Professional Documents
Culture Documents
Historical Note ISSUE: Whether or not the dispute between the parties
Lara vs. Del Rosario, G.R. No. L-6339 warrants an order compelling them to submit to
arbitration.
ISSUE Whether or not there are entitled for a mesada (one
month salaey). RULING: NO. The Agreement between petitioner and
private respondent is a contract. The provision to
RULING: NO. As to the month pay (mesada) under article submit to arbitration any dispute arising therefrom
302 of the Code of Commerce, article 2270 of the new Civil and the relationship of the parties is part of that
Code (Republic Act 386) appears to have repealed said contract and is itself a contract. As a rule, contracts are
Article 302 when it repealed the provisions of the Code of respected as the law between the contracting parties
Commerce governing Agency. This repeal took place on and produce effect as between them, their assigns and
August 30, 1950, when the new Civil Code went into effect, heirs. Clearly, only parties to the Agreement, DMC-USA
that is, one year after its publication in the Official Gazette. and MMI are bound by the Agreement and its arbitration
The alleged termination of services of the plaintiffs by the clause as they are the only signatories thereto. In
defendant took place according to the complaint on recognizing the right of the contracting parties to
September 4, 1950, that is to say, after the repeal of Article arbitrate or to compel arbitration, the splitting of the
302 which they invoke. Granting that article 302 of the proceedings to arbitration as to some of the parties on
Code of Commerce is still in force, it refers to one hand and trial for the others on the other hand, or
employees who are engaged under salary basis, "and the suspension of trial pending arbitration between
not to those who only receive compensation some of the parties, should not be allowed as it would,
equivalent to whatever service they may render." in effect, result in multiplicity of suits, duplicitous
procedure and unnecessary delay.
Chung Fu Industries (Phils.), Inc. v CA 206 SCRA 545 As RA 876 expressly authorizes arbitration of domestic
disputes, foreign arbitration as a system of settling
ISSUE: W/N petitioners are estopped from questioning the commercial disputes was likewise recognized when the
arbitration award in view of the stipulations in the parties’ Philippines adhered to the United Nations “Convention on
arbitration agreement that there shall be no further the Recognition and the Enforcement of Foreign Arbitral
judicial recourse if either party disagrees with the Awards of 1958” under the 10 May 1965 Resolution No. 71
arbitrator’s award. of the Philippine Senate, giving reciprocal recognition and
allowing enforcement of international arbitration
RULING: NO. It is stated explicitly under Art. 2044 of the agreements between parties of different nationalities
Civil Code that the finality of the arbitrators’ award is not within a contracting state.
absolute and without exceptions, thus, may be annulled or
rescinded. Under Sec. 24 and 25 of the Arbitration Law,
there are grounds for vacating, modifying or rescinding an La Naval Drug (LND) vs CA 236 SCRA 78
arbitrator’s award. Thus, judicial review of the award is
properly warranted when the factual circumstances
ISSUE: (1)W/N the litigants allowed other remedies such
referred to are present. as arbitration to settle their dispute without trial?
Voluntary arbitrators, by the nature of their functions, act (2)W/N CA has jurisdiction over the case?
in a quasi-judicial capacity. Therefore, their decisions
should not be beyond the scope of the power of judicial RULING: 1. YES. In an effort to declog the courts of an
review of this Court. Petitioners have amply made out a increasing volume of work load and, most importantly, in
case where the voluntary arbitrator failed to apply the order to accord contending parties with expeditious
terms and provisions of the Construction Agreement which alternatives for settling disputes, the law authorizes,
forms part of the law applicable as between the parties, indeed encourages, out of court settlements or
thus committing a grave abuse of discretion. adjudications. Compromises and arbitration are widely
known and used as such acceptable methods of resolving
On 19 June 1953, the Philippine Legislature enacted adversarial claims.
