Alternative dispute resolution is often

referred to as ADR.

It describes the ways that parties can settle

civil disputes with the help of an independent
third party and without the need for a formal
court hearing.
 Alternative Dispute Resolution:
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.

It includes arbitration, mediation, conciliation, early

neutral evaluation, mini-trial, or any combination
thereof.
 Promotion of party autonomy and self-
determination in dispute resolution.

Recognition of ADR as an efficient tool and an

alternative procedure for the resolution of
cases.

Enlisting a private sector participation.

 Speedy and Impartial Justice

Declogging of Court Dockets

 ADR is a means used to resolve a dispute or
controversy.
Exception: It may be used to cause delay or
suspend the proceeding.
ADR utilizes means and methods allowed by
law.
ADR is contractual in nature.
ADR avoids court trial.
ADR usually involves the participation of a
neutral third party.
 As to Number of Parties:
Bi-party: Two parties
Multi-party: More than two parties
As to Number of Issues Involved:
Simple: One issue involved
Complex: Two or more issues
As to Extent of Conclusion:
Complete: All issues involved are resolved
Partial: Only some issues involved are resolved
As to the Permanency of the ADR Provider:
Ad-hoc: Temporary
Institutional: Permanent
 As to Role of Evidence in the Proceedings:
Evidentiary
Non-merit Based
As to Pendency of the Court Case:
Case-related
Independent
As to the Applicable Law:
Domestic: When the place of business and arbitration is in
the Philippines
International: When the place of business involved two
states and arbitration is outside the Philippines
Foreign: When the place of business is outside the
Philippines and the arbitration is outside the Philippines
 Contribute to the promotion of ADR

Assist courts in encouraging the parties to

avail of alternative means of dispute
resolution

Explain the benefits of the ADR system.

 Contending parties

Dispute or controversy

Form of ADR

ADR provider or practitioner

 Concluding Acts or Arguments
Arbitral Award final decision of arbitration on awarding issue or
controversy
Mediated Settlement agreement contract executed by the parties
Compromise or compromise agreement avoidance of litigation or to
put an end to the one already existing
Waiver or quitclaim a statement renouncing any right or claim
ADR providers or practitioners
Preferences of ADR
 It 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. 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.

The hearing is usually held in private and the decision

of the persons selected will be a substitute for a court
judgment. This avoids formalities, delay and expenses
of ordinary litigation.
 Voluntary
Reference of a dispute to an impartial body
Members are chosen by the parties
themselves
Compulsary arbitration
Settlement of labor dispute by the
government agency which has the authority to
investigate
Domestic
International
Foreign
 Policy on Arbitration
Speedy and inexpensive methods
Arbitrator
Person appointed to render an award
May use his own discretion in the performance of his function
Arbitration agreement
Agreement by the parties
In respect of legal relationship
Essential elements
Consent of the parties freely given
Cause of consideration
Lawful object
 Two modes in submitting dispute
Agreement to submit in arbitration
Submission agreement
Arbitration Agreement
Shall be in writing and subscribed by the parties to be
charged
May be included in arbitration clause or compromise

Arbitration Clause
Must be liberally construed consistent with the policy of
encouraging alternative dispute resolution method
 Doctrine of Separability

Arbitration agreement is independent of the

main contact even if it contained in Arbitration
clause

Due process in Arbitral proceedings

Principles of administrative due process equally

apply to arbitral proceedings
 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 includes Conciliation.
Voluntary process in which a mediator is selected by the disputing
parties
Facilitates communication and negotiation
Assist the parties in reaching voluntary agreement
 Non evidentiary or non merit based mediated
Focuses on facilitation or communication and
negotiation between the parties in encouraging to
voluntarily settle dispute
Institutional
Administered and conducted by or under the rules of
mediation institution
Ad Hoc
Other than institutional
 Opening statement of mediator
Individual narration by the parties
Exchange by the parties
Summary issues
Generalization and evaluation of options
Closure
 Confidentiality in Mediation Process

Prompt, economical amicable dispute

resolution

The decision making authority rest upon the

parties
 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.
 An alternativedispute 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.
 A particular alternative dispute resolution
may be combined with other types.
The most common is the Mediation-
Arbitration (Med-Arb) combination.
Parties proceed with Mediation to define the
dispute and settle as many issues as possible.
After which, they engage in Arbitration to settle
issues that remain unresolved.
 Art. VIII, Sec. 5 (5) 1987 Constitution
Mandating the Supreme Court to promulgate rules that
shall provide a simplified and inexpensive procedure for
the speedy disposition of cases.
Rule 18, Sec 2 (a) 1997 Rules of Procedure
Requiring the courts to consider the possibility of an
amicable settlement or of a submission to alternative
modes of dispute resolution.
 The State actively promote party autonomy in the
resolution of disputes or the freedom of the party
to make their own arrangements to resolve their
disputes.
It encourages and actively promotes the use of
Alternative Dispute Resolution (ADR) as an
important means to achieve speedy and impartial
justice and declog court dockets.
ADR is an efficient tool and an alternative
procedure for the resolution of appropriate cases.
 Language of the Arbitration:
The parties are free to agree on the language or languages to
be used in the arbitral proceedings. Failing such agreement,
the language to be used shall be English in international
arbitration, and English or Filipino for domestic arbitration,
unless the arbitral tribunal shall determine a different or
another language or languages to be used in the
proceedings.
 "Model Law": the Model Law on International Commercial
Arbitration adopted by the United Nations Commission on
International Trade Law on 21 June 1985.

