CHAPTER 1 JUDICIARY's ACTION
In response to delay in delivery of justice, the
Judicial and Legislative trends on dispute
resolution
- Lean towards the utilization of
alternative means and methods
implemented in or outside the court
trial system
HISTORICAL NOTE
1. Civil Code of the Philippines (RA
386)
- Civil Code of the Philippines took effect
on August 30, 1950
- Contains provisions on compromises
and arbitrations which encourages
litigants to agree upon a fair
compromise and authorize arbitration
2. The Arbitration Law 1953 (RA876)
- RA 876 did not revoke and instead
supplemented the provisions of the
NCC on arbitration.
3. Senate Resolution No. 71
- May 10, 1965, Philippine Senate
passed Resolution No. 7
- Adherence to the UN Convention on the
Recognition and Enforcement of
Foreign Arbitral Awards of June 10,
1958.
- This convention gave reciprocal
recognition and allowed enforcement of
international arbitration agreements
between the parties of different
nationalities within contracting state.
- Philippine law has acknowledged
international arbitration as system of
settling commercial disputes.
4. United Nations Commission on
International Trade Law
(UNCITRAL) New York
- The Philippine was a signatory to UN
Commission on International Trade
Law NY convention of June 21, 1985.
- Adopted the Model Law on
International Commercial Arbitration
- Philippines committed to adhere to the
Model Law
ALTERNATIVE DISPUTE RESOLUTION
Judicial Branch required:
1. Conducting pre-trial conferences
2. Utilization of different modes of
discovery
3. Strict proscription against forum
shopping
4. Abbreviation of proceedings for small
claims cases
5. Use of judicial affidavits
6. Requirements for continuous trial
The SC passed administrative issuances
encouraging the use of ADR through the
Philippine Mediation Center or through
Judicial Dispute Resolution (JDR)
ADR methods are encouraged by the SC:
a. Arbitration
(“wave of the future” in international
civil and commercial disputes)
b. Mediation
c. Negotiation
d. Conciliation
To emphasize the judiciary’s resolve in
strengthening the system of ADR, the SC,
speaking through Justice Vitug said that “in an
effort to declog the courts of an increasing
volume of work load and most importantly in
order to accord contending parties with
expeditious alternative for settling disputes,
the law authorizes, indeed encourages out of
court settlements or adjudications.
Compromises and arbitrations are widely
known and used as such acceptable methods
of resolving adversarial claims.” (LA NAVAL
DRUG CORPORATION VS. CA 236 SCRA 78,
1994).
LEGISLATIVE ACTION
Special domestic legislations have been
passed prescribing arbitration, mediation and
conciliation in specific types of cases:
1. Labor Code of the Philippines (PD
442, as amended)
- Creation and constitution of National
Labor Relations Commission (NLRC) as
1
 the Arbitration Branch in cases THE ALTERNATIVE DISPUTE
involving: RESOLUTION ACT OF 2004 (RA 9285)
a. unfair labor practice - On February 04, 2004, the
b. termination of employment consolidation of senate bill no. 2671
c. conditions of employment and house bill no. 5564 was enacted as
d. damages arising from employer the first comprehensive ADR law in the
employee relationship and Philippines – RA No. 9285.
e. other labor-related disputes. - It was promulgated on April 2, 2004
and became effective on April 28, 2004
2. Local Government Code of 1991 after its publication on April 13, 2004.
(RA 7160) - It is the general law applicable to all
- ADR in the barangay level rooted from forms of ADR such as:
PD 1508 "Establishing a System of a. Arbitration
Amicably Settling Disputes at the b. Mediation
Barangay Level" c. Conciliation
- Requires conciliation, mediation, or d. Early neutral evaluation
arbitration in barangay level before the e. Mini trial, or
Pangkat ng Tagapagkasundo of would- f. Any combination thereof.
be adverse parties in specified civil and - It adopted the UNCITRAL Model Law on
criminal cases before resort to courts International Commercial Arbitration.
