DISPUTE RESOLUTION

It refers to the settlement of conflicts or arguments between

various parties. The conflict is resolved by considering
satisfying at least some of each side’s needs and addressing
the interest.
DISPUTE RESOLUTION PROCESS
FALL INTO (2)
MAJOR TYPES:
1. ADJUDICATIVE PROCESS, such as litigation or arbitration which a judge,
or arbitrator determines the outcome.

2. CONSENSUAL PROCESS, such as mediation, conciliation, or negotiation,

in which the parties attempt to reach agreement. Thus, it is in simple

form called ALTERNATIVE DISPUTE RESOLUTION (ADR)

DISPUTE RESOLUTION IN THE
PHILIPPINES
evolved from both indigenous traditions and legal system
adopted from Western Models. Philippines courts are
organized in a hierarchical structure, which provides the
primary forum for settlement of controversies involving rights,
which are legally demandable and enforceable
ALTERNATIVE DISPUTE
RESOLUTION (ADR)
Has emerged as the key to decongesting court dockets. The term
collectively refers to: negotiation, conciliation, mediation, and arbitration.
ARBITRATION
• Defined as the investigations and determination of matters of

differences between contending parties by one or more unofficial

persons, called arbitrators or references, chosen by the parties .
• At its core, Arbitration is a simple, speedy and less expensive
alternative to court action.

• When Arbitration is binding, the decision is FINAL can be

enforced by a court and can only be appealed on a narrow
grounds.

• When Arbitration is non-binding, the Arbitrator's award is

advisory and can be FINAL ONLY IF ACCEPTED BY THE
PARTIES
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 agreement regarding a dispute (Art. 1.6, Rule 2,
Chapter 1, IRR, R.A. 9285)

• Mediation is an informal, but structured settlement

procedure. A Mediator is employed to facilitate and assist
parties in reaching an amicable settlement.
THE MAIN CHARACTERISTICS OF
MEDIATION ARE THAT IT PROVIDES:
• A Voluntary;

• Non-bonding;

