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Introduction to Alternative
Dispute Resolution

Module 1

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SESSION OBJECTIVES
• Explain the current state of judicial
system
• Familiarize with the Philippine legal
framework
• Define the concept and types of ADR
• Explain the uses of ADR in the
Philippine government

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OUTLINE
Current State of Judicial System

Philippine Legal Framework and Service on ADR

Alternative Dispute Resolution

Use of ADR in the Government

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JUDICIAL
SYSTEM
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CURRENT STATE OF THE JUDICIAL SYSTEM

Source: Supreme Court of the Philippines. 2020 Annual Report. https://sc.judiciary.gov.ph/files/annual-reports/JAR-2020.pdf

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CURRENT STATE OF THE JUDICIAL SYSTEM

=
Source: Supreme Court of the Philippines. 2020 Annual Report. https://sc.judiciary.gov.ph/files/annual-reports/JAR-2020.pdf

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CURRENT STATE OF THE JUDICIAL SYSTEM

÷ =
Source: Supreme Court of the Philippines. 2020 Annual Report. https://sc.judiciary.gov.ph/files/annual-reports/JAR-2020.pdf

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 WHY DOES IT TAKE SO LONG FOR
CASES TO BE DECIDED?
• Courts are congested
• Not enough judges
• Lack of justice
halls/dilapidated
facilities
• Segmented trials
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PHILIPPINE LEGAL
FRAMEWORKS AND
PUBLIC SERVICE ON
ADR

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 HISTORY OF ADR IN THE PHILIPPINES

1973 2012
Pre-colonial PD No. 242, Settlement EO No. 78, s. 2012: Inclusion of ADR
times and Adjudication of clause in JVA
Datus resolving disputes Disputes Among
in the community Government Offices 1991 DOJ Circular No. 49, s. 2012:
Elders assist in dispute 1953 RA No. 7160, Accreditation Guidelines and Training
resolution RA No. 876,
1978 Local Government Code Standards
The Arbitration Law PD No. 1508, System of Title I Book III Chapter VII
Amicably Settling Disputes (Katarungang Pambarangay), EO No. 97: OADR’s oversight function
at the Barangay Level Sections 399-422, 515 on ADR programs in the Executive

1940 1950 1960 1970 1980 1990 2000 2010

1985 2004 2015

EO No. 1008, Construction RA No. 9285, Uniform Rules on Dispute
1967 Industry Arbitration Law Resolution under PD No. 242
Accession and ADR Act of 2004

1949 Ratification of The 1958 1985 2019

RA No. 386 - Civil Code
of the Philippines
Book IV Title XIV
(Compromises and
Arbitrations),
Articles 1159, 2028-2046
New York Convention
on the Recognition and
Enforcement of Arbitral
Awards (167 Countries)
UNCITRAL Model Law on Singapore Convention on
International Commercial 2009 Mediation
Arbitration A. M. No. 07-11-08-SC, Ph is signatory but Senate has yet
Special ADR Rules
1987 to ratify the instrument
Philippine Constitution
DOJ Circular No. 98, s. 2009
(Art. VIII, Sec 5(5) – Simplified and
IRR of the ADR Act of 2004
inexpensive procedure for the
speedy disposition of cases)

EO No. 292, Admin Code

 ADR ACT CREATED THE OFFICE FOR
ALTERNATIVE DISPUTE RESOLUTION (OADR)

FUNCTIONS: To promote, develop and

expand the use of ADR in the
private and public sectors

POWERS: To coordinate the

development, implementation,
monitoring and evaluation of
government ADR programs
Sec. 2 of ADR Act of 2004

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EXECUTIVE ORDER NO. 97, SERIES OF 2012

Revoking Executive Order No. 523, Series of

2006 and conferring upon the Office for
Alternative Dispute Resolution the
Management, Development, Coordination,
and Oversight of Alternative Dispute
Resolution Programs in the Executive
Department and for Other Purposes.

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 EXECUTIVE ORDER NO. 97, SERIES OF 2012
Indicates that “public interest requires the delivery of ADR
services to the public by government agencies adheres to the
highest standards of competence, professionalism, integrity
and internationally accepted best practices”

Conferred upon OADR the authority to manage, develop,

coordinate and oversee ADR programs in all agencies of the
Executive Department

Directed all executive agencies with quasi-judicial functions to

develop their own ADR programs subject to OADR approval
and oversight

Directed all executive agencies to regularly report to OADR the

status of their ADR programs for monitoring and evaluation
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EXECUTIVE ORDER NO. 78, SERIES OF 2012

All contracts involving the following shall

include
provisions on the use of ADR mechanisms
at the option
and upon agreement of the parties:
● Public-Private Partnerships
● Build-Operate and Transfer Law (R.A.
6957, as amended by R.A. 7718)
● Joint Venture Agreements between
government and private entities
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REPUBLIC ACT 9285: ALTERNATIVE DISPUTE RESOLUTION
(ADR) ACT OF 2004

An Act to Institutionalize the Use of an

Alternative Dispute Resolution System in
the Philippines and to Establish the
Office for Alternative Dispute Resolution,
and for Other Purposes

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 DECLARATION OF POLICY
• Actively promote party autonomy in the resolution of disputes or
the freedom of the parties to make their own arrangements to
resolve their disputes

• Encourage and actively promote the use of Alternative Dispute

Resolution (ADR) as an important means to achieve speedy and
impartial justice and declog court dockets

• Provide means for the use of ADR as an efficient tool and an

alternative procedure for the resolution of appropriate cases

• Enlist active private sector participation in the settlement of

disputes through ADR

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 ALTERNATIVE DISPUTE
RESOLUTION (ADR) SYSTEM

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 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.

