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Philippine ADR was achieved when the Philippines Senate passed Resolution No.
71 adhering to the UN Convention on the recognition and enforcement of foreign
arbitral awards of 10 June 1958
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The first alternative dispute resolution law in the Philippines under R.A. No. 9285
An act to institutionalize use of an alternative dispute resolution system in the
Philippines and to establish the office for alternative dispute resolution and for
other purposes.
Promulgated on 2 April 2004 and became effective on 28 April 2004 after its
publication on 13 April 2004.
It is a general law applicable to all forms of alternative dispute resolution such
as arbitration, mediation, conciliation, early neutral evaluation, mini0trial, or any
combination thereof.
The Supreme Court, in Korea Technologies Co., Ltd., v. Lerma, enumerated and
explained the salient features of R.A. No. 9285 applying and incorporating the
UNCITRAL Model, namely:
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5. They have to perform their functions in good faith, with no other motive except
that of securing for the parties a speedy, inexpensive and amicable settlement
of their disputes and controversies.
CHAPTER 2: FUNDAMENTALS OF ALTERNATIVE DISPUTE RESOLUTION
I. Alternative Dispute Resolution, defined.
In a broad sense, alternative dispute resolution 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. This covers all forms and
methods of resolving disputes outside the court trail system.
ADR as defined in ADR Act of 2004, 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 xxx in which a neutral third party participates to
assists in the resolution of issues xxx. Administrative agencies exercising quasijudicial power are not covered by the ADR Act of 2004.
II. State Policy in ADR
Contending parties
Dispute or controversy
Form of ADR
ADR provider or practitioner
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 practice in accordance with
the world standards;
C. Place of Mediation
D. Stages of Mediation
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The foregoing process, however, is not obligatory and the parties, under the
principles of self-determination and party autonomy, may choose the procedure
that will govern their mediation.
Mediation shall be held in private except when parties consented that there be
other persons.
E. Advantages of Mediation
1. Confidentiality in mediation process
2. Prompt, economical amicable dispute resolution
3. The decision-making authority rest upon the parties
F. Confidential and Privileged nature of Mediation Communication
The ADR Act of 2004 maintains the confidentiality of the mediation process by
declaring that all information of evidence is privileged and confidential in character.
Ways of guaranteeing the privilege:
By declaring certain information as confidential and, therefore, not capable of
being disclosed.
By declaring the privileged information inadmissible in evidence.
Confidential Information
Any information relative to the subject of mediation or arbitration, relative to the
subject of mediation or arbitration, expressly intended not to be disclosed, or obtained
under circumstances that would create a reasonable expectation on behalf pf the
source that the information shall not be disclosed.
It can either be:
Expressly Confidential if the intention not to be disclosed is expressed by its source;
and
Mediation parties are given the freedom to select mediators and they may
request the OADR to provide them with a list or roster of its certified mediators,
and their resumes.
Withdrawal Requirements
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Prior to Mediation
On competence:
A mediator is allowed to charge costs, reasonable fees and charges against the
parties but is under obligation to fully disclose and explain the basis thereof.
In an Ad Hoc mediation, parties are free to make their own arrangement as to
the mediation of cost and fees.
In an Institutional mediation, mediation costs shall include the administrative
charges of the mediation institution, mediators fees and associated expenses.
Compromise Agreement
Successful Mediation
Collaborate with the other lawyer in working together towards the common goal
of helping their clients resolve their differences to their mutual advantage.
Encourage and assist the client to actively participate in positive discussion and
cooperate in crafting an agreement to resolve their dispute.
Assist the client to comprehend and appreciate the mediation process and its
benefits, as well as the clients greater and personal responsibility for the success
of mediation in resolving the dispute.
Confer and discuss with the client the mediation process and substance.
Supreme Court Resolution, albeit concerning CAM and JDR
1. Help their clients comprehend the mediation process and its benefits and allow
them to assume greater personal responsibility in making decisions for the success
of mediation in resolving the dispute.
2. Discuss with their clients the following:
a) The substantive issues involved in the dispute;
b) Prioritization of resolution in terms of importance to client;
c) Understanding the position of the other side and the underlying fears,
concern, and needs underneath that position;
d) Need for more information or facts to be gathered with the other side for
informed decision-making;
e) Possible bargaining options but stressing the need to be open-minded about
other possibilities;
f) The best, worst, and most likely alternatives to a negotiated agreement.