ALTERNATIVE DISPUTE RESOLUTION

ACT OF 2004
Republic Act No. 9285
Purpose

In an effort to declog the courts of an increasing volume of work

load and most importantly, in order to accord contending parties
with expeditious alternatives for settling disputes, the law authorizes,
indeed encourages, out of court settlements or adjudications. (GR
NO. 103200, Aug 31, 1994
Alternative Dispute Resolution System

It is 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 which includes
arbitration, mediation, conciliation, early neutral evaluation, mini-trial
or any combination thereof.
Non-applicability of R.A. No. 9285 VLAC-JFCT

The law shall not apply to resolution or settlement of the following:

1. Validity of marriage

2. Labor disputes covered by the Labor Code

3. Any ground for legal separation

4. Civil status of persons

Non-applicability of R.A. No. 9285

The law shall not apply to resolution or settlement of the following:

5. Jurisdiction of courts

6. Future legitime

7. Criminal liability

8. Those which by law cannot be compromised (e.g., future support)

Excluded from the Coverage of ADR

1. Court-Annexed Mediation – is any mediation process conducted

under the auspices of the court, after such court has acquired
jurisdiction.

2. Court-Referred Mediation – is a mediation ordered by a court to be

conducted in accordance with the agreement of the parties when an
action is prematurely commenced in violation of such agreement.
Excluded from the Coverage of ADR

3. Conciliation conducted by the Lupong Tagapamayapa and

Pangkat ng Tagapagkasundo – under Chapter 7, Book III of
R.A. No. 7610.

4. Judicial Dispute Resolution

Classification of Forms of ADR

I. As to number of parties

1. Bilateral or bi-party – only 2 contending parties are involved

2. Multilateral or multi-party – if there are more than 2 contending

parties involved
Classification of Forms of ADR

II. As to number of issues involved

1. Simple – when only a single issue is involved;

2. Complex – when there are two or more issues involved;

Classification of Forms of ADR

III. As to the extent of the conclusion

1. Complete – when all the issues involved are resolved;

2. Partial – if only one or some but not all the issues are resolved;

Note: in either case, the objectives of the ADR form must be to resolve
the dispute fully or partially rather than merely suspend or defer the
resolution of the dispute.
Classification of Forms of ADR

IV. As to role of evidence in the proceedings

1. Evidentiary or merit based – when the resolution of the dispute or

controversy involved requires the presentation of evidence and
evaluation of the merits of the case (e.g. arbitration)

2. Non-evidentiary or non-merit based – when the merits of the case is

not indispensable in the resolution of the dispute. (e.g. mediation)
Classification of Forms of ADR

V. As to pendency of a court case

1. Case-related – when ADR is conducted in connection with or as

a pre-requisite to trial (e.g. court-annexed mediation or court-
referred mediation).

2. Independent – when ADR is conducted irrespective of any

pending court case involving the issue.
Classification of Forms of ADR

VI. As to applicable law

1. Domestic – when parties’ place of business, place of arbitration,

and place of performance of the obligation involved or subject
matter of the dispute are located in the Philippines; it shall be
governed by R.A. No. 876, otherwise known as the Arbiration
Law.
Classification of Forms of ADR
VI. As to applicable law

2. International – applicable when:

a. Parties’ place of business are in different states;

b. The place of arbitration is outside the Philippines

c. The place where a substantial part of the obligation is to be performed or the place where the subject matter of
dispute is most closely connected is outside the Philippines, or

d. The parties have agreed that the subject matter of the dispute relates to more than one country; it shall be
governed by the provisions of the ADR Act on International Commercial Arbitration;
Classification of Forms of ADR

VI. As to applicable law

3. Foreign – Conducted outside the Philippines one whose seat is

outside the Philippines it is also governed by the provisions of
the ADR Act on International Commercial Arbitration.
Classification of Forms of ADR

VII. As to permanence of the ADR provider or practitioner

1. Ad-hoc – when the existence of the ADR practitioner is only

temporary for the purpose of a particular dispute or controversy;

2. Institutional – when the ADR provider’s existence is permanent in

character and is not dependent on any dispute or controversy.
Confidentiality of Information
Information obtained through mediation proceedings shall be subject to the following principles and
guidelines:

a. Information obtained through mediation shall be privileged and confidential.

b. A party, a mediator, or a nonparty participant may refuse to disclose and may prevent any other
person from disclosing a mediation communication.

c. Confidential Information shall not be subject to discovery and shall be inadmissible if any adversarial
proceeding, whether judicial or quasi-judicial, However, evidence or information that is otherwise
admissible or subject to discovery does not become inadmissible or protected from discovery solely
by reason of its use in a mediation.
Confidentiality of Information
d) In such an adversarial proceeding, the following persons involved or previously involved in a
mediation may not be compelled to disclose confidential information obtained during mediation: (1)
the parties to the dispute; (2) the mediator or mediators; (3) the counsel for the parties; (4) the
nonparty participants; (5) any persons hired or engaged in connection with the mediation as secretary,
stenographer, clerk or assistant; and (6) any other person who obtains or possesses confidential
information by reason of his/her profession.

