ADR Law of 2004’s declared policy is “to actively promote party autonomy in the resolution of disputes or

the freedom of the parties to make their own arrangements to resolve their disputes. Towards this end, the
State shall encourage and actively promote the use of Alternative Dispute Resolution (ADR) as an
important means to achieve speedy and impartial justice and declog court dockets."

II. Republic Act No. 9285 of 2004

Salient Features and Challenges

RA 9285

Alternative Dispute Resolution Act of 2004

An Act to Institutionalize the Use of an Alternative Dispute Resolution and for other Purposes
Court-annexed Mediation Under Supreme Court Guidelines
A particular alternative dispute resolution may be combined with the other types of alternative dispute
resolutions.
The most common is the mediation-arbitration (Med-Arb). 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.
Conflict is human nature, but nevertheless, humans put much effort in devising ways of resolving it.
Physical fighting, or trial by combat has been ruled out due to the progress of civilization, and more
peaceful ways had been made.
1. Order of Mediation – The trial court for civil cases with stamped-mark Mediatable is mandated to issue
an order during the pre-trial referring the case to the Philippine Mediation Center (PMC) unit for mediation
and directing the parties to proceed immediately to the PMC unit. The order will be personally given to the
parties during the pre-trial. There are PMC units in courthouses or near the court premises to mediate the
parties.
Since mediation is part of pre-trial, the trial court will impose the appropriate sanction including but not
limited to censure, reprimand, contempt and such sanctions as are provided under the Rules of Court, in
case any or both of the parties absent himself/themselves, or for abusive conduct during mediation
proceedings.
The hearing is usually held in private and the decision of the persons selected will be a substitute for a
court judgment.
This avoids the formalities, delay and expenses of ordinary litigation.

II. Republic Act No. 9285 of 2004

Salient Features and Challenges

Republic Act 9285 - "The ADR Act of 2004" which is UNCITRAL based. For international arbitration, the
UNCITRAL MODEL LAW was adopted as an Annex to the law and the "travaux preparatories" were
expressly referred to in interpreting the same.
An advantage of mini-trial is the opportunity for top management of disputing parties to have knowledge
and details of the dispute. Because the tribunal consists of the parties, the final outcome of the dispute
remains in the parties’ control by producing a binding settlement or an evaluation thereon.
Also the decision-makers are fully informed of the merits of their opposing parties’ claims and argument, so
that they will be better prepared to engage successfully in settlement discussions by mediation or
conciliation
Typical mini-trials are short, a day or so, and thus provide all the savings in costs and time associated with
ADRs generally.
1.Mediation, as a significant ADR mode, was given a concrete legal framework, and more importantly, solid
legal support and encouragement.
In addition, the ADR law of 2004 established the principle of "Confidentiality of Information" in mediation
such that information
obtained or generated through mediation proceedings is deemed "privileged and confidential".
2.The UNCITRAL Model Law on International Commercial Arbitration was adopted to govern international
commercial arbitration in the Philippines.
With this, the ADR law of 2004 has brought Philippine law on international commercial arbitration up to par
with the Worlds’ best and it superseded the outmoded 1952 RA 876, the Philippine Arbitration Law.

II. Republic Act No. 9285 of 2004

Salient Features and Challenges

A private, voluntary, and informal type of Alternative Dispute Resolution.

V. References
The use of appropriate ADR methods reduces the cost, time, and complexity of any subsequent litigation.
By incorporating the ADR processes into the regulatory framework governing the Philippines the business
sector is committed to provide its stakeholders with options for resolving disputes outside the courtroom,
and minimize the expense and delays that may accompany the judicial process.

Forming your most appropriate ADR system (combination)

Mini - Trial
Does not result in a formal adjudication but is a vehicle for the parties to arrive at a solution on through a
structured settlement process. It is used most effectively when complex issues are at stake and the parties
need or wish to maintain an amicable relationship.
5. Outcome of mediation
When the mediation results in realization of all claims of the plaintiff, a motion to dismiss may be filed in
court. If there are obligations still to be complied with, the parties may execute a compromise agreement
which will then be submitted to the court for approval.
If the court finds the compromise agreement to be in order, judgment will be rendered in accordance
therewith.
If mediation fails, the case will be returned to the court of origin per a Certificate of Failed Mediation issued
by the mediator.
Executive Order 1008 - The Construction Industry Arbitration Law which created the Construction Industry
Arbitration Commission (CIAC). EO 1008 governs construction arbitration and its rules are ICC-based.
500 cases : 1 judge
a simple collection case may take as much as two years before it is decided by the trial court and another
one or two years before it is finally decided on appeal
The more complex commercial cases can remain in litigation for up to five or more years.
As a consequence to slow-paced resolution of these cases, the litigation cost in terms of legal fees and
other expenses become disproportionately high.

