ALTERNATIVE DISPUTE

RESOLUTION
JUDGE EUGENE C. PARAS
VP-Administration of the Philippine Judges Association
2nd Vice-Executive Judge, RTC Makati City
Presiding Judge, RTC Branch 58, Makati City
Professor of Law
ADR TRACED EVEN BEFORE 1521
ADR methods in this jurisdiction can be traced as far back as the barangay and
other forms of village governments before the Spaniards came in 1521. In these
early days, the datus used to settle disputes of their constituents, and their
decisions were invariably accepted as having authority and finality.
Legal Mandates and Courts Initiative

The ADR Law of 2004 (RA No. 9285)

Civil Code of the Philippines
Rules of Court

Rationale for Court ADR Initiatives

To promote party autonomy in conflict resolutions

To declog court dockets
To promote and achieve speedy and impartial justice
To induce cost-effective process in conflict resolutions
To enhance access to justice by the marginalized sectors
To induce reconciliation of parties and promote harmonious and peaceful
communal relations

Consequences of Unresolved Problem of Court Docket Congestion

ENDANGERS NATIONAL SECURITY

AFFECTS POLITICAL STABILITY
SCARES AWAY FOREIGN INVESTMENT
SLOWS DOWN ECONOMIC GROWTH

Action Program for Judicial Reform

Decongestion of court dockets and the enhancement of access to justice and
towards the effective implementation of Section 2 (a), Rule 18 of the 1997
Rules of Civil Procedure
Approaches to Unclog Dockets
1. DIRECT APPROACH OUTPUT
*increase court efficiency and disposal rate
*time bars; inventory of cases; simplified rules; court specialization; disciplinary
actions
2. INDIRECT APPROACH INPUT
*decrease number of cases filed by restricting judicial access

*prior referral to barangay conciliation; exhaustion of administrative remedies;

increased filing fees; strict observance of procedural requirements
3. DIVERSION OF CASES TO ADR MECHANISMS
RA No. 9285 An Act to institutionalize the use of Alternative Dispute Resolution (ADR
in the Philippines) Sec.
2. Declaration of Policy - It is hereby declared the policy of the state to actively
promote party autonomy in the resolution of disputes or the freedom of the parties
to make their own arrangements to resolve their disputes. Towards this end, the
state shall encourage and promote the use of ADR as an important means to
achieve speedy and impartial justice and declog court docketsLikewise, the state
shall enlist active
private sector participation in the settlement of disputes through ADR.
ADR also recognized in the Civil Code
Title XIV COMPROMISES AND ARBITRATION
Chapter 1 Compromises
Art. 2029 The Court shall endeavor to pursuade the litigatans in a civil case to
agree upon some fair compromise.
Art. 2028 - A compromise is a contract whereby the parties by making reciprocal
concessions avoid a litigation or put an end to the one already commenced.
Art. 2030. - Every civil action or proceeding shall be suspended:
If willingness to discuss a possible compromise is expressed by one or both
parties; 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.
The duration and terms of the suspension of the civil action or proceeding
and similar matters shall be governed by such provisions of the Rules of Court as
the Supreme Court shall promulgate. Said rules of court shall likewise provide for
the appointment and duties of amicable compounders.
Art. 2031. - The courts may mitigate the damages to be paid by the losing party
who has shown sincere desire for a compromise.
Art. 2035. - No compromise upon the following questions shall be valid:
a. the civil status of persons
b. the validity of a marriage or a legal separation
c. any ground for legal separation
d. future support
e. jurisdiction of courts
f. future legitime
Settlement of Disputes Parties in conflict choose between:
A. Judicial Mode - Trial proceedings Adversarial method; OR
B. Court-Annexed Mediation Non-Adversarial method

Current Courts ADR Initiatives Court Diversion to ADR

Court-Annexed Mediation (CAM)

Mobile Court-Annexed Mediation (MCAM)
Judicial Dispute Resolution (JDR)
Appellate Court Mediation (ACM)
Court-Annexed Arbitration

