📙Alternative Dispute Resolution (RA 9285)

 What is RA 9285?

This Act is known as the “Alternative Dispute Resolution Act of 2004.”

 What is the policy of the State regarding ADR?

It is hereby declared the policy of the State to actively promote party autonomy in the resolution of
disputes or the freedom of the party to make their arrangements to resolve their disputes. Towards this
end, the State shall encourage and actively promote the use of Alternative Dispute Resolution (ADR) as
an important means to achieve speedy and impartial justice and declog court dockets. As such, the State
shall provide means for the use of ADR as an efficient tool and an alternative procedure for the
resolution of appropriate cases. Likewise, the State shall enlist active private sector participation in the
settlement of disputes through ADR.

 Does RA 9285 limit the power of the Supreme Court to adopt any ADR System?

This Act shall be without prejudice to the adoption by the Supreme Court of any ADR system, such as
mediation, conciliation, arbitration, or any combination thereof as a means of achieving speedy and
efficient means of resolving cases pending before all courts in the Philippines which shall be governed by
such rules as the Supreme Court may approve from time to time.

 What is Alternative Dispute resolution?

Alternative Dispute Resolution System 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, as defined under RA 9285, in which a neutral third party participates to assist in the resolution
of issues, which includes arbitration, mediation, conciliation, early neutral evaluation, mini-trial, or any
combination thereof.

 What is Arbitration?

Arbitration means a voluntary dispute resolution process in which one or more arbitrators,
appointed accordance with the agreement of the parties, or rules promulgated according to RA 9285,
resolve a dispute by rendering an award.

 Who is an Arbitrator?

Arbitrator means the person appointed to render an award, alone or with others, in a dispute that
is the subject of an arbitration agreement.

 What is Early Neutral Evaluation?

An ADR process wherein parties and their lawyers are brought together early in a pre-trial phase to
present summaries of their cases and receive a nonbinding assessment by an experienced, neutral
person, with expertise in the subject in the substance of the dispute.

 What is Mediation-Arbitration?

Med-Arb is a step dispute resolution process involving both mediation and arbitration.

 What is Mini-trial?

It means a structured dispute resolution method in which the merits of a case are argued before a
panel comprising senior decision-makers with or without the presence of a neutral third person after
which the parties seek a negotiated settlement.

 How arbitration, mediation, and conciliation are different from each other?

Arbitration, mediation, and conciliation are the main Alternative Dispute Resolution Mechanism
which is generally adopted by the people to resolve their disputes informally. They try to solve by
settlement or negotiation with the assistance of a third neutral party and have turned out to be an
effective alternative to the litigation process.

Arbitration is a process where the parties submit their case to a neutral third party who based on
discussion determines the dispute and comes to a solution.

Mediation and conciliation both are informal processes. Whereas, arbitration is more formal as
compared to them. In mediation, the mediator generally sets out alternatives for the parties to reach
out an agreement. The main advantage of mediation is that the settlement is made by the parties
themselves rather than a third party. It is not legally binding on the parties. Also, the basic motive of
mediation is to provide opportunities to parties to negotiate and come to a final solution catering to the
needs of both sides.

Dispute resolution through conciliation involves the assistance of a neutral third party who plays an
advisory role in reaching an agreement. The process adopted by all the three is different but, the main
purpose is to resolve the dispute in a way where the interest of the parties is balanced.

 What is ADR Provider?

This means institutions or persons accredited as mediator, conciliator, arbitrator, neutral evaluator,
or any person exercising similar functions in any Alternative Dispute System. This is without prejudice to
the rights of the parties to choose non-accredited individuals to acts as the mediator, conciliator,
arbitrator, or neutral evaluator of their dispute.

 What is the liability of ADR providers?

The ADR providers shall have the same civil liability for acts done in the performance of their
official duties as that public officers as provided in the Administrative Code of 1987, upon a clear
showing of bad faith, malice, or gross negligence.

 What are the cases wherein RA 9285 does not apply?

1. labor disputes covered by Presidential Decree No. 442, otherwise known as the Labor Code of
the Philippines, as amended and its Implementing Rules and Regulations;

2. the civil status of persons;

3. the validity of marriage;

4. any ground for legal separation;

5. the jurisdiction of courts;

6. future legitime;

7. criminal liability; and

8. those which by law cannot be compromised.

 Office for Alternative Dispute Resolution (OADR)

There is hereby established the OADR as an agency attached to the Department of Justice. It shall
have a Secretariat and shall be headed by an Executive Director, who shall be appointed by the
President of the Philippines, taking into consideration the recommendation of the Secretary of Justice.

