Alternative

Dispute Resolution

Historical Note By such act, the Philippines committed to

adhere to the Model Law
Judicial and legislative trends on dispute
resolution consistently lean towards the
utilization of alternative means and methods Judiciary’s Action
implemented outside the court trial system.
Response to the problems of delay in delivery
The Civil Code of the Philippines (R.A. 386) of justice:
§ Requirement of conducting pre-trial
Took effect on August 30, 1950 conference
§ Utilization of different modes of
Contains provisions on compromises and discovery
arbitration (Chapters 1 and 2, Title XIV, Book § The strict proscription against forum-
IV) which encourage litigants to agree a fair shopping
compromise and authorize arbitration as a § Abbreviation proceedings for small
means of concluding controversies claims cases
§ Use of judicial affidavits
The Arbitration Law (R.A. 876) § Requirement for continuous trial
Supplemented the provisions if the New Civil
Code on arbitration. § Passage of administrative issuances
encouraging the use of alternative
Resolution No. 71 dispute resolution through:
Adhering to United Nations “Convention on
the Recognition and Enforcement of Foreign - Philippine Mediation Center; or
Arbitral Awards” of June 10, 1958 - Judicial Dispute Resolution

This gave reciprocal recognition and allowed
the enforcement of international arbitration Legislative Action
agreements between the parties of different
nationalities within a contracting state Special domestic legislations have been
passed prescribing arbitration, mediation,
Philippine law has acknowledged conciliation
international arbitration as a system of setting
commercial disputes Labor Code of the Philippines (P.D. No. 442)
Mandated the creation and constitution of
United Nations Commission on National Labor Relations Commission (NLRC)
International Trade Law (UNCITRAL)
The Philippines was a signatory to this Which together with its Arbitration Branch
UNCITRAL New York Convention of June 21, has been dispensing arbitration service in
1958 cases involving:
§ Unfair labor practice (ULP)
This adopted the Model Law on International § Termination of Employment
Commercial Arbitration § Conditions of Employment

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 Alternative Dispute Resolution

§ Damages arising from er-ee processes even in disputes between national

relationship government agencies
§ Other labor-related dispute
The Lawyer’s Role
Local Government Code of 1991 (R.A.
7160) Duties:
Requires conciliation, mediation, or § Have to assist the courts encouraging
arbitration in the barangay level before the the parties to avail the alternative
Pangkat ng Tagapagkasundo before resort means of dispute resolution
to court can be had § Lawyers have to explain the benefits of
ADR system to their clients
The principle of ADR in the barangay level had § Provider or practitioner
its roots in P.D. 1508 (Establishing a System § Could be appointed as an:
Amicably Settling Disputes at the Barangay Arbitrator
Level) whose provisions were re-enacted as Mediator
part of the Local Government Code of 1991 Conciliator
Neutral Evaluator
Executive Branch’s Contribution
§ Lawyers are expected to exert genuine
The executive branch also contributed and sincere efforts at bringing the
immensely in the propagation of ADR parties to a settlement within the
scope of their authority
Construction Industry Arbitration § They have to perform their functions
Commission (CIAC) in good faith (to secure the parties a
Created under E.O. No. 1008 (Construction speedy, inexpensive, and amicable
Industry Arbitration Law) dated February 4, settlement of their disputes and
1985 controversies)

It is at the forefront in the arbitration of Sources of ADR
disputes arising form or connected with
construction agreements 1. Domestic laws and rules (general or
special)
CIAC, in the exercise of its powers, approved
and promulgated on August 23, 1998, the Ex. General – those applicable to all
“Rules of Procedure Governing Construction forms of ADR
Arbitration”
§ Article III, Section 26 of 1987
Rules on Alternative Dispute Resolution Constitution
(ADR) for “Disputes Between National § Chapters 1 and 2, Title XIV,
Government Agencies” Book IV, Civil Code
Amicable settlement of disputes through ADR § Arbitration Law
methods in lieu of adversarial judicial § ADR Act of 2004 and its IRR

2 | Pinzon, Faye
 Alternative Dispute Resolution

Special – those that pertain to specific

subject matters

§ Local Government Code of
1991 and its IRR
§ Labor Code and its IRR

2. Acts of Executive Branch
Ex. CIAC

3. Supreme Court Decisions
4. International Laws
5. General principles of law and equity


Notes:

First Basis of ADR:

Barangay Law

GR: Only parties who reside in the same
barangay and of the same municipality

XPN: Parties are from different barangays of
different municipalities (when adjoin to each
other)

3 | Pinzon, Faye