ALTERNATIVE DISPUTE

RESOLUTION
a potent tool in the speedy
disposition of claims and conflicts
cases
Atty. Ismael T. Manaligod
Chief, Legal Division DENR R2

LEGAL BASES
1987

Constitution, Article III

Section 16. All persons shall have the right

to a speedy disposition of their cases
before all judicial, quasi-judicial, or
administrative bodies.

 Republic

Act No. 9285, April 2, 2004 INSTITUTIONALIZED

THE
USE
OF
AN
ALTERNATIVE DISPUTE RESOLUTION SYSTEM IN
THE PHILIPPINES
1. Promote party autonomy in the resolution of

disputes or the freedom of the party to

make their own arrangements to resolve
their disputes.
2. As a means to achieve speedy and impartial
justice and declog court dockets.

 EXECUTIVE

ORDER NO. 523

April 7, 2006 INSTITUTING THE USE OF ALTERNATIVE DISPUTE
RESOLUTION IN THE EXECUTIVE DEPARTMENT OF
THE GOVERNMENT
All administrative bodies shall promote the use
of alternative modes of dispute resolution such
as, but not limited to, mediation, conciliation
and arbitration as part of their practice in
resolving disputes filed before them.

 DENR

ADMINISTRATIVE ORDER No. 2005-18,

September 1, 2005

Adoption of Alternative Dispute Resolution (ADR)

Principle and Procedure in the Resolution of
Appropriate Environment and Natural Resources
Conflicts

1.

Facilitate mutually-acceptable solutions for

appropriate cases; and

2.

Minimize the number of cases raised for

formal administrative or judicial resolution.
This measure is intended to enhance public
confidence in the department as an institution
of good governance.

What is an 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 on the resolution of issues.

Basic Principles of ADR

VOLUNTARY

The parties usually must agree to submit their

dispute to mediation or early neutral evaluation,
and may be required by the mediator to attend
facilitated workshops, settlement conferences, or
meet with a neutral to explore the feasibility of
mediation.
TIMELINESS

ADR should shorten, not prolong, proceedings. But

even if a negotiated settlement takes longer, the
result should be more beneficial to all.

 GOOD

FAITH

Those who engage in ADR should do so in an

attempt to reach agreement not to delay or
secure tactical advantage.
CONFIDENTIALITY

Most ADR processes require confidentiality so that

the parties fundamental interests can be
explored

Forms of ADR
Arbitration
Mediation
Conciliation
Negotiation
Mini-trial
Early

Neutral Evaluation
Combination of ADR

Arbitration
It

means a voluntary dispute resolution process in

which one or more arbitrators, appointed in
accordance with the agreement of the parties, or
rules promulgated pursuant to RA 9285, resolve a
dispute by rendering an award

Who is an arbitrator?
It is the person appointed to render an award,
alone or with others, in a dispute that is the
subject of an arbitration agreement
What is an award?
It is any partial or final decision by an arbitrator
in resolving the issue in a controversy

Mediation
It

means a voluntary process in which a

mediator, selected by the disputing parties,
facilitates communication and negotiation,
and assist the parties in reaching a
voluntary agreement regarding a dispute

Types of Mediation
Court-Annexed

Mediation any mediation

process conducted under the auspices of the
court, after such court has required jurisdiction of
the dispute. It is mandatory, being part of pretrial.

Court-Referred

Mediation mediation ordered by

a court to be conducted in accordance with an
agreement of the parties when an action is
prematurely commenced in violation of such
agreement.

Advantages of Mediation
It

is effective In a recent pilot project

conducted by PHILJA, 85% of cases referred for
court-annexed mediation had reached settlement.
Surveys conducted after mediation sessions reveal
a high level of satisfaction among disputing
parties. As a result of mediation, close to 100%
comply with agreements reached in mediation.

Advantages of Mediation
It

is faster many cases reached settlement in 1-2

sessions. The enormous time and effort expended in
litigation are avoided.

