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The Parties Are Given The Freedom To Choose The Form of ADR They Desire To Avail of and
The Parties Are Given The Freedom To Choose The Form of ADR They Desire To Avail of and
A) BROAD SENSE: A system, using means and methods allowed by law and approved by the
parties, for the purpose of resolving or facilitating the resolution of disputes and controversies
between them, in an expeditious and speedy manner, without resorting to court adjudication.
B) AS DEFINED IN SEC. 3 OF ADR ACT OF 2004 (RA NO. 9285): 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.
The definition of ADR in its broad sense covers all forms and methods of resolving disputes
outside the court trial system which include arbitral processes in quasi-judicial agencies such as
in NLRC, Regional Offices of the Department of Labor and Employment, Intellectual Property
Office, Insurance Commission and other government agencies, while the definition of ADR in RA
No. 9285 do not cover arbitral proceedings done by administrative agencies exercising quasi-
judicial powers.
II.STATE POLICY ON ADR
III.PRINCIPLES OF ADR
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extends to the choice of ADR providers or practitioners, venue of proceedings, terms of
concluding agreements.
2. Declogging of Court Dockets The decongestion of court dockets is the ultimate objective
of ADR. ADR and the court trial system, one being the alternative to the other, work hand-
in-hand to achieve an optimum performance for the providers of both system.
V.FEATURES OF ADR:
1) ADR is a means used to resolve a dispute or controversy.
- The objective of the ADR forms, methods and processes is to resolve or facilitate the resolution
of a dispute or controversy in a speedy, amicable and inexpensive manner.
- ADR should not be resorted to when the motive is to delay or suspend the proceedings rather
than to put an end or facilitate the conclusion of the controversy.
2) ADR utilizes means and methods allowed by law.
- ADR usually takes the form of arbitration, mediation, conciliation, early neutral evaluation, or
mini trial. - It may also be combination of the foregoing methods.
3) ADR is contractual in nature.
- In keeping with the policy of the law to actively promote party autonomy, the parties to a dispute
are given the freedom to agree to resolve their dispute and decide on the procedure therefore.
- Any form of ADR that satisfies the essential requisites of contract and which is not contrary to
law, morals, good customs, public order or public policy, is allowable as a form of ADR.
4) ADR avoids court trial.
- ADR is conduct outside of the court trial system.
- The Arbitration Law (RA No. 876) recognizes the right of any party to apply with the courts to
take measure to safeguard and/or conserve any matter which is the subject of the dispute in
arbitration.
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- The Arbitration Act of 2004 (RA No. 9285) allows the filing of petitions for provisional or interim
measures with the regular courts whenever the arbitral tribunal has no power to act or to act
effectively.
5) ADR usually involves the participation of a neutral third party.
- The third party participant may whether be the arbitrator, mediator, conciliator or neutral
evaluator.
- He is required to disclose any factor that may influence the performance of his duties in
conducting the ADR.
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- A voluntary process in which a mediator, selected by the parties, facilitates communication and
negotiation and assists the parties in reaching a voluntary agreement regarding a dispute.
3. Conciliation
- Adjustment of dispute in a friendly, antagonistic manner.
4. Neutral and Early Neutral Evaluation
Neutral Evaluation - It is a process wherein the parties and their lawyers are brought together
to present summaries of their case and received a non-binding assessment by an experienced
neutral person with expertise in the subject or in substance of the dispute.
3) Extent of conclusion
A. Complete- when all the issues involved are resolved.
B. Partial- it only one or some but not all the issues are resolved Goal is to resolve dispute
fully or partially rather than merely suspend or delay the resolution of dispute.
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B. Independent - conducted irrespective of any pending court case involving the issue.
6) As to applicable law
A. Domestic - parties places of business , place arbitration & place of Performance of the
obligation involved or subject matter of Dispute , are located in the Phil ( governed by
RA #876 the arbitration law) .
B. Internal- parties place of business are in state/ or the place where a Substantial of the
obligation is to be performed or the place where the subject matter of the dispute is
most closely connected outside the Phil / parties have agreed that the subject matter
of the dispute Relates to more than one country Intl. commercial arbitration is governed
by the provisions of ADR act On intl. commercial arbitration.
C. Foreign - conducted outside the Phil Governed by provisions of ADR act of 2004 on
intl. commercial Arbitration.
D. Provisions of RA 9285- both domestic & intl. in character
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proceeding in order to ensure that there is no collusion between the parties. During the
proceedings for the declaration of nullity of marriage or the dissolution of the conjugal partnership
of gains or the absolute community, the distribution and disposition of the assets of the conjugal
partnership of gains or the absolute community, custody of minor children, and support pendente
lite may, however, be the subject of ADR.
c). The jurisdiction of the courts. Jurisdiction over the subject matter of a case is determined
by law and is not dependent upon the allegations of the parties, except in the case of jurisdiction
by estoppel.
d). Future legitime. Future legitime is inexistent and, hence, cannot be waived. This principle is
consistent with Articles 772 and 905 of the Civil Code of the Philippines.
e). Criminal liability. Criminal liability is not susceptible of ADR, although the civil liability arising
from the offense and the separate civil liability for quasi-delict based on the act or omission
constituting the offense, is proper subjects of ADR.
f. In general, those which, by law, cannot be compromised. Article 2035 of the Civil Code of
the Philippines is an example of a provision of law prohibiting compromise. It states that:
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 separations;
(3) Any ground for legal separation;
(4) Future support;
(5) The jurisdiction of courts;
(6) Future legitime.
A.M. No. 07-11-08-SC SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE
RESOLUTION Rule 1.1 provides that:
Rule 1.1. Subject matter and governing rules.-The Special Rules of Court on Alternative Dispute
Resolution (the "Special ADR Rules") shall apply to and govern the following cases:
a. Relief on the issue of Existence, Validity, or Enforceability of the Arbitration Agreement;
b. Referral to Alternative Dispute Resolution ("ADR");
c. Interim Measures of Protection;
d. Appointment of Arbitrator;
e. Challenge to Appointment of Arbitrator;
f. Termination of Mandate of Arbitrator;
g. Assistance in Taking Evidence;
h. Confirmation, Correction or Vacation of Award in Domestic Arbitration;
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i. Recognition and Enforcement or Setting Aside of an Award in International Commercial
Arbitration;
j. Recognition and Enforcement of a Foreign Arbitral Award;
k. Confidentiality/Protective Orders; and
l. Deposit and Enforcement of Mediated Settlement Agreements.
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ADR providers/practitioners act in a quasi-judicial capacity, and therefore, their
decisions are generally subject to a remedy of special civil action for certiorari
under Rule 65 of the 1997 Rules of Civil Procedure.
Even before the ADR Act of 2004 (RA 9285), Art. 2030 of the Civil Code of the
Philippines instructs the courts to suspend proceedings if the possibility of
settlement through the different modes of ADR is present.