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Alternative Dispute Resolution System 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 agency, as defined in this Act, 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. 3(a), RA
9285)
FORMS OF ADR
a. Mediation 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. (Sec. 3(q), RA 9285)
i. Court-Annexed Mediation means any mediation process conducted under
the auspices of the court, after such court has acquired jurisdiction of the
dispute. (Sec. 3(l), RA 9285)
ii. Court-Referred Mediation means mediation ordered by a court to be
conducted in accordance with the Agreement of the Parties when as action
is prematurely commenced in violation of such agreement. (Sec. 3(m), RA
9285)
iii. Judicial Dispute Resolution mediation, conciliation and early neutral
evaluation process conducted by the judge of a pending case after a failed
court-annexed mediation and before the pre-trial.1
b. Arbitration 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 this Act, resolve a dispute by rendering an award. (Sec.
3(d), RA 9285)
c. Early Neutral Evaluation means an ADR process wherein parties and their lawyers
are brought together early in a pre-trial phase to present summaries of their cases
and receive a nonbinding assessment by an experienced, neutral person, with
expertise in the subject in the substance of the dispute. (Sec. 3(d), RA 9285)
d. Mini-Trial means a structured dispute resolution method in which the merits of a
case are argued before a panel comprising senior decision makers with or without
the presence of a neutral third person after which the parties seek a negotiated
settlement.
e. Mediation-Arbitration or Med-Arb a step dispute resolution process involving
both mediation and arbitration.
f. Conciliation the adjustment and settlement of a dispute in a friendly,
unantagonistic manner. (Blacks Law Dictionary)
Atty. Gabriel T. Robeniol. (2012). Alternative Dispute Resolution. Quezon City: Central Book Supply Inc. Pp. 28
Ibid. p. 11.
b. Recognition of ADR as an efficient tool and alternative procedure for the resolution
of cases
c. Enlisting of private sector participation
2. Objectives and Benefits of ADR3
a. Party Autonomy
b. Speedy and Cost-Efficient
c. Privacy and Confidentiality
d. Awards are final and binding
3. Features of ADR4
a. ADR is a means to resolve a dispute or controversy
b. ADR utilizes means and methods allowed by law
c. ADR is contractual in nature
d. ADR avoids court trial
e. ADR usually involves the participation of a neutral third party
4. Subject Matters of ADR5
In line with the policy to encourage the use of ADR, in general, all adversarial disputes
and controversies can be the subject matter of ADR, except those which by law or
reasons of public policy are declared not capable of being subject to ADR. Under Section
6(b) to (h), RA 9285, the following issues are not susceptible of ADR:
a) The civil status of persons
b) The validity of marriage or any ground for legal separation
c) The jurisdiction of the courts
d) Future legitime
e) Criminal liability
f) In general, those which, by law, cannot be compromised, e.g. Art 2035 of the
Civil Code.
PART III: MEDIATION
1. Mediation Under the ADR Act of 20046
a. Place of Mediation
i. General Rule: Agreement of the Parties as to the venue of mediation
ii. Default Venue: Any place convenient and appropriate to all parties
b. Stages in Mediation
i. General Rule: The parties may choose the procedure that will govern their
mediation.
ii. Default Procedure: (Article 3. 17(d), Rule 5, IRR of RA 9285)
1. Opening statement of the mediator
2. Individual narration by the parties
3. Exchange by the parties
3
Marthe Lois V. Cordia. Alternative Dispute Resolution in the Philippines. Retrieved from
http://ustlawreview.com/pdf/vol.LI/Alternative_Dispute_Resolution_in_the_Philippines.pdf on November 5,
2014.
4
Atty. Gabriel T. Robeniol. Supra. Pp. 12-14
5
Ibid.
6
Ibid. Pp. 29
3. 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.
4. If the parties agree, the settlement agreement may be jointly
deposited by the parties or deposited by one party with prior notice
to the other party/ies with the Clerk of Court of the Regional Trial
Court (a) where the principal place of business in the Philippines of
any of the parties is located; (b) if any of the parties is an individual,
where any of those individuals resides; or (c) in the National Capital
Judicial Region. Where there is a need to enforce the settlement
agreement, a petition may be filed by any of the parties with the
same court, in which case, the court shall proceed summarily to
hear the petition, in accordance with the Special ADR Rules.
5. 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, s. 1985, otherwise known as the
"Construction Industry Arbitration Law" for mediated disputes
outside of the Construction Industry Arbitration Commission.
(Article 3.20, Rule 8, IRR of RA 9385)