INTRO: VOICE OVER BY JOC2X

ENTRANCE SONG BY CO HOST: LOOK-UP.

HOST 1: Good Afternoon ladies and gentlemen! Welcome to The Good Afternoon Pilipinas!
I'm ______________ and with me is my co-host _____________.
HOST 2: Thank You so much Mr/s _________________. I heard we have a very interesting
topic this afternoon.
HOST 1: Yes. Our topic for this afternoon is all about Alternative Dispute Resolution. But
before we introduce our guest, I guess let us first see the VTR.
HOST 2: Roll VTR:
VIDEO PRESENTATION
HOST 2: So To tell us more about ADR, allow us to call on our guests this afternoon. We
have the Office of Alternative Dispute Resolution Atty. Cristine Reyes and Judy Ann
Santos.
HOST 1: and Atty. Piolo Pascual, Atty. Sam Milby, and Atty. Derek Ramsay to tell us about
Philippine Dispute Resolution.
HOST 2: Good Afternoon , thank you for sharing your time with us this afternoon. My first
question is :
1. Is the ADR a new concept in the Philippines settings?
Lawyer 1: no, ADR is not a new concept in our country. As a matter of fact these methods
can be traced as far back as the barangay and other forms of village governments before the
Spaniards came in 1521. In these early days, the datus used to setlle disputes of their
constituents and their decisions were invariably accepted as having authority and finality.
Presently, ADR is already being practiced in labor proceedings under the Labor Code
(NLRC, Labor Relations cases, etc.); under the Katarungang Pambarangay Law and even in
cases already filed in court, under the court-annexed mediation.
HOST 2:
2. What are the legal basis , if there is any.
Lawyer 2: of course, ADR has a legal basis as provided in the 1987 Constitution and Rules
ARTICLE VIII, SECTION 5(5), 1987 CONSTITUTION
mandating SC to provide rules that are simplified and inexpensive procedure for the
speedy disposition of cases
ARTICLE VIII, SECTION 5(5), 1987 CONSTITUTION
mandating SC to provide rules that are simplified and inexpensive procedure for the
speedy disposition of cases
RULES 18 SEC 2 (a) 1997 Rules of Court
- requiring courts to consider possibility of an amivcable settlement or of a submission to
alternative modes

Of resolution.
HOST 1:
3. What laws governed the ADR practice in the Philippines?
Lawyer 1: R.A. No. 9285 AN ACT TO INSTITUTIONALIZE THE USE OF AN
ALTERNATIVE DISPUTE RESOLUTION SYSTM IN THE PHILIPPINES AND TO
ESTABLISH THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION, AND FOR
OTHER PURPOSES
E.O. No. 1008 CREATING AN ARBITRATION MACHINERY IN THE
CONSTRUCTION INDUSTRY OF THE PHILIPPINES
R.A. No. 876 AN ACT TO AUTHORIZE THE MAKING OF ARBITRATION
AND SUBMISSION AGREEMENTS, TO PROVIDE FOR THE APPOINTMENT OF
ARBITRATORS AND THE PROCEDURE FOR ARBITRATION IN CIVIL
CONTROVERSIES, AND FOR OTHER PURPOSES
UNCITRAL Law the Model Law is designed to assist States in reforming and
modernizing their laws on arbitral procedure to take into account the particular
features and needs of international commercial arbitration. It covers all stages of the
arbitral process from the arbitration agreement, the composition and jurisdiction of the
arbitral tribunal and the extent of court intervention through to the recognition and
enforcement of arbitral award. It reflects worldwide consensus on key aspects of
international arbitration practice having been accepted by States of all regions and the
different legal or economic systems of systems of the world.
HOST 2:
4. what are the advantages of arbitration system?
Lawyer2: Speed and Cost- since parties can choose arbitrators whose schedules can
accommodate the long hours necessary to hear/ decide a case.
Flexibility of the rules- allows parties to craft the rules that sill agreed upon, parties
have more faith in the integrity of the process. Not bound by strict rules of evidence.
Choice of arbitrators- parties free to choose the arbitrators, whom they regard as
honest and competent.
Finality of the award Philippine law recognizes as valid a stipulation that an arbitral
award shall be final. However, final does not mean the award cannot be modified except on
limited grounds.
Host1: so, due to clogged court dockets, expensive litigation fees, slow paced court