- It paved the way for Philippines to be a
EXECUTIVE BRANCH’S CONTRIBUTION venue for international commercial
The Executive Branch contributed in the arbitration
propagation of ADR: - Pursuant to Section 52 of R.A. No. 9285
1. Construction Industry Arbitration Law calling for the passage of implementing
(EO 1008) rules and regulations, the IRR of ADR
a. Created the Construction Industry Act of 2004 was approved by the
Arbitration Commission (CIAC) Secretary of Justice.
o ADR for construction - Supreme Court passed and approved
agreements Special Rules of Court on Alternative
o Passed and approved the "CIAC Dispute Resolution which provide the
Revised Rules of Procedure courts with the procedural rules on the
Governing Construction prosecution of ADR related actions and
Arbitration" petitions
- R.A. No. 9285 has been categorized as
2. Office of the Solicitor General procedural law; hence, its IRR and the
a. Enacted the "Rules on Alternative Special ADR Rules were considered
Dispute Resolution (ADR) for applicable even to cases already
Disputes Between National pending during their passage.
Government Agencies”
o Adherence to the policy of law to The SC, in Korea Technologies vs. Lerma 542
encourage amicable settlement SCRA 1, 2008 enumerated and explained the
of disputes salient features of RA 9285 applying and
o ADR methods in lieu of incorporating the UNCITRAL Model.
adversarial judicial processes
even in disputes between
national government agencies

ALTERNATIVE DISPUTE RESOLUTION 2

The UNCITRAL Model salient features:
1. The RTC must refer to arbitration in
proper case
- Under sec. 24, the RTC has jurisdiction
over disputes that are properly the
subject of arbitration pursuant to an
arbitration clause.
2. Foreign arbitral awards must be
confirmed by the RTC.
- Foreign arbitral awards while mutually
stipulated by the parties in the
arbitration clause to be final and
binding are not immediately
enforceable or cannot be implemented
immediately
- When confirmed, deemed as not
judgment of a foreign court
- Foreign arbitral awards, when
confirmed, are enforced as final and
executory decisions of our courts of
law.
3. The RTC has jurisdiction to review
foreign arbitral awards
- Sec. 42 in relation to Sec. 45 of RA9285
designated and vested the RTC with
specific authority and jurisdiction to set
aside, reject or vacate a foreign arbitral
award on grounds provided under Art.
34(2) of UNCITRAL Model Law.
4. Ground for judicial review different in
domestic and foreign arbitral awards.
a. Foreign and International Arbitral
Awards –
o Must be confirmed by RTC
o the grounds for setting aside,
rejecting or vacating the award
by the RTC are provided under
art. 34(2) of the UNCITRAL
Model Law;
b. Final Domestic Awards –
o Must be confirmed by RTC,
recognized as final and
executory decisions of the RTC
and may only be assailed before
the RTC
o Vacated on the grounds provided
under sec. 25 of RA876.
5. RTC decision of assailed foreign arbitral
award appealable.
a. Sec. 46 of RA9285 provides for an
appeal before the CA as the remedy
ALTERNATIVE DISPUTE RESOLUTION
of an aggrieved party in cases
where RTC:
o Set aside
o Reject
o Modifies or
o Corrects an arbitral award
b. CA decision may further be
appealed or reviewed through a
petition for review under Rule 45 of
the Rules of Court
LAWYER'S ROLE
- Lawyers, being an integral part of the
judicial system, have to contribute to
the promotion of ADR.
- Assist courts in encouraging the parties
to avail of alternative means of dispute
resolution
- Explain the benefits of the ADR system.
- May also play the role of alternative
dispute resolution provider or
practitioner.
- Having excellent communication skills,
probity, and legal foresight:
1. Can be appointed as an arbitrator,
mediator, conciliator or neutral
evaluator.
2. Expected to exert genuine and
sincere efforts at bringing the
parties to a settlement within the
scope of their authority.
3. Must perform their functions in good
faith, with no other motive except
that of securing for the parties a
speedy, inexpensive and amicable
settlement of their disputes and
controversies.
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 CHAPTER 2
FUNDAMENTALS OF ALTERNATIVE
DISPUTE RESOLUTION
ALTERNATIVE DISPUTE RESOLUTION
Definition
1. In 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 manned,
without resorting to court adjudication.
Covers all forms* and methods of
resolving dispute outside the court trial
system not just Arbitration, Mediation,
Conciliation, Early neutral evaluation,
Mini trial, or Any combination thereof
but also includes similar process in
quasi-judicial agencies.
NLRC, Regional offices of DOLE, IPO, Mines and
Geosciences Bureau, Insurance Commission and others.
2. As defined in ADR Act of 2004 –any
purpose or procedure used to resolve a
dispute or controversy, other than
adjudication of a presiding judge of a
court or an officer of government
agency, in which a neutral third party
participates to assist in the resolution
of issues.
Arbitral proceedings conducted by
admin agencies exercising quasi
judicial powers are not covered by ADR
Act. However, this does not mean that
they are not forms of ADR. They are,
except that they are governed by
special laws and rules applicable to
them.
STATE POLICY IN ADR
ADR Act of 2004 declared the state policy
- Promote party autonomy resolution of
dispute
- Freedom of the party to choose or
make their own arrangement to resolve
dispute
- Provides solutions that is less time
consuming, less confrontational
ALTERNATIVE DISPUTE RESOLUTION
procedure of goodwill and lasting
friendship
- “Wave of the future in international
relationship”
PRINCIPLES OF ADR
1. Promotion of party autonomy and self-
determination in the resolution
disputes.
- Parties are given the freedom
a. To choose the form of ADR they
desire to avail of
b. To prescribe the procedure to govern
the ADR process.
c. To choose ADR providers or
practitioners, venue of proceedings,
and terms of concluding agreements
2. Recognition of ADR as an efficient tool
and an alternative procedure for the
resolution of cases.
- It does not altogether do away with
Court trial system. It merely provides
the parties with an alternative means
of settling their disputes in a manner
that is different, separate and
independent from trial court system.
3. Enlisting of private sector participation.
- It usually requires the participation of
third parties who do not necessarily
dispense public service.
- There is growing trend towards private
sector involvement in ADR
OBJECTIVES AND BENEFITS OF ADR
Objectives of ADR:
1. Speedy and impartial justice
- ADR, as a tool for speedy, inexpensive
and amicable settlement of disputes
2. Declogging of court dockets
- Ultimate objective ADR and the court
trial system, one being alternative to
the other, work to maximize the
benefits from each other.
1
FEATURES OF ADR
1. ADR is a means used to resolve a
dispute or controversy.
- The objective of ADR is to resolve or
facilitated the resolution dispute or
controversy in a speedy, amicable and
inexpensive manner.
- Not an ADR form: purpose is temporary
cessation of discussion of issues in a
controversy not leading to the final
conclusion of dispute
- 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 act did not limit the forms of ADR
- Any means or methods aim at resolving
disputes outside the court trial system
may be recognized as an ADR form
provided it is not contrary to law,
morals, good customs, public order or
public policy.
3. ADR is contractual in nature.
- Parties to a dispute are given the
freedom to agree to resolve their
dispute and decide on the procedure.
- Any form of ADR that satisfies the
essential requisites of a contract, which
is not a contrary to law, morals, good
customs, public order or public policy is
allowable as form of ADR.
- The consent to undergo ADR may be:
a. PRE-CAUSAL CONSENT –
as when the parties to a contract
stipulate that any dispute that will
arise from the contract shall be
resolved by arbitration.
b. PRESENT-CAUSAL CONSENT –
as when the parties to an existing
controversy voluntarily submit
themselves either to an arbitration
or mediation.
4. ADR avoids court trial.
- Conducted outside of the court trial
system.
ALTERNATIVE DISPUTE RESOLUTION
- It is in lieu of and conducted precisely
to avoid trial.
- However, more often than not, ADR is
conducted as a court proceedings, as
distinguished from the trial stage of
court proceedings.
o This is the case of the “judicial
dispute resolution “JDR” which,
although not governed by the
ADR Act of 2004, requires judges
to conduct mediation between
the parties as part of the pre-
trials and prior to the start of the
trial stage.
o This is also the case of the court-
annexed mediation (CAM)
conducted by the Philippine
Mediation Center which, while
not governed by the ADR Act of
2004, is required to be
conducted prior to pre-trial.
- ADR is not inconsistent with judicial
proceedings. Judicial proceedings
complement ADR proceedings.
o When availed of during the
pendency of an action in court
– the court does not lose
jurisdiction over the case, the
court proceeding will only be
stayed. After the special
proceeding for arbitration has
been pursued and completed,
then the court may confirm the
award made by the arbitrator.
- The pendency of arbitral proceedings
does not foreclose resort to courts for
provisional reliefs.
o The Arbitration Law recognizes
the right of any party to apply
with the courts to take measures
to safeguard and/or conserve
any matter which is the subject
of the dispute in arbitration.
o The ADR Act of 2004 allows the
filing of petitions for provisional
or interim measures with the
regular courts whenever the
arbitral tribunal has power to act
or to act effectively.
*Baka lang need kasi procedural parang sa IPL L
2
 5. ADR usually involves the participation reaching a voluntary agreement
of neutral third party. regarding the dispute.
- Third party participant may either be - Distinction between arbitration and
the arbitrator/s, mediator, conciliator mediation
or neutral evaluator. Arbitration Mediation
- It is imperative that the third party an arbitral tribunal the parties to
participant observe neutrality at all or arbitrator controversy are
times evaluates the convinced by a
- Disclose any factor that may influence evidence and the mediator to settle
the performance of his duties such as merits of the case their controversy
a. Relationship or affiliation, or and renders an through voluntary
b. Prior dealings with the parties or arbitral award based agreement of the
latter’s relatives. on his appreciation parties themselves
called “mediated
SOURCES OF ADR settlement
1. Domestic Laws and Rules which may agreement”
either be general or special Concluding arbitral Concluding mediated
(Constitution, Civil Code, Arbitration award is rendered by settlement
Law, ADR Act of 2004 and its IRR) a third party arbitral agreement is the
2. Acts of the Executive Branch tribunal or arbitrator voluntary agreement
3. Decisions of the Supreme Court executed by the
4. International Law parties themselves.
(UNCITRAL and convention on
recognition and implementation of 3. Conciliation
foreign arbitral awards) - The adjustment and settlement of a
5. General principle of Law and Equity dispute in a friendly, unantagonistic
manner.
FORMS OF ADR
1. Arbitration 4. Neutral and early neutral evaluation
- Is an arrangement for taking and
Neutral Early neutral
abiding by the judgment of selected
An ADR process Availed of early on
persons in some disputed manner,
wherein the parties the pre-trial phase
instead of carrying it to established
and their lawyers are
tribunals of justice and is intended to
brought together to
avoid the formalities, the delay, the
present summaries
expense and vexation of ordinary
of their cases and
litigation.
receive a non-
- For purpose of ADR Act of 2004, it is a
binding assessment
voluntary dispute resolution process in
by an experienced
which one or more arbitrators,
neutral person with
appointed in accordance with the
expertise in the
agreement of the parties, rules
subject.
pursuant to ADR Act, resolve a dispute
by rendering an award.
5. Mini-trial
- Is a structured dispute resolution
2. Mediation
method in which the merits of a case
- A voluntary process in which a
are argued before a panel of composed
mediator, selected by the disputing
of senior decision makers, with or
parties, facilitates communication and
without the presence of a neutral third
negotiation and assists the parties in
person, after which the parties seek a
negotiated settlement.
ALTERNATIVE DISPUTE RESOLUTION 3
 6. Any combination of the foregoing
- Any combination ADR forms, approved
by the parties, not contrary to law,
good customs, morals, public order or
public policy, may be implemented.
- Ex.
1.) Mediation-Arbitration or Med-Arb
A step dispute resolution process
involving both mediation and
arbitration.
2.) Minitrial conducted as a court annexed mediation or court-
continuation of mediation, neutral and
early neutral evaluation or any other
ADR process
7. Any other ADR form (Innominate ADR
Form)
- Any arrangement agreed upon by the
parties that satisfies the requisites of
ADR, complies with the essential
requisites of a valid contract and is not
contrary to law, morals, good customs,
public order or public policy is an
acceptable form of ADR.
CLASSIFICATION OF FORMS OF ADR
1. As to the number of parties
a. bilateral or bi-party –one or two
parties
b. multilateral or multi-party – two or
more
2. As to the number of issues involved
a. Simple –only a single issue is
involved
b. Complex – two or more issues
involved
3. As to the extent of conclusion
a. Complete – all issues involved are
resolved
b. Partial – if only one or some but not
all issues are resolved.
4. As to the role of evidence in the
proceedings
a. Evidentiary or merit-based – the
resolution of the dispute involved
requires the presentation of
evidence and evaluation of the
merits of the case
ALTERNATIVE DISPUTE RESOLUTION
b. non-evidentiary or non-merit based
– merits of the case is not
indispensable in the resolution of
the dispute as in the case of
mediation.
5. As to the pendency of a court case
a. Case-related – if conducted in
connection with or as a pre-
requisite to trial as in the case of
referred mediation
b. Independent – conducted
irrespective of any pending court
case involving the issue.
6. As to the applicable law
a. Domestic – if the parties’ places of
business, place of arbitration and
place of performance of the
obligation involved or subject
matter of the dispute are located in
the Philippines
b. International – if the parties’ places
of business are in different states or
the place of arbitration is outside
the Philippines.
7. As to the permanence of the ADR
provider
a. Ad hoc –if the existence of the ADR
provider is only temporary for
purpose of particular dispute
b. Institutional – if the ADR provider’s
existence is permanent in character
and is not dependent on any
dispute.
COMPONENTS OF ADR
1. Contending parties who are involved in
a dispute.
2. Dispute or controversy, which is
susceptible of being subjected to ADR.
3. Form of ADR, which may either, be
arbitration, mediation, conciliation,
early neutral evaluation, mini-trial or
any combination of the foregoing.
4. ADR provider or practitioner
4
 ADR provider ADR practitioner (5) The jurisdiction of courts;
an institution of practitioner is an (6) Future support;
person accredited as individual acting as - It is against public policy to waive or
mediator, mediator, enter into a compromise regarding
conciliator, conciliator, future support.
arbitrator, neutral arbitrator or neutral GR: Support is the basis for life and
party evaluator or party evaluator who sustenance which no one can contract
any person is not necessarily away.
exercising similar accredited as an EXPN: Support pendente lite and
functions ADR provider. accrued support, no longer being
indispensable for the life and
SUBJECT MATTERS OF ADR sustenance of the person entitled there
- In line with the policy to encourage the use to, may be the subject of a compromise
of ADR, in general all adversarial disputes and and, hence, may be the subject of ADR.
controversies can be subject matter of ADR,
except those, which by law or reasons of 7. Labor disputes covered by Presidential
public policy are declared not capable of being Decree No. 442, otherwise known as
subjected to ADR. the Labor Code of the Philippines –
However, this does not mean that labor
Issues not susceptible of ADR: disputes under the Labor Code and its
1. Civil status of persons – matter IRR are not susceptible of ADR. While
determined by law and is not subject to R.A. No. 9285 is not applicable to labor
the discretion of the parties. disputes, they may still be the subject
2. Validity of Marriage or any ground for matters of ADR under the auspices of
legal separation – matters over which the Labor Code and its Implementing
the State has a keen interest to Rules and Regulations, but not under
protect. R.A. No. 9285.
3. Jurisdiction of the courts – jurisdiction
over the subject matter of a case is SEAT AND VENUE OF ADR
determined by law and is not Seat Venue or Place
dependent upon the allegations of jurisdiction under Actual site where
parties except in the case of jurisdiction whose law the arbitration is being
by estoppel. proceeding is being conducted. Hence it
4. Future legitime – future legitime is conducted is possible for venue
inexistent and cannot be waived. of arbitration to be in
5. Criminal Liability – not susceptible of a country different
ADR, although civil liability arising from from that where
offense and separate civil liability for arbitration has its
quasi delict based on the act or seat.
omission constituting the offense are
proper subjects. BASIC CONCEPTS
6. In general, those, which, by law, Concluding Acts or Agreements
cannot be compromised – - ADR is completed upon the execution
Article 2035 of New Civil Code. No of concluding act or agreement.
compromise upon the following - Not forms of ADR, rather, they
questions shall be valid: constitute the part of the ADR
(1) The civil status of persons; proceeding that completes it.
(2) The validity of a marriage or a legal
separation;
(3) Any ground for legal separation;
(4) Future legitime;
ALTERNATIVE DISPUTE RESOLUTION 5
 a. Mediated Settlement agreement – Neutral third persons authorized to consider
contract executed by the mediating the merits of the controversy and required to
parties with the assistance of their render a binding resolution of the dispute:
respective counsel, certified by the 1. Arbitrator
mediator, evidencing a successful 2. Mediator-arbitrator in a mediation-
mediation. arbitration proceeding;
b. Compromise agreement (Mediation) 3. The neutral third person in a mini-trial,
– a contract whereby the parties neutral evaluation (neutral evaluator),
making reciprocal concessions, combination of ADR forms, or
avoid litigation or put an end to one innominate ADR form, who, upon
already existing. agreement of the par ties, is directed to
o If the controversy subject matter render a binding assessment.
of the compromise agreement is
also the subject of litigation, the - Arbitrators and arbitral tribunals do not
compromise agreement can be fall under the classification of quasi-
submitted to the court or judicial bodies since they are
tribunal for approval, and such constituted by virtue of an arbitration
approval is usually contained in agreement rather than by law.
a judgment based on o As such, their arbitral awards are
compromise (Court Annexed not reviewable through a
Mediation) petition for review or petition for
c. Arbitral award (Arbitration) – partial certiorari under Rules 43 and 65,
or final decision by an arbitrator in respectively, of the Rules of
resolving the issue in a controversy. Court
d. Waiver or quitclaim (Conciliation) – - Civil liability of ADR providers and
a statement renouncing any right or practitioners for acts done in the
claim involved in a controversy by performance of their duties
one party in favor of the other. o Same as that for public officers.
o If right or claim is also the Section 38(1), Chapter 9, Book I
subject of litigation, the waiver of the Administrative Code of
and quitclaim can be submitted 1997. “Sec. 38. Liability of
to the court or tribunal and Superior Officers.-(1) A public
become the basis of the officer shall not be civilly liable
dismissal of the action or for acts done in the performance
proceeding. of his official duties, unless
there is a clear showing of
1. ADR Providers and Practitioners faith, malice or gross
Arbitrator Mediator negligence.”
unquestionably precluded from
authorized to discussing the 2. Preference for ADR
render a binding merits of the - There is a clear preference for the use
resolution of this controversy and of ADR methods over court trial system
dispute between cannot render a even before the advent of ADR Act of
the parties and, as binding 2004, article 2030 of the civil code of
such, is bound to assessment of the the Philippines already instructs the
consider the merits dispute court to suspend proceedings if the
of the controversy. possibility of settlement through the
different modes of ADR.
- Hence, even if a case is already
pending in court, either party may,
before or during the pre-trial, file a

ALTERNATIVE DISPUTE RESOLUTION 6

 motion for the court to refer the parties
to ADR. And, even after the pre-trial,
the parties may jointly move for the
suspension or dismissal of the action to
allow a compromise agreement.
*procedure uli
- Article 2030. Every civil action or
proceeding shall be suspended:
(1) If willingness to discuss a possible
compromise is expressed by one or both
parties; or
(2) If it appears that one of the parties,
before the com mencement 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 ac tion 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."
- Formal request or motion for
suspension – not even indispensable.
o As long as the court is apprised
of the existence of an arbitration
agreement, trial should be
suspended to allow arbitration to
proceed."
- Judicial proceedings disregarding
arbitration agreements, conducted
beyond the point when the parties
should have been referred to
arbitration – Null and void
o decisions rendered therein shall
be set aside to allow the remand
of the case to the trial court and
the referral of the dispute to
arbitration.
- ADR efforts materialize and result in a
settlement agreement – either party
may submit the agreement to the
court which the action is pending and
move for the approval thereof.
o If the court finds that the
settlement agreement is not
contrary to law, morals, public
policy or public order – approve
the same and render judgment
based thereon. Once so
ALTERNATIVE DISPUTE RESOLUTION
approved, either party may ask
for the execution of the
agreement in the same manner
that a judgment is executed if
necessary to compel the other
party to comply therewith.
OFFICE FOR ADR
ADR Act of 2004 created the Office for
Alternative Dispute Resolution (OADR)
- attached to the Department of Justice
- headed by an Executive Director
appointed by the President upon the
recommendation of the Secretary of
Justice.
Powers and functions of the OADR
1. To promote, develop and expand the
use of ADR in the private and public
sectors through information, education
and communication
2. To assist the government to monitor,
study and evaluate the use by the
public and private sectors of ADR, and
recommend to Congress needful
statutory changes to develop,
strengthen and improve ADR practices
in accor dance with world standards
3. To act as appointing authority of
mediators when the parties agree in
writing that it shall be empowered to do
so, and
4. To compile and publish a list or roster
of ADR providers/practitioners, and to
compile a list or roster of foreign or
international ADR providers/
practitioners.
7
 CHAPTER 3 Parties
MEDIATION UNDER ADR ACT OF 2004 Mediator Mediation Non – Party
Parties participants
MEDIATION IN GENERAL Person Parties in All other
Among the forms of ADR, mediation and conducting mediation parties who
arbitration are the most common and popular. mediation take part in
the process
Definition – who can
Voluntary process in which a mediator, either be
selected by the disputing parties, facilitates Witness,
communication and negotiation and assists resource
the parties in reaching a voluntary agreement person, or
regarding a dispute. expert

Excluded from coverage of ADR act

1. Court-Annexed mediation
2. Conciliation conducted by Pangkat ng CLASSIFICATION OF MEDIATION
Tagapagkasundo and 1. As a form of ADR, mediation is Non-
3. Judicial Dispute Resolution evidentiary or non-merit based.
- mediation, conciliation and early - Mediation focuses on the facilitation
neutral evaluation process of communication and negotiation
conducted by the judge of a pending between the parties in order to
case after a failed court-annexed encourage them to voluntarily settle
mediation and before the pre-trial. their dispute.
Note: Excluded from coverage of ADR Act but - A mediator must refrain from giving
these circumstances do not exclude 1 and 3 legal or technical advise or
as methods of ADR. otherwise engaging in counselling
advocacy and must abstain from
Court-Annexed Court-Referred expressing his personal opinion on
A mediation process A mediation ordered the rights and duties of the parties
conducted under the by a court to be and the merits of any proposal
auspices of the court conducted in made.
accordance with the 2. On the basis of the structure of the ADR
agreement of the provider, mediation is either
parties when an a. Institution – when administered by,
action is and conducted under the rules of
prematurely mediation
commenced in o An agreement to submit a
violation of such dispute to a mediation by an
agreement. institution shall include an
Conducted prior to agreement:
the pretrial where 1. To be bound by the
the judge refers the internal mediation and
parties to the administrative policies of
Philippine Mediation such institution;
Center for the 2. To have such rules govern
mediation by trained the mediation of the
and accredited dispute and for the
mediators mediator, the parties and
Excluded from ADR Act is applicable their respective counsels
coverage of ADR act and non-party
ALTERNATIVE DISPUTE RESOLUTION 1
 participants to abide by CONFIDENTIAL AND PRIVILEGED
such rules. NATURE OF MEDIATION
b. Ad hoc – if it is other than COMMUNICATION
institutional.
