ADR Law of 2004
ADR Law of 2004
the freedom of the parties to make their own arrangements to resolve their disputes. Towards this end, the
State shall 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."
RA 9285
An Act to Institutionalize the Use of an Alternative Dispute Resolution and for other Purposes
Court-annexed Mediation Under Supreme Court Guidelines
A particular alternative dispute resolution may be combined with the other types of alternative dispute
resolutions.
The most common is the mediation-arbitration (Med-Arb). In this kind of combination, parties first proceed
to mediation to define the dispute and settle as many issues as possible, and then they engage in
arbitration to settle issues that remain unresolved by the mediator.
Conflict is human nature, but nevertheless, humans put much effort in devising ways of resolving it.
Physical fighting, or trial by combat has been ruled out due to the progress of civilization, and more
peaceful ways had been made.
1. Order of Mediation – The trial court for civil cases with stamped-mark Mediatable is mandated to issue
an order during the pre-trial referring the case to the Philippine Mediation Center (PMC) unit for mediation
and directing the parties to proceed immediately to the PMC unit. The order will be personally given to the
parties during the pre-trial. There are PMC units in courthouses or near the court premises to mediate the
parties.
Since mediation is part of pre-trial, the trial court will impose the appropriate sanction including but not
limited to censure, reprimand, contempt and such sanctions as are provided under the Rules of Court, in
case any or both of the parties absent himself/themselves, or for abusive conduct during mediation
proceedings.
The hearing is usually held in private and the decision of the persons selected will be a substitute for a
court judgment.
This avoids the formalities, delay and expenses of ordinary litigation.
V. References
The use of appropriate ADR methods reduces the cost, time, and complexity of any subsequent litigation.
By incorporating the ADR processes into the regulatory framework governing the Philippines the business
sector is committed to provide its stakeholders with options for resolving disputes outside the courtroom,
and minimize the expense and delays that may accompany the judicial process.
Mini - Trial
Does not result in a formal adjudication but is a vehicle for the parties to arrive at a solution on through a
structured settlement process. It is used most effectively when complex issues are at stake and the parties
need or wish to maintain an amicable relationship.
5. Outcome of mediation
When the mediation results in realization of all claims of the plaintiff, a motion to dismiss may be filed in
court. If there are obligations still to be complied with, the parties may execute a compromise agreement
which will then be submitted to the court for approval.
If the court finds the compromise agreement to be in order, judgment will be rendered in accordance
therewith.
If mediation fails, the case will be returned to the court of origin per a Certificate of Failed Mediation issued
by the mediator.
Executive Order 1008 - The Construction Industry Arbitration Law which created the Construction Industry
Arbitration Commission (CIAC). EO 1008 governs construction arbitration and its rules are ICC-based.
500 cases : 1 judge
a simple collection case may take as much as two years before it is decided by the trial court and another
one or two years before it is finally decided on appeal
The more complex commercial cases can remain in litigation for up to five or more years.
As a consequence to slow-paced resolution of these cases, the litigation cost in terms of legal fees and
other expenses become disproportionately high.
RA 9285
Historical Background
Mediation
In Mini-Trial, the merits of a case are argued before a panel created by agreement of the parties comprising
senior decision makers with or without the presence of a neutral third person after which the parties seek a
negotiated settlement
The procedure involves a semi-formal hearing, which follows a more relaxed rules of discovery and case
presentation than in court or other formal proceeding, by senior decision making executives of both parties
who hear each side’s argument presented either by lawyers or by lower ranking managers of each side.
Arbitration is defined by ADR Law as a voluntary dispute resolution process in which one or more
arbitrators, appointed in accordance with the agreement of the parties resolve a dispute by rendering an
award.
It is the reference by mutual agreement or consent of the parties of a controversy or dispute to selected
persons for an informal hearing and extra-judicial determination and resolution.
Mini - Trial
Mini - Trial
Mini - Trial
3. Conference – The mediator will hold a conference with all the parties involved in the case and will make
serious attempts to settle the matter quickly.
If no settlement is reached, the mediator may, with the consent of both parties, hold separate caucuses with
each party to enable the mediator to determine their respective real interests in the dispute.
Thereafter, another joint conference may be held to consider various options proposed by the parties to the
mediator to resolve the dispute.