• Confidential; and

• Interest-based procedure

The role of mediator is to assists the parties in reaching a

negotiated agreement. Unlike Arbitrator, the Mediator is not a
decision-maker
 GENERAL PRINCIPLES
ARBITRATION MEDIATION
• The object of arbitration is to obtain a fair • Mediation is voluntary. Both of you have to
solution of disputes by an impartial third want to mediate, and either of you can stop
party without unnecessary expenses or delay the mediation process at any time.
• Parties should be free to agree how their • Mediators are impartial. The mediator does
disputes are resolved, subject only to such not take sides and is always there for both of
safeguards as are necessary in the public you.
interest • Mediation is confidential. The information
• Courts should not interfere clients share with the mediator is kept
confidential.
• In mediation, the clients are in-charge. The
mediator doesn't make any decisions; you
yourselves work out what proposals you both
think you would like to take forward.
agreement.
 ADVANTAGES
ARBITRATION
1. Confidentiality;
2. Shorter time-scale;
3. Parties can appoint arbitrators based on their special
knowledge, skill or experience;
4. Parties have more flexibility in the conduct of and in
selecting the rules that govern the proceedings;
5. The finality of the award. The modification or reversal of
arbitral awards is legally possible on very stringent and
specified grounds like decisions rendered in court litigations
and
6. The guarantee of the impartiality, fairness, and
independence of arbitrator(s).
MEDIATION
1. Mediation can be carried out relatively quickly compared to
litigation;
2. If both parties agree to mediation this clearly demonstrates a willingness to
achieve a negotiated solution;
3. The appointed Mediator will be independent; they will not advice or provide
judgment;
4. The mediator is there to facilitate and guide the discussions
between the parties, with the primary objective of resolving the
dispute;
5. It is the parties involved in the mediation process that arrive at a
final solution and not the mediator;
6. It is flexible process that provides parties access to a wide range of
outcomes that are not available in litigation;
7. If a solution cannot be achieved then other options are still
available;
8. The process will attempt to preserve the relationship between the
parties;
9. Mediation can allow each party to hear the opposing view in a non-
confrontational environment;
10. Both parties must sign an agreement of the final recommendation
in order for it to be binding:
11. The parties via the mediator can bring other matters outside of
the contract itself into the mediation in order to assist a commercial
settlement;
12. It is a confidential process.
 DISADVANTAGES
ARBITRATION
1. The final decision of an arbitrator is difficult to overturn
even if erroneous with respect to the merits.
2. The cost of arbitration has risen dramatically in recent
3. Some pieces of evidence which are, under the Rules of
Court, obviously inadmissible, can be admitted and
considered by the arbitral tribunal.
4. The weight placed on evidence by the tribunal may not be
very clear to the parties.
5. Third party joinder is limited or may even be prohibited.
MEDIATION
1. Not compulsory:
2. Concerns exist around the enforceability of a mediation
agreement;
3. All parties must agree to a resolution as the result is not
guaranteed;
4. Can be difficult if either party are withholding
information;
5. Mediation may not be appropriate if one of the parties
required public disclosure;
6. Utilizing the services of an unskilled mediator can
contribute to an unproductive resolution;
7. An unwillingness of one or both parties to cooperate can
make the whole process a waste of time, effort, and money;
8. If the dispute cannot be resolved in in mediation, the
cost of mediation will have been wasted;
9. During the mediation process either party can withdraw
from proceeding at any time;
10. There is the possibility that information may be given
away to the other party during the mediation process that
could benefit the other party.
Arbitration in the Philippines is mainly
regulated by the following:
• Civil Code of the Philippines ("Civil Code")
• Republic Act 876, otherwise known as the Arbitration Law ("Arbitration Law").
• Republic Act 9285, otherwise known as the
Alternative Dispute Resolution Act of 2004
("Alternative Dispute Resolution Act of 2004").
• Implementing Rules & Regulations of the Alternative Dispute Resolution Act of 2004
(Department of Justice ("DOJ") Department
Circular No. 98 dated 04 December 2009.
• Supreme Court's A.M. No. 07-11-08-SC 01 September 2009 or the Special Rules of Court on
Alternative Dispute Resolution ("Special Rules of Court on Alternative Dispute Resolution").
• The Philippine CIAC by virtue of Executive Order No. 1008 signed 04 February 1985.
The Philippine government actively promotes dispute resolution ("ADR"),
such as mediation and arbitration and a\so through legally mandated
arbitration clauses in government contracts. This includes all contracts
involving:
• Public-private partnerships;
• Build-operate-transfer pro1ects; and
• Joint venture agreements entered by the government, like those
between local government and private entities.
Philippine law, under the Alternative Dispute Resolution Act of 2004,
has adopted the United Nations Commissions on International Trade
Law (“UNCITRAL”) Model Law (“Model Law”) for international
commercial arbitration.
Some provisions of the Model Law such as :
• Appointment of Arbitrators
• Grounds for Challenge
• Challenge Procedure
• Equal treatment Parties;
• Decision making by the Panel of Arbitrators
• Settlement
• Form and Contents of Award; and
• Termination of Proceedings (have been also made applicable to
Domestic Arbiration
ARBITABLE ISSUES
Unless it involves the following matters (Section 6, Alternative Dispute Resolution Act of
2004 & Article 2035, Civil code), arbitration can cover any subjects:
• Labor disputes covered by the Labor Code;
• Civil status of persons;
• Validity of marriage;
• Any ground for legal separation;
• Jurisdictions pf courts;
• Future legitimate
• Criminal liability
• Future support
JURISDICTION
A party questioning the jurisdiction of an arbitral tribunal can
apply to the local courts for judicial relief in determining the issue of
the existence, validity, and enforceability of the arbitration agreement
The Special Rules of Court on Alterative Dispute Resolution also
recognize the principle of competence-competence, which means that
the arbitral tribunal can initially rule in its own jurisdiction, including
any objections with respect to the existence or validity of the
arbitration agreement (Source Rule 2.2. Special Rules of Court on
Alternative Dispute Resolution)
ARBITRATION AGREEMENT
• SUBSTANTIVE AND FORMAL REQUIREMENT
An Arbitration Agreement is formed when two or more parties
agree to submit to one or more arbitrators any controversy existing
between them at the time of the submission, thereafter
• SEPARABILITY OR SEVERABILITY OF ARBITRATION AGREEMENT
An Arbitration agreement is required to be in writing and signed
by the parties to the agreement, or by their lawful agents. A clause in
the main contract is therefore sufficient, and a separate arbitration
agreement is not needed (Section 2, Arbitration Law, & Alternative
Dispute Resolution Act of 2004 and the Model Law)
• BREACH OF AN ARBITRATION AGREEMENT
Where parties have agreed to submit their dispute to arbitration, the local courts must refer the
parties to arbitration, bearing in mind that the arbitration agreement is the law between the parties
and they are expected to abide by it in good faith (Rule 2.2 (A), Special Rules of Court on Alternative
Dispute Resolution).
If a contracting party initiates a court case to enforce an agreement containing an arbitration clause,
the adverse party can file a motion requesting the local court to refer the parties to arbitration.