 Powers of the OADR

1. To act as appointing authority of mediators and arbitrators when the parties agree in writing
that it shall be empowered to do so;

2. To conduct seminars, symposia, conferences, and other public fora and publish proceedings of
said activities and relevant materials/information that would promote, develop and expand the
use of ADR;
 3. To establish an ADR library or resource center where ADR laws, rules and regulations,
jurisprudence, books, articles, and other information about ADR in the Philippines and
elsewhere may be stored and accessed;

4. To establish training programs for ADR providers/practitioners, both in the public and private
sectors; and to undertake periodic and continuing training programs for arbitration and
mediation and charge fees on participants. It may do so in conjunction with or in cooperation
with the IBP, private ADR organizations, and local and foreign government offices and agencies
and international organizations;

5. To certify those who have completed the regular professional training programs provided by the
OADR;

6. To charge fees for services rendered such as, among others, for training and certifications of
ADR providers;

7. To accept donations, grants, and other assistance from local and foreign sources; and To
exercise such other powers as may be necessary and proper to carry into effect the provisions of
the ADR Act. Article 2.3. Functions of the OADR.

 Functions of the OADR

1. To promote, develop and expand the use of ADR in the private and public sectors through
information, education and communication;

2. To monitor, study and evaluate the use of ADR by the private and public sectors for purposes of,
among others, policy formulation;

3. To recommend to Congress needful statutory changes to develop, strengthen and improve ADR
practices under international professional standards;

4. To make studies on and provide linkages for the development, implementation, monitoring, and
evaluation of government and private ADR programs and secure information about their
respective administrative rules/procedures, problems encountered, and how they were
resolved;

5. To compile and publish a list or roster of ADR providers/practitioners, who have undergone
training by the OADR, or by such training providers/institutions recognized or certified by the
OADR as performing functions in any ADR system. The list or roster shall include the addresses,
contact numbers, e-mail addresses, ADR service/s rendered (e.g. arbitration, mediation), and
experience in ADR of the ADR providers/practitioners;

6. To compile a list or roster of foreign or international ADR providers/practitioners

7. To perform such other functions as may be assigned to it.

 Divisions of the OADR

The OADR shall have the following staff and service divisions, among others:

a) Secretariat - shall provide necessary support and discharge such other functions and duties as may
be directed by the Executive Director.

b) Public Information and Promotion Division - shall be charged with the dissemination of information,
the promotion of the importance and public acceptance of mediation, conciliation, arbitration, or any
combination thereof and other ADR forms as a means of achieving speedy and efficient means of
resolving all disputes and to help in the promotion, development, and expansion of the use of ADR.
c) Training Division - shall be charged with the formulation of effective standards for the training of
ADR practitioners; conduct of training under such standards; issuance of certifications of training to ADR
practitioners and ADR service providers who have undergone the professional training provided by the
OADR; and the coordination of the development, implementation, monitoring and evaluation of
government and private sector ADR programs.

d) Records and Library Division - shall be charged with the establishment and maintenance of a central
repository of ADR laws, rules and regulations, jurisprudence, books, articles, and other information
about ADR in the Philippines and elsewhere.

 Advisory Council

There is also created an Advisory Council composed of a representative from each of the following:

1. Mediation profession;

2. Arbitration profession;

3. ADR organizations;

4. IBP; and

5. Academe

The members of the Council, who shall be appointed by the Secretary of Justice upon the
recommendation of the OADR Executive Director, shall choose a Chairman from among themselves

 Role of the Advisory Council

The Advisory Council shall advise the Executive Director on policy, operational, and other relevant
matters. The Council shall meet regularly, at least once every two (2) months, or upon call by the
Executive Director.

Last modified: Wednesday, 9 February 2022, 1:46 PM

📙Arbitration (RA 876)

Arbitration (RA 876)

- It is a voluntary dispute resolution process in which one or more arbitrators, appointed under the
agreement of the parties or rules promulgated according to the ADR Act, resolve a dispute by rendering
an award.

- it is an arrangement for taking and abiding by the judgment of selected persons in some disputed
matter, instead of carrying it to established tribunals of justice, and is intended to avoid the formalities,
the delay, the expense, and vexation of ordinary litigation.

ü ARBITRATOR- is the person appointed to render an award, alone or with others, in a dispute that is
the subject of an arbitration agreement.

ü ARBITRATION AGREEMENT- is the agreement by the parties to submit to arbitration all or certain
disputes which have arisen or which may arise between them in respect of a defined legal relationship,
whether contractual or not.