proceedings and the rigid and adversarial systems of courts have encouraged parties to
disputes to resort to several forms of alternative dispute resolution procedures.
What are the ADR procedures?
Lawyer 1: ADR procedures consist of the following:
A. ARBITRATION
B. MEDIATION
C.CONCILIATION
D. MINI TRIAL
E. EARLY NEUTRAL EVALUATION
Other ADR forms: evaluation of third person, mediation- arbitration or a combination
thereof.
However, the commonly used procedures are arbitration, conciliation and mediation:
Host2: so, what do you mean by arbitration?
Lawyer2: as defined by the ARD act is a voluntary dispute resolution process in which
one or more arbitrators, appointed in accordance with the agreement of the parties resolve
a dispute by rendering an award.
Non- adversarial settlement
Parties are free to choose the arbitrators that will compose the tribunal., the procedures to
be followed in the proceedings, the venue of arbitration and the substantive law that will
govern the proceedings.
Arbitration is a contract, no arbitration unless the parties agree to submit their dispute to
arbitration. The parties may agree to submit a dispute to arbitration either before/ after a
dispute arises.
Lawyer 1:
And we have the so called Arbitration clause , a clause embodied in the contract stating
Any dispute arising out of this contract shall be resolved by arbitration.

Host1: what about mediation?

Lawyer2: mediation is 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. Mediator is selected by the parties
No power to compel the parties to accept recommended solution.
Nevertheless the parties may agree in the settlement agreement that the mediator acts as
arbitrator and shall treat settlement agreement as an arbitral award.
Host2: what about conciliation?
Lawyer 1: process whereby parties request a third person or persons (the conciliator) to

assist them in their attempt to reach an amicable settlement of their dispute arising out of or
relating to a contractual or other legal relationship. The conciliator does not have the
authority to impose upon the parties a solution to the dispute.
Host 2: so, due to the increasing growth of global commerce as well as the advances in the
means of communication and transportation is the rising number of commercial transactions
which unavoidably give rise to commercial disputes, so what can you say about that?
Lawyer2: as a result of the rapid globalization of the world company, when it is inevitable
that parties are of different states and nationalities, where parties would prefer to resolve their
dispute in his own country, due to that reluctance of parties to resolve their matters in foreign
courts gave rise to ADR methods. As cited by the SC in the case of BF Corp vs CA, ADR
methods are now rightfully vaunted as the wave of the future in international relations.
Lawyer1: more so, ADR methods are alternatives to litigation in resolving disputes
especially in the field of international commerce, the United Nations Commission on
International Trade Law adopted UNCITRAL Model Law. The Model Law is designed to
meet the concerns relating to the current state of national laws on arbitration. The main thrust
is to meet the inadequacies and discrepancies of domestic laws on arbitration which make
them inapplicable to international cases.
Lawyer2: I agree on that matter , as a matter of fact the ADR ACT of 2004 adopted the
section 19 of the UNICITRAL law as the law in governing international commercial
arbitration. By doing this, the ADR act has partly eased the concern and unwillingness of
foreign parties to a contract to have matters submitted for arbitration here in the Philippines.
The act has now opened the window for the Philippines to be a venue for international
commercial arbitration and mediation.
Host2: are there any exceptions as to the applicability of arbitration?
Lawyer2: yes , by express provision of law, the following are the exceptions:
a. 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;
b. the civil status of persons;
c. the validity of a marriage;
d. any ground for legal separation;
e. the jurisdiction of courts;
f. future legitime;
g. criminal liability; and
h. those which by law cannot be compromised
note that all types of commercial disputes may be referred to arbitration. Matters arising from
all relationships of a commercial nature, whether contractual or not.
Host1: what do you mean by party autonomy?
Lawyer2: a highly unique attribute of adr.

 Party autonomy allows the parties to choose arbitrators who are experts in the field
relevant to subject matter of dispute.
wherein emphasis on the voluntary agreement of the parties:
A. SUBMITTING THEIR DISPUTE AND IN CHOOSING THE ARBITRATORS
B. VENUE OR PLACE OF ARBITRATION
C.LANGUAGE TO BE USED
D. RULES OR PROCEDURES TO BE FOLLOWED.
HOST2: is there any protection given to the parties in the ADR Process?
Lawyer1: yes, pursuant to RA 9285, greater degree of privacy and confidentiality can be
enjoyed by the parties in the ADR proceedings. Not open to third persons much more to
public subject only to certain exceptions. This is to avoid unwanted intrusion thereby
hastening the dispute resolution process.
Host1: what are these adr forms?
Lawyer2:
A. International Arbitration
B. Domestic Arbitration
C. CIAC Arbitration
Domestic Arbitration- governed by the RA 876
means arbitration that is not international as defined in Article 1(3) of the Mode Law.
CIAC Arbitration Arbitration of Construction Disputes

Governed by EO No. 1008, construction industry arbitration commission

covered Construction disputes.