Court-Annexed Mediation
Trial Court Mediation
Appellate Court Mediation Done by Trained Mediators
Mobile CAM - Mediators of nearby areas are brought to target areas to beef
up number of local mediators.
Court-Annexed Mediation
If mediation fails, records of case are returned to Court. In areas where JDR is
established, these cases now subjected to Judicial Dispute Resolution where
mediation is done by JDR trained judges.
If JDR fails, parties go to trial before another trial judge. The case is, thus, re-raffled
to another court.
Mediation in Appellate Court Level
In the Court of Appeals, mediation is done by trained appellate court mediators
composed of retired justices and judges, law professors and senior law practitioners.
If it fails, case is returned to the division of the case where it was raffled to
originally.
RTC as Appellate Court trained mediators do the mediation.
Distinctions
Mediation/Conciliation
Product --- Compromise
Maker --- Parties
Focus --- Person or oriented
trade off of values
Outlook--- Future
towards reconciliation
Process --- Informal
Result --- Win-Win
ProdLucitt i--g- ation Judgment Judge Act or event oriented
Backward to past event Procsess- -- Rigid, Formal Lose
What is ADR? ALTERNATIVE DISPUTE RESOLUTION
Is the use of alternatives to traditional court litigation to resolve differences more
efficiently and economically with less risk and better result.
Alternative Dispute Resolution means any process or procedure used to resolve a
dispute or controversy other than by adjudication of a presiding judge of a court or
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.
(R.A. No. 9285).
Objectives of ADR
Increase civic engagements and create public processes to facilitate
economic restructuring and other social change Help reduce the level of
tension and conflict in a community
Increases popular satisfaction with dispute resolution
Manage disputes and conflicts that may directly impair
development initiatives
BASIC ADR MECHANISMS
ARBITRATION
NEGOTIATION
MEDIATION
CONCILIATION
BASIC ADRMECHANISMS
ARBITRATION
It is a voluntary process wherein the parties meet with an impartial and neutral
person
who will resolve their disputes by rendering a decision known as an award.
ARBITRATION
ADR methods, particularly arbitration, have been proven to be more advantageous
than the traditional and rigid court litigation. Parties to commercial disputes have
been attracted to the unique attribute of, as well as to the benefits that may be
gained from these friendly proceedings.
ARBITRATION
In the international setting, the most popular choices for arbitration venue are the
financial capitals Hongkong, Singapore and Paris. The Inter- national Chamber of
Commerce (ICC) International Arbitration Courtremains to be the most established
and reputable international arbitral institution. In Asia, the two leading centers for
international commercial arbitration are the Singapore International Arbitration
Centre
(SIAC) of Singapore and the Hongkong International Arbitration Centre (HKIAC) of
Hongkong.
ARBITRATION
In the Philippines: the PCHC (Philippine Clearing House Corporation) wherein
member banks cannot invoke the juris- diction of the trial court without prior
recourse to the PCHC Arbitration Committee; the Philippine Dispute Resolution
Centre, Inc. (PDRCI)
established by the Philippine Chamber of Commerce and Industry which was
created to encourage the use of modes of ADR for settlement of domestic and
international disputes in the Philippines;
ARBITRATION
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The Office for ADR, an agency attached to the DOJ to promote the use of ADR in the
private and public sector; the Construction Industry Arbitration Commission
(CIAC) which has original and exclusive jurisdiction over construction disputes which
are subject to an arbitration clause or arbitration agreement; and those voluntary
arbitrators governed by the Labor Code.
ARBITRATION
Party Autonomy The emphasis of this procedure is on the voluntary agreement of
the parties in submitting their dispute and in choosing the arbitrators, the venue or
place of arbitration, the language to be used, and the rules or procedure to be
followed.
ARBITRATION
FOREIGN ARBITRAL AWARD vs. FOREIGN JUDGMENT
Unlike foreign judgments which are generally not enforceable in other jurisdictions
except in cases of reciprocity and comity, arbitral awards are more readily
enforceable. The party applying for the enforcement of the arbitral award only
needs to file with the RTC the original or duly authenticated copy of the award and
the arbitration agreement. If parties were allowed to question the award rendered
by the
tribunal on any ground, then the arbitration proceedings conducted will be rendered
useless.
BASIC ADR MECHANISMS
NEGOTIATION
It is a process of trying to find a positive, realistic and wide-ranging solution to a
problem which offers as much as possible to both sides.
BASIC ADR MECHANISMS
MEDIATION/CONCILIATION
It is a voluntary non-binding process wherein the parties meet with a mutually
selected, impartial and neutral person who will facilitate communication and
negotiation, and assist the parties in reaching a voluntary settlement regarding
their differences through an agreement that defines their future behavior.
HYBRID ADR MECHANISMS
OMBUDSPERSON
EARLY NEUTRAL EVALUATION
MINI-TRIAL
PRIVATE JUDGING (RENT-A-JUDGE)
MEDIATION-ARBITRATION
ARBITRATION-MEDIATION
HYBRID ADR MECHANISMS
OMBUDSPERSON
It is an informal dispute resolution tool used by an organization. A third party
ombudsperson is appointed by the organization to investigate complaints within
the institution and prevent disputes or facilitate their resolution. The Ombudsperson
may use various ADR mechanism (e.g. Fact-Finding, Mediation) in the process of
resolving disputes.
HYBRID ADR MECHANISMS
What is meant by FACT-FINDING?
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It is a process by which parties present the arguments and evidence to a neutral

