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The International Comparative Legal Guide to:

Litigation & Dispute Resolution 2018
11th Edition

A practical cross-border insight into litigation and dispute resolution work

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The International Comparative Legal Guide to: Litigation & Dispute Resolution 2018

General Chapter:
1 Recent Clarifications on the Ambit of Legal Privilege in England & Wales – Greg Lascelles &
Tom Jackson, Covington & Burling LLP 1

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The International Comparative Legal Guide to: Litigation & Dispute Resolution 2018

Country Question and Answer Chapters:

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EDITORIAL
Welcome to the eleventh edition of The International Comparative Legal
Guide to: Litigation & Dispute Resolution.
This guide provides corporate counsel and international practitioners with
a comprehensive worldwide legal analysis of the laws and regulations of
litigation and dispute resolution.
It is divided into two main sections:
One general chapter. This chapter provides an overview of legal privilege
in litigation, particularly from a UK perspective.
Country question and answer chapters. These provide a broad overview
of common issues in litigation and dispute resolution in 40 jurisdictions,
with the USA being sub-divided into eight separate state-specific chapters.
All chapters are written by leading litigation and dispute resolution
lawyers and industry specialists, and we are extremely grateful for their
excellent contributions.
Special thanks are reserved for the contributing editors Greg Lascelles and
Tom Jackson of Covington & Burling LLP for their invaluable assistance.
Global Legal Group hopes that you find this guide practical and interesting.
The International Comparative Legal Guide series is also available online
at www.iclg.com.

Alan Falach LL.M.