This is governed by the UNCITRAL MODEL LAW.
Host2: what are the grounds for setting aside/ vacating an international arbitral award?
Lawyer1: The ADR ACT, adopted the grounds laid down by the UNICITRAL LAW in
setting aside an award rendered by the arbitral tribunal.
aa. a party to the arbitration agreement was under some incapacity; or the said agreement is
not valid under the law to which the parties have subjected it or, failing any indication
thereon, under the law of the Philippines; or
bb) the party making the application was not given proper notice of the appointment of an
arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or
(cc) the award deals with a dispute not contemplated by or not falling within the terms of the
submission to arbitration, or contains decisions on matters beyond the scope of the

submission to arbitration, or
(dd) the composition of the arbitral tribunal or the arbitral procedure was not in accordance
with the agreement of the parties.
the Court finds that:
(aa) the subject-matter of the dispute is not capable of settlement by arbitration under the law
of the Philippines;
or
(bb) the award is in conflict with the public policy of the Philippines.
Host2: so, can you give as an outline / the process that deals with the international
commercial arbitration.
Lawyer1: as to the jurisdiction: once an arbitral body is constituted, it has the power to
examine the question of its own competence pursuant to the principle of competencecompetence- tribunal has the power to rule upon their jurisdiction.
The doctrine of separability is also adopted wherein the arbitration clause is independent to
that of the main contract. It does not automatically terminated even if the contract comes to
an end. In the case of Government of the Philippines vs PIATCO where petitioners
challenging the validity of ARCA and that the Philippines SC had come to a decision that the
ARCA was null and void, no arbitral tribunal can be constituted arising from a non existent
contract but the rule is due to the consideration of the doctrine of seperability, arbitration
agreement survived despite Philippine courts nullification of the main contract.
As to the venue, the parties can agree on that matter, if fails the tribunal having regard to the
circumstances of the case and convenience to parties determine the place of arbitration.
Host1: is it a rule that the no court shall intervene. Is there any exception to the rule?
Lawyer2: yes. AS A RULE NO COURT SHALL INTERVENE EXCEPT WHERE SO
PROVIDED IN THE ADR ACT.
EXCEPTIONS:
1. COURTS ARE PERMITTED TO GRANT INTERIM AND PROVISIONAL RELIEFS
DURING THE PENDENCY OF ARBITRAL PROCEEDINGS.
2. 2. A party may request the RTC to decide whether the arbitral tribunal has jurisdiction
after the latter has ruled against a plea made by a party claiming it has no jurisdiction.
The ADR ACT provides that while such request is pending, the arbitral tribunal may
continue the proceedings and make an award.
3. Recourse to a court against an arbitral award may be made only by an application for
setting aside an award.
4. The court major role in enforcing arbitral awards in recognition and enforcement of
awards.

Host 2: so how about the recognition and enforcement of awards?

Laywyer1:
Arbitral awards in international commercial arbitration are readily enforced pursuant to New
York Convention of 1958. The Philippines adopted the provisions of New York Convention
regarding recognition and enforcement of arbitral awards covered by said convention, the
participant countries to enforce arbitral awards as if the awards were made in their countries.
Foreign arbitral awards not covered , their recognition and enforcement must be in
accordance with rules set by SC
Section 44, distinguishes a foreign judgments which are not generally enforceable in other
jurisdictions except in cases of reciprocity and comity
While Arbitral awards are more readily enforceable.
As provided by ADR Act, the party applying for the enforcement of the arbitral award only
needs to file with the RTC the original or duly authenticated copy of award and arbitration
agreement. If confirmed by the RTC shall be enfoced in the same manner as final and
executory decisions courts of law of the Philippines.
But although recognized and enforceable as a result of adherence to convention may still
refused on equitable grounds.

Host1: so in order to avoid confusion, this is the method/ procedure:

Since resort to arbitration depends on the contract, the same may only commenced by the
demand of one party to the other to submit a controversy to arbitration.
If no arbitration clause, parties may still execute a submission agreement to arbitrate.
The demand for arbitration will be served upon the other party. Parties will now appoint
arbitrators/ arbitral tribunal based on the procedure agreed. An arbitrator may challenged if there
is justifiable doubts as to his impartiality. Thensetting of date/ place of hearing, presentation of
evidence. The arbitrators shall be the sole judge as to the materiality/ relevancy of evidence and
not bound by rules on evidence. Then after closing of the hearing, they will render an award,
stating the reasons upon which it is based, a copy will be delivered to the other party. The award
may be set aside by the court only in limited grounds. If no appeal, the arbitral award becomes
final and executor.

PDRCI RULES

Host1:whatisPDRCI?
lawyer1: it is a non-stock, non-profit organization incorporated in 1996 out of the Arbitration
Committee of the Philippine Chamber of Commerce and Industry.
PDRCI is a modern arbitration institution for international and domestic commercial
arbitration.
Host2: what are the purposes of this?
Lawyer2: To promote and encourage the use of arbitration as an alternative mode of settling
commercial transaction disputes and providing dispute resolution services to the business
community
Host1:What is institutional arbitration?
LAWYER3: the proceedings are administered and conducted by an arbitral institution under a
pre established set of rules. Different from ad hoc arbitration , since the latter is constructed by
the parties with rules created for that specific case. Parties are on their own for all aspects of the
case.
HOST2:WHEN PDRCI may act as the appointing authority when:
LAWYER2:
a. a party requests that the PDRCI appoint an arbitrator on its behalf;
b. the parties are unable to select or appoint and request that the PDRCI appoint the
arbitrator;
c. the arbitration agreement between the parties provides that the PDRCI will act as the
appointing authority or
that the arbitration shall be
d.
conducted under PDRCI arbitration rules.
e. Where there is an unsuccessful challenge involving an arbitrator
unsuccessful because either the arbitrator or the other party refuses the
challenge the challenging party may apply to the PDRCI to rule on the challenge.
HOST1: what is Scope of Application under PDRCI Rules:
LAWYER3: Where the parties to a contract have agreed in writing that disputes in
relation to that contract shall be referred to arbitration under the PDRCI Arbitration Rules
subject only to modification as the parties may agree in writing.
b. These Rules shall govern the arbitration except that where any of these Rules is in
conflict with a provision of the law applicable to the arbitration from which the parties
cannot derogate, that provision of the law shall prevail.
HOST2: WHAT IS THE ARBITRAL PROCEEDINGS UNDER THIS RULE?
LAWYER1:
a. Subject to these rules, the arbitral tribunal may conduct the arbitration in such manner as
it considers appropriate, provided that the parties are treated with equality and that at any

stage of the proceedings each party is given a full opportunity of presenting his case.
b. b. If either party so requests at any stage of the proceedings, the arbitral tribunal shall
hold hearings for the presentation of evidence by witnesses, including expert witnesses ,
or for oral argument. In the absence of such a request, the arbitral tribunal shall decide
whether to hold such hearings or whether the proceedings shall be conducted on the basis
of documents
HOST1: WHAT ARE THE POWERS OF THE TRIBUNAL?
LAWYER2:Arbitral tribunals Powers:
a. To rule on objections that it has no jurisdiction;
b. objections as to the existence, validity Of the arbitration clause/ or of separate
arbitration agreement.
c. To determine the existence/ validity of the contract of which the an arbitration clause
forms a part.
LAWYER3:
Note: an arbitration clause which forms part of a contract and which provides for
arbitration shall be treated as an agreement INDEPENDENT of the other terms of the
contract Doctrine of Separability of Arbitration Clause.
The invalidity of the main contract does not affect the validity of the arbitration
agreement.
IT ALSO PROVIDE FOR THE CONFIDENTIALITY OF THE PROCEEDINGS AND
GRANT OF INTERIM MEASURES IF NECESSARY.
HOST2: HOW ABOUT THE DECISIONS?
LAWYER1:
Note:
The arbitral tribunal shall apply the law designated by the parties as applicable to the substance
of the dispute.
Failing such designation by the parties, the arbitral tribunal shall apply the law determined by the
Conflict of laws rules which it considers applicable.
The arbitral award shall state the reasons which the award is based, unless agreed otherwise.
The award must be in writing, should carry without delay.
LAWYER2:
In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and
take into account the usages of the trade applicable to the transaction.
Grounds for termination
a. If before the award, parties agreed to settlement of the dispute.
b. If before award the continuation of the proceedings become unnecessary or impossible
for any reason.
LAWYER3: Correction of Award
a. Within 30 days after receipt of the award, the tribunal on its own initiative, may correct

the award;
b. Either party, with notice to the other party, may request the arbitral tribunal to correct in
the award any errors.
Additional award
a. Either part, with notice to the other, may request to make an additional award as
to claims presented in proceedings but omitted from the award.
HOST 2: Thank you very much for sharing you time this afternoon.
HOST 1: Before we end this lets do our traditional dance, music maestro!
MUSIC --- DANCE--------THE END-