In addition to the foregoing qualifications, an arbitrator MUST NOT:

• Be related by blood or marriage up to the sixth degree to either party to the arbitration agreement.
• Have or have done any financial, fiduciary or other interest in the dispute.
• Have any personal bias that might prejudice the right of any party to a fair and impartial award
(Section 10, Arbitration Law)
No person shall be precluded by reason of his nationality from acting as an arbitrator, unless
otherwise agreed by the parties (Article 11 (1), Model Law and Section 19, Arbitration Law).
An Arbitration Award is a determination on the merits by an arbitration tribunal in an arbitration
and is analogous to a Judgment in a court of law. It is referred to as an 'award' even where all of
the claimant's claims fail, or the award is of a non- monetary nature. (Source: Wikipedia)
The petition to recognize and enforce a foreign arbitral award can be filed with the Regional Trial
Court:
• Where the assets to be attached or levied on are located.
• Where the act ordered in the award will be or is being performed.
• Where any of the parties to the arbitration reside or have their place of business.
• In the National Capital Judicial Region (Rule 13.3, Special Rules of Court on Alternative Dispute
Resolution).
• If the court finds that the issue between the parties is mainly one of law, the parties can be
required to submit briefs of legal arguments, not more than 30 days from receipt of the order
(Rule 13.8, Special Rules of Court on Alternative Dispute Resolution).
Domestic Arbitration is a form of alternative dispute resolution (ADR)
where one or more person(s) is appointed to hear a case that takes
place within one jurisdiction. The award is binding and enforceable in
court
A petition to recognize and enforce or set aside an arbitral award can
be filed with the regional trial court (Rule 12.3, Special ADR Rules):
1. Where arbitration proceedings were conducted
2. Where any of the assets to be attached or levied on are located.
3. Where the act ordered in the award will be or is being performed.
4. Where any of the parties to the arbitration resides or has its place of
business.
5. In the National Capital Judicial Region
• Mediator-means a person who conducts mediation.
• Mediation party - means a person who participates in a mediation and whose consent is
necessary to resolve the dispute
• Record- an information written on a tangible medium or stored in an electronic or other
similar medium, retrievable form.
For voluntary mediation, the Philippine Congress passed Republic Act No. 9285 or
the Alternative Dispute Resolution Act of 2004 (ADR Law), which, among others, prescribes
rules governing voluntary mediation, whether ad hoc or institutional, other than court-
annexed. Voluntary mediation, or mediation entered into by agreement of the parties, is not
obligatory
What is Court Annexed Mediation?
CAM is a voluntary process conducted under the auspices of the court by referring the
parties to the Philippine Mediation Center (PMC) Unit for the settlement of their dispute,
assisted by a mediator accredited by the Supreme Court.
What is Judicial Dispute Resolution?
JDR is process whereby the judge (called the JDR Judge) employs conciliation, mediation or
early neutral evaluation in order to settle a case at the pre-trial stage. In the event the JDR
fails, then another judge (called the trial judge) shall proceed to hear and decide the case.
UNDER SECTION 1 OF THE GUIDELINES, IT IS A
MANDATORY TO REFER THE FOLLOWING CIVIL
CASES TO CAM
1. All ordinary civil cases, including mediatable permissive or compulsory counterclaim or cross-
claim as pleaded in the answer, complaint-in-intervention, and third (fourth, etc.)- party
complaint, except those which cannot be the subject of a compromise under Article 2035 of
the New Civil Code;
2. All special civil actions, except under Rules 63, 64, 65, 66, and 71 of the Rules of Court,
3. Special proceedings cases for settlement of estate where the dispute involves claims against
the estate, or the distribution or partition of estate in intestate proceedings;
4 All those cases involving issues under the Family Code and other laws, in relation to support,
custody, visitation, property relations, guardianship of minor children, and other issues which
can be the subject of a compromise agreement,
5. Intellectual property cases;
6. Commercial or intra-corporate controversies;
7. Environmental cases, subject to the provisions in Section 3, Rule 3 of the Rules of Procedure
8. for Environmental Cases (A.M. No. 09-6-8-SC); and
9. Civil cases covered by the Rule on Summary Procedure.
On the other hand, the following civil cases may be referred to JDR:
1. The cases enumerated in Section 1, except environmental cases, may be referred to JDR upon failure of
settlement or refusal to mediate in CAM only if the judge of the court to which the case was originally filed
is convinced that settlement is still possible;
2. The cases enumerated in Section 1, except environmental cases, may be referred to JDR upon failure of
settlement or refusal to mediate in CAM only if the judge of the court to which the case was originally filed is
convinced that settlement is still possible;
3. The following cases, brought on appeal from the exclusive and original jurisdiction granted to the first-level
courts under the Judiciary Reorganization Act of 1980, may be referred to JDR in areas declared as JDR sites, if
the RTC Judge is convinced that settlement is still possible;
a. All civil cases and settlement of estate, testate, and intestate.
b. All cases of forcible entry and unlawful detainer.