Group Consulting Editor
Global Legal Group
Alan.Falach@glgroup.co.uk
Chapter 24
Philippines
SyCip Salazar Hernandez & Gatmaitan
I. LITIGATION
1 Preliminaries
1.1 What type of legal system has your jurisdiction got?
Are there any rules that govern civil procedure in your
jurisdiction?
The Philippine legal system is primarily a civil law system, although
it may be considered a mixed regime consisting of both civil and
common law traditions. Civil procedure is governed primarily by
the 1997 Rules of Civil Procedure, or Rules 1 to 71 of the Rules of
Court (“ROC”), and various issuances promulgated by the Supreme
Court.
1.2 How is the civil court system in your jurisdiction
structured? What are the various levels of appeal and
are there any specialist courts?
The first level courts are: Metropolitan Trial Courts for metropolitan
areas, Municipal Trial Courts in Cities for locations that are
not part of a metropolitan area, Municipal Trial Courts in other
municipalities, and Municipal Circuit Trial Courts for areas
comprising municipalities that are grouped together (collectively,
“MTCs”). MTCs generally exercise jurisdiction over civil cases
involving claims the value of which does not exceed PhP400,000
or PhP300,000 depending on the territorial jurisdiction of the court.
The Regional Trial Courts (“RTCs”) are established in each region
and consist of several branches. RTCs act as first level courts with
general jurisdiction over cases outside the MTCs’ jurisdiction and
over appeals from decisions of MTCs. There are RTCs designated
as special commercial courts and family courts.
The Court of Appeals is organised into 17 divisions. It reviews
appeals from the RTC and quasi-judicial agencies. Two specialised
courts that are on the same level are the Sandiganbayan, which hears
cases against government officials for graft and corruption, and the
Court of Tax Appeals, which generally has jurisdiction over tax and
customs cases.
The Supreme Court is at the highest level of the judiciary, composed
of 15 members that sit en banc or in divisions. It has the power to
review judgments of lower courts and determine the existence of
grave abuse of discretion by any government instrumentality.
There are also Shari’a Courts in Muslim regions that handle cases
involving the Muslim code on personal law, which principally
governs matters of marriage and inheritance.
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Ramon G. Songco
Anthony W. Dee
1.3 What are the main stages in civil proceedings in
your jurisdiction? What is their underlying timeframe
(please include a brief description of any expedited
trial procedures)?
The main stages in civil proceedings are: (1) the filing of the
complaint, issuance of summons and exchange of other operative
pleadings, which generally takes three to six months; (2) referral
to two-stage mediation, pre-trial and discovery, which could take
six months to one year; (3) trial proper, which, depending on the
complexity of the case, number of witnesses and other exigencies,
could take anywhere from six months to three years; and (4)
rendition of judgment, which could take from six months to two
years. While the ROC prescribes periods for both litigants and the
court throughout the process, these are very seldom observed in
view of docket congestion and general inefficiencies of Philippine
courts.
There are expedited trial procedures for small claims cases and
summary proceedings. Small claims cases involve payment of
money where the value of the claim does not exceed PhP200,000,
exclusive of interest and costs. Summary procedure is applied in
all other civil cases, except probate proceedings, where the total
amount of the claim does not exceed PhP100,000 or PhP200,000
depending on the territorial jurisdiction of the court.
1.4 What is your jurisdiction’s local judiciary’s approach
to exclusive jurisdiction clauses?
Exclusive jurisdiction clauses which use language that leaves no
doubt as to the intention of the parties to vest jurisdiction exclusively
in another country are usually upheld as valid. However, despite the
existence of exclusive jurisdiction clauses, Philippine courts tend to
still take cognisance of cases when they involve matters of public
interest such as labour cases. A Philippine court may also assume
jurisdiction if it chooses to do so, provided that it is one to which
the parties may conveniently resort to, is in a position to make an
intelligent decision as to the law and the facts, and has, or is likely
to have, power to enforce its decision.
1.5 What are the costs of civil court proceedings in your
jurisdiction? Who bears these costs? Are there any
rules on costs budgeting?
The costs of civil court proceedings include filing fees, counsel’s
legal fees, and witness and commissioner’s fees as applicable. Costs
are, as a general rule, borne by each party, but the court nevertheless
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 SyCip Salazar Hernandez & Gatmaitan
has the power to adjudge the losing party liable for costs of the suit.
As a general rule, a 2% filing fee based on the total amount of the
claim is imposed. There are currently no rules on cost budgeting.
1.6 Are there any particular rules about funding litigation
in your jurisdiction? Are contingency fee/conditional
Philippines
fee arrangements permissible?
There are no particular rules about funding litigation. Contingency
fee arrangements are an internal matter between the litigant and
counsel. As a rule, contingency fee arrangements are permissible
so long as they do not amount to a champertous agreement, or one
where the lawyer agrees to conduct the litigation in his own account
