ALTERNATIVE DISPUTE RESOLUTION EXAM

Name: Labuga, Aljay H.

I.
What are the forms of Alternative Dispute Resolution?

The forms of Alternative Dispute Resolution are:

A. Conciliation
B. Mediation
C. Arbitration
D. Early Neutral Evaluation
E. Mini trial
F. Mediation-Arbitration

II.
What disputes cannot be the subject of ADR?
The following disputes may not be subject of ADR
A. Labor disputes
B. Civil Status of a person
C. Validity of marriage
D. Grounds for legal separation
E. Future legitimes
F. Criminal Liability
G. Disputes that the law can not comprehend

III.
Cite and explain the 5 general principles governing ADR.
The General Principles governing ADR
1.Party autonomy- parties may make their own arrangements to resolve their disputes
2.Liberal Interpretation in favor of ADR- due regard to the policy of the law in favor to
ADR
3.Competence-competence principle- arbitral tribunal may initially rule on its own
jurisdiction
4.Principle of separability-separability of the arbitration clause
5.Confidential nature of ADR proceedings- all disputes resolve by means of ADR are
deemed to be confidential in nature
IV.
X entered into a contract with B for the construction of a commercial building. The
parties agreed that they will submit themselves to arbitration in case of any dispute relative to
the contract. Eventually, due to failure on the part of B to comply with the specifications of the
building as laid out under the contract, X filed a case against him before the RTC. As a lawyer, B
went to you for professional help on the matter. What will be your advise?

As the lawyer, I will advice X to request the court for arbitration not later than the date
of the pre-trial conference. This is essential step in order for the court to refer the parties for
arbitration.

V.
C filed for the recognition and enforcement of a foreign arbitral award before a
Philippine court. B, the adverse party, filed a petition for setting aside such foreign arbitral
award. May the court act on the petition of B?

Yes, the court may act on the petition of B.

Article V of the New York Convention provides the grounds when an adverse party may
raise a petition for the rejection of a foreign arbitral award.
In this case, since in order for a foreign arbitral award be applicable here in the
Philippines it must first be recognized by a Philippine Court. Thus any party to a foreign arbitral
proceeding may oppose for the application of its recognition and enforcement provided that he
has grounds as enumerated in Art V of the New York Convention. Therefore, B may act on the
petition.

VI.
C and D agreed to submit their dispute to arbitration. During the arbitration
proceedings, C feared that D will have an opportunity to destroy evidence against him. C comes
to you for advise on what he can do to ensure preservation of evidence. What will be your
advise?

I will advice C that he don’t need to worry about the evidence for anything that is
disclosed within the arbitration proceeding shall be subject to confidentiality and any
confidential Information shall not be subject to discovery and shall be inadmissible if any
adversarial proceeding. Such evidence shall be kept by the clerk of courts for protection.
Therefore, C did not need to worry about the evidence being damages during the arbitrary
proceeding.

VII.
Under the Special Rules of Court on ADR, what is the remedy if the parties to an
arbitration failed to reach an agreement as to the appointment of a sole arbitrator?
 If the parties fail to agree as to the arbitrator, the CIAC has the option to appoint a
single arbitrator or an Arbitral Tribunal, wherein each party may nominate one arbitrator from
the list of arbitrators accredited by the CIAC for appointment and confirmation.

VIII.
G filed an appeal to the Court of Appeals on the decision of the RTC vacating a domestic
arbitration award. He filed the verified petition for review in seven (7) copies within the fifteen
(15) day reglementary period without proof of service of copies thereof on the adverse party
and the RTC. Should the Court of Appeals act on his petition for review?

No, the Court of Appeals shall not act on his petition.

The law on Arbitrary proceedings provides that not only the reglementary period and
the number of copies needs to be complied in order to proceed or act upon the appealing case,
but it is essential that proof of notice and service shall be presented as well.
In this case, since the proof of service is lacking therefore, the Court of Appeals cannot
acquire a valid jurisdiction over the case, Thus the court may not act on the petition for review.

IX.
X and Y entered into a contract with an arbitration clause. Without honoring the
arbitration agreement, X filed a suit against Y before the RTC. Before the pre-trial conference of
the case, Y filed a Motion to Refer the Case to ADR contending that since there was an
arbitration agreement between the parties, the same should be honored by X. The RTC, acting
on the Motion, issued an Order referring the case to ADR. X filed a Motion for Reconsideration
of the said Order within fifteen (15) days from receipt of the same. Y opposed the said Motion
on the ground that an Order referring a case to ADR is immediately executory and not subject
to a Motion for Reconsideration. Is Y correct?

No, Y is not correct.

Arbitral tribunal shall have the jurisdiction over failures in arbitral agreements, a party
who wish to challenge the arbitrator shall have 15 days after becoming aware of the
constitution of the arbitral tribunal, the party may send a written statement of the reasons for
the challenge. Consequently, the decision of the Arbitration Committee is subject to judicial
review. The proper recourse of the petitioner from the denial of its motion for reconsideration
by the Arbitration Committee is to file either motion to vacate the arbitral award with the RTC.
a petition for review or certiorari.
In this case, since the decision of the Arbitral tribunal are subject to judicial review and
the court already ordered to refer the case with the ADR. Y may avail of the options either
motion to vacate the arbitral award with the RTC. a petition for review or certiorari.

X.
May the validity of a contract be made subject to arbitration? Explain.

Yes, validity of a contract can be made subject to arbitration.

 Arbitration may be availed if the parties agreed to submit their Dispute to be accepted
as a substitute for the judgment of a court, there is an actual dispute which is capable for
arbitration.
Provided that such contract is not among those enumerated not to be subject of ADR,
then such validity of contract may be a subject for alternative dispute resolution,