Court-annexed Mediation Under Supreme Court Guidelines

Early Neutral Evaluation

A more popular form of alternative dispute resolution is mediation. The ADR Law mentions two kinds of
mediation: court-annexed mediation and court-referred mediation.
Court-annexed Mediation is defined under ADR Law as any mediation process conducted under the
auspices of the court, after such court has acquired jurisdiction of the dispute. It is mandatory, being part of
pre-trial.
Court-referred Mediation is 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.
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
process addresses deep-rooted sources of misunderstanding which are inimical to business concerns.
Holy Bible documented how Jesus Christ preached the wisdom of going to and out of court settlement.
TABLE OF CONTENTS
I. Introduction
Historical Background
The Legal Basis of Alternative Dispute Resolution
II. Republic Act No. 9285 of 2004
Salient Features and Challenges
III. Forms of Alternative Dispute Resolutions
What is Alternative Dispute Resolution?
A. Arbitration
B. Mediation
C. Mini-trial
D. Early neutral evaluation
E. Combination of Alternative Dispute Resolution
IV. Conclusion
V. References
2. Selection of Mediator
The Supervisor of the PMC unit will assist the parties to select a mutually acceptable mediator from the list
of available mediators.
The mediator will be considered an officer of the court. Lawyers may attend the mediation proceedings, but
they must cooperate with the mediator to reach an amicable settlement of the case.

RA 9285

Alternative Dispute Resolution Act of 2004

ADR and Arbitration in the Philippines

Historical Background

Mediation
In Mini-Trial, 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
The procedure involves a semi-formal hearing, which follows a more relaxed rules of discovery and case
presentation than in court or other formal proceeding, by senior decision making executives of both parties
who hear each side’s argument presented either by lawyers or by lower ranking managers of each side.
Arbitration is defined by ADR Law as 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.
It is the reference by mutual agreement or consent of the parties of a controversy or dispute to selected
persons for an informal hearing and extra-judicial determination and resolution.

Mini - Trial

Early Neutral Evaluation

II. Republic Act No. 9285 of 2004

Salient Features and Challenges

5. Although RA 876, the old Arbitration Law, continues to govern domestic arbitration, the ADR law of 2004
adopted several provisions of the UNCITRAL Model Law as well as RA 9285 for domestic arbitration.
Thus, to a large extent, even the rules on domestic arbitration were updated by RA 9285 ; specifically on
the appointment and number of arbitrators, grounds/procedure to challenge arbitrators, termination of the
mandate of arbitrators, equality and full opportunity of each party to present their case, decision-making by
a panel of arbitrators, form and contents of the award, confidentiality of arbitration proceedings, and interim
measures of protection.

Mini - Trial

II. Republic Act No. 9285 of 2004

Salient Features and Challenges

Disputes involving technical issues proper for expert evaluation on the causality of a problem e.g. cause of
structural damage, or an illness, may best be resolved by early neutral evaluation, where an early
evaluation of liabilities, remedies, or probable outcome of a full hearing, might then enable mediation or
conciliation from a more informed starting point.
Complicated contractual performance disputes may benefit from expert evaluation or a mini-trial then
arbitration
Thus, as to which ADR process to incorporate/combine in your ADR system, the strategy will be affected by
the nature of the dispute, the amount in dispute, or its importance to one or both of the parties
Thus, as to which ADR process to incorporate/combine in your ADR system, the strategy will be affected by
the nature of the dispute, the amount in dispute, or its importance to one or both of the parties
6. With respect to the Construction Industry Arbitration Commission (CIAC) under E.O. 1008, the ADR law
of 2004 now allows
(i) for the appointment of a foreign arbitrator as co-arbitrator or chairman of a tribunal who has not been
previously accredited by the CIAC, and
(ii) upon written agreement of the parties, for an arbitrator to act as mediator and vice versa.
The ADR Law of 2004 also codified into law the CIAC Rule that a Regional Trial Court before which a
construction dispute is filed and is aware that the parties involved have entered into an arbitration
agreement must dismiss the case and refer the parties to arbitration to be conducted by the CIAC.
7. The ADR Law of 2004 likewise clarified the judicial review and enforcement of arbitral awards. For
Foreign Arbitral Awards, RA 9285 refers to the provisions of the New York Convention of 1958.
8. The Office for Alternative Dispute Resolution (OADR) created by the law will be established an attached
agency of the Department of Justice (DOJ). The objectives of the OADR are to promote, develop and
expand the use of ADR in the private and public sectors; to assist the government to monitor, study and
evaluate the use by the public and the private sector of ADR; and to recommend to Congress needful
statutory changes to develop, strengthen and improve ADR practice in accordance with world standards.
Court-annexed Mediation Under Supreme Court Guidelines

Mini - Trial
3. Conference – The mediator will hold a conference with all the parties involved in the case and will make
serious attempts to settle the matter quickly.
If no settlement is reached, the mediator may, with the consent of both parties, hold separate caucuses with
each party to enable the mediator to determine their respective real interests in the dispute.
Thereafter, another joint conference may be held to consider various options proposed by the parties to the
mediator to resolve the dispute.