c. All civil cases involving title to, or possession of, real property or an interest therein; and
d. Habeas corpus cases decided by the first level court in the absence of the any regional Trial Court Judge
(Guidelines, Chapter 1, Sec. 2 refusal to mediate in CAM only if the judge of the court to which the case was originally filed is
convinced that settlement is still possible; 2. The cases enumerated in Section 1, except environmental cases, may be referred to JDR upon failure of
settlement or refusal to mediate in CAM only if the judge of the court to which the case was originally filed is convinced that settlement is still possible; The following cases, brought on
appeal from the exclusive and original jurisdiction granted to the first-level courts under the Judiciary Reorganization Act of 1980, may be referred to JDR in areas declared as JDR sites, if the RTC Judge is convinced that settlement is still possible; a. All civil cases and settlement of estate, testate, and intestate. b. All cases of forcible entry and unlawful detainer. c. All civil cases involving title to,
or possession of, real property or an interest therein; and d. Habeas corpus cases decided by the first level court in the absence of the any regional Trial Court Judge (Guidelines, Chapter 1, Sec. 2)
COURT-ANNEXED MEDIATION IS CONDUCTED
1. After the pre-trial/preliminary conference, the court shall issue the Pre-Trial/Preliminary Conference
Order referring the parties to the mandatory CAM and shall direct the parties to proceed and
personally appear at the Philippine Mediation Center Unit ("PMCU") for mediation proceedings
(Guidelines, Chapter 2 (A), Sec. 1).
2. During the initial appearance of the counsels and parties on the date set by the PMCU, and after
presenting proof that mediation fees were paid, the parties shall select a mutually acceptable mediator
among the roster of mediators at the PMCU (Guidelines, Chapter 2(B), Secs. 2-4). If they are unable to
jointly select a common mediator, the PMCU shall choose the mediator among its available mediators
(Guidelines, Chapter 2(B), Secs. 2-4).
3. The mediation must be completed within thirty (30) calendar days from the date of the order
referring the case to CAM without further extension (Guidelines, Chapter 2(B), Sec.8). In the event of
successful settlement, the PMCU shall submit to the referring judge a Mediator's Report together with
a copy of the compromise agreement. The referring judge shall evaluate the compromise agreement
and either approve or disapprove the same, or ask for clarification of any vague, defective, or
unenforceable portion of the agreement that must be amended by the parties (Guidelines, Chapter
2(B), Secs. 10).
4. If no settlement was reached, the PMCU shall submit a Mediator's Report and the "referring judge
shall determine, in the hearing set for such purpose, if settlement is still possible" and if determined to
be so, shall refer the case to the JDR Judge for JDR proceeding (Guidelines, Chapter 2(C), Sec. 1).
HOW JUDICIAL DISPUTE RESOLUTION IS
CONDUCTED
1. It is the JDR Judge, who has undergone skill-based training in JDR, who is authorized to conduct the
JDR proceeding (Guidelines, Chapter 2(C), Secs. 3-4.). The JDR proceeding "shall be terminated within a
non-extendible period of fifteen (15) calendar days from receipt of the [referral order]" (Guidelines,
Chapter 2(C), Sec. 3),
3. If full settlement is reached by the parties, they "shall draft a compromise agreement, which shall be
submitted to the JDR Judge for judgment upon compromise, enforceable upon execution (Guidelines,
Chapter 2(C), Sec. 7).
• Mediation may be combined with arbitral proceedings. Mediation-arbitration, or 'med-arb', is
recognized in the ADR Law as an ADR process involving mediation and arbitration.
• In med-arb, parties first attempt to hammer out a collaborative agreement, working together
and in private sessions with a mediator or "med-arbiter," a neutral third party trained in med-
arb. In most cases, the med- arb process turns into a successful mediation with no need for
arbitration.
• If there is no dispute resolution and the dispute remains unresolved, the matter would then be
arbitrated. If a med-arbiter is handling the entire process, he/she would impose a binding
decision based on her judgments about the case.
Republic Act 9285-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. This Act shall be known as the
"ALTERNATIVE DISPUTE RESOLUTION ACT OF 2004."
• ADR systems in the Philippines, which is based on a sixty-year-old law (Republic Act
876, or the Arbitration Law)
• ADR means 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 or
agency, as defined in this Act, in which a neutral third-party participate to assist in
the resolution of issues (Sec.3, R.A. 9285)
The Office for Alternative Dispute Resolution (OADR)
• It is an agency attached to the Department of Justice (DOJ). It shall have a secretariat
and shall be headed by an Executive Director, who shall be appointed by the
President of the Philippines, taking into consideration the recommendation of the
Secretary of Justice. (Article 2.1, Rule 1, Chapter 2, IRR of the Alternative Dispute
Resolution Act of 2004)
Different forms of Alternative Dispute Resolution consist of a variety of
mechanisms or techniques designed to assist between two opposing
parties and resolve their disputes.
Each of these techniques serves a specific purpose. These include:
1. Arbitration
2. Mediation
3. Conciliation
4. Med-Arb (a combination of mediation & arbitration);
5. Mini-trial; and
6. Early neutral evaluation
TWELVE (12) AGENCIES THAT USE ADR IN THE PHILIPPINES