It is cost-saving unlike rigorous court proceedings,

mediation is quick and devoid of legal intricacies.

It

restores relationships mediation is a proven way

to restore relationships long torn by conflict. The
processes addresses deep-rooted sources of
misunderstanding which are inimical to business
concerns.

Enforcement of Settlement Agreements

Section

17
principles:
a)

provides

the

following

operative

A settlement agreement following successful

mediation shall be prepared by the parties with
the assistance of their respective counsel, if
any, and by the mediator.

The parties and their respective counsels shall

endeavor to make the terms and condition
thereof complete and make adequate provisions
for the contingency of breach to avoid conflicting
interpretations of the agreement.

b)

The parties and their respective counsels, if any,

shall sign the settlement agreement. The mediator
shall certify that he/she explained the contents of
the settlement agreement to the parties in a
language known to them.

c)

If the parties so desire, they may deposit such

settlement agreement with the appropriate Clerk
of a Regional Trial Court of the place where one of
the parties resides. Where there is a need to
enforce the settlement agreement, a petition may
be filed by any of the parties with same court, in
which case, the court shall proceed summarily to
hear the petition, in accordance with such rules of
procedure as may be promulgated by the Supreme
Court.

d)

The parties may agree in the settlement

agreement that the mediator shall become a sole
arbitrator for the dispute and shall treat the
settlement agreement as an arbitral award which
shall be subject to enforcement under Republic
Act No. 876, otherwise known as the Arbitration
Law, notwithstanding the provisions of Executive
Order No. 1008 for mediated dispute outside of
the CIAC.

Conciliation
Parties

to a dispute (including future interest disputes)

agree to utilize the services of a conciliator, who then
meets with the parties separately in an attempt to
resolve their differences.

Conciliation

differs from arbitration in that the

conciliation process, in and of itself, has no legal
standing, and the conciliator usually has no authority to
seek evidence or call witnesses, usually writes no
decision, and makes no award.

Conciliation

differs from mediation in that the main goal

is to conciliate, most of the time by seeking a
compromise

Negotiation
A

consensus-driven method conducted

directly between parties in view of a
resolution, with or without a facilitator.

Mini-Trial
A

dispute resolution method in which the

merits of a case are argued before a panel
created by agreement of the parties
comprising senior decision makers with or
without the presence of a neutral third
person after which the parties seek a
negotiated settlement.

Early Neutral Evaluation

Is

an alternative dispute resolution process

whereby parties and their lawyers are
brought together early in a pre-trial phase
to present summaries of their cases and
receive a non-binding assessment by an
experienced, neutral person with expertise
in the subject of the dispute.

Combination of ADR
A

particular alternative dispute resolution

may be combined with the other types of
alternative dispute resolutions. The most
common is the mediation-arbitration (MedArb). In this kind of combination, parties
first proceed to mediation to define the
dispute and settle as many issues as
possible, and then they engage in
arbitration to settle issues that remain
unresolved by the mediator.

What is Confidential Information?

Any

information, relative to the subject of

mediation or arbitration:
1. intended by the source not to be
disclosed
2. With the expectation that it is given
because it will not be disclosed

a)

Communication, oral or written, made in a

dispute resolution proceedings

b)

An oral or written statement made or

which occurs during mediation

c)

Pleadings, motions manifestations, witness

statements, reports filed or submitted in
an arbitrator or for expert evaluation.

Exceptions to ADR (RA 9285)

The provisions of RA 9285 shall not apply to resolution or
settlement of the following:
Labor

disputes covered by Presidential Decree No. 442,

otherwise known as the Labor Code of the Philippines, as
amended and its Implementing Rules and Regulations;

The

civil status of persons;

The

validity of a marriage;

Any

ground for legal separation;

The

jurisdiction of courts;

Future

legitime;

Criminal
Those

liability; and

which by law cannot be compromised.