ü AWARD- means any partial or final decision by an arbitrator in resolving the issue in a controversy

 Kinds of Arbitration

1. VOLUNTARY

- Arbitration is voluntary if it involves the reference of a dispute to an impartial body, the members of
which are chosen by the parties themselves, which parties freely consent in advance to abide by arbitral
award issued after the proceedings where both parties had the opportunity to be heard.
2. COMPULSORY

- Arbitration is compulsory when the process of settlement of disputes by a government agency which
has the authority to investigate and to make an award that is binding on all parties, and as a mode of
arbitration where the parties are compelled to accept the resolution of their dispute through arbitration
by a third party.

 Classification of Arbitration base on the presence of Foreign Elements

A. DOMESTIC

- Arbitration is domestic if the components of parties’ places of business, place of arbitration, place of
performance of substantial part of the obligation, and place where the subject matter of the dispute is
most closely connected, are all located in the Philippines.

B. INTERNATIONAL

- Arbitration is international if any of the following instances occur:

1. The parties’ places of business, which at the time of the conclusion of the arbitration agreement,
is in different states;

2. The place of arbitration provided in the arbitration agreement and in which the parties have
their places of business is outside the Philippines;

3. The place where a substantial part of the obligation is to be performed or the place with which
the subject matter of the dispute is most closely connected, and in which the parties have their
places of business, is outside the Philippines; or

4. The parties have expressly agreed that the subject matter of the arbitration agreement relates
to more than one country.

C. COMMERCIAL

- Arbitration is commercial if it covers matters arising from all relationships of a commercial nature,
whether contractual or not.

 Objectives of Arbitration

The basic objective of arbitration is to provide a speedy and inexpensive method of settling disputes by
allowing the parties to avoid the formalities, delay, expense, and aggravation which commonly
accompany ordinary litigation, especially litigation that goes through the hierarchy of courts. Being an
inexpensive, speedy, and amicable method of settling disputes, arbitration along with mediation,
conciliation, and negotiation, is encouraged by the Supreme Court.

 What are the subject matters of Arbitration?

Two or more persons or parties may submit to the arbitration of one or more arbitrators any
controversy existing between them at the time of the submission and which may be the subject of an
action or the parties to any contract may in such contract agree to settle by arbitration a controversy
thereafter arising between them. Such submission or contract shall be valid, enforceable, and
irrevocable, save upon such grounds as exist at law for the revocation of any contract.

Such submission or contract may include questions arising out of valuations, appraisals, or other
controversies that may be collateral, incidental, precedent, or after any issue between the parties. (Sec.
2, RA 876)

 Who is disqualified to arbitrate?

Controversy cannot be arbitrated where one of the parties to the controversy is an infant, or a
person judicially declared to be incompetent unless the appropriate court having jurisdiction approve a
petition for permission to submit such controversy to arbitration made by the general guardian or
guardian ad litem of the infant or the incompetent.
 But were a person capable of entering into submission or contract has knowingly entered into the
same with a person incapable of so doing, the objection on the ground of incapacity can be taken only
on behalf of the person so incapacitated. (Sec. 2, RA 876)

 What are the controversies or cases not subject to RA 876?

This Act shall not apply to controversies and to cases which are subject to the jurisdiction of the
Court of Industrial Relations or which have been submitted to it as provided by Commonwealth Act
Numbered One hundred and three, as amended. (Sec. 3, RA 876)

 What is the form of the Arbitration Agreement?

A contract to arbitrate a controversy thereafter arising between the parties, as well as a submission
to arbitrate an existing controversy shall be in writing and subscribed by the party sought to be charged,
or by his lawful agent.

The making of a contract or submission for arbitration described in section two hereof, providing
for arbitration of any controversy, shall be deemed consent of the parties to the jurisdiction of the Court
of First Instance of the province or city where any of the parties reside, to enforce such contract or
submission. (Sec. 4, RA 876)

 What is the Preliminary Procedure of Arbitration?

An Arbitration shall be instituted by:

(a) In the case of a contract to arbitrate future controversies by the service by either party upon the
other of a demand for arbitration under the contract. Such demand shall be set forth the nature of the
controversy, the amount involved, if any, and the relief sought, together with a true copy of the contract
providing for arbitration. The demand shall be served upon any party either in person or by registered
mail. If the contract between the parties provides for the appointment of a single arbitrator, the
demand shall be set forth at a specific time within which the parties shall agree upon such arbitrator.

If the contract between the parties provides for the appointment of three arbitrators, one to be
selected by each party, the demand shall name the arbitrator appointed by the party making the
demand; and shall require that the party upon whom the demand is made shall within fifteen days after
receipt thereof advise in writing the party making such demand of the name of the person appointed by
the second party; such notice shall require that the two arbitrators so appointed must agree upon the
third arbitrator within ten days from the date of such notice.

