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FUNDAMENTALS OF
ALTERNATIVE DISPUTE
RESOLUTION
Cabreros, Ameera Nympha M.
Malabanan, Leilani C.
Taccad, Atheena
Baquiran, Florencio
Madlambayan, Isaiah Gil
2/9/2015
In a broad sense, Alternative Dispute Resolution (ADR) is a system, using means and methods
allowed by law and approved by the parties, for the purpose of resolving or facilitating the resolution of
disputes and controversies between them, in an expeditious and speedy manner, without resorting to court
adjudication.
As defined under Section 3 (a) of R.A 9285 otherwise known as, "Alternative Dispute
Resolution Act of 2004," ADR 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.
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B.
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C.
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"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.
"Mediation" means a voluntary process in which a mediator, selected by the disputing parties,
facilitates communication and negotiation, and assists the parties in reaching a voluntary
agreement regarding a dispute. ivThe term "mediation' shall include conciliation.
"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.
"Proceeding" means a judicial, administrative, or other adjudicative process, including related
pre-hearing motions, conferences and discovery.
In the above-stated definition of ADR what is important to know is that Arbitral
Proceedings under administrative agencies exercising quasi-judicial powers such as NLRC,
Regional Offices of DOLE, IPO, Mines and Geosciences Bureaus, Insurance Commission and
other similar Government Agencies are not covered by ADR Act of 2004. The limitation as to
the applicability of the said law into the said administrative agencies is expressly provided for
under Section 6 of R.A 9285;
SEC. 6. Exception to the Application of this Act. - The provisions of this Act shall not
apply to resolution or settlement of the following:
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(a) labor disputes covered by Presidential Decree No. 442, otherwise known as the Labor Code of
the Philippines, as amended and its Implementing Rules and Regulations;
(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.
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The above stated provision of the law does not necessarily mean that similar procedures
before quasi-judicial agencies are not considered forms of arbitration, mediation or conciliation.
They are, the rationale is just different there being other specific laws and rules governing their
procedures. (ex. Those by law cannot be compromised Acts or Omissions punishable under Act
No. 3815 or the Revised Penal Code of the Philippines.) A crime committed against the state
cannot be compromised.
II. State Policy on ADR
To enlighten us further of what ADR is, Section 2 of ADR Act of 2004 (Declaration Of
Policy) specifically provides the ultimate goal of the state for enacting such law, and that is to
actively promote party autonomy in the resolution of disputes or the freedom of the party to make
their own arrangements to resolve their disputes
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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. . .
To give effect on its goal/purpose;
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.
In the case of Insular Savings Banks vs. Fareast Bank and Trust Company (G.R. No.
141818, June 22, 1006), the Supreme Court declared the policy of the Judiciary on ADR as
follows:
Alternative dispute resolution methods or ADRs like arbitration, mediation,
negotiation and conciliation are encouraged by the Supreme Court. By enabling parties to
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resolve their disputes amicably, they provide solutions that are less time-consuming, less tedious,
less confrontational, and more productive of goodwill and lasting relationships.
This is a case which involves an issue of jurisdiction between PCHC Arbitration
Committee and the Regional Trial Court in order for the Petitioner Insular Bank to avail of the
proper remedy after contesting the decision rendered by the Arbitration Committee in favor of the
respondent Fareast Bank. The Supreme Court ruled here that arbitration proceedings are mainly
governed by the Arbitration Law and suppletorily by the Rules of Court.
III. Principles of ADR
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3. Conciliation
- Adjustment of dispute in a friendly, untagonistic manner.
4. Neutral and Early Neutral Evaluation
Neutral Evaluation
- It is a process wherein the parties and their lawyers are brought together to present
summaries of their case and received a non binding assessment by an experienced
neutral person with expertise in the subject or in substance of the dispute.
Early Neutral Evaluation
5. Mini Trial
- A structured dispute resolution method in which the merits of a case are argued
before a panel composed of senior decision makers with or without the presence of
neutral third person, after which a party seek a negotiated settlement
6. Any combination of the foregoing
7. Any other ADR form.
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 subjected to ADR. Under Section 6(b) to (h), R.A. No. 9285, the following issues are not
susceptible of ADR:
a). The civil status of persons. A persons status, whether married or capable of marriage, emancipated or
not, legally capacitated or incompetent, is a matter determined by law and is not subject to the discretion
of the parties.
b). The validity of marriage or any ground for legal separation. These are matters over which the State
has a keen interest to protect. Thus, in proceedings for the declaration of nullity of marriage, or for legal
separation, the public prosecutor is instructed to conduct a summary proceeding in order to ensure that
there is no collusion between the parties. During the proceedings for the declaration of nullity of marriage
or the dissolution of the conjugal partnership of gains or the absolute community, the distribution and
disposition of the assets of the conjugal partnership of gains or the absolute community, custody of minor
children, and support pendente lite may, however, be the subject of ADR.
c). The jurisdiction of the courts. Jurisdiction over the subject matter of a case is determined by law and
is not dependent upon the allegations of the parties, except in the case of jurisdiction by estoppel.
d). Future legitime. Future legitime is inexistent and, hence, cannot be waived. This principle is
consistent with Articles 772 and 905 of the Civil Code of the Philippines.
e). Criminal liability. Criminal liability is not susceptible of ADR, although the civil liability arising
from the offense and the separate civil liability for quasi-delict based on the act or omission constituting
the offense, is proper subjects of ADR.
f. In general, those which, by law, cannot be compromised. Article 2035 of the Civil Code of the
Philippines is an example of a provision of law prohibiting compromise. It states that:
ART. 2035. No compromise upon the following questions shall be valid:
(1) The civil status of persons;
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(2)
(3)
(4)
(5)
(6)
Among the principal objectives, powers and functions of the OADR are the following:
1. To promote, develop and expand the use of ADR in the private and public sectors through
information, education and communication;
2. To assist the government to monitor, study and evaluate the use by the public and private
sectors of ADR, and recommend to Congress needful statutory changes to develop,
strengthen and improve ADR practices in accordance with world standards;
3. To act as appointing authority of mediators when the parties agree in writing that it shall be
empowered to do so; and
4. To compile and publish a list or roster of ADR providers/practitioners, and to compile a list
or roster of foreign or international ADR providers/practitioners.
Robeniol, Gabriel T. Alternative Dispute Resolution, page 9, Manila: Central Bookstore, 2012.
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Republic Act No. 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
Robeniol, Gabriel T. Alternative Dispute Resolution, Manila: Central Bookstore, 2012.
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