Advantages of Mediation

Court-annexed Mediation Under Supreme Court Guidelines

This is an ADR process wherein parties and their lawyers are brought together early in pre-trial to present
their case summaries and receive a non-binding assessment by an experienced, neutral person with
expertise in the subject of the dispute. (Section 3 (n), ADR Act).

fin

II. Republic Act No. 9285 of 2004

Salient Features and Challenges

It includes arbitration, mediation or conciliation, mini-trial, early neutral evaluation, or any combination
thereof.

Primary Domestic Sources of Arbitration Law

what is Alternative Dispute Resolution (ADR)?

In arbitration, parties have freedom to choose the arbitrators who will compose the tribunal, and the
procedures and the substantive law that would govern the proceedings.
“Arbitration", as the law defines, is the 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.
On the other hand, commercial arbitration becomes such “if it covers matters arising from all relationships
of a commercial nature, whether contractual or not.
These relationships are enumerated by the law under the same provision.
Early Neutral Evaluation (ENE) intends to provide parties in dispute with an early forthright evaluation by an
objective expert (in practice and procedure in the forum to which the dispute may eventually be heard) of
the merits of a case.
The Secretary of Justice is obliged to convene a Committee composed of representatives from:
(a) the Department of Justice,
(b) the Department of Trade and Industry;
(c) the Department of Interior and Local Government;
(d) the President of the Integrated Bar of the Philippines;
(e) a representative from the arbitration professions;
(f) a representative from the mediation profession; and
(g) a representative from the ADR organizations, to formulate the Implementing Rules and Regulations
(IRR) which shall be submitted to a Joint Congressional Oversight Committee for review and approval.
conclusion

II. Republic Act No. 9285 of 2004

Salient Features and Challenges

conclusion
Republic Act No. 9285
http://ca.judiciary.gov.ph/index.php?action=mnuactual_contents&ap=dispute
https://paulgorgonio.wordpress.com/2013/01/16/revisiting-republic-act-9285-salient-features-of-
international-commercial-arbitration-and-challenges/#_ftn2
Alfredo Tadiar,“Unclogging the Court Dockets” http://dirp4.pids.gov.ph/ris/taps/tapspp9926.pdf
Eduardo Ceniza, International Commercial Arbitration: Its Relevance in the Philippines (2005).
http://www.pdrci.org/web1/art003.html
Victor P. Lazatin & Patricia Ann T. Prodigalidad, Arbitration in the Philippines (2006)
Leslie Chew, The New Philippine Arbitration Law – Some Preliminary Observations. Journal of the
Integrated Bar of the Philippines, Vol. 32, No. 1 (3rd and 4th Quarters of 2005 and 1st Quarter of 2006).
Victor P. Lazatin & Patricia Ann T. Prodigalidad, Arbitration in the Philippines (2006)
Leslie Chew, The New Philippine Arbitration Law – Some Preliminary Observations.
Explanatory Note by the UNCITRAL secretariat of the 1985 Model Law on International Commercial
Arbitration as amended in 2006.
Eduardo Ceniza, International Commercial Arbitration: Its Relevance in the Philippines (2005).
http://www.pdrci.org/web1/art003.html
https://paulgorgonio.wordpress.com/2013/01/16/revisiting-republic-act-9285-salient-features-of-
international-commercial-arbitration-and-challenges/

II. Republic Act No. 9285 of 2004

Salient Features and Challenges

The New ADR Law of 2004, which shall take effect 15 days after its publication in at least two national
papers of general circulation, has yet to be published.
The legal and allied professions in ADR are eagerly awaiting the affectivity of this new act.
Republic Act 876 - The Philippine Arbitration Law which is based on the U.S. Federal Arbitration Law. It
continues to govern domestic arbitrations as modified by RA 9285, including portions of the UNCITRAL
MODEL LAW.
One of the oldest forms of dispute resolution is arbitration which may be classified as either international or
domestic.
International arbitration is governed by the Model Law on International Commercial Arbitration per Section
19 of the ADR Law, while domestic arbitration shall continue to be governed by RA 876, as amended by the
ADR Law.
A highly specialized form of domestic dispute resolution involving construction disputes is governed by the
Construction Industry Arbitration Law, EO No. 1008. This falls within the exclusive jurisdiction of the
Construction Industry Arbitration Commission (CIAC).