RA 876 otherwise known as “The Arbitration Law.” RA
No. 876 did not revoke and instead supplemented the 2 No. however the petitioner here had already submitted
provision of the New Civil Code on arbitration. himself to the court hence they are estopped form
questioning jurisdiction. In the case at bench, the want of
jurisdiction by the court is indisputable, given the nature of
the controversy. The arbitration law explicitly confines the
court’s authority only to pass upon the issue of whether
Judiciary Action there is or there is no agreement in writing providing for
Del Monte Corporation-USA vs. CA, G.R. No. 136154, 07 arbitration. In the affirmative, the statute ordains that the
February 2001 court shall issue an order “summarily directing the parties
to proceed with the arbitration in accordance with the conciliation and negotiation—is encouraged by the
terms thereof.” If the court, upon the other hand, finds that Supreme Court. Aside from unclogging judicial dockets,
no such agreement exists, “the proceedings shall be arbitration also hastens the resolution of disputes,
dismissed.” especially of the commercial kind. It is regarded as the
“wave of the future” in international civil and commercial
disputes. Brushing aside a contractual agreement calling
Insular Savings Bank v. Far East Bank and Trust for arbitration between the parties would be a step
Company, 492 SCRA 145 backward.
RULING: NO. As provided in the PCHC Rules, the findings FACTS: PGSMC, took the position that the arbitration
of facts of the decision or award rendered by the clause, which provided that the arbitral award shall be
Arbitration Committee shall be final and conclusive upon “final and binding upon the parties”, was null and void for
all the parties in said arbitration dispute. However, the being against public policy as it ousted Philippine courts of
decision of the Arbitration Committee is subject to judicial jurisdiction.
review if conditions found in Articles 2038-2040 of the
Civil Code are present. Petitioner erred in the procedure it RULING: Arbitration clause not contrary to public policy.
chose for judicial review of arbitral award. The proper Consistent with the policy of encouraging alternative
recourse of petitioner from the denial of its MR by the dispute resolution methods, courts should liberally
Arbitration Committee is to file either— construe arbitration clauses. Provided such clause is
a motion to vacate the arbitral award with the RTC, susceptible of an interpretation that covers the asserted
a petition for review with the Court of Appeals under dispute, an order to arbitrate should be granted. Any doubt
Rule 43 of the Rules of Court, should be resolved in favor of arbitration. In case a
or a petition for certiorari under Rule 65 of the Rules foreign arbitral body is chosen by the parties, the
of Court. arbitral rules of our domestic arbitration bodies
In the case at bar, petitioner filed a petition for review with would not be applied. As signatory to the Arbitration
the RTC when the same should have been filed with the Rules of the UNCITRAL Model Law on International
Court of Appeals under Rule 43 of the Rules of Court Commercial Arbitration of the United Nations
Commission on International Trade Law [UNCITRAL]
Alternative dispute resolution methods like arbitration, in the New York Convention on June 21, 1985, the
mediation, negotiation and conciliation, are encouraged by Philippine committed itself to be bound by the Model
the Supreme Court. By enabling parties to resolve their Law. We have even incorporated the Model Law in
disputes amicably, they provide solutions that are less Republic Act No. 9285, otherwise known as the
time-consuming, less tedious, less confrontational, and Alternative Dispute Resolution Act of 2004.” x x x
more productive of goodwill and lasting relationships. It “Thus, while the RTC does not have jurisdiction over
must be borne in mind that arbitration proceedings are disputes governed by arbitration mutually agreed
mainly governed by the Arbitration Law and suppletorily upon by the parties, still the foreign arbitral award is
by the Rules of Court. subject to judicial review by the RTC which can set
aside, reject or vacate it.”…. Chapter 7 of RA 9285 has
made it clear that all arbitral awards, whether domestic or
LM Power Engineering Corporation vs. Capistol foreign, are subject to judicial review on specific grounds
Industrial Construction Groups Inc., 399 SCRA 562 provided for.”
(2003)
PGMSC’s interests are duly protected by the law which
ISSUE: W/N there exists a controversy/dispute between requires that the arbitral award that may be rendered by
petitioner and respondent that requires prior recourse to KCAB must be confirmed here by the RTC before it can be
voluntary arbitration enforced.