and to receive as his fee a portion of the proceeds of the judgment.
1.7 Are there any constraints to assigning a claim or
cause of action in your jurisdiction? Is it permissible
for a non-party to litigation proceedings to finance
those proceedings?
There are no constraints in assigning a claim or cause of action,
for as long as the substituting party also has the requisite interest
in commencing or maintaining litigation. The party must be a real
party in interest, or one who stands to be benefited or injured by the
judgment in the suit, or the party entitled to the avails of the suit.
There are no particular rules about funding litigation.
1.8 Can a party obtain security for/a guarantee over its
legal costs?
Pending litigation, a party may obtain security by availing himself
of the provisional remedy of attachment, where the property of
the adverse party is attached as security for the satisfaction of any
judgment that the court may eventually adjudge.
2 Before Commencing Proceedings
2.1 Is there any particular formality with which you must
comply before you initiate proceedings?
Among the grounds for the outright dismissal of a complaint is the
failure of a party to comply with a condition precedent. There is
no particular condition or formality that applies to all cases. One
condition precedent is the referral of certain cases to barangay
(village) conciliation. No complaint may be filed in court involving
any matter that is within the jurisdiction of the barangay unless no
conciliation or settlement has been reached in that venue. Case
law also holds that it is a condition precedent, before resorting to
litigation, for a consignee to file a timely claim with the carrier, and
for a plaintiff to comply in good faith with an agreement to refer a
dispute to arbitration.
2.2 What limitation periods apply to different classes of
claim for the bringing of proceedings before your
civil courts? How are they calculated? Are time limits
treated as a substantive or procedural law issue?
Prescriptive periods in filing cases are usually determined by
substantive law, and range from one year to 30 years counted from
the time the cause of action accrues. Generally, there is a five-year
prescriptive period for actions except where the law or rules specify
a particular period within which an action should be filed.
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3 Commencing Proceedings
3.1 How are civil proceedings commenced (issued and
served) in your jurisdiction? What various means
of service are there? What is the deemed date
of service? How is service effected outside your
jurisdiction? Is there a preferred method of service of
foreign proceedings in your jurisdiction?
After the filing of the initiatory pleading, the court shall issue a
summons directing the other party to file a responsive pleading
or answer within 15 days. Service shall be in person by handing
a copy to the defendant, or by tendering it to him if he refuses to
receive it. For justifiable causes, substituted service may be done
by leaving copies of the summons at the defendant’s residence with
some person of suitable age and discretion, or by leaving the copies
at the defendant’s office with a competent person in charge therein.
Service to persons outside Philippine jurisdiction may be effected
through extraterritorial service. It may only be done when the action
either: (1) affects the personal status of the plaintiff; or (2) relates to,
or the subject of which is, property within the Philippines in which
the defendant claims an interest and the action involves excluding
the defendant from any interest thereto; or (3) involves property of
the defendant that has been attached. It may be done by effecting
personal service, or by publishing the summons in a newspaper
of general circulation and at the same time sending a copy of the
summons to the last known address of the defendant. The preferred
mode is generally publication.
3.2 Are any pre-action interim remedies available in your
jurisdiction? How do you apply for them? What are
the main criteria for obtaining these?
Interim remedies are generally available only when a case is already
pending. There are, as a rule, no pre-action remedies. When there
is an arbitration agreement, however, the parties may request a court
to grant them interim measures of protection, such as preliminary
injunction or appointment of a receiver, before the constitution of
the arbitral tribunal.
3.3 What are the main elements of the claimant’s
pleadings?
The complaint must state the ultimate facts comprising the plaintiff’s
cause/s of action, and state both the plaintiff and defendant’s
respective names and residences. It also needs to be verified by
the plaintiff by executing an affidavit to the effect that he has read
the pleading and that the allegations therein are true and correct
of his personal knowledge or based on authentic records. It shall
further contain a Certification Against Forum Shopping in which the
plaintiff certifies under oath that he has not commenced any action
or filed any claim involving the same issues in any other court or
tribunal.
3.4 Can the pleadings be amended? If so, are there any
restrictions?
Pleadings may be amended as a matter of right before a responsive
pleading thereto is filed. Similarly, formal amendments to pleadings
may be done at any stage of the action provided no prejudice is
caused to the adverse party. All other substantial amendments,
however, can only be done with leave of court.
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SyCip Salazar Hernandez & Gatmaitan