Arbitration

Advantages of Mediation

Early Neutral Evaluation

in da Pilipins
There is a need to introduce arbitration to the general public as an alternative method of dispute resolution.
Millions of Filipinos may, until now, have little awareness of arbitration as an alternative method of dispute
resolution. And that is the reason why every time they engage in a dispute, it is almost automatic to them to
file a case in court.
Thus, efforts must be made to make it well-known and widely-practiced.
3. The National President of the Integrated Bar of the Philippines (IBP) or his duly authorized representative
was designated the default "Appointing Authority."
Under the old law, in the absence of an agreement among the parties, it was the Regional Trial Court
(RTC) which will appoint the sole arbitrator or the third arbitrator of a panel if and when the parties do not or
can not agree.
As the "Appointing Authority", the National President of the IBP or his duly authorized representative will
decide challenges to the arbitrator as well as the termination of his mandate.
Employment disputes will often be suitable for some style of mediation-arbitration (Med-Arb), where the
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.

Combination of Alternative Dispute Resolutions

Laws and regulations were passed in recent years to encourage, if not mandate, the use of ADR to resolve
various types of disputes.
The primary objective is to provide avenues to settle disputes through the swiftest and most accessible
means.

II. Republic Act No. 9285 of 2004

Salient Features and Challenges

Settle with your opponent quickly while on the way to court with him. Otherwise, your opponent will hand
you over to the judge, and the judge will hand you over to the guard, and you will be thrown into prison.
Amen and I say to you, you will not be released until you have paid the last penny.
Matthew 5:25-26.
4. Submission of Report
The mediator will submit to the trial court status report on the progress of the proceedings at the end of the
mediation period. The mediator is mandated not to record the proceedings in any manner, but he may take
down personal notes to guide him.
The PMC will not keep a file of mediation proceedings except the report of the mediator. This is because
court-annexed mediation proceedings like those voluntary mediation proceedings under the ADR Law are
confidential.

Primary Domestic Sources of Arbitration Law

It is defined as 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 in the resolution of issues.

Mediation
Mediation is a dispute resolution procedure in which an impartial third party, mutually chosen by the parties,
acts as the referee to help the contending parties settle their dispute. The mediator, unlike the arbitrator,
has no authority to make the parties reach an agreement.
He serves as a clarifier and facilitator without dictating settlement. The term mediation used under ADR
Law includes conciliation.
Parties request an assessment of their positions as a matter of law, and of liability, or of the probable
outcome of a trial or arbitration, an assessment of their evidence, or a recommended course of action to
best resolve the dispute.
ENE can be a first step to, or can preclude resort to other evaluative ADR methods, such as arbitration, and
provide a “reality check” for the parties and their lawyers and help to identify and clarify the fundamental
issues in dispute. Thereafter, the parties may alter their negotiation approaches or explore options to
mediate or conciliate.
Early Neutral Evaluation is a process of assessing in a non-binding basis the strengths and weaknesses of
each party's case for the purpose of serving as basis for a compromise agreement.
Disputes involving technical issues proper for expert evaluation on the causality of a problem e.g. cause of
structural damage, or an illness, may best be resolved by early neutral evaluation, where an early
evaluation of liabilities, remedies, or probable outcome of a full hearing, might then enable mediation or
conciliation from a more informed starting point.

Forming your most appropriate ADR system (combination)

Does not result in a formal adjudication but is a vehicle for the parties to arrive at a solution on through a
structured settlement process. It is used most effectively when complex issues are at stake and the parties
need or wish to maintain an amicable relationship.

Arbitration

conclusion

Arbitration
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.
A third, neutral, tribunal member often a lawyer or technical expert, will manage the hearing. That individual
is responsible for explaining and maintaining an orderly process, and may give an advisory opinion
regarding a settlement range, if requested, rather than offer a specific solution for the parties to consider.
The third party may also provide mediation services upon request.

Introduction

Court-annexed Mediation Under Supreme Court Guidelines

4. The grant of interim or provisional relief by the courts and the arbitrator/s has been expanded and
clarified. Any party may request either the court or arbitral tribunal that an interim or provisional relief be
granted against the adverse party on the following grounds:
(i) to prevent irreparable loss or injury;
(ii) to provide security for the performance of any obligations;
(iii) to produce or preserve any evidence; or
(iv) to compel any other appropriate act or omission.
Such interim measures may include but are not limited to a preliminary injunction directed against a party,
appointment of a receiver or the detention, preservation, and inspection of property subject of the
arbitration.