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Salient Features of ADR enumerated and explained in the case of Korea Technologies Co. vs.
Lerma (2008):
R-C-R-D-A
4. The Grounds for judicial review different in Domestic and Foreign Arbitral Awards; and
- For Foreign Arbitral Awards, the grounds must be based on Art 34(2) of UNCITRAL,
while for Domestic Awards, the grounds must be based on Sec 25 of RA 9285. However,
both need confirmation from a competent court [RTC].
- As defined in the ADR Act of 2004: any process or procedure used to resolve a dispute or
controversy, other than by adjudication of a presiding judge of court or an officer of a
government agency xxx in which a neutral third party participates to assist in the
resolution of issues xxx.
Seat of ADR
- is the jurisdiction under whose law the proceeding is being conducted.
Venue of ADR
- is the actual site where the arbitration is being conducted.
Basic Concepts
1. ADR proceedings are completed upon the execution of a concluding act or agreement:
a. Mediated settlement agreement or Compromise agreement, in case of mediation;
Mediator
- A person who conducts mediation and is precluded from discussing the merits of the
controversy and cannot render a binding assessment of the dispute.
Independently of the merits of the case, the MeTC, RTC and Court of Appeals all
erred in overlooking the significance of the arbitration clause incorporated in the
recent amended lease contract. As the SC sees it, that is a fatal mistake.
Ruling:
Judicial proceedings disregarding arbitration agreement, beyond the point when
the parties should have been referred to arbitration, are null and void, and the
decisions rendered therein shall be reserved and set aside in order to allow the
remand of the case to the trial court and the referral of the dispute to arbitration in
accordance with the arbitration agreement.