3.5 Can the pleadings be withdrawn? If so, at what stage
and are there any consequences?
In practice, pleadings may generally be withdrawn without leave
of court before a response thereto is filed. Leave of court will not
usually be withheld if no prejudice is caused to the opposing party.
4 Defending a Claim
4.1 What are the main elements of a statement of
defence? Can the defendant bring a counterclaim(s)
or defence of set-off?
In the answer, the defendant shall specifically deny allegations that
he does not admit by, as far as practicable, setting forth the substance
of the matters upon which he relies to support his denial. Allegations
not specifically denied are deemed admitted. Actions or defences
founded upon written instruments, copied in or attached to a pleading,
shall additionally be denied under oath.
The defendant shall raise all defences available to him, including the
defence of set-off. Defences and objections not raised in the answer
are deemed waived. The defendant may raise a counterclaim when
it arises out of or is connected with the transaction or occurrence
constituting the subject matter of the opposing party’s claim and
does not require for its adjudication the presence of third parties over
whom the court cannot acquire jurisdiction.
4.2 What is the time limit within which the statement of
defence has to be served?
The defendant shall file his answer to the complaint within 15 days
after the service of summons, unless a different period is fixed by the
court. It must likewise be served on the other party within the same
period. Extensions of time to file the answer may be requested.
4.3 Is there a mechanism in your civil justice system
whereby a defendant can pass on or share liability by
bringing an action against a third party?
A defendant may pass on or share liability with a person not yet a
party to the action by filing a third-party complaint against that person.
4.4 What happens if the defendant does not defend the
claim?
If the defendant fails to file an answer, the plaintiff may file a motion
to declare the defendant in default. If the motion is granted, the court
may proceed to render judgment granting the claimant such relief as
his pleading may warrant, unless the court, in its discretion, requires
the plaintiff to submit further evidence.
4.5 Can the defendant dispute the court’s jurisdiction?
The defendant may dispute the court’s jurisdiction by either filing a
motion to dismiss raising therein the ground of lack of jurisdiction
and/or raise the jurisdictional challenge as an affirmative defence in
the answer.
ICLG TO: LITIGATION & DISPUTE RESOLUTION 2018
Philippines
5 Joinder & Consolidation
5.1 Is there a mechanism in your civil justice system
whereby a third party can be joined into ongoing
proceedings in appropriate circumstances? If so, what
Philippines
are those circumstances?
In addition to the mechanism discussed in question 4.3 regarding
third-party complaint, joinder of parties is also allowed when any
question of law or fact common to all such third-party plaintiffs or
defendants may arise in the action.
5.2 Does your civil justice system allow for the
consolidation of two sets of proceedings in appropriate
circumstances? If so, what are those circumstances?
Where two pending actions involve a common question of law or fact,
the court may order a joint hearing or trial of any or all the matters
in issue in the actions or even order the consolidation of the actions.
5.3 Do you have split trials/bifurcation of proceedings?
At the discretion of the court, bearing in mind the convenience of
the parties or to avoid prejudice, a court may order a separate trial of
any claim, cross-claim, counterclaim, or third-party claim, or of any
separate issue from such claims.
6 Duties & Powers of the Courts
6.1 Is there any particular case allocation system before
the civil courts in your jurisdiction? How are cases
allocated?
Assignment of cases to the different branches of the MTC or RTC
are done exclusively by raffle in open session and with adequate
notice to interested parties. Certain cases such as those involving
family law or intra-corporate disputes are raffled to specially-
designated courts.
6.2 Do the courts in your jurisdiction have any
particular case management powers? What interim
applications can the parties make? What are the cost
consequences?
During pre-trial, the court shall consider, among other things,
the possibility of an amicable settlement, possible submission to
alternative modes of dispute resolution, simplification of issues,
and the possibility of obtaining admissions. As regards interim
applications, parties may avail themselves of provisional remedies,
including preliminary attachment, preliminary injunction, writ of
replevin, and receivership. This will entail additional cost because a
bond is generally required from the applicant before relief is granted.
6.3 What sanctions are the courts in your jurisdiction
empowered to impose on a party that disobeys the
court’s orders or directions?
Courts have the power to declare a person in contempt either summarily
in case of direct contempt, or after the conduct of a hearing in case
of indirect contempt. Persons declared in contempt of court may be
punished with imprisonment and/or fine at the discretion of the court.
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 SyCip Salazar Hernandez & Gatmaitan
6.4 Do the courts in your jurisdiction have the power
to strike out part of a statement of case or dismiss
a case entirely? If so, at what stage and in what
circumstances?
Courts have the power to strike out any pleading or parts thereof
Philippines