Sec. 3a of ADR Act of 2004

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 ESSENCE OF ADR
Implications:
- Courts are not exclusive for resolving
disputes
- Parties are encouraged to submit to
alternative mode
- Outcome of those processes are final and
subject only to limited judicial review

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 WHAT CASES CAN BE
SUBJECTED TO ADR?

All civil cases can be

subjected by the
parties to ADR.

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 EXCEPTIONS TO
THE
APPLICATION OF
THE ADR ACT
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 LABOR DISPUTES ▪ These are covered by the Labor Code of the Philippines, as
amended (PD 442)
▪ Two methods of labor dispute settlement in the Philippines:
• Collective bargaining and voluntary arbitration
• Compulsory arbitration used only in:
✔ i. involving labor disputes in industries
indispensable to national interest, and
✔ ii. Where action or suit is brought by either party
for alleged violation of the Labor Code
• Active role of government in settlement of labor disputes

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 CIVIL STATUS OF PERSONS
A person's status, whether married or
capable of marriage, emancipated or
not, legally capacitated or
incompetent, etc., is a matter
determined by law and is not subject to
the discretion of the parties

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 VALIDITY OF MARRIAGE
• The validity of a marriage is generally determined by the
law of the place where the marriage was performed or
celebrated.
• These are matters over which the State has a keen
interest to protect.
• What can be compromised:
✔ the distribution and disposition of the assets of
the conjugal partnership of gains or the
absolute community of property
✔ custody of minor children subject to court
approval
✔ support pendente lite
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 ANY GROUND FOR
LEGAL SEPARATION
The grounds for legal
separation, are provided for by
Article 55 of the Family Code of
the Philippines

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 JURISDICTION OF COURTS
• Governed by the Batas
Pambansa 129.

• 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.
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 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

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 CRIMINAL LIABILITY
• Determination of Criminal Liability is
governed by the Revised Penal Code of
the Philippines and is only determined
by Courts of law.

• 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, are proper subjects of ADR.

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 CRIMINAL LIABILITY
Revised Guidelines for Continuous Trial of Criminal Cases
(A.M. No. 15-06-10-SC, April 25, 2017), the following may
be subject to mediation:

a. Violations of BP 22, the SSS law, and PAG-IBIG law;

b. Theft, Estafa under Article 315(1), other forms of
swindling (Art. 316), swindling of a minor (317), other
deceits (318) and malicious mischief (327);
c. Crimes against honor under Title 13 of the RPC where
liability may be civil in nature (libel, threatening to
publish for compensation, prohibited publication of
official proceedings, grave slander, simple slander by
deed, incriminating innocent persons, and intriguing
against honor);
d. Libel under the Cybercrime Prevention Act of 2012;
e. Criminal negligence where liability may be civil in
nature;
f. Intellectual property rights where liability may be civil in
nature.
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 CRIMINAL LIABILITY
• Criminal cases involving criminal negligence
(quasi-delict) are allowed to be compromised.

• Payment of any internal revenue tax may be

compromised.

NOTE: SETTLEMENT IN CRIMINAL CASES

ONLY COVER THE CIVIL LIABILITY OF THE
CASE.

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 THOSE WHICH BY LAW CANNOT
BE COMPROMISED
ART. 2035, Civil Code of the Philippines. No
compromise upon the following questions shall be
valid:
1) The civil status of persons;
2) The validity of a marriage or a legal
separation;
3) Any ground for legal separation;
4) Future support (but not support pendent
lite or accrued support);
5) The jurisdiction of courts;
6) Future legitime.

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 EXCEPTIONS TO THE APPLICATION
OF THE ADR ACT
A compromise agreement must comply not only with
the requirements of an ordinary contract provided by
Article 1318 of the Civil Code, but it should not run
contrary to laws.
“Like any other contract, the terms and conditions of a
compromise agreement must not be contrary to law,
morals, good customs, public policy and public order.
Any compromise that is contrary to law or public policy
is null and void, and vests no rights in and holds no
obligation for any party. It produces no legal effect at
all.”
[Uy vs. Jose Chua (GR 183965, Sept. 18, 2009)]

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WHAT IS
ADR?

