A), A.M. No. 07-11-
08-SC).
International Commercial Arbitration
Commercial Arbitration
A commercial arbitration is that which covers matter
arising from all relationships of a commercial nature,
whether contractual or not. It includes any trade
transaction for the supply or exchange of goods or
services, distribution agreements, construction of works,
commercial representation or agency, factoring, leasing,
consulting, engineering, licensing, investment, financing,
banking, insurance, joint venture and other forms of
industrial or business cooperation, carriage of goods or
passengers by air, sea, rail or road (Sec. 21, RA 9285).
International Arbitration
Arbitration is international if:
1. The parties to an arbitration agreement have, at the
time of the conclusion of that agreement, their
places of business in different States; or
2. One of the following places is situated outside the
State in which the parties have their places of
business:
a. The place of arbitration if determined in,
or pursuant to, the arbitration agreement;
b. Any place where a substantial part of the
obligations of the commercial relationship
is to be performed or the place with which
the subject-matter of the dispute is most
closely connected; or
67
Grounds for Modifying or Correcting an Arbitral Award
1. There was an evident miscalculation of figures, or an
evident mistake in the description of any person, thing
or property referred to in the award;
2. The arbitrators have awarded upon a matter not
submitted to them, not affecting the merits of the
decision upon the matter submitted;
3. The award is imperfect in a matter of form not affecting
the merits of the controversy, and if it had been a
commissioner's report, the defect could have been
amended or disregarded by the court;
4. To effect the intent of the award and promote justice
between the parties (Sec. 25, RA 876); or
5. Where the arbitrators have omitted to resolve an issue
submitted for resolution (Rule 11.4(B), A.M. No. 07-11-
08-SC).
c. The parties have expressly agreed that the
subject-matter of the arbitration relates to
more than 1 country (Art. 1(3), UNCITRAL
Model Law).
NOTE: If a party has more than one place of business, the
place of business is that which has the closest
relationship to the arbitration agreement; and if a party
does not have a place of business, reference is to be
made to his habitual residence (Art. 1(4), UNCITRAL
Model Law).
Q: The arbitration clause in the contract stipulated
that the arbitration must be done in Seoul, Korea, in
accordance with the Commercial Arbitration Rules of
Korea Arbitration Board, is such stipulation contrary
to public policy?
A: The arbitration clause which stipulates that the
arbitration must be done in Seoul Korea in accordance
with the Commercial Arbitration Rules of the KCAB is not
contrary to public policy. The Court has sanctioned the
validity of arbitration clauses in a catena of cases. In case
a foreign arbitral body is chosen by the parties, the
arbitration rules of our domestic arbitration bodies
would not be applied. As signatory to the Arbitration
Rules of the UNCITRAL Model Law on International
Commercial Arbitration of the UNCITRAL in the New
York Convention, the Philippines committed itself to be
bound by the Model Law. In doing so, we have
incorporated the Model Law in RA 9285 (ADR Act of
UNIVERSITY OF SANTO TOMAS
FACULTY OF CIVIL LAW
 REMEDIAL LAW
2004). A pertinent feature of RA 9285, applying and
incorporating the UNCITRAL Model Law, is Sec. 24 which
provides that the RTC does not have jurisdiction over
disputes that are properly the subject of arbitration
pursuant to an arbitration clause and mandates the
referral to arbitration of such cases (Korea Technologies
Ltd v. Lerma, G.R. No. 143581, January 7, 2008).
Enforcement of a foreign arbitral award in the
Philippines under the Rules of Court on the
recognition and enforcement of foreign judgments
(Rule 39) (2007 Bar Question)
Foreign arbitral awards are not enforced as foreign court
judgments. They may be enforced under Sec. 44 of RA
9285. Under the said law, the United Nations Convention
on the Recognition and Enforcement of Foreign Arbitral
Awards (1958 New York Convention) shall govern the
recognition and enforcement of arbitral awards covered
by the said Convention. The party relying on the award
or applying for its enforcement shall file with the RTC
the original or authenticated copy of the award and the
arbitration agreement. The applicant shall establish that
the country in which foreign arbitration award was
made is a party to the New York Convention.
