HISTORY OF COURT ANNEXED MEDIATION IN THE PHILIPPINES

Just before the turn of the millennium, the Philippine Supreme Court issued three
directives that would have a significant impact on the development of mediation in the
country. The first was the 1997 amendment to the Rules of Court to enable the courts,
during pre-trial, to consider the submission of cases not only to arbitration, but also to
other alternative modes of dispute resolution (ADR). The second was the 1999 directive
to pilot-test court-annexed mediation in two areas in Metro Manila. The third was the
adoption in 1999 of a Blue Print of Action for the Judiciary which provided, among others,
for the training of judges in mediation and conciliation during the pre-trial stage.

On June 22, 1999, the Supreme Court therefore authorized the pilot testing of court-
annexed mediation in the first and second level courts in two cities in Metro Manila i.e.
Mandaluyong City and Valenzuela City, to help the courts decongest their dockets.

During the two-month test period, 103 cases were referred to mediation. Of these,
36 were returned to court because one or both parties failed to attend the mediation
proceedings or one or both immediately refused mediation. Of the remaining 67 cases,
the plaintiff withdrew the complaint in 4 cases, and where mediation took place, 27 cases
were settled while 36 cases did not reach settlement, resulting in a 42% success rate.

Encouraged by the 42% success rate of the pilot test, the Supreme Court directed
the training of more mediators, expanded the area of coverage to the entire Metro Manila
in Luzon, Metro Cebu in the Visayas and Davao City in Mindanao; and designated March
26 — April 6, 2001 as Settlement Weeks.

For the Settlement Weeks, a total of 450 mediators were trained separately by a
U.S. trained Filipino mediator and by three trainers from the Singapore Mediation Center.
These mediators came from different backgrounds and professions. There were pastors,
doctors, engineers, businessmen, lawyers, accountants, teachers and housewives. Most
were middle-aged and keenly interested to assist litigants resolve their dispute amicably.

On October 16, 2001, due to the success of court-annexed mediation during the
Settlement Weeks, the Supreme Court directed the Philippine Judicial Academy (Philja)
to establish Philippine Mediation Center (PMC) units in all court stations in Metro Manila,
Metro Cebu and Davao City so that courts could refer cases for mediation throughout the
year.

The Supreme Court also expanded the cases coverable by mediation to:

a) All civil cases, settlement of estates, and cases covered by the Rule on
Summary Procedure, except those which by law may not be compromised;
b) Cases cognizable by the Lupong Tagapamayapa under the Katarungang
Pambarangay Law;
c) The civil aspect of BP 22 cases; and
d) The civil as aspect of quasi offenses under Title 14 of the Revised Penal
Code.
 On April 24, 2002, because some courts were reluctant to refer cases for mediation,
Chief Justice Hilario Davide Jr. issued Administrative Circular No. 202002 requiring all
judges in Metro Manila, Metro Cebu and Davao City to automatically refer cases under
the expanded coverage of mediation to the PMC units.