from the record when these are found to be sham or false, redundant,
immaterial, impertinent, or contain scandalous matters. Courts also
have the power to dismiss a case entirely when a meritorious motion
to dismiss has been filed by the defendant. Even without a motion
to dismiss, the court may on its own dismiss a case when it appears
that any of the following grounds are present: lack of jurisdiction
over the subject matter; existence of a pending litigation between
the same parties for the same cause; or when the case has been
barred by prior judgment; and when the action has been barred by
prescription.
6.5 Can the civil courts in your jurisdiction enter
summary judgment?
Summary judgments may be entered by courts when it is clear, after
the defendant has filed an answer, that there exists no genuine issue
or controversy as to any material fact, except as to the amount of
damages.
6.6 Do the courts in your jurisdiction have any powers to
discontinue or stay the proceedings? If so, in what
circumstances?
Proceedings may be stayed upon a motion by the party to refer the
case to arbitration pursuant to a valid arbitration agreement. The
court may also suspend proceedings when the parties manifest an
intention to negotiate a settlement of the case. A case may also
be archived where the defendant cannot be served with summons.
Lastly, a civil action arising from a criminal act shall be suspended
when the criminal action for the same act is thereafter filed.
7 Disclosure
7.1 What are the basic rules of disclosure in civil
proceedings in your jurisdiction? Is it possible to
obtain disclosure pre-action? Are there any classes
of documents that do not require disclosure? Are
there any special rules concerning the disclosure
of electronic documents or acceptable practices for
conducting e-disclosure, such as predictive coding?
Parties may avail themselves of depositions, either by oral examination
or by written interrogatories, as a mode of discovery or disclosure.
Depositions may likewise be taken prior to an action when a person
desires to perpetuate his own or another’s testimony. There are no
classes of documents which as a rule do not require disclosure nor are
there special rules concerning the disclosure of electronic documents.
7.2 What are the rules on privilege in civil proceedings in
your jurisdiction?
The rules of privilege in civil proceedings include marital
communications privilege, disqualification by reason of death or
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insanity of the adverse party, attorney-client privilege, priest-penitent
privilege, physician-patient privilege, and public officer’s privilege.
There are also a few other privileges recognised in jurisprudence
such as newsman or informer’s privilege, trade secrets privilege,
and executive and judicial deliberations privilege.
7.3 What are the rules in your jurisdiction with respect to
disclosure by third parties?
Even persons not party to a case may be required to disclose
information provided it is requested in accordance with the limits
provided under the ROC. Third parties may also be subject of the
court’s subpoena power to require testimony or the submission of
documents.
7.4 What is the court’s role in disclosure in civil
proceedings in your jurisdiction?
The court’s approval is, as a general rule, required before depositions
may be taken. Courts may likewise issue commissions and letters
rogatory in case the witness or the person who is to be deposed is
outside the Philippines. Courts also have the power to limit the
scope of depositions, issue orders for the protection of parties or
deponents, and punish for contempt those who unjustifiably refuse
to answer questions during the taking of depositions.
7.5 Are there any restrictions on the use of documents
obtained by disclosure in your jurisdiction?
Depositions are generally admissible only when the person deposed
can no longer testify in open court due to valid reasons such as, but
not limited to, death, incapacity, or being outside of the jurisdiction
of the court. When the person is able to testify, the deposition is
inadmissible in evidence. Documents obtained through discovery
may be used for any purpose.
8 Evidence
8.1 What are the basic rules of evidence in your
jurisdiction?
The basic requirement for admissibility of evidence in Philippine
courts is that it must be both relevant and competent. The evidence
presented not only has a rational relationship with the fact proved,
but it also must not be forbidden or excluded by any specific law
or rule.
8.2 What types of evidence are admissible, which ones
are not? What about expert evidence in particular?
Evidence is characterised into either object evidence, documentary
evidence, and testimonial evidence. All three are generally
admissible provided the evidence is relevant and competent. Expert
witness testimony is admissible provided that the matter to be
testified to requires special knowledge, skill, experience or training.
It is also required before an expert witness is allowed to testify that
his expertise or qualifications in the particular field are established.
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SyCip Salazar Hernandez & Gatmaitan
8.3 Are there any particular rules regarding the calling of
witnesses of fact? The making of witness statements
or depositions?
A witness may only testify on facts of which he has personal
knowledge. The number and names of witnesses which a party
intends to present should be indicated in the pre-trial brief which
is submitted during the pre-trial stage. No further witnesses shall
be allowed to be presented or offered during the trial to support a
