Chapter 1 - Introduction SOURCE:

Alternative Dispute Resolution ADR, ATTY. GABRIEL

Atty. David Ballesteros ROBENIOL
T/F 530p-830p

TOPICS

• Historical Note LEGISLATIVE ACTIONS

• Solutions of the three branches of Government
• Alternative Dispute Resolution Act of 2004
• Salient features of ADR
• Lawyer’s Role
HISTORICAL NOTE
JUDICIAL AND LEGISLATIVE TRENDS
• Utilization of alternative means and methods implemented
in or outside the court trial system
CIVIL CODE OF THE PHILIPPINES (RA 386)
30 AUGUST 1950
• Contains provisions of/or on compromise arbitration
• Encourages litigants to agree upon fair compromise and
authorize arbitration
• Special domestic legislations have been passed to help
declog the courts’ dockets
• E.G. –
o Labor Code of the Philippines mandated the
creation and constitution of National Labor
Relations Commission
❋ The National Labor Relations Commission is a quasi-judicial
body tasked to promote and maintain industrial peace by resolving
labor and management disputes involving both local and overseas
workers through compulsory arbitration and alternative modes of
dispute resolution. It is attached to the Department of Labor and
Employment for program and policy coordination.
o Local Government Code of 1991 ( CIRCULAR
NO. 14-93 July 15, 1993 )

ARBITRATION LAW (RA 876)

❋ All disputes are subject to Barangay conciliation pursuant to the
19 JUNE 1953
• Supplemented the provisions of the New Civil Code on Revised Katarungang Pambarangay Law (formerly P.D. 1508,
Arbitration. repealed and now replaced by Secs. 399-422, Chapter VII, Title I,
Book III, and Sec. 515, Title I, Book IV, R.A. 7160, otherwise known
as the Local Government Code of 1991), and prior recourse thereto
CONVENTION ON THE RECOGNITION AND
ENFORCEMENT OF FOREIGN ARBITRATION / is a pre-condition before filing a complaint in court or any
ARBITRAL AWARDS government offices.
10 MAY 1965
• Philippine Senate passed Resolution 71 adhering to the
United Nations • Enactment of RA 9285: An act to Institutionalize the
• Gave reciprocal recognition and allowed enforcement of use of an Alternative Dispute Resolution System in the
international arbitration agreements between the parties of Philippines and to Establish the Office for Alternative
different nationalities within a contracting state. Dispute Resolution and for other purposes.”
• Philippine law has acknowledged the international
arbitration as system of setting commercial dispute. ❋ RA 9285: An act to Institutionalize the use of an Alternative
Dispute Resolution System in the Philippines and to Establish the
UNCITRAL
21 JUNE 1985 Office for Alternative Dispute Resolution and for other purposes.”
• Philippines was a signatory
• Adopted Model Law on International Commercial EXECUTIVE ACTIONS
Arbitration
• Model law which the Philippines committed its adherence • Creation of the Construction Industry Arbitration
Commission (CIAC) under Executive Number 1008
SOLUTIONS (Construction Industry Arbitration Law) – arbitrates disputes
JUDICIARY ACTIONS arising from construction agreements

• Promulgation of Rules of Procedure governing Construction

• Response of Judiciary to the Problems of Delay
Arbitration.
o Conducting of pre-trial conferences – to expedite
proceedings
• Enactment of “Rules on Alternative Dispute Resolution
o Utilization of Different modes of discovery
for Disputes between National Government Agencies”
o Strict proscription against forum shopping
on March 22 2010.
• The SC encourages the use of arbitration through Philippine
Mediation Commission or through Judicial Dispute
Resolution (JDR).

1 of 2
TABACO BERNALES BOCALAN BORJA
 Chapter 1- Introduction ADR

✰ RTC decision of assailed foreign arbitral award appealable

❋ RULE 1 : GENERAL PROVISIONS
→ In cases where the RTC sets aside, rejects,
modifies or corrects an arbitral award, the
Section 1.1 Statement of Policy and Objectives. - It is the policy and aggrieved party may appeal before the CA. The
objective of these Rules to provide a fair and expeditious settlement CA decision may be further appealed or reviewed
of disputes among the agencies of the National Government before the SC through a petition for review under
through a non- judicial process which ensures harmonious and Rule 45 of the Rules of Court.
friendly relationships between or among the parties.
LAWYER’S ROLE

ALTERNATIVE DISPUTE RESOLUTION ACT OF 2004 • Contribute to the promotion of ADR

SEC. 2. DECLARATION OF POLICY • Assist courts in encouraging the parties to avail of
• It is hereby declared the policy of the State to actively alternative means of dispute resolution
promote party autonomy in the resolution of disputes or the • Explain the benefits of the ADR system
freedom of the party 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. As such, the State shall provide means for the use
of ADR as an efficient tool and an alternative procedure for
the resolution of appropriate cases. Likewise, the State
shall enlist active private sector participation in the
settlement of disputes through ADR. This Act shall be
without prejudice to the adoption by the Supreme Court of
any ADR system, such as mediation, conciliation,
arbitration, or any combination thereof as a means of
achieving speedy and efficient means of resolving cases
pending before all courts in the Philippines which shall be
governed by such rules as the Supreme Court may approve
from time to time.
• Dispute resolution law
• RA 9285: An act to Institutionalize the use of an Alternative
Dispute Resolution System in the Philippines and to
Establish the Office for Alternative Dispute Resolution and
for other purposes.”
• Took effect on 28 APRIL 2004.

SALIENT FEATURES OF ADR

Salient Features of RA 9285 applying and incorporating the

UNCITRAL Model as explained in Korea Technologies v. Lerma:

✰ The RTC must refer to arbitration in proper cases

→ RTC does not have jurisdiction over disputes that
are properly the subject of arbitration pursuant to
an arbitration clause, and mandates the referral to
arbitration in such cases
✰ Foreign arbitral awards must be confirmed by the RTC
→ Foreign arbitral awards are not final and
executory in the Philippines unless confirmed by
the RTC.
✰ The RTC has jurisdiction to review foreign arbitral awards
→ RA 9285 vests the RTC with specific authority and
jurisdiction to set aside, reject, or vacate a foreign
arbitral award.
✰ Grounds for judicial review different in domestic and foreign
arbitral awards
→ The grounds for judicial review in foreign arbitral
awards are provided under Art 34(2) of the
UNCITRAL Model Law while the grounds for
judicial review in domestic arbitral awards are
provided under Sec. 25 of RA 876.
2 of 2
TABACO BERNALES BOCALAN BORJA