RULING: YES. The instant case involves technical The salient features of RA 9285 applying and
discrepancies that are better left to an arbitral body that incorporating the UNCITRAL Model, namely:
has expertise in those areas. In any event, the inclusion of 1) RTC must refer to arbitration in proper case
an arbitration clause in a contract does not ipso 2) Foreign arbitral awards must be confirmed by the RTC
facto divest the courts of jurisdiction to pass upon the 3) RTC has jurisdiction to review foreign arbitral awards
findings of arbitral bodies, because the awards are still 4) Grounds for judicial review different in domestic and
judicially reviewable under certain conditions. foreign arbitral awards
5) RTC decision of assailed foreign arbitral award
Being an inexpensive, speedy and amicable method of appealable
settling disputes, arbitration—along with mediation,
disputes, arbitration - along with mediation, conciliation and
Reyes v. Balde II, 498 SCRA 186 negotiation - is encouraged by the Supreme Court.ADR is a
means used to resolve controversy. The objective of ADR
FACTS: Respondents claimed that the Design-Build forms methods and process is to resolve or facilitate the
Construction Agreement contained an arbitration clause, resolution of a dispute or controversy in a speedy, amicable
thus any dispute arising therefrom should be brought and inexpensive manner.
before the Construction Industry Arbitration Court.
Fundamental of ADR: Sources of ADR
ISSUE: Whether or not CIAC has jurisdiction.
Benguet Corp v. DENR-Mines Adjudication Board
(MAB), JG Realty and Mining Corp,
RULING: YES. CIAC has original and exclusive jurisdiction
545 SCRA 196 (2008)
over disputes arising from or connected with construction
contracts entered into by parties that have agreed to
RULING:
submit their dispute to voluntary arbitration. Needless to
say, the Design-Build Construction Agreement mutually
brought to voluntary arbitration before the Panel of
entered into by the parties contain an arbitration clause.
Arbitratiors. The availment of voluntary arbitration
before resort is made to the courts or quasi-judicial
It bears to stress that being an inexpensive, speedy,
agencies of the government is a valid contractual
and amicable method of settling disputes,
stipulation that must be adhered to by the parties. It is not
arbitration—along with mediation, conciliation, and
illegal and is in fact promoted by the State.
negotiation—is encouraged by the Supreme Court.
Aside from unclogging judicial dockets, arbitration
Sec 6 of RA 876 provides that “a party
also hastens the resolution of disputes, especially of
aggrieved by the failure, neglect or refusal
the commercial kind. It is thus regarded as the “wave
of another to perform under an agreement
of the future” in international civil and commercial
in writing providing for arbitration may
disputes.
petition the court for an order directing
that such arbitration proceed in the
Principles of ADR manner provided for in such
agreement.”
Maria Luisa Park Association, Inc. vs. Almendras, 588
SCRA 663, G.R. No. 171763 June 5, 2009 Sec 7 provides that the court shall stay
the action or proceeding until an
RULING: The terms of Article XII of the MLPAI by-laws arbitration has been had in accordance
clearly express the intention of the parties to bring first to with the terms of the agreement. After the
the arbitration process all disputes between them before a special proceeding of arbitration has been
party can file the appropriate action. The agreement to pursued and completed, then the lower
submit all disputes to arbitration is a contract. As such, the court may confirm the award made by the
arbitration agreement binds the parties thereto, In the arbitrator.
instant case, they, made no earnest effort to resolve their
differences in accordance with the arbitration clause ADR, however, is not inconsistent with judicial
provided for in their by-laws. Mere exchange of proceedings as opposed to the trial system. Judicial
correspondence will not suffice much less satisfy the proceedings complement ADR proceedings. When ADR is
requirement of arbitration. Arbitration being the mode of availed of during the pendency of an action in court, the
settlement between the parties expressly provided by their court does not lose jurisdiction over the case. The court
by laws should be respected proceeding will only be stayed. After the special
proceeding for arbitration has been pursued and
In a long line of cases, the SC has referred to alternative completed, then the court may confirm the award made by
dispute resolution, in general, and arbitration in particular, the arbitrator. (this is the ruling in BF Corp case cited here,
as the “wave of the future in international relations” not one of Benguet case’s issues)
Reyes, vs. Balde II, GR No. 168384 Transfield Philippines Inc. v Luzon Hydro Corporation
Where the jurisdiction of CIAC is properly invoked, the failure ISSUE: Whether the pendency of arbitral proceedings
or refusal of herein petitioner to arbitrate shall not affect the foreclose resort to the courts for provisional reliefs.
proceedings. Arbitration proceedings shall continue
RULING: No. As a fundamental point, the pendency of
notwithstanding the absence or lack of participation of
arbitral proceedings does not foreclose resort to the courts
petitioner, and the award shall be made after receiving the
evidence of the claimant. It bears to stress that for provisional reliefs. The Rules of the ICC, which governs
being an inexpensive, speedy and amicable method of settling the parties' arbitral dispute, allows the application of a
party to a judicial authority for interim or conservatory
measures. Likewise, Section14 of Republic Act (R.A.) No. of the CIAC rules, whose policy and objective is to “provide
876 (The Arbitration Law) recognizes the rights of any a fair and expeditious settlement of construction disputes
party to petition the court to take measures to safeguard through a non-judicial process which ensures harmonious
and/or conserve any matter which is the subject of the and friendly relations between or among the parties.”
dispute in arbitration. In addition, R.A. 9285, otherwise
known as the "Alternative Dispute Resolution Act of 2004," Arbitration has been defined as “an arrangement for taking
allows the filing of provisional or interim measures with and abiding by the judgment of selected persons in some
the regular courts whenever the arbitral tribunal has no disputed matter, instead of carrying it to established
power to act or to act effectively. tribunals of justice, and is intended to avoid the
formalities, the delay, the expense and vexation of ordinary
MainPoint: Sources of ADR in this case at bar: litigation.”
Domestic laws and rules which may either be general
or special. General ADR laws are those applicable to all
forms of ADR such as Article III , Section 16, 1987 Subject Matter of ADR
Constitution; Chapters 1 and 2, Title XIV, Book IV, Civil People v. Vanzuela
Code of the Philippines; and the Arbitration Law (R.A
876); and the ADR act of 2004 (9285) and its IRR FACTS: RTC dismissed saying that the controversy in the
case involves an agrarian dispute which falls under the
primary and exclusive original jurisdiction of the
Uniwide Sales Realty and Resources Corporation vs Department of Agrarian Reform Adjudication Board
Titan-Ikeda Construction and Development (DARAB) because the controversy had the character of an
Corporation. "agrarian dispute."
A petition for certiorari under Rule 65 may also be With respect to the arbitrational clause in the 1998 MOA,
resorted to in accordance with the Constitution petitioner referred the dispute to the Philippine Dispute
and jurisprudence. The Court will not hesitate to Resolution Center, Inc., but respondents refused to submit to
review a voluntary arbitrator’s award where there its jurisdiction.
is a showing of grave abuse of authority or
discretion and such is properly raised in a petition Arbitration is one of the alternative methods of
for certiorari and there is no appeal, nor any plain, dispute resolution that is now rightfully vaunted as
“the wave of the future” in international relations, and appear, including an agreement to arbitrate some specific
is recognized worldwide. To brush aside a contractual thing, and an agreement to abide by the award, either in
agreement calling for arbitration in case of express language or by implication.
disagreement between the parties would therefore be
a step back-ward. ARBITRATION IN GENERAL;Doctrine of Separability
Gonzales v. Climax Mining and Australian Philippines
Mining Inc (GR No. 161957)
Arbitration Agreement ISSUE:
OSPA vs. CA, G.R. No. 156660 Whether the dispute between the parties should
be brought for arbitration under Rep. Act No. 876 even
FACTS: Petitioners assert that the relationship between though Gonzales has raised the twin issues of validity and
respondents and the individual sugar planters is governed by nullity of the Addendum Contract and, consequently, of the
milling contracts which provides in Art XX that all arbitration clause therein as well
controversies which may arise shall be submitted for
discussion to a Board of Arbitration; it also provides that if the RULING/MAIN POINT:
Planter was not a member of any association, then the said 1% Yes. The doctrine of separability, enunciates that
shall revert to the centrals. OSPA, without impleading any of an arbitration agreement is independent of the main
their individual members, sued respondents with the RTC for contract. The arbitration agreement is to be treated as a
Arbitration under RA 876 claiming that respondents violated separate agreement and does not automatically terminate
the Milling Contract when they gave to independent planters when the contract of which it is part comes to an end.
