I.

ALTERNATIVE DISPUTE RESOLUTION

1. What is Alternative Dispute Resolution (ADR)?

ADR 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.

ADR may be arbitration, mediation, conciliation, early neutral evaluation, mini-trial, or any
combination thereof.

2. What is the importance of ADR system?

ADR System is important because it provides an alternative and efficient tool in the resolution of cases
before they even reach the courts. It promotes party autonomy which is the freedom of the parties to make their
own arrangements to resolve their disputes. It encourages creativity between/among parties.

3. What are the benefits of undergoing ADR?

 Ensures party autonomy on how parties settle their disputes

 Parties can be creative in settling their disputes
 Flexibility of proceedings
 Confidentiality of proceedings
 Reduced cost and time in the resolution of conflict
 Less stress because it will avoid long litigation
 Preservation of relationship

4. What are the common forms of ADR?

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The most common forms of ADR are: Arbitration, Mediation, Conciliation, Early Neutral
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Evaluation, Mini-Trial and Good Offices.

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 Arbitration is the voluntary dispute resolution process in which one or more arbitrators, appointed in
accordance with the agreement of the parties, or rules promulgated pursuant to relevant legislation and rules
and regulations, resolve a dispute by rendering an award.

Mediation is 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.

Conciliation is a process whereby parties request a third person or persons (“the conciliator”) to assist
them in their attempt to reach an amicable settlement of their dispute arising out of or relating to a contractual
or other legal relationship. The conciliator does not have the authority to impose upon the parties a solution to
the dispute.

Early Neutral Evaluation is an ADR process wherein parties and their lawyers are brought together
early in 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 in the substance of the dispute.

Mini-Trial is 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 a neutral third person after which
the parties seek a negotiated settlement.

Good Offices are offices that essentially provide logistical support to parties to come up with
consultation. It is merely the provision of venue only and not the consultation itself. It is plainly administrative
support.

II. THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION (OADR)

1. What is the Office for Alternative Dispute Resolution (OADR)?

The Office for Alternative Dispute Resolution (OADR) was created under Republic Act No. 9285
(Alternative Dispute Resolution Act of 2004). It is an attached agency of the Department of Justice (DOJ) tasked
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to oversee the state of both public sector and private sector ADR.
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2. What is the role of OADR?

The objectives of the OADR are:

 To promote, develop and expand the use of ADR in the private and public sectors;
 To assist in the monitoring, studying and evaluating the use of ADR by the public and private sectors;
and
 To recommend to Congress needful statutory changes to develop, strengthen and improve ADR
practices in accordance with world standards.
 3. What are the powers and functions of the OADR?
 The powers and functions of the OADR are:
 To act as appointing authority of mediators and arbitrators when the parties agree in writing that it
shall be empowered to do so;
 To conduct seminars, symposia, conferences and other public fora and publish proceedings of said
activities and relevant materials/information that would promote develop and expand the use of ADR;
 To establish an ADR library or resource center that will contain laws, rules and regulations,
jurisprudence, books, articles and other information about ADR in the Philippines and elsewhere for
easy access to the public;
 To establish training programs for ADR providers/practitioners, both in the public and private sectors;
and to undertake periodic and continuing training programs for arbitration and mediation and charge
fees on participants. It may do so in conjunction with or in cooperation with the IBP, private ADR
organizations, and local and foreign government offices and agencies and international organizations;
 To certify those who have successfully completed the regular professional training programs provided
by the OADR or other ADR provider organizations as approved by the OADR;
 To charge fees for services rendered such as, among others, for training and certifications of ADR
providers;
 To accept donations, grants and other assistance from local and foreign sources; and
 To exercise such other powers as may be necessary and proper to carry into effect the provisions of
the ADR Act of 2004 (R.A. No. 9285).
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4. Does the OADR have jurisdiction over Court-Annexed Mediation?

No. Court-Annexed Mediation is governed by the rules of the Supreme Court.

5. Does the OADR provide ADR services?

No. The OADR only assists the parties in choosing their neutral/s.

III. ADR IN THE PHILIPPINES

1. Is ADR a new concept in the Philippine setting?

No. ADR is already being practiced in labor proceedings under the Labor Code (NLRC, Labor Relations
cases, etc.); under the Katarungang Pambarangay Law and even in cases already filed in court, under the court-
annexed mediation.