party’s evidence-in-chief without good reason and if no reservation
is indicated in the pre-trial brief. As a general rule, the direct
testimony of witnesses shall be in the form of a written judicial
affidavit and they shall only take the witness stand for cross-
examination, redirect, and re-cross examination.
8.4 Are there any particular rules regarding instructing
expert witnesses, preparing expert reports and giving
expert evidence in court? Are there any particular
rules regarding concurrent expert evidence? Does the
expert owe his/her duties to the client or to the court?
There are no particular rules regarding instructing expert witnesses,
preparing expert reports, and giving evidence in court. Expert
witnesses, like any other witnesses, are under oath when they testify.
Hence, the expert arguably owes his duties to the court and not to
the client.
9 Judgments & Orders
9.1 What different types of judgments and orders are the
civil courts in your jurisdiction empowered to issue
and in what circumstances?
Apart from summary judgments discussed in question 6.5, courts
may also, upon motion, issue a “judgment on the pleadings” when
the answer filed by the defendant fails to tender an issue, or otherwise
admits the material allegations of the adverse party’s pleading.
When an action is filed against several defendants, courts may issue
“several judgments” wherein it only renders judgment against one
or more of them, leaving the action to proceed against the others.
When there are several claims, on the other hand, courts may issue
a “separate judgment” which disposes of one issue or claim, leaving
the rest to proceed.
Courts may likewise issue interlocutory orders which, unlike final
orders, do not completely dispose of the case as it only deals with
preliminary matters.
9.2 What powers do your local courts have to make
rulings on damages/interests/costs of the litigation?
Costs are, as a general rule, borne by each party, but the court
nevertheless has the power to adjudge the losing party liable for
costs of the suit. Courts also have the power to order payment of
interests and damages so long as the prevailing party has sufficiently
proved its entitlement thereto.
9.3 How can a domestic/foreign judgment be recognised
and enforced?
A domestic judgment may be enforced by filing a motion for
execution in the court that rendered the decision which became final
ICLG TO: LITIGATION & DISPUTE RESOLUTION 2018
Philippines
and executory. In case an appeal was perfected and it is the decision
of the appellate court which became final, the motion for execution
may be filed in the court of origin.
An action must be filed in the RTC for recognition of a foreign
judgment. The foreign judgment may be repelled by evidence of
want of jurisdiction, want of notice to the party, collusion, fraud, or
Philippines
clear mistake of law or fact. It is the RTC’s or the appellate court’s
decision upholding the foreign judgment that will be executed.
9.4 What are the rules of appeal against a judgment of a
civil court of your jurisdiction?
As a general rule, an ordinary appeal is perfected by filing a notice
of appeal with the court which rendered the decision or final order
appealed from within 15 days from notice of the decision or final
order. For special proceedings, such as in estate proceedings or
eminent domain proceedings, where multiple appeals may be taken,
an appeal shall be taken by filing a notice of appeal and record on
appeal within 30 days from notice of the decision or final order
appealed from.
10 Settlement
10.1 Are there any formal mechanisms in your jurisdiction
by which parties are encouraged to settle claims or
which facilitate the settlement process?
Cases in general are referred to Court-Annexed Mediation (“CAM”)
before proceeding with the pre-trial conference. During CAM, a
trained and accredited mediator assists the parties in exploring
avenues for a settlement. If the parties do not settle, Judicial
Dispute Resolution (“JDR”) commences wherein the judge acts as
a mediator and neutral evaluator who actively assists and facilitates
negotiations among the parties for them to settle their dispute.
Referral to CAM and JDR is generally mandatory except for cases
that under substantive law cannot be compromised.
II. ALTERNATIVE DISPUTE RESOLUTION
1 General
1.1 What methods of alternative dispute resolution are
available and frequently used in your jurisdiction?
Arbitration/Mediation/Expert Determination/Tribunals
(or other specialist courts)/Ombudsman? (Please
provide a brief overview of each available method.)
In addition to CAM and JDR discussed in question 10.1, the
alternative modes of dispute resolution available in the Philippines
are arbitration, mediation, early neutral evaluation, mini-trial,
mediation-arbitration, or any combination thereof.
Arbitration is a process in which one or more arbitrators,
appointed in accordance with the agreement of the parties, or rules
promulgated pursuant to Republic Act No. 9285 or the Alternative
Dispute Resolution Act of 2004 (“ADR Law”), resolve a dispute
by rendering an award. Mediation is a process in which a mediator
selected by the disputing parties facilitates communication
and negotiation, and assists the parties in reaching a voluntary
agreement. Early Neutral Evaluation is a process wherein parties
and their lawyers are brought together early in a pre-trial phase
to present summaries of their cases and receive a non-binding
assessment by an experienced person with expertise in the subject,
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 SyCip Salazar Hernandez & Gatmaitan