who do not belong to any association the 1% share, instead of The separability of the arbitration agreement is
especially significant to the determination of whether the
reverting said share to the centrals. Respondents filed MD for
invalidity of the main contract also nullifies the arbitration
lack of cause of action because petitioners had no milling
clause. Indeed, the doctrine denotes that the invalidity of
contract with respondents.
the main contract, also referred to as the "container"
contract, does not affect the validity of the arbitration
ISSUE: w/n petitioners are clothed with legal personality to file agreement. Irrespective of the fact that the main contract is
a suit or demand arbitration from, respondents without invalid, the arbitration clause/agreement still remains
impleading the individual Planters. valid and enforceable.
The separability of the arbitration clause is
Ruling: No. There is no legal basis for petitioners' purported confirmed in Art. 16(1) of the UNCITRAL Model Law and
right to demand arbitration when they are not parties to the Art. 21(2) of the UNCITRAL Arbitration Rules.
milling contracts, especially when the language of the Disputes do not go to arbitration unless and until
arbitration clause expressly grants the right to demand the parties have agreed to abide by the arbitrators
arbitration only to the parties to the contract.. decision. Necessarily, a contract is required for arbitration
to take place and to be binding. R.A. No. 876 recognizes the
Section 4 of R.A. 876 provides: A contract to arbitrate XXX shall contractual nature of the arbitration agreement.
be in writing and subscribed by the party sought to be
charged, or by his lawful agent. XXX
Cargill Phil Inc. v San Fernando Regala trading
The formal requirements of an agreement to arbitrate are
Facts: San Fernando Regala Trading filed before the trial
therefore the following: (a) it must be in writing and (b) it must
court a complaint for rescission of contract with damages
be subscribed by the parties or their representatives. To
against Cargill Philippines, Inc.. San Fernando Regala
subscribe means to write underneath, as one’s name; to sign Trading argued that since it was seeking rescission of the
at the end of a document. That word may sometimes be contract, it was in effect repudiating the contract which
construed to mean to give consent to or to attest. included the arbitration clause.
Petitioners would argue that they could sue respondents, Ruling: Applying the Gonzales ruling, an arbitration
notwithstanding the fact that they were not signatories in the agreement which forms part of the main contract shall not
milling contracts because they are the recognized be regarded as invalid or non-existent just because the
representatives of the Planters. main contract is invalid or did not come into existence,
since the arbitration agreement shall be treated as a
This claim has no leg to stand on since petitioners did not sign separate agreement independent of the main contract. A
the milling contracts at all, whether as a party or as a contrary ruling would suggest that a party's mere
representative of their member Planters. repudiation of the main contract is sufficient to avoid
arbitration and that is exactly the situation that the
An agreement to arbitrate is a contract, the relation of the separability doctrine sought to avoid. Thus, we find that
parties is contractual, and the rights and liabilities of the even the party who has repudiated the main contract is not
parties are controlled by the law of contracts. In an agreement prevented from enforcing its arbitration clause.
for arbitration, the ordinary elements of a valid contract must
only on the parties to the contract. Since there are parties
Philrock, Inc. v Construction Industry Arbitration to the case who are not signatories nor assignees to the
Commission (CIAC) contract, they cannot be bound by the arbitration clause
[G.R. Nos. 132848-49. June 26, 2001.] contained therein. To allow arbitration to some and trial as
to others would result in multiplicity of suits and
unnecessary delay, hence, the court therein ruled that the
RULING: Section 4 of Executive Order 1008 expressly vests interest of justice would be best served if the court is
in the CIAC original and exclusive jurisdiction over disputes allowed to proceed with the adjudication of the case in
arising from or connected with construction contracts one complete proceeding. Similarly in this case, it is
entered into by parties that have agreed to submit their established that petitioners who have presented legitimate
dispute to voluntary arbitration. interests in the resolution of the controversy are not
parties to the PIATCO Contracts. Accordingly, they cannot
It is undisputed that the parties submitted themselves to be bound by the arbitration clause provided for in the
the jurisdiction of the Commission by virtue of their ARCA and hence, cannot be compelled to submit to
Agreement to Arbitrate. After submitting itself to arbitration proceedings. A speedy and decisive resolution
arbitration proceedings and actively participating therein, of all the critical issues in the present controversy,
petitioner is estopped from assailing the jurisdiction of the including those raised by petitioners, cannot be made
CIAC, merely because the latter rendered an adverse before an arbitral tribunal. The object of arbitration is
decision. Courts encourage the use of alternative precisely to allow an expeditious determination of a
methods of dispute resolution. When parties agree to dispute. This objective would not be met if this Court
settle their disputes arising from or connected with were to allow the parties to settle the cases by
arbitration as there are certain issues involving non-
construction contracts, the Construction Industry
parties to the PIATCO Contracts which the arbitral
Arbitration Commission (CIAC) acquires primary
tribunal will not be equipped to resolve.
