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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