Adoption of the Model Law on International Commercial

Arbitration. - International commercial arbitration shall be
governed by the Model Law on International Commercial
Arbitration (the "Model Law") adopted by the United
Nations Commission on International Trade Law on June 21,
1985.
 Instances of Occurrence of International Arbitration
Parties and Places of business is in different state
Place of arbitration provided in the agreement where parties
have their business is outside the Philippines
Substantial part of obligation is to be performed outside the
Philippines
Subject matter of agreement relates to more than one
parties
Commercial Arbitration
Commercial relationship in nature
Contractual or not
Foreign Arbitration
International commercial arbitration is outside the
Philippines
 (a) labor disputes covered by the Labor Code of the Philippines;
(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.
 Proceedings shall be filed with the regional trial court:

(i) where arbitration proceedings are conducted;

(ii) where the asset to be attached or levied upon, or the

act to be enjoined is located;

(iii) where any of the parties to the dispute resides or has

his place of business; or

(iv) in the National Judicial Capital Region, at the option

of the applicant.
Persons and matters subject to arbitration:
Two or more persons or parties may submit to the arbitration
of one or more arbitrators any controversy existing between
them at the time of the submission and which may be the
subject of an action, or the parties to any contract may in
such contract agree to settle by arbitration a controversy
thereafter arising between them.

Such submission or contract shall be valid, enforceable and

irrevocable, save upon such grounds as exist at law for the
revocation of any contract.
 If, in the contract for arbitration or in the submission, provision is made
for a method of naming or appointing an arbitrator or arbitrators, such
method shall be followed; but if no method be provided therein the
Regional Trial Court shall designate an arbitrator or arbitrators.
The Regional Trial Court shall appoint an arbitrator or arbitrators, as the
case may be, in the following instances:
(a) If the parties to the contract or submission are unable to agree upon a
single arbitrator; or
(b) If an arbitrator appointed by the parties is unwilling or unable to
serve, and his successor has not been appointed in the manner in which
he was appointed; or
(c) If either party to the contract fails or refuses to name his arbitrator
within fifteen days after receipt of the demand for arbitration; or
 (d) If the arbitrators appointed by each party to the contract, or
appointed by one party to the contract and by the proper Court,
shall fail to agree upon or to select the third arbitrator.
(e) The court shall, in its discretion appoint one or three
arbitrators, according to the importance of the controversy
involved in any of the preceding cases in which the agreement is
silent as to the number of arbitrators.
(f) Arbitrators appointed shall either accept or decline their
appointments within seven days of the receipt of their
appointments. In case of declination or the failure of an arbitrator
or arbitrators to duly accept their appointments the parties or the
court, as the case may be, shall proceed to appoint a substitute or
substitutes for the arbitrator or arbitrators who decline or failed to
accept his or their appointments.
 Must be of legal age;
In full-enjoyment of his civil rights; and
Knows how to read and write.
No person appointed to serve as an arbitrator shall be related
by blood or marriage within the sixth degree to either party to
the controversy.
No person shall serve as an arbitrator in any proceeding if he
has or has had financial, fiduciary or other interest in the
controversy or cause to be decided or in the result of the
proceeding, or has any personal bias, which might prejudice
the right of any party to a fair and impartial award.
 Barangays are the smallest political
subdivisions in the Philippines.

Katarungang Pambarangay (KP) or

Barangay Justice System (BJS) is an
alternative, community-based mechanism for
dispute resolution of conflicts between
members of the same community.
 The BJS provides a venue for disputing parties to search
for a mutually acceptable solution. Other members of the
communities act as intermediaries, facilitating the
discussion of possible solutions.
The BJS formalized the Filipino tradition to seek help of
community elders or tribe leaders in resolving disputes
between members of the same community, and uses the
Punong Barangay (highest elected official in a barangay)
and the Lupon members (committee of respected
community members).
It is only when the BJS has failed to resolve the dispute
that the parties are allowed to bring their case to court.
 Individual residents of Barangay can file a
complaint to their Punong Barangay. If the
parties are from different barangays, the
dispute will be settled in the barangay at the
choice of the complainant. Cooperatives or
peoples organizations can go directly to
court without mediation or conciliation.
 A complaint is filed in the Lupon (committee) at a
minimal filing fee.
The Punong Barangay facilitates the mediation
process and explains the process, objectives and
rules of the mediation.
Each party is given time to explain their point of
view. If no settlement is reached following the
mediation, the parties can try to resolve their
dispute through conciliation.
 The conciliators (Pangkat Tagapagkasundo) are known and
respected by both parties in the dispute, and are constituted
by the Punong Barangay from the Lupon.
The three members of the Pangkat are chosen by the parties.
The Pangkat shall hear both parties and explore the
possibilities for amicable settlement.
The amicable settlement reached in conciliation has the force
and effect of a final judgment of a court and can be enforced
within 6 months from the date of settlement by filing a
motion in court.
If no settlement is reached, the parties can use a certification
to file action for filing a case in court
 Arbitration can take place at any stage of the
proceedings, as long as both parties agree in
writing to abide by the arbitration award of
the Lupon or Pangkat.
 If a settlement is reached through either
mediation, conciliation or arbitration, and the
party has not complied with the settlement
or arbitration award, the Punong Barangay
executes the settlement by taking possession
of sufficient personal property of the party
obliged, which can be sold and the proceeds
applied to the amount.
 An amicable settlement has force and effect
of a final judgment of a court after ten days
from the date of the settlement, unless a
protest or repudiation of the settlement is
made. Only when the BJS has failed to
resolve the dispute, can the parties bring
their case to court.