to help the parties negotiate an amicable settlement. Mini-trial
refers to a structured method in which the merits of the case are
argued before a panel comprising of senior decision makers after
which the parties seek a negotiated settlement. Lastly, mediation-
arbitration is a two-step dispute resolution process involving both
mediation and arbitration.
Philippines
1.2 What are the laws or rules governing the different
methods of alternative dispute resolution?
The ADR Law is the primary law as regards alternative modes of
dispute resolution. Under the ADR Law, international commercial
arbitration is primarily governed by the United Nations Commission
on International Trade Law (UNCITRAL) Model Law (1985), while
domestic arbitration is primarily governed by Republic Act No. 876
(1953) or the Arbitration Law. There are likewise special laws
governing arbitration in specific industries such as Executive Order
No. 1008 or the Construction Industry Arbitration Law. Finally,
the Philippine Supreme Court has issued Administrative Order No.
07-11-08-SC, otherwise known as the Special Rules of Court for
Alternative Dispute Resolution.
1.3 Are there any areas of law in your jurisdiction
that cannot use Arbitration/Mediation/Expert
Determination/Tribunals/Ombudsman as a means of
alternative dispute resolution?
The ADR Law does not apply to disputes involving labour disputes,
civil status of persons, validity of marriage, any ground for legal
separation of spouses, jurisdiction of courts, future legitime of heirs,
criminal liability, and those which according to substantive law
cannot be compromised.
1.4 Can local courts provide any assistance to parties
that wish to invoke the available methods of
alternative dispute resolution? For example, will a
court – pre or post the constitution of an arbitral
tribunal – issue interim or provisional measures
of protection (i.e. holding orders pending the final
outcome) in support of arbitration proceedings, will
the court force parties to arbitrate when they have so
agreed, or will the court order parties to mediate or
seek expert determination? Is there anything that is
particular to your jurisdiction in this context?
Court proceedings may be stayed upon a motion by the party to refer
the case to arbitration pursuant to a valid arbitration agreement. A
court may also dismiss a case on the ground of failure to comply
with a condition precedent or suspend proceedings if the plaintiff
fails to comply with an agreement to arbitrate before commencing
litigation.
Before the constitution of the tribunal, and after constitution of
the arbitral tribunal and during arbitral proceedings but only to
the extent that the arbitral tribunal has no power to act or is unable
to act, a request for interim measures of protection may be made
with the court. These measures include preliminary injunction and
appointment of receiver, among other reliefs.
198 WWW.ICLG.COM
Philippines
1.5 How binding are the available methods of alternative
dispute resolution in nature? For example, are
there any rights of appeal from arbitration awards
and expert determination decisions, are there any
sanctions for refusing to mediate, and do settlement
agreements reached at mediation need to be
sanctioned by the court? Is there anything that is
particular to your jurisdiction in this context?
Agreements reached through mediation have the force and effect of
res judicata. Hence, no appeal may be taken therefrom. When a
settlement agreement is reached, the parties may file the settlement
agreement with the RTC. Where there is a need to enforce the
settlement agreement, a petition may be filed by any of the parties
with the same court.
Except for arbitral awards under the Construction Industry
Arbitration Law, arbitral awards generally may not be reviewed
on errors of fact or errors of law when a party applies to the court
having jurisdiction for it to confirm the award. Courts may modify
the award on evident miscalculation or an evident mistake in the
description. Courts may vacate the award entirely on specific
jurisdictional and due process grounds set out in the ADR Law, the
UNCITRAL Model Law and Republic Act No. 876, such as but
not limited to, corruption, fraud, evident partiality on the part of
arbitrators, and arbitrators exceeding their powers.
2 Alternative Dispute Resolution
Institutions
2.1 What are the major alternative dispute resolution
institutions in your jurisdiction?
The Philippine Dispute Resolution Center administers alternative
dispute resolution proceedings in mostly commercial disputes.
Preferred arbitral institutions outside the Philippines, in our
experience, are the Singapore International Arbitration Centre,
Hong Kong International Arbitration Centre, and the International
Chamber of Commerce – International Court of Arbitration.
Within the Philippine court system, the Philippine Mediation
Center administers mediation during all stages of proceedings and
the mandatory CAM during pre-trial. The Construction Industry
Arbitration Commission administers arbitration proceedings over
construction disputes.
Acknowledgment
The authors would like to acknowledge Ma. Patricia B. Paz and
Harvey A. Bilang for their invaluable assistance in the writing of
this chapter.
Ma. Patricia B. Paz is a Senior Associate at SyCipLaw and her
practice areas are dispute resolution and commercial arbitration.
Ms. Paz is a member of the Philippine Institute of Arbitrators.
Email: mpbpaz@syciplaw.com.
Harvey A. Bilang is a Junior Associate at SyCipLaw.
Email: habilang@syciplaw.com.
ICLG TO: LITIGATION & DISPUTE RESOLUTION 2018
SyCip Salazar Hernandez & Gatmaitan Philippines