jurisdiction. It may resolve not only the merits of such
controversies; when appropriate, it may also award Prior to the ADR Act and its IRR, where the arbitration is
damages, interests, attorney’s fees and expenses of multi-party, and one or more but not all of them are
litigation. In line with the principles that ADR providers parties to an arbitration agreement, the court is given the
and practitioners including arbitrators acting in a quasi- discretion to refuse a referral to ADR if arbitration will not
judicial capacity, the principles of administrative due be decisive and speedy or if it will result to multiplicity of
process equally apply to arbitral proceedings. (not in the suits, duplicitous procedure and unnecessary delay.
case)
4
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Judiciary’s Action:
1. Requirement of conducting pre-trial
conferences
2. Utilization of different modes of discovery
3. Strict proscription against forum shopping
ADR Methods—
a. Arbitration
b. Mediation
c. Negotiation
d. Conciliation
Lawyers are expected to exert genuine and sincere Objectives and Benefits of ADR
efforts at bringing parties to a settlement within the 1. Speedy and impartial justice
scope of their authority. 2. Declogging of court dockets
Features of ADR Mini-trial—a structured dispute resolutin method in
1. Means used to resolve a dispute or controversy. which the merits of the case are argued before a panel
2. Utilizes means and methods allowed by law. composed of senior decision makers, with or without
Such as: arbitration, mediation, the presence of a neutral third person, after which the
conciliation, early neutrak evaluation or parties seek a negotiated settlement
mini-trial.
3. Contractual in nature Combination of these—any combination of the forms
4. Avoids court trial aforementioned, consented by the parties, not contrary
However, more often than not, ADR is to law, public order or public policy
coducted as part of court proceedings
as distinguished from the trial stage of Components of ADR
court proceedings as in the case of JDR, 1. Contending parties
which, although not governed by ADR 2. Dispute or controversy
Act of 2004, requires judges to conduct 3. Form of ADR
mediation between parties as part of 4. ADR provider or practitioner
the pre-trial and prior to the trial stage.
Likewise the case of Court Annexed General Rule: All adversarial disputes and controversies
Mediation (CAM), while not governed can be the subject matter of ADR.
by ADR Act of 2004, is required to be Exceptions:
conducted prior to pre-trial. a. Civil status of persons
5. Usually involves the participation of a neutral b. Validity of marriage or any ground for legal
third party. separation
c. Jurisdiction of the courts, except on the cases of
Forms of ADR estoppel
d. Future legitime
Arbitration—voluntary dispute resolution process in e. Criminal liability
which one or more arbitrators appointed in accordance f. In general, those which by law cannot be
with the agreement of the parties or rules promulgated compromised
pursuant to the ADR Act, resolve a dispute by rendering g. Labor disputes (governed by the Labor Code)
an award.
The seat of ADR is jurisdiction under whose law the
Mediation—voluntary process in which a mediator, proceeding is being conducted, The venue or place of
selected by the disputing parties, facilitates ADR on the other hand, is the actual site where the
communication and negotiation, and assists parties in arbitration is conducted.
reaching a voluntary agreement regarding a dispute.