Bias and Conflict of Interest

Section

13 provides that before accepting

mediation, an individual who is requested to serve
as a mediator shall:
a)

Make an inquiry that is reasonable under the

circumstances to determinate whether there are
known facts that a reasonable individual would
consider likely to affect the impartiality of the
mediator, including a financial or personal interest
in the outcome of a mediation and any existing or
past relationship with a party or foreseeable
participant in the mediation; and

b)

Disclosure to the mediation parties any such fact

known or learned as soon as is practical before
accepting a mediation.

At the request of a mediation party, an individual who

is requested to serve as mediator shall disclose his/her
qualifications to mediate a dispute.
RA 9285 does not require that a mediator shall have
special qualifications by background or profession
unless the special qualifications of a mediator are
required in the mediation agreement or by the
mediation parties.

Participants
Except

as otherwise provided by RA 9285, a party

may designate a lawyer or any other person to
provide assistance in the mediation. A waiver of
participation or legal representation may be
rescinded at any time.

Role/Responsibility of DPLI
Identify

applications with disputes;

Ensures

consent of parties to enter into

mediation process;

Analyses
Trace

issues and concerns;

history of land

Research
Supporting
Advise

documents from parties

parties

Role/Responsibility of DPLI
Provides

sound technical advise (party must

agree on the advise);

Refers
If

cases to Lupong Tagapamayapa;

no settlement See 408 (c) LGC RA 7160

Marks

those with conflict and proceed with

unidentified claim;

Advise

parties to switch to formal process; and

Documents

unresolved land disputes/cases

referred to Lupon before excluding them from
land titling.

Modes of Alternative
Dispute Resolution

SETTLEMENT
WITH 3RD PARTY
INTERVENTION

CONCILIATION-MEDIATION is a voluntary process in

which an acceptable, impartial, and independent
third party assists disputants in finding a mutually
acceptable solution to their dispute.

Goals of Conciliation
Mediation

Vent feelings of hostility;

Clear-up misunderstanding;
Facilitate clear communication between the
parties;
Determine underlying interest and concerns;
Find areas of agreement/mutual interests;
Incorporate these areas into solutions which
the parties devise themselves; and
Preserve relationship.

Conciliation-mediation is appropriate
when:

Parties are willing to talk and negotiate.

Relationship is important to be preserved.

Poor communication has been the reason or

one of the causes of the problem.

There is a perception that parties cannot

solve their differences by themselves.

There are several options

resolving the conflict.

Other problem-solving approaches have been

ineffective.

available

for

Conciliation-mediation is less
appropriate when:

Parties are not prepared to negotiate.

Parties remain unwilling to be involved in

the process of mediation.

There are no or very few choices available

to resolve the conflict.

When there is a legal principle to be

decided.

During conciliation-mediation, it is
important that:

There is improved communication between

the parties.

There is a better understanding of the other

persons point of view.

There is a chance to speak ones mind and

be listened to in a face-to-face meeting with
the other person.

During conciliation-mediation, it is
important that:

There is an increased awareness of the strengths and

weaknesses of each of the parties position and a
recognition of potential hidden issues that they may not
have been previously aware of.

There is exposure to create ideas or opinions for

settlement.

There is an overall reduction in anxiety and the other

negative effects of conflicts.

The parties are made aware of the consequences of

non-settlement.

Modes of Alternative
Dispute Resolution

SETTLEMENT
WITH 3RD PARTY
INTERVENTION

VOLUNTARY ARBITRATION refers to the mode of

settling disputes by which the parties select a
competent, trained and impartial person who shall
decide on the merits of the case and whose
decision is final, executory and binding.
It is the terminal step in the parties grievance
machinery.

Three sequential principles in

handling labor disputes:

Prevention is better than resolution.

If prevention is impossible, the parties themselves

should resolve the dispute.

If the parties cannot solve their dispute, third

party intervention with involvement of the
disputing parties should be utilized.

MABBALO!