(b) If one party defaults in answering the demand, the aggrieved party may file with the Clerk of the
Court of First Instance having jurisdiction over the parties, a copy of the demand for arbitration under
the contract to arbitrate, with a notice that the original demand was sent by registered mail or delivered
in person to the party against whom the claim is asserted. Such demand shall set forth the nature of the
controversy, the amount involved, if any, and the relief sought, and shall be accompanied by a true copy
of the contract providing for arbitration.

(c) In the case of the submission of an existing controversy by the filing with the Clerk of the Court of
First Instance having jurisdiction, of the submission agreement, setting forth the nature of the
controversy, and the amount involved, if any. Such submission may be filed by any party and shall be
duly executed by both parties.

(d) If one party neglects, fails, or refuses to arbitrate under a submission agreement, the aggrieved
party shall follow the procedure prescribed in subparagraphs (a) and (b) of this section. (Sec. 5, RA 876)

 How is the hearing by court in Arbitration conducted?

A party aggrieved by the failure, neglect, or refusal of another to perform under an agreement in
writing providing for arbitration may petition the court for an order directing that such arbitration
proceeds in the manner provided for in such agreement. Five days notice in writing of the hearing of
such application shall be served either personally or by registered mail upon the party in default. The
court shall hear the parties, and upon being satisfied that the making of the agreement or such failure to
comply therewith is not in issue, shall make an order directing the parties to proceed to arbitration
under the terms of the agreement. If the making of the agreement or default is in issue the court shall
proceed to summarily hear such issue. If the finding is that no agreement in writing providing for
arbitration was made, or that there is no default in the proceeding thereunder, the proceeding shall be
dismissed. If the finding is that a written provision for arbitration was made and there is a default in
proceeding thereunder, an order shall be made summarily directing the parties to proceed with the
arbitration per the terms thereof.

The court shall decide all motions, petitions, or applications filed under the provisions of this Act,
within ten days after such motions, petitions, or applications have been heard by it.

 When may civil action be stayed?

If any suit or proceeding be brought upon an issue arising out of an agreement providing for the
arbitration thereof, the court in which such suit or proceeding is pending, upon being satisfied that the
issue involved in such suit or proceeding is referable to arbitration, shall stay the action or proceeding
until arbitration has been had following the terms of the agreement: Provided, That the applicant, for
the stay is not in default in proceeding with such arbitration.

 How are Arbitrators appointed?

If in the contract for arbitration or the submission described in section two, provision is made for a
method of naming or appointing an arbitrator or arbitrators, such method shall be followed; but if no
method be provided therein the Court of First Instance shall designate an arbitrator or arbitrators.

The Court of First Instance shall appoint an arbitrator or arbitrators, as the case may be, in the
following instances:

(a) If the parties to the contract or submission are unable to agree upon a single arbitrator; or

(b) If an arbitrator appointed by the parties is unwilling or unable to serve, and his successor has not
been appointed in the manner in which he was appointed; or

(c) If either party to the contract fails or refuses to name his arbitrator within fifteen days after receipt of
the demand for arbitration; or

(d) If the arbitrators appointed by each party to the contract, or appointed by one party to the contract
and by the proper Court, shall fail to agree upon or to select the third arbitrator.

(e) The court shall, in its discretion appoint one or three arbitrators, according to the importance of the
controversy involved in any of the preceding cases in which the agreement is silent as to the number of
arbitrators.

(f) Arbitrators appointed under this section shall either accept or decline their appointments within
seven days of the receipt of their appointments. In case of declination or the failure of an arbitrator or
arbitrator to duly accept their appointments the parties or the court, as the case may be, shall proceed
to appoint a substitute or substitutes for the arbitrator or arbitrators who decline or failed to accept his
or their appointments.

 May additional Arbitrators be appointed?

Yes, Sec. 9 provides: Where a submission or contract provides that two or more arbitrators
therein designated or to be thereafter appointed by the parties, may select or appoint a person as an
additional arbitrator, the selection or appointment must be in writing. Such additional arbitrators must
sit with the original arbitrators upon the hearing.
  What must the Arbitrator do if, after the appointment but before or during the hearing, a
person appointed to serve as an arbitrator shall discover any circumstance likely to create a
presumption of bias, or which he believes might disqualify him as an impartial Arbitrator?

If, after the appointment but before or during the hearing, a person appointed to serve as an
arbitrator shall discover any circumstances likely to create a presumption of bias, or which he believes
might disqualify him as an impartial arbitrator, the arbