Dispute Resolution

& Crisis
Management –
Lesson 4
LADORY M ASENETA, MSCRIM, RCRIM
What are the
stages of conflict?
u FIVE STAGES OF CONFLICT:
1. Latent Stage: Participants not yet
aware of conflict.
2. Perceived Stage: Participants
aware a conflict exists.
3. Felt Stage: Stress and anxiety.
4. Manifest: Conflict is open and can
be observed.
5. Aftermath: Outcome of conflict,
resolution or dissolution.
 What causes a
conflict?
u There are five main causes of conflict:
1. information conflicts
2. values conflicts,
3. interest conflicts,
4. relationship conflicts, and
5. structural conflicts

Information conflicts arise when people have

different or insufficient information or disagree
over what data is relevant.
 u The conflict triangle or ABC
triangle is a model exploring
the impact and causes of
conflict.
What is ABC
u The theory was created by
Triangle? Johan Galtung and was
published in Journal of Peace
Research in 1969.
Johan Vincent Galtung
(born 24 October 1930)

- He is a Norwegian
sociologist, and the
principal founder of the
discipline of peace and
conflict studies. He was the
main founder of the Peace
Research Institute Oslo
(PRIO) in 1959 and served
as its first director until 1970.
u In 1975 Johan Galtung coined the term in
his pioneering work

u Three Approaches to Peace:

1. Peacekeeping
2. Peacemaking, and
3. Peacebuilding

He posited that "peace has a structure different

from, perhaps over and above, peacekeeping
and ad hoc peacemaking.
Why did Gandhi influence Galtung?
u Galtung was influenced in his philosophy of
peace by the pacifism of Gandhi. The iconic
Indian leader and political ethicist, famously
concerned with understanding and
implementing non-violent forms of civil
resistance, coined the term satyagraha.

- a policy of passive political resistance, especially that

advocated by Mahatma Gandhi against British rule in India.
What is Johan Galtung
theory of peace?

u A Mini Theory of Peace. The basic

point is that peace is a relation,
between two or more parties. The
parties may be inside a person, a
state or nation, a region or
civilization, pulling in different
directions. Peace is not a property
of one party alone, but a property of
the relation between parties.
Basic legal system of the Philippines

As a former colony of the United States, the Philippines has a common

law legal system. And, since it was once under the U.S. regime, it can
be said that it is a common law jurisdiction with a strong influence of
U.S. law, unlike other Asian jurisdictions such as Singapore, Malaysia,
Hong Kong, and India, which were under British rule.

In addition, since the Philippines was also under the Spanish rule in the
1920s, it has the characteristics of a civil law jurisdiction. As an example,
it has the Civil Code of the Philippines.
 u 1997 Rules of Civil Procedure, Article 48,
Court System Rule 39

in the u Under Rule 39, Section 48 of the Rules of

Philippines Civil Procedure, the mere entry of a
foreign judgment is not conclusive and
may be reversed for lack of jurisdiction,
lack of notice to the parties, conspiracy,
fraud, or manifest error of law or fact.
Under Philippine laws and international
laws, there is also a possibility that a
foreign judgment may not be recognized
if it is contrary to public policy.
u Philippines became a signatory to the New York Convention in
1967, arbitral awards have an advantage in terms of recognition
and enforcement.
u Although the current arbitration system in the Philippines is
generally considered to be in line with international standards, the
most prominent arbitration institution in the Philippines, the
Philippine Dispute Resolution Centre, Inc. (PDRCI), is still not a
preferred arbitration institution internationally.
u Therefore, many foreign investors often choose foreign arbitration
institutions such as the International Chambers of Commerce (ICC)
and the Singapore International Arbitration Centre (SIAC).
In 2019

The Convention applies to international

settlement agreements resulting from
Philippines became a signatory to the
mediation to resolve commercial
Convention on International Settlement
disputes. The Singapore Convention is
Agreements Resulting from Mediation
intended to facilitate international trade
(the “Singapore Convention”), which is a
and commerce by making it easier for
uniform and efficient framework for
the disputing parties to enforce
international settlement agreements
settlement agreements across borders.
resulting from mediation.
However, the Philippine government has
yet to ratify the Convention.
u In the same year, the Philippine International Center for
Conflict Resolution (PICCR) was launched by the Integrated
Bar of the Philippines (IBP) as a non-stock, non-profit
arbitration institution providing commercial arbitration
and other ADR services. Furthermore, the Revised
Corporation Code, which came into effect in February
2019, expressly provides that a company’s articles of
incorporation or by-laws may contain an arbitration clause,
making intra-corporate disputes arbitrable under the
Philippine law.
 Court System in the Philippines
The courts in the Philippines are composed of ordinary courts and special
courts.
u The ordinary courts are categorized u The special courts include the;
into
1. Sandiganbayan, which exclusively
1. the Metropolitan Trial Courts
handles corruption cases and
(MeTC), Municipal Trial Courts
(MTC), and Municipal Circuit Trial offenses committed by public
Courts (MCTC), officers and employees, and;
2. the Regional Trial Courts, the Court 2. the Shari’a District Court.
of Appeals, and the Supreme
Court.
Arbitration System in the Philippines
u Arbitration has traditionally been In the 1950s, the Philippines begun to
recognized as a common method of be more open to the concept of
dispute resolution in the Philippines, as arbitration, and in 1953, the Congress
stipulated in Articles 2028 to 2046 of the of the Philippines enacted Republic
Philippine Civil Code. However, until the Act (R.A.) No. 876 (the “Arbitration
1920s, the Philippine courts were not Act”). Later, on June 10, 1958, the
necessarily friendly to the arbitration Philippines signed the New York
system, as there were a number of cases Convention, which was ratified on
wherein arbitration agreements July 6, 1967, aimed to promote the
between parties were invalidated by the development of basic laws on
Philippine courts. arbitration.
 R.A. No. 9285 (the
“Alternative Dispute
Resolution Act of 2004”, or
Arbitration the “ADR Act”)
System in the
Philippines the enactment of the Arbitration Act,
which was based on the UNCITRAL
Model Law. The ADR Act forms part of
the core of the Philippine arbitration
system, amending and supplementing
the Arbitration Act.
Arbitration in the Philippines is regulated
by