ADR act of 2004 maintains the confidentiality
PLACE OF MEDIATION of the mediation process by declaring that all
GR: Agreement – information obtained through mediation
Parties to mediation are given the freedom to proceedings are privileged and confidential in
agree on the place of mediation. nature.
EXPN: In the absence of such agreement,
place of mediation shall be any place ADR act of 2004 ways to guarantee
convenient and appropriate to all parties confidential and privileged nature of
(Default venue) mediation communication
1. By declaring information as confidential
STAGES IN MEDIATION and therefore, not capable of being
GR: In general, the mediation process consist disclosed.
of the following stages: 2. Declaring the privileged information
1. Opening statement of the mediator; inadmissible in evidence.
2. Individual narration by the parties;
3. Exchange by the parties; Confidential information
4. Summary of issues; Any information relative to the subject of
5. Generalization and evaluation of mediation or arbitration, expressly intended
options; by the source not to be disclosed or obtained
6. Closure under circumstances that would create a
However, the foregoing stages are not reasonable expectations on behalf of the
obligatory and the parties under the principle source that the information shall not be
of self-determination and party autonomy disclosed.
may choose the procedure that will govern
their mediation. Expressly Impliedly
Confidential Confidential
GR: Mediation process shall be held in private if the intention not to if obtained under
EXPN: the parties consent to the presence of be disclosed is circumstances that
persons other than themselves, their expressed by its would create a
representatives and the mediator. source reasonable
expectation on
Mediation shall be closed and concluded by: behalf of the sources
a. Execution of settlement agreement by that the information
the parties; or shall not be
b. By the withdrawal of any party from disclosed.
mediation; or
c. By the written declaration of the Includes (but not limited to the following):
mediator that any further effort at 1. Communication, oral or written, made
mediation would not be helpful. in a dispute resolution proceeding
including memorandum, note, or work
ADVANTAGES OF MEDIATION product of neutral party or non party.
1. Confidentiality in mediation process; 2. An oral or written statement made or
2. Prompt, economical and amicable which occurs during the mediation
resolution of disputes; and 3. Pleadings, motions, manifestation,
3. The decision-making authority rests in written statements, reports filed or
the parties. submitted in arbitration or for expert
evaluation.
ALTERNATIVE DISPUTE RESOLUTION 2
Legal effects of confidential and
privileged nature
1. Party, mediator or non-party
participant may refuse to disclose and
may prevent any other person from
disclosing confidential nature.
2. Information shall not be subject to
discovery and shall be inadmissible in
any adversarial proceeding.
3. The following person involved or
previously involved in mediation may
not be compelled to disclose
confidential information obtained:
a. Parties to the dispute;
b. Mediator/s;
c. Counsel for the parties;
d. Non-party participants;
e. Any person hired or engaged in
connection with mediation as
secretary, stenographer, clerk or
assistant; and
f. Any person who obtains or
possesses confidential information
by reason of his profession.
Note: Practically ALL parties
4. Protection under ADR act shall continue
to apply even if a mediator is found to
have failed to act impartially.
5. Mediator may not be called to testify to
provide information gathered in
mediation.

Exceptions based on agreement, nature

of proceedings, crime or social justice
The privilege does not attach to or exist in the
following communications:
1. Those contained in an agreement
evidenced by a record authenticated
by all the parties to the agreement.
2. Those available to the public or made
during a session of mediation, which
is open, or is required by law to the
public.
3. A threat or statement of a plan to
inflict bodily injury or commit a crime
of violence.
4. Communication intentionally used to
plan, attempt to commit, or commit,
a crime, or conceal an on-going crime
or criminal activity.

ALTERNATIVE DISPUTE RESOLUTION 3