Ramon G. Songco Anthony W. Dee

SyCip Salazar Hernandez & Gatmaitan SyCip Salazar Hernandez & Gatmaitan
SyCipLaw Center, 105 Paseo de Roxas SyCipLaw Center, 105 Paseo de Roxas
Makati City, 1226 Makati City, 1226
Philippines Philippines

Philippines
Tel: +632 982 3500 / +632 982 3600 Tel: +632 982 3500 / +632 982 3600
+632 982 3700 +632 982 3700
Email: rgsongco@syciplaw.com Email: awdee@syciplaw.com
URL: www.syciplaw.com URL: www.syciplaw.com

Mr. Songco has established a career primarily as a litigator. He
handles civil and commercial litigation and arbitration cases, and is
currently involved in handling the defence in several mass tort cases
and in an environmental action before the Supreme Court. Mr. Songco
served as a director of the Integrated Bar of the Philippines – Makati
Chapter, from 2003 to 2005. He has been a lecturer in Mandatory
Continuing Legal Education seminars since 2006. He has been cited
as a key individual in dispute resolution by Chambers Asia-Pacific.
Mr. Dee has represented numerous clients in all court levels and has
extensive litigation and arbitration experience.
He has handled eminent domain projects involving millions of dollars,
including the expropriation of land for the construction of a coal power
plant and acquisition of rights-of-way for 37 kilometres of transmission
lines for the Quezon Power Project.
Mr. Dee is currently advising foreign entities who have been improperly
impleaded in a national inquiry concerning the impacts of climate
change before the Philippine Commission on Human Rights, and is
the lead partner in a case for the recovery by one of the country’s
largest real estate firms from the Philippine government of several
prime properties worth billions of pesos.
Mr. Dee is the President of the Integrated Bar of the Philippines –
Makati Chapter. He was an accredited lecturer on Pre-trial and Trial
Skills in the Philippine Supreme Court’s Mandatory Continuing Legal
Education programme.

SyCip Salazar Hernandez & Gatmaitan (SyCipLaw) was founded in 1945. It is the largest law firm in the Philippines. It has offices in Makati City,
the country’s business and financial centre, as well as Cebu, Davao and the Subic Freeport.
SyCipLaw offers a broad and integrated range of legal services, covering the following fields: banking, finance and securities; special projects;
corporate services; general business law; tax; intellectual property; employment and immigration; and dispute resolution. We have specialists in key
practice areas such as mergers and acquisitions, energy, power, infrastructure, natural resources, transportation, government contracts, real estate,
insurance, international arbitration, mediation, media, business process outsourcing, and technology.
We represent clients from almost every industry and enterprise, and the firm’s client portfolio includes local and global business leaders. We also
act for governmental agencies, international organisations, and non-profit institutions.
We maintain links with established and leading firms based in other jurisdictions, including the United States, and countries in Europe and Asia. We
are an active member of various international lawyers’ associations, such as the Employment Law Alliance, the First Law International, the Interlex
Group, Multilaw, the Pacific Rim Advisory Council, the World Law Group, and the World Services Group.

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