1. KATARUNGANG PAMBARANGAY (KP) 2 THE COOPERATIVE DEVELOPMENT

AUTHORITY (CDA)
2. THE COOPERATIVE DEVELOPMENT AUTHORITY (CDA)
3. THE COOPERATIVE DEVELOPMENT AUTHORITY (CDA)
4. THE DEPARTMENT OF AGRARIAN REFORM (DARAB)
5. THE PHILIPPINE DISPUTE RESOLUTION CENTER, INC. (PDRCI)
6. THE NATIONAL CONCILIATION AND MEDIATION BOARD (NCMB)
7. THE NATIONAL LABOR RELATIONS COMMISSION (NLRC)
8. BUREAU OF RELATIONS (BLR)
9. THE COMMISSION ON THE SETTLEMENT OF LAND PROBLEMS (COSLAP)
10. THE INSURANCE COMMISSION
11. THE BUREAU OF TRADE REGULATION AND CONSUMER PROTECTION (BTRCP)
12. THE COURT-ANNEXED PILOT MEDIATION PROJECT
Restorative Justice
• a community-based approach to dealing with crime, the effects of crime, and the
prevention of crime. It is the process that operates from a belief that the path to
justice lies in problem solving and healing rather than punitive isolation. (Conflict
Solutions Center Community Building Organization).
Principles of Restorative Justice
The Foundational Principles of Restorative Justice have been summarized as
follows: (unodc.org)
1. That the response to crime should repair as much as possible the harm suffered by
the victim,
2. That offenders should be brought to understand that their behavior is not
acceptable and that it had some real consequences for the victim and community. 3.
That offender can and should accept responsibility for their action,
4. That victims should have an opportunity to express their needs and to participate
in determining the best way for the offender to make reparation; and
5. That the community has a responsibility to contribute to this process.
Retributive justice, response to criminal behavior that focuses on the
punishment of lawbreakers and the compensation of victims. In
general, the severity of the punishment is proportionate to the
seriousness of the crime (Source: Britannica.com)
Three (3) Principles of Retributive Justice
1. That those who commit certain kinds of wrongful acts,
paradigmatically serious crimes, morally deserve to suffer a
proportionate punishment,
2. That is intrinsically morally good - good without reference to any
other goods that might arise - if some legitimate punisher gives them
the punishment they deserve; and
3. That is morally impermissible intentionally to punish the innocent or
to inflict disproportionately large punishments Three (3) Principles of
Retributive Justice