Advantages of Mediation
fin
conclusion
Republic Act No. 9285
http://ca.judiciary.gov.ph/index.php?action=mnuactual_contents&ap=dispute
https://paulgorgonio.wordpress.com/2013/01/16/revisiting-republic-act-9285-salient-features-of-
international-commercial-arbitration-and-challenges/#_ftn2
Alfredo Tadiar,“Unclogging the Court Dockets” http://dirp4.pids.gov.ph/ris/taps/tapspp9926.pdf
Eduardo Ceniza, International Commercial Arbitration: Its Relevance in the Philippines (2005).
http://www.pdrci.org/web1/art003.html
Victor P. Lazatin & Patricia Ann T. Prodigalidad, Arbitration in the Philippines (2006)
Leslie Chew, The New Philippine Arbitration Law – Some Preliminary Observations. Journal of the
Integrated Bar of the Philippines, Vol. 32, No. 1 (3rd and 4th Quarters of 2005 and 1st Quarter of 2006).
Victor P. Lazatin & Patricia Ann T. Prodigalidad, Arbitration in the Philippines (2006)
Leslie Chew, The New Philippine Arbitration Law – Some Preliminary Observations.
Explanatory Note by the UNCITRAL secretariat of the 1985 Model Law on International Commercial
Arbitration as amended in 2006.
Eduardo Ceniza, International Commercial Arbitration: Its Relevance in the Philippines (2005).
http://www.pdrci.org/web1/art003.html
https://paulgorgonio.wordpress.com/2013/01/16/revisiting-republic-act-9285-salient-features-of-
international-commercial-arbitration-and-challenges/
Arbitration
Advantages of Mediation
in da Pilipins
There is a need to introduce arbitration to the general public as an alternative method of dispute resolution.
Millions of Filipinos may, until now, have little awareness of arbitration as an alternative method of dispute
resolution. And that is the reason why every time they engage in a dispute, it is almost automatic to them to
file a case in court.
Thus, efforts must be made to make it well-known and widely-practiced.
3. The National President of the Integrated Bar of the Philippines (IBP) or his duly authorized representative
was designated the default "Appointing Authority."
Under the old law, in the absence of an agreement among the parties, it was the Regional Trial Court
(RTC) which will appoint the sole arbitrator or the third arbitrator of a panel if and when the parties do not or
can not agree.
As the "Appointing Authority", the National President of the IBP or his duly authorized representative will
decide challenges to the arbitrator as well as the termination of his mandate.
Employment disputes will often be suitable for some style of mediation-arbitration (Med-Arb), where the
parties first proceed to mediation to define the dispute and settle as many issues as possible, and then they
engage in arbitration to settle issues that remain unresolved by the mediator.
Mediation
Mediation is a dispute resolution procedure in which an impartial third party, mutually chosen by the parties,
acts as the referee to help the contending parties settle their dispute. The mediator, unlike the arbitrator,
has no authority to make the parties reach an agreement.
He serves as a clarifier and facilitator without dictating settlement. The term mediation used under ADR
Law includes conciliation.
Parties request an assessment of their positions as a matter of law, and of liability, or of the probable
outcome of a trial or arbitration, an assessment of their evidence, or a recommended course of action to
best resolve the dispute.
ENE can be a first step to, or can preclude resort to other evaluative ADR methods, such as arbitration, and
provide a “reality check” for the parties and their lawyers and help to identify and clarify the fundamental
issues in dispute. Thereafter, the parties may alter their negotiation approaches or explore options to
mediate or conciliate.
Early Neutral Evaluation is a process of assessing in a non-binding basis the strengths and weaknesses of
each party's case for the purpose of serving as basis for a compromise agreement.
Disputes involving technical issues proper for expert evaluation on the causality of a problem e.g. cause of
structural damage, or an illness, may best be resolved by early neutral evaluation, where an early
evaluation of liabilities, remedies, or probable outcome of a full hearing, might then enable mediation or
conciliation from a more informed starting point.
Arbitration
conclusion
Arbitration
It is effective
In a recent pilot project conducted by PHILJA, 85% of cases referred for court-annexed mediation had
reached settlement.
Surveys conducted after mediation sessions reveal a high level of satisfaction among disputing parties. As
a result of mediation, close to 100% comply with agreements reached in mediation.
A third, neutral, tribunal member often a lawyer or technical expert, will manage the hearing. That individual
is responsible for explaining and maintaining an orderly process, and may give an advisory opinion
regarding a settlement range, if requested, rather than offer a specific solution for the parties to consider.
The third party may also provide mediation services upon request.
Introduction