e) The protections of this Act shall continue to apply even of a mediator is found to have failed to act
impartially.

f) a mediator may not be called to testify to provide information gathered in mediation. A mediator who
is wrongfully subpoenaed shall be reimbursed the full cost of his attorney's fees and related expenses.
Exceptions to Privilege
a) There is no privilege against disclosure under Section 9 if mediation communication is:

1. in an agreement evidenced by a record authenticated by all parties to the agreement;

2. available to the public or that is made during a session of a mediation which is open, or is
required by law to be open, to the public;

3. a threat or statement of a plan to inflict bodily injury or commit a crime of violence;

4. internationally used to plan a crime, attempt to commit, or commit a crime, or conceal an

ongoing crime or criminal activity;
Exceptions to Privilege
5. sought or offered to prove or disprove abuse, neglect, abandonment, or exploitation in a
proceeding in which a public agency is protecting the interest of an individual protected
by law; but this exception does not apply where a child protection matter is referred to
mediation by a court or a public agency participates in the child protection mediation;

6. sought or offered to prove or disprove a claim or complaint of professional misconduct or

malpractice filed against mediator in a proceeding; or

7. sought or offered to prove or disprove a claim of complaint of professional misconduct of

malpractice filed against a party, nonparty participant, or representative of a party based
on conduct occurring during a mediation.
Exceptions to Privilege
5. sought or offered to prove or disprove abuse, neglect, abandonment, or exploitation in a
proceeding in which a public agency is protecting the interest of an individual protected
by law; but this exception does not apply where a child protection matter is referred to
mediation by a court or a public agency participates in the child protection mediation;

6. sought or offered to prove or disprove a claim or complaint of professional misconduct or

malpractice filed against mediator in a proceeding; or

7. sought or offered to prove or disprove a claim of complaint of professional misconduct of

malpractice filed against a party, nonparty participant, or representative of a party based
on conduct occurring during a mediation.
Exceptions to Privilege
b) There is no privilege under Section 9 if a court or administrative agency, finds, after
a hearing in camera, that the party seeking discovery of the proponent of the
evidence has shown that the evidence is not otherwise available, that there is a
need for the evidence that substantially outweighs the interest in protecting
confidentiality, and the mediation communication is sought or offered in:

1. a court proceeding involving a crime or felony; or

2. a proceeding to prove a claim or defense that under the law is sufficient to

reform or avoid a liability on a contract arising out of the mediation.
Exceptions to Privilege

c) A mediator may not be compelled to provide evidence of a mediation

communication or testify in such proceeding.

d) If a mediation communication is not privileged under an exception in

subsection (a) or (b), only the portion of the communication necessary for
the application of the exception for nondisclosure may be admitted. The
admission of particular evidence for the limited purpose of an exception
does not render that evidence, or any other mediation communication,
admissible for any other purpose.
Instances when a mediator may be compelled to withdraw

1. If any of the parties request the mediator to withdraw

2. The mediator does not have the qualifications, training, and

experience to enable him to meet the reasonable expectations of the
parties

3. The mediator’s impartiality is in question

4. The continuation of the process will violate an ethical standard

Instances when a mediator may be compelled to withdraw

5. The Safety of anyone of the parties will be jeopardized

6. The mediator is unable to provide effective services

7. In case of conflict of interest

8. Other instances provided under the IRR (IRR, Art. 3.6)

Mediation Settlement Agreement

This refers to the concluding document in a successful mediation. It

has the effect of res judicata and is binding upon the parties whether
or not it has been submitted to the court for approval.

Note: There can be no execution of the concluding agreement

unless it has first been judicially approved (ROBENIOL, supra at 42).
It was held in the case of Miguel vs. Montanez (G.R. No. 191336)
January 25, 2012) that an amicable settlement, being a by-product of
a mutual concessions and good faith of the parties, has the force
and effect of res judicata even if not judicially approved, and it
transcends being a mere contract binding only upon the parties
thereto, and is akin to a judgement that is subject to execution in
accordance with the Rules.
CHAPTER 4 - INTERNATIONAL COMMERCIAL ARBITRATION

SEC. 19. 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 (United Nations Document
A/40/17) and recommended approved on December 11, 1985, copy
of which is hereto attached as Appendix "A".
CHAPTER 4 - INTERNATIONAL COMMERCIAL ARBITRATION

SEC. 19. 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 (United Nations Document
A/40/17) and recommended approved on December 11, 1985, copy
of which is hereto attached as Appendix "A".
CHAPTER 4 - INTERNATIONAL COMMERCIAL ARBITRATION