2. What laws govern the ADR practice in the Philippines?

 R.A. No. 9285 – AN ACT TO INSTITUTIONALIZE THE USE OF AN ALTERNATIVE DISPUTE RESOLUTION
SYSTM IN THE PHILIPPINES AND TO ESTABLISH THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION,
AND FOR OTHER PURPOSES
 E.O. No. 1008 – CREATING AN ARBITRATION MACHINERY IN THE CONSTRUCTION INDUSTRY OF THE
PHILIPPINES
 R.A. No. 876 – AN ACT TO AUTHORIZE THE MAKING OF ARBITRATION AND SUBMISSION AGREEMENTS,
TO PROVIDE FOR THE APPOINTMENT OF ARBITRATORS AND THE PROCEDURE FOR ARBITRATION IN
CIVIL CONTROVERSIES, AND FOR OTHER PURPOSES
 UNCITRAL Law – the Model Law is designed to assist States in reforming and modernizing their laws
on arbitral procedure to take into account the particular features and needs of international
commercial arbitration. It covers all stages of the arbitral process from the arbitration agreement, the
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composition and jurisdiction of the arbitral tribunal and the extent of court intervention through to
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 the recognition and enforcement of arbitral award. It reflects worldwide consensus on key aspects of
international arbitration practice having been accepted by States of all regions and the different legal
or economic systems of systems of the world.

3. Are there exceptions to R.A. No. 9285?

Yes. According to Section 6 of R.A. No. 9285, it shall not apply in the resolution or settlement of the
following:
a. Labor disputes covered by Presidential Decree No. 442 (The Labor Code of the Philippines, as
amended, and its Implementing Rules and Regulations);
b. The civil status of persons;
c. The validity of marriage;
d. Any ground for legal separation;
e. The jurisdiction of courts;
f. Future legitime;
g. Criminal liability;
h. Those which by law cannot be compromised; and
i. Disputes referred to court-annexed mediation.

4. Did R.A. No. 9285 repeal or amend the Katarungang Pambarangay Law?

No. R.A. No. 9285 did not repeal, amend or modify the jurisdiction of the Katarungang Pambarangay
Law under R.A. No. 7160 or the Local Government Code of 1991.

IV. GENERAL CONCEPTS

1. What is party autonomy?

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Party autonomy is the freedom of parties to draw the course towards the resolution of their own
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conflicts. This may include the following:

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  Selection and appointment of a mediator, arbitrator, conciliator or an early neutral evaluator;
 Agreement on the place of the proceedings where the ADR shall take place. If the parties fail to reach
an agreement as to the venue, the place of the ADR shall be any place convenient and appropriate to
the parties;
 Agreement on the applicable rules to apply; and
 Agreement on the language to be used in the proceedings.

2. Who can be an arbitrator, mediator or conciliator?

In mediation, a person does not need to possess special qualifications, background or profession
unless the special qualifications of a mediator are required in the mediation agreement.

In arbitration, any person appointed to serve as an arbitrator must be of legal age, in full enjoyment
of 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 civil degree to either of the party to the controversy. Also, no person shall
serve as an arbitrator in any proceeding if he has or had financial or fiduciary or other interest in the controversy
or cause to be decided or in the result of proceeding, or has any personal bias which might prejudice the right
of any party to a fair and impartial award.

3. What is the protection given to the parties in the ADR process?

In mediation proceedings, the information obtained shall be privileged and confidential.

In arbitration proceedings, the records, evidence and the arbitral awards are confidential and shall
not be published except with the consent of the parties or for limited purpose of disclosing to the court relevant
documents in cases where resort to the court is allowed.

4. In mediation and arbitration, what is the result if the parties reach an amicable settlement?

a. In Mediation, if the parties reach an agreement, the mediator shall issue a settlement agreement
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which may be deposited with the appropriate Clerk of Regional Trial Court in the place where the
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 parties resides. Where there is a need to enforce the settlement agreement, a petition may be
filed with the same court, in which case, the court shall summarily hear the petition in accordance
with the rules as may be promulgated by court.

b. In Arbitration, the arbitrator or arbitration panel shall issue an arbitration award. At any time
within one month after the award for issues arbitrated, is made, any party to the controversy may
apply to the court having jurisdiction for an order confirming the award; and thereupon the court
must grant such order unless the award is vacated, modified or corrected.

5. What are the remedies if one of the parties failed to comply with the agreement?

A party who does not comply with the order shall be liable for all damages resulting from non-
compliance, including all expenses and reasonable attorney’s fees, paid to obtain the judicial enforcement of
the order.

In addition, any party to a mediated settlement agreement, which was deposited with the Clerk of
Regional Trial Court, may upon breach thereof, file a verified petition with the same court to enforce the said
mediated agreement.

6. What rules have been issued by the Supreme Court in support of ADR?

The Special Rules of Court on Alternative Dispute Resolution or the Special ADR Rules was issued by
the Supreme Court to govern identified cases related to ADR.

Source: http://oadr.doj.gov.ph/frequently-asked-questions/ 7
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