person
who then issues a non-binding report on the findings, usually recommending a basis
for
settlement.
HYBRID ADRMECHANISMS
EARLY NEUTRAL EVALUATION
It is 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 non-binding
assessment by an experienced, neutral person, with expertise in the subject in the
substance of the dispute.
HYBRID ADR MECHANISMS
MINI-TRIAL
A voluntary process in which cases are heard by a panel of high level principals from
the disputing sides with full settlement authority; a neutral presider may or may not
oversee this stage. First, parties have a summary hearing, each side presenting the
essence of their case. Each parry thereby can learn the strengths and weaknesses
of their own case, as well as that of the other parties. Second, the panel of party
representatives attempt to resolve the dispute by negotiation. The neutral presider
may
offer his opinion about the likely outcome in court.
How to: MINI-TRIAL
1. Parties choose their agent or advocate who will sit in the panel.
2. If desired by both parties, they will agree on a neutral to sit as Chair of the panel.
3. Counsels of the parties will present their case to the panel usually without live
testimony but will present an outline of the evidence of the parties. Counsels will
make an opening and closing statement.
4. The chosen panelists of the parties will work out a settlement. They are the
decision makers.
WHY THE PANELISTS RATHER THAN THE PARTIES INVOLVED IN THE SETTLEMENT
The parties tend to inject emotion or bias into negotiations and will seldom
compromise unless they hear a damaging information that tends to diminish their
claim or defense.
Panelists tend to be well-seasoned and experienced in similar matters.
WHY THE PANELISTS RATHER THAN THE PARTIES INVOLVED IN THE SETTLEMENT
Examples of panelists:
1. representative of insurance carrier for the party
2. top level management man of the business/party
3. privately owned consultants with technical expertise on the subject
HYBRID ADR MECHANISMS
PRIVATE JUDGING (Rent-a-Judge)
Parties in a non-criminal case try their case before a judge the jointly choose who
may then render a decision in their case. Parties usually engage the services of a
retired judge or private lawyers.
HYBRID ADR MECHANISMS
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MEDIATION-ARBITRATION
It is a two-step dispute resolution process involving both mediation and arbitration.
ARBITRATION-MEDIATION
In this case, the neutral evaluator first acts an an arbitrator, writing up an award
and placing it in a sealed envelope. The neutral evaluator then proceeds to a
mediation stage. If the case is settled in mediation, the envelope is never opened.
How do Disputes get to ADR Voluntary ADR
Parties voluntarily agree to pursue ADR even if there is no agreement before or
after a dispute has arisen.
Steps in initiating ADR
1. Choosing which process to use (whether mediation or arbitration)
2. Persuading the opposing party/counsel to participate
3. Selecting the appropriate provider of dispute resolution services.
How do Disputes get to ADR Mandatory ADR
Parties are mandated to refer their dispute to ADR either by the terms of their
agreement or order by the court.
*Pre-dispute clause
*Order of the Court (court-annexed mediation)
*Existing Dispute Submission Agreement
COURT-ANNEXED MEDIATION
It means any mediation process conducted under the auspices of the court,
after such court has acquired jurisdiction over the dispute (R.A. No. 9285)
Process to settling disputes with the assistance of an acceptable impartial
and neutral third party called a Mediator.
The Mediator, acting as an officer of the court, helps parties identify issues
and develop proposals to resolve their disputes. Once the parties have
arrived at a mutually acceptable arrangement, the agreement becomes the
basis for the courts decision on the case.
COURT-ANNEXED MEDIATION
Parties allowed in Mediation:
1. individual parties
2. representatives
3. legal counsels
4. Any person required or allowed by the Mediator to attend the mediation
conference.
*Full authority to negotiate and enter into compromise is required for
representatives of parties and corporations.
Characteristics of CAM Mandatory