SEC. 28. Grant of Interim Measure of Protection. -

(a) It is not incompatible with an arbitration agreement for a party to request, before
constitution of the tribunal, from a Court an interim measure of protection and for the Court to
grant such measure. After constitution of the arbitral tribunal and during arbitral proceedings, a
request for an interim measure of protection or modification thereof, may be made with the
arbitral tribunal or to the extent that the arbitral tribunal has no power to act or is unable to act
effectively, the request may be made with the Court. The arbitral tribunal is deemed constituted
when the sole arbitrator or the third arbitrator who has been nominated, has accepted the
nomination and written communication of said nomination and acceptance has been received
by the party making request.
CHAPTER 4 - INTERNATIONAL COMMERCIAL ARBITRATION
(b) The following rules on interim or provisional relief shall be observed:

1. Any party may request that provision relief be granted against the adverse party:

2. Such relief may be granted:

i. to prevent irreparable loss or injury:

ii. to provide security for the performance of any obligation;

iii. to produce or preserve any evidence; or

iv. to compel any other appropriate act or omission. 28. Grant of Interim Measure of
Protection. -
CHAPTER 4 - INTERNATIONAL COMMERCIAL ARBITRATION

3. The order granting provisional relief may be conditioned upon the

provision of security or any act or omission specified in the order.

4. Interim or provisional relief is requested by written application

transmitted by reasonable means to the Court or arbitral tribunal as
the case may be and the party against whom the relief is sought,
describing in appropriate detail the precise relief, the party against
whom the relief is requested, the grounds for the relief, and evidence
supporting the request.

5. The order shall be binding upon the parties.

CHAPTER 4 - INTERNATIONAL COMMERCIAL ARBITRATION

6. Either party may apply with the Court for assistance in

Implementing or enforcing an interim measure ordered by an
arbitral tribunal.

7. A party who does not comply with the order shall be liable for all
damages resulting from noncompliance, including all expenses,
and reasonable attorney's fees, paid in obtaining the order's
judicial enforcement.
Rejection of Foreign Arbitral Award

A party to a foreign arbitration proceeding may oppose an

application for recognition and enforcement of the arbitral award in
accordance with the procedural rules to be promulgated by the SC
only on those grounds enumerated under Art V of the New York
Convention. Any other ground shall be disregarded by the RTC.

See Sec. 45 of New York Convention.

Appeal of Judgement on Arbitral Awards

A decision of the RTC confirming, vacating, setting aside, modifying or

correcting an arbitral award may be appealed to the CA in accordance
with the rules of procedure to be promulgated by the Supreme Court.

The losing party who appeals a judgement confirming the arbitral award
shall be required by the appellate court to post counterbond executed in
favor of the prevailing party equal to the amount of the award. (Sec. 46).
Appeal of Judgement on Arbitral Awards

Note: Foreign arbitral awards are not foreign judgements. (1 Riano,

supra at 540)

A foreign arbitral award when confirmed by a foreign court, shall be

recognized and enforced as a foreign arbitral award and not a
judgement of a foreign court.
CHAPTER 5 - DOMESTIC ARBITRATION

SEC. 32. Law Governing Domestic Arbitration. - Domestic arbitration

shall continue to be governed by Republic Act No. 876, otherwise
known as "The Arbitration Law" as amended by this Chapter. The
term "domestic arbitration" as used herein shall mean an arbitration
that is not international as defined in Article (3) of the Model Law.
Confirmation and Review of Domestic Arbitral Award

Under Sec. 23 of R.A. 876, at any time within 1 month after the award is
made, any party to the controversy which was arbitrated may apply to the
court having jurisdiction, for an aorder confirming the award, and
thereupon the court must grant such order unless the award is vacated,
modified or corrected, as prescribed therein. Notice of such motion must
be served upon the adverse party OR his attorney as prescribed by law for
the service of such notice upon an attorney in action in the same court.
Confirmation and Review of Domestic Arbitral Award

Note: A domestic arbitral award when confirmed shall be enforced in

the same manner as a final and executory decisions of the RTC.

A party to a domestic arbitration may question the arbitral award

with the appropriate RTC only on those grounds enumerated in
Section 24 of R.A. 876. Any other ground raised against a domestic
arbitral award shall be disregarded by the RTC. (Sec. 41).
Nota bene

SEC. 53. Applicability of the Katarungan Pambarangay. - This Act

shall not be interpreted to repeal, amend or modify the jurisdiction
of the Katarungan Pambarangay under Republic Act No. 7160,
otherwise known as the Local Government Code of 1991.
References

❖ R.A. No. 9285

❖ San Beda Memory Aid 2018

Note: several discussions were summarized and simplified.