ADR proceedings are completed upon the execution of
The concluding arbitral award in an arbitration a concluding act or agreement.
proceeding is rendered by the third party arbitral 1. Arbitral award—partial or final decision od
tribunal or arbitrator; while the concluding mediated an arbitrator in resolving the issue in a
settlement agreement in a mediation proceeding is the controversy.
voluntary agreement executed by the parties 2. Settlement agreement—contract executed
themselves. by the mediating parties, assisted by their
respective counsel, certified by a mediator,
Conciliation—adjustment and settlement of a dispute in evidencing a succesful mediation.
a friendly, unantagonistic manner. 3. Compromise agreement—contract,
whereby parties, by making reciprocal
Neutral and Early Neutral Evaluation—ADR process concessions, avoid litigation or put an end
wherein the parties and their lawyers are brought to one already existing.
together to present summaries of their cases and 4. Waiver or quitclaim—statement
receive a non-binding assessment by an experienced renouncing any right or claim in a
neutral person with expertise in the subject of the controversy by one party in favor of the
dispute. other.
provided by law, the propriety of the arbitral
By the nature of their functions, ADR providers and award; and
practitioners, including arbitrators and mediators, act 3. Judicial review of court decisions in ADR
in a quasi-judicial capacity. They are quasi-judicial related cases—involves remedies available
agencies or instrumentalities. from the orders of the RTC and the CA rendered
in the first two tyoes of judicial intervention.
MEDIATION
DOMESTIC ARBITRATION
As a form of ADR, Mediation is non-evidentiary or non-
merit based. In general, arbitration is domestic if conducted in the
Philippines.
Mediated Settlement Agreement
The concluding agreement has the effect of a res The ADR Act of 2004 devoted only two (2) sections to
judicata, and therefore, binding upon the parties domestic arbitration:
whether or not it has been submitted to the court for a. Section 32, which distinguished domestic
approval. However, there can be no execution of the arbitration from international arbitration and
concluding agreement unless it has been first judicially declared that the Arbitration Law (R.A. 876)
approved. The parties, by motion, have to present the remains to be applicable to domestic
concluding agreement to the proper court for approval arbitration; and
and the rendition of the judgment based thereon. The b. Section 33, which adopted certain provisions of
court is called upon to approve the concluding the Model Law and the ADR Act on
agreement provided it is not contrary to law, good international commercial arbitration to
morals, good customs, public order and public policy. domestic arbitration
Once judicially approved, the concluding agreement
may be enforced through a writ of execution. Unlike the provisions of ADR Act of 2004 on
international commercial arbitration and the rules
corresponding thereto which cover only disputes arising
ARBITRATION from relationships of a commercial nature, the
provisions and rules on domestic arbitration cover both
Kinds: commercial and non commercial disputes provided they
Compulsory Arbitration—process of settlement of are susceptible of arbitration and do not fall within the
(labor) disputes by a government agency who has the exclusive originl arbitral jurisdiction of quasi-judicial
authority to investigate and to make an award which is agencies.
binding on all parties and a mode of arbitration where
the parties are compelled to accept the resolution of
Alternative Dispute Resolution; Court
their dispute through arbitration by a third party. Diversion; Stages (2012)
Voluntary Arbitration—involves the reference of a No.VIII.B. Discuss the three (3) Stages of
dispute to an impartial body, members of which are Court Diversion in connection with
chosen by the parties themselves, which parties freely Alternative Dispute Resolution. (5%)
consent in advance to abide by the arbitral award issued SUGGESTED ANSWER:
after the proceedings where both parties had the The three stages of diversion are CourtAnnexed Mediation (CAM),
opportunity to be heard. Judicial Dispute Resolution, and Appeals Court Mediation (ACM).
During CAM, the judge refers the parties to the Philippine Mediation
Center (PMC) for the mediation of their dispute by trained and
Three types of judicial intervention in arbitration: accredited mediators. If CAM fails, the JDR is undertaken by the JDR
1. Judicial assistance in arbitration—allows the judge, acting as a mediator-conciliator-early neutral evaluator. The
parties in an arbitration to secure from the third case is during appeal, where covered cases are
courts orders or processes that will aid in the referred to ACM.
conduct of the arbitration; e.g.issuance of
interim measures of protection
2. Judicial review of arbitral awards—involves
passing upon to the extent and on grounds