referral of covered cses to Mediation under A.M. No. 01-10-SSC- PHILJA dated
14 October 2001 and A.M. Circular No. 20- 2002 dated 24 April 2002
Mediation is part of the pre-trial proceedings
pre-trial sanctions including censure, reprimand, contempt and such
sanctions under the Rules of Court may be imposed for failure to appear
before the Mediator or for abusive conduct

Characteristics of CAM Voluntary

after referral of the courts to the Philippine Mediation Center (PMC), parties
may refuse to submit themselves to mediation
parties and mediator may call off Mediation at any time
Characteristics of CAM Strictly Confidential
admissions and statements made in Mediation cannot be used for any
purpose in any proceeding
proceedings are not recorded. No transcript and minutes shall be taken
fee of P500 to be paid before mediation
Time frame for Mediation
The period shall not exceed 30 days.
Should there be a request, and the mediator recommends, it is still the Court
that approves it.
Extended period---another 30 days.
Suspension of regular proceedings
The period of mediation shall be EXCLUDED from the regular and mandatory periods
for trial and rendition of judgment in ordinary cases and for cases under Summary
Procedure.
CASES COVERED BY MEDIATION
1. All civil cases, settlement of estates, and cases covered by the rule on Summary
Procedure, except those which by law may not be compromised.
2. Cases cognizable by the Lupong Tagapamayapa under the Katarungang
Pambarangay Law.
3. The civil aspect of BP 22 cases; and
4. The civil aspect of quasi offenses under Title 14 of the Revised Penal Code
5. The civil aspect of estafa and libel cases where damages are sought
CASES COVERED BY MEDIATION
7. The civil aspect of less grave felonies punishable by correctional penalties not
exceeding 6 years imprisonment where the offended part is a private person.
8. All civil cases and probate proceedings, testate and intestate brought on appeal
from the exclusive and original jurisdiction granted to the first level courts under
Sec. 33, par, 1 if the Judiciary Reorganization Act of 1980.
9. All cases of forcible entry and unlawful detainer brought on appeal from the
exclusive and original jurisdiction of first level courts.
CASES COVERED BY MEDIATION
10. All civil cases involving title to or possession of real property or an interest
therein brought on appeal from the exclusive and original jurisdiction granted to the
first level courts.
11. All habeas corpus cases decided by the first level courts in the absence of the
Regional Trial Court judge that are brought up on appeal from the special jurisdiction
granted to the first level courts.
CASES NOT REFERRED TO MEDIATION
1. Civil cases which by law cannot be compromised
2. Other criminal cases not covered under pars. 3 to 6 of Art. 2035, New Civil Code.
3. Habeas corpus proceedings
4. R.A. 9262 (Violation against women and minor children)
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5. Cases with pending application for Restraining Orders or Preliminary Injunction