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LITIGATION TO ADR

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MODES OF RESOLVING DISPUTES IN ADR

Third Party
Unilateral Mode Bilateral Mode Intervention Mode

• Action taken by a party • Direct negotiations •Facilitative

without regard to the between parties
wishes of the other party
•Evaluative or Decisional
 WHAT IS ALTERNATIVE
DISPUTE RESOLUTION?
Any process 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.
(Sec. 3(a), RA No. 9285)

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 TYPES OF ADR
• Negotiation
• Early Neutral Evaluation (ENE)
• Mediation
• Conciliation
• Arbitration
• Mediation-Arbitration
• Mini-Trial
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 NEGOTIATION
Negotiation is the most informal
and flexible ADR process. It
involves parties attempting to
reach agreement on matters in
dispute directly or through
solicitors.

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 EARLY NEUTRAL
EVALUATION(ENE)
ENE means an ADR process wherein parties
and their lawyers are brought together early
in the pre-trial phase to present summaries
of their cases and to receive a non-binding
assessment by an experienced neutral
person, with expertise in the subject matter
or substance of the dispute.

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 MEDIATION
Mediation means a voluntary
process in which a mediator,
selected by the disputing parties,
facilitates communication and
negotiation, and assists the parties
in reaching a voluntary agreements
regarding a dispute.

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 ARBITRATION
Arbitration means a voluntary
dispute resolution process in
which one or more arbitrators,
appointed in accordance with the
agreement of the parties or these
Rules, resolve a dispute by
rendering an award.

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 MEDIATION-ARBITRATION
Mediation-arbitration is a
two-step dispute resolution
process involving mediation
and then followed by
arbitration.

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 CONCILIATION
Involves an independent conciliator who
facilitates communication between the two
parties having the dispute, with the aim of
achieving a settlement or resolution.
Under R.A No. 9285, Conciliation is deemed
included in mediation

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 MINI-TRIAL
Mini-trial means a structured dispute
resolution method in which the merits
of a case are argued before a panel
compromising of senior
decision-makers, with or without the
presence of a neutral third person,
before which the parties seek a
negotiated settlement.

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  Conciliation Mediation Arbitration Litigation
Who Conciliator Mediator Arbitrator Judge
Plays a direct role in the actual Facilitates the discussion
resolution of a dispute and even Assists the parties decide how Hears both sides, considers The judge makes a decision
Role advises the parties on certain to solve the problem. the evidence submitted based on the testimonies
solutions by making proposals Mediator maintains neutrality and decides the dispute and evidence presented
for settlement. or impartiality.

Express agreement –
Consent by the parties to A case is filed in court when
How Consent to submit to conciliation included in the contract or a
submit to mediation a conflict occurs
separate written agreement

Settlement agreement – a
Arbitral award rendered by
End result Settlement agreement solution that is acceptable to Judgment
the arbitrator
both parties
Cost Cheaper Cheaper Cheaper Expensive
Voluntary Voluntary
Voluntary
Process Flexible Parties dictate how they Rigid court rules
Informal
Informal will go about the process
Nature of
Private and confidential Private and confidential Private and confidential Public
proceedings
Duration   Weeks, months Months to a year Years
Finality of Final and binding between the
Final and enforceable Enforceable Appealable
outcome parties
One party loses
Outcome   Win-win  Fair award
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USE OF ADR
IN THE
GOVERNMENT

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 USE OF ADR IN THE GOVERNMENT
1. Mandatory Government ADR Systems
Katarungang Pambarangay
Judicial ADR Mechanisms
Labor Dispute Resolution
Construction Industry Arbitration

2. Administrative dispute and complaint

resolution among government agencies and
personnel

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 USE OF ADR IN THE GOVERNMENT
3. Government contracts with the private sector
4. Disputes and complaints among clients and
stakeholders
5. Particular civil, criminal and administrative
cases
6. Participation in international dispute
resolution

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 AVERAGE SUCCESS RATE OF THE ADR
MECHANISMS IN THE JUDICIARY: CY 2016-2021

55% 83% 28% 27% 9%

Court-Annex Mobile- Judicial Appellate Mediation in
ed Court Dispute Court the Court of
Mediation Annexed Resolution Mediation Tax
(CAM) Mediation (JDR) (ACM) Appeals
(MCAM) (CTA)
 IMPACT OF ADR PROGRAMS
IN THE COURTS
• ADR has become a huge part of the justice system
• The CAM maintained at least 51% success rate with
10,047 settled cases for 2021–reflective of the
effectiveness of ADR as a means of declogging court
dockets
• Among the reported programs, Mobile Court-Annexed
Mediation (MCAM) has an average of 83% success rate
from 2018 to 2021
 REFERENCES

● Ury, Brett, Goldver, Three Approaches to Resolving

Disputes: Interests, Rights, and Power
● ADR in the Judiciary by Judge Mona Lisa V.
Tiongson-Tabora (NADRC, 03 December 2020)
● Republic Act (R.A.) No. 9285 or the Alternative
Dispute Resolution Act of 2004
● SC 2019 Annual Report –
https://sc.judiciary.gov.ph/files/annual-reports/JAR-2
019.pdf

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THANK YOU
Does anyone have any questions?

Mediation.oadr@gmail.com
Office for Alternative Dispute Resolution

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