(1) the Philippine (2) the Arbitration (3) the ADR Act,
Civil Code, Act, and

Of these, the ADR

(4) the ADR
Act provides the
Special Court
foundation of the
Rules.
arbitration system
Distinction between domestic and
international arbitration
u Under the ADR Act, a distinction is made between
domestic arbitration and international arbitration.
u The RA 9285, domestic arbitration is defined as
arbitration that is not defined as international arbitration
in Article 1(3) of the Model Law (Article 32 of the ADR
Act). According to Article 1(3) of the Model Law,
arbitration is considered to be international if:
u (a)the parties to an arbitration agreement have, at the time of
conclusion of that agreement, their places of business in different
States;
u (b) one of the following places is situated outside the State in which
the parties have their places of business:
a. the place of arbitration if determined in, or pursuant to, the arbitration
agreement;
any place where a substantial part of the obligations of the
b.
commercial relationship is to be performed or the place with
which the subject-matter of the dispute is most closely
connected; or
u (c) the parties have expressly agreed that the subject-matter of the
arbitration agreement relates to more than one country.
 Arbitration Institutions in the Philippines
NOTE: Both ad hoc arbitration and institutional arbitration are recognized in the
Philippines.

Regarding ad hoc arbitration, the parties may pursue the arbitration in accordance
with their agreement provided it is not contrary to law, morals, good customs, public
order, or public policy

Accordingly, it is stipulated to the ADR Act, that international

commercial arbitration shall be governed by the UNCITRAL Model Law
(Article 19 of the ADR Act). Also, Article 40 of the same Act provides
that the recognition and enforcement of international arbitration shall
be governed by Article 35 of the UNCITRAL Model.
Important Terms
SIAC – Singapore International Arbitration Centre
- The seat of arbitration does not necessarily need to be
Singapore and can be any city in the world. When choosing
the seat of arbitration, the parties should consider the fact
that the mandatory rules of law at the seat of arbitration
will typically become applicable. The law of the seat of
arbitration will also govern proceedings concerning the
annulment of the award. The parties may also specify that
the hearings take place in a different city for the
convenience of the arbitral tribunal and the parties.
Is CIAC a quasi-judicial body?
u Construction Industry Arbitration Commission
u CIAC is a quasi-judicial body exercising quasi-judicial powers.
Arbitration under a quasi-judicial body is similar to commercial
arbitration in that its factual findings are generally accorded respect
and finality. CIAC exercises quasi-judicial powers over arbitration
disputes concerning construction contracts.
u The CIAC was established for the purpose of optimizing construction-
related dispute resolution in the Philippines. Judging from the end results,
however, although the commission technically allows foreign contractors
and investors to opt for international arbitral institutions, when it comes
to construction engineering disputes, it has in every practical sense
become a hindrance.
Special Provisions on Jurisdiction and
Governing Law
u As mentioned above, while the international arbitral institutions are
common option, it is important to note that arbitral institutions are
identified by law in special cases.
u In 1985, Executive Order (E.O.) No. 1008 established the CIAC, which has
jurisdiction over construction arbitration (Articles 34 and 35 of the ADR
Act). In other words,
u E.O. No. 1008 provided that the CIAC would have exclusive jurisdiction
over all construction-related arbitrations unless otherwise agreed by the
parties. In this regard, the Supreme Court held that even if the parties
agree on a different arbitral institution, the parties may, by law, apply to
the CIAC for arbitration
What it means even if the parties agree to submit to
arbitration with the SIAC, the parties will still have the right to
submit to arbitration with the CIAC?

u This means that the parties can file for arbitration not
only with the SIAC but also with the CIAC, resulting to the
problem of double pendency. Therefore, in practice, it is
recommended that parties choose CIAC arbitration for
construction disputes

[Link]
 End of
Module 4