*However, in cases covered under 1, 4 and 5, where the parties inform the court
that they have agreed to undergo
CASES NOT REFERRED TO MEDIATION
1. Civil cases which by law cannot be compromised
2. Other criminal cases not covered under pars. 3 to 6 of Art. 2035, New Civil Code.
3. Habeas corpus proceedings
4. R.A. 9262 (Violation against women and minor children)
5. Cases with pending application for Restraining Orders or
Preliminary Injunction
*However, in cases covered under 1, 4 and 5, where the parties inform the court
that they have agreed to undergo
MOBILE COURTANNEXED MEDIATION
Launched in Rizal and Bulacan in August 2007
Component of the Justice on Wheels program of the Supreme Court initiated
by CJ Reynato S. Puno
Recommended of the Committee on Justice on Wheels chaired by SC Justice
Consuelo Ynares Santiago
Objective is to improve access to justice by the poor and marginalized sectors
Also to encourage the speedy disposition of cases through the use of ADR
Provide affordable judicial services through the operation of the mobile courts
JUDICIAL DISPUTE RESOLUTION (JDR)
Canadian International Development Authority (CIDA) helped develop the
Justice Reforms Initiative (JURIS) project.
Judge actively participates in his role as a
*conciliator
* early neutral evaluator and
* eventually a mediator
JUDICIAL SETTLEMENT OF DISPUTES In Multiple sala courts
*raffled to another branch which conducts the trial on the merits of the case. In
Single sala courts
*the nearest court or pair court, if any, only for the purpose of mediation
*whatever is the result, the case is returned to the originating court for appropriate
action.
JUDICIAL SETTLEMENT OF DISPUTES In Family Courts
*if there are two family courts, the trial of the case shall be by the Pairing Judge
*if there are more than two family courts, the case shall be raffled among all family
courts
*however, due to the specialized nature of the dispute, the case may be tried, upon
joint motion of the parties In Commercial Courts
*the JDR (pre-trial) shall be conducted by the Pairing Judge
REASONS FOR DISQUALIFYING JUDGE MEDIATOR

As conciliator-mediator, the judge gains information from the parties

Such information may create bias that affects neutrality and the integrity of
the judicial process
Preserve the Rule of Confidentiality.

COURT OF APPEALS MEDIATION

Initial skepticism due to the fact that one party has already a favorable
decision in the trial court
Successful Pilot test in 2002
Out equivalent to one whole division of the Court of Appeals
Available in CA Manila, CA Cebu and CA Cagayan De Oro

CASES REFERRED TO APPELLATE COURT MEDIATION (ACM)

Special civil actions for certiorari, except those involving pure questions of
law
Habeas Corpus cases involving custody of minor, with consent of parties
provided that the minor is not detained for commission of criminal offenses
Criminal cases cognizable by the Katarungang Pambarangay or offenses
punishable by imprisonment not exceeding 1 year or a fine not exceeding
P5,000.00 or both.

CASES NOT SUBJECT TO APPELLATE COURT MEDIATION (ACM)

Civil cases which by law cannot be compromised
Criminal cases not cognizable by the Katarungang Pambarangay or offenses
punishable by imprisonment not exceeding 1 year or a fine not exceeding
P5,000.00 or both
Habeas Corpus cases of minors detained for a criminal offense
Cases with pending application for restraining orders or
preliminary injunctions unless both parties request for probation.
ADVANTAGES OF ADR
Proof of the backwardness into which we have fallen are the multitude of laws, the
discontent of both parties, the cases that last an eternity handed down from fathers
to sons and grandsons, the enormous expenses that the aggrieved party has to
defray so that he may get justice. Jose P. Rizal
ADR vs. LITIGATION
In Litigation
In the face of a court battle, both sides become almost instantly convinced that
they are not just right, but righteous, and flexibility vanished. Marc McCormack
Litigation merely continues and offends nature; it does
not heal. Confucius
MARAMING SALAMAT!
Judge Eugene
C. Paras

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