A foreign arbitral award, when confirmed by a court of a
foreign country, shall be recognized and enforced as a
foreign arbitral award and not as a judgment of a foreign
court. A foreign arbitral award, when confirmed by the
RTC, shall be enforced in the same manner as final and
executory decisions of courts of law of the Philippines
(Sec. 44, RA 9285).
NOTE: The recognition and enforcement of a foreign
arbitral award shall be governed by the 1958 New York
Convention on the Recognition and Enforcement of
Foreign Arbitral Awards and the Special ADR Rules. The
court may, upon grounds of comity and reciprocity,
recognize and enforce a foreign arbitral award made in a
country that is not a signatory to the New York
Convention as if it were a Convention Award (Rule 13.4,
A.M. No. 07-11-08-SC).
Refusal of recognition and enforcement of a foreign
arbitral award in our jurisdiction
At the request of the party against whom it is invoked, a
foreign arbitral award may be refused recognition or
enforcement if that party furnishes proof that:
1. A party to the arbitration agreement was under
some incapacity;
2. The said agreement is not valid under the law to
which the parties have subjected it or, failing any
indication thereon, under the law of the country
where the award was made;
3. The party against whom the award is invoked was
not given proper notice of the appointment of an
arbitrator or of the arbitral proceedings or was
otherwise unable to present his case;
4. The award deals with a dispute not contemplated by
or not falling within the terms of the submission to
arbitration, or it contains decisions on matters
beyond the scope of the submission to arbitration;
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2016 GOLDEN NOTES
68
5. The composition of the arbitral tribunal or the
arbitral procedure was not in accordance with the
agreement of the parties or, failing such agreement,
was not in accordance with the law of the country
where the arbitration took place;
6. The award has not yet become binding on the
parties or has been set aside or suspended by a
court of the country in which, or under the law of
which, that award was made;
7. The subject matter of the dispute is not capable of
settlement by arbitration under our laws or the
recognition or enforcement of the award would be
contrary to our public policy. Any other ground
raised shall be disregarded by the RTC (Art. 36,
UNCITRAL Model Law); or
8. The recognition or enforcement of the award would
be contrary to public policy (Rule 12.4, A.M. No. 07-
11-08-SC).
NOTE: A Philippine court shall not set aside a foreign
arbitral award but may refuse its recognition and
enforcement on any or all of the grounds above (Rule
13.5, A.M. No. 07-11-08-SC).
Mediation
It is a voluntary process in which a mediator, selected by
the disputing parties, facilitates communication and
negotiation, and assists the parties in reaching a
voluntary agreement regarding a dispute (Sec. 3(q), RA
9285).
Assistance of a lawyer in mediation proceedings
A party may designate a lawyer or any other person to
provide assistance in the mediation. A waiver 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 (Sec. 14, RA 9285).
Enforcement of a mediated settlement agreement
1. The mediated settlement agreement shall be
prepared by the parties through the assistance of
their respective counsel, if any, and by the mediator.
3. 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.
4. If the parties so desire, they may deposit such
settlement agreement with the appropriate Clerk of
Court of the RTC 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 SC.
NOTE: 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 RA 876 “Arbitration Law”
 CIVIL PROCEDURE
notwithstanding the provisions of EO 1008 for mediated NOTE: A motion is necessary because leave of court
dispute outside of the CIAC (Sec. 17, RA 9285). is required before a person may be allowed to
intervene (Sec. 1, Rule 19).
Mediation is part of the pre-trial and failure of the
plaintiff to appear thereat merits sanctions on the part of 2. The movant must show in his motion that he:
the absent party. AM 01-10-05-SC PHILJA and Section 5 a. Has an immediate legal interest in the matter in
of Rule 18 grant judges the discretion to dismiss an controversy, not merely contingent;
action for failure of the plaintiff to appear at mediation b. Has legal interest in the success of either of the
proceedings. (Real Bank v. Samsung Mabuhay Corp., G.R. parties in the action;
No. 175862, Oct. 13, 2010). c. Has legal interest against both parties; or
d. Is so situated as to be adversely affected by a
INTERVENTION distribution or other disposition of the
property in the custody of the court or of an
It is a legal proceeding by which a third person is officer thereof (Sec. 1, Rule 19)(Bar 2000);
permitted by the court to become a party by intervening 3. Intervention will not unduly delay or prejudice the
in a pending action after meeting the conditions and adjudication of the rights of original parties; and
requirement set by the Rules of Court. This person who 4. Intervenor’s rights may not be fully protected in a
intervenes is one who is not originally impleaded in the separate proceeding (Mabayo Farms, Inc. v. CA, G.R.
action (First Philippine Holdings Corp. v. Sandiganbayan, No. 140058, August 1, 2002).
G.R. No. 88345, February 1, 1996).
Note: It is recognized that a judgment creditor who has
NOTE: Intervention is merely optional and permissive reduced his claim to judgment may be allowed to
(Mabayo Farms, Inc. v. CA, G.R. No. 140058, August 1, intervene and a purchaser who acquires an interest in
2002). Hence, the court has the full measure of discretion property upon which an attachment has been levied may
in permitting or disallowing the same (Yau v. Manila intervene in the underlying action in which the writ of
Banking Corporation, G.R. No. 126731, July 11, 2002). In attachment was issued for the purpose of challenging the
claiming the right to intervene, the intervenor must attachment (Yau vs Manila Banking Corp, G.R. No. 126731,
comply with the requirements laid down by Rule 19 of July 11, 2002).
the Rules of Court (Office of the Ombudsman v.
Samaniego, G.R. No. 175573, September 11, 2008). Intervention is NOT an independent proceeding (Bar
2000)
Intervention v. Interpleader
It is not an independent proceeding but is ancillary and
Intervention Interpleader supplemental to an existing litigation. Its purpose is to
An ancillary action An original action enable a stranger to an action to become a party to
protect his interest (Santiago Land Development
Proper when the Presupposes that the Corporation v. CA, G.R. No. 106194, August 7, 1997).
intervenor has legal plaintiff has no interest in
interest in the matter of the subject matter of the NOTE: Denial of a motion to intervene does not
litigation or success of action or has an interest constitute res judicata. The remedy of the intervenor is
either of the parties, or therein, which in whole or to file a separate action.
interest against both or in part, is not disputed by
may be adversely affected the other parties to the TIME TO INTERVENE
by action
distribution/disposition of Period to intervene
property in the custody of
the court The motion to intervene may be filed any time before
rendition of judgment by the trial court. A copy of the
Defendants are already Defendants are being sued pleading-in-intervention shall be attached to the motion
original parties to the precisely to implead them. and served on the original parties (Sec. 2, Rule 19).
pending suit
Intervention is allowed even AFTER the decision
Factors in the approval of a motion to intervene became final and executory.

1. Whether or not the intervention will unduly delay
or prejudice the adjudication of the rights of the
original parties; and
2. Whether or not the intervenor’s right may be duly
protected in a separate proceeding.
Although Rule 19 is explicit on the period when a motion
to intervene may be filed, the Supreme Court allowed
exceptions in several cases. The SC said in the case of
Deogenes Rodriguez v. Court of Appeals, (G.R. No. 184589,
June 13, 2013):

REQUISITES FOR INTERVENTION “This rule (Rule 19), however, is not inflexible.
Interventions have been allowed even beyond the period
1. There must be a motion for intervention filed before prescribed in the Rules, when demanded by the higher
rendition of judgment by the trial court (Sec. 1, Rule interest of justice. Interventions have also been granted
19); to afford indispensable parties, who have not been

UNIVERSITY OF SANTO TOMAS

69 FACULTY OF CIVIL LAW