Saturday, July 13, 2013

Alternative Dispute Resolution

 Alternative Dispute Resolution        -       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

Modes of ADR:
a)       Arbitration
-       a voluntary dispute resolution process in which one or more arbitrators, appointed in accordance with the agreement of the parties resolve a dispute by rendering an award
-       reference by mutual agreement or consent of the parties of a controversy or dispute to selected persons for an informal hearing and extra-judicial determination and resolution

b)       Mediation or Conciliation
-       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
-       dispute resolution procedure in which an impartial third party, mutually chosen by the parties, acts as the referee to help the contending parties settle their dispute

ª       Kinds of Mediation:
                                                                     i.            Court-annexed Mediation
-       any mediation process conducted under the auspices of the court, after such court has acquired jurisdiction of the dispute

                                                                   ii.            Court-referred Mediation
-       mediation ordered by a court to be conducted in accordance with an agreement of the parties when an action is prematurely commenced in violation of such agreement

c)       Mini-Trial
-       dispute resolution method in which the merits of  a case are argued before a panel created by agreement of the parties comprising senior decision makers with or without the presence of a neutral third person after which the parties seek a negotiated settlement

d)       Early Neutral Evaluation
-       alternative dispute resolution process whereby 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, neutral person with expertise in the subject of the dispute

e)       Combination of ADR
v  Mediation-arbitration (Med-Arb)
-       most common combination
-       parties first proceed to mediation to define the dispute and settle as many issues as possible, and then they engage in arbitration to settle issues that remain unresolved by the mediator

ADR as a Better Alternative to Litigation

Advantages of ADR:
a)       Party Autonomy
-       voluntary agreement of the parties in submitting their dispute and in choosing the arbitrators, the venue or place of arbitration, the language to be used, and the rules or procedure to be followed

b)       Speed and Cost
-       issues submitted to arbitral tribunals and through the help of mediators are resolved in a very short period of time
-       although parties will also incur expenses, these costs are still much lower than the cost of going to court, considering that the issues are resolved in a short period of time

c)       Privacy and Confidentiality
-       proceedings are not open to third persons who are not party to the transactions, much more to the public

d)       Awards are Final and Binding
-       an award rendered by an arbitral tribunal is final and binding on the parties
-       awards may be subject to judicial review only on limited grounds specifically provided for by laws

EXCEPTION TO THE APPLICATION OF THE ADR ACT

Matters which cannot be Covered by ADR:
a)   labor disputes covered Presidential Decree No. 442, otherwise known as the “Labor Code of the Philippines, as amended,” and its IRR;
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 disputes which by law cannot be compromised; and
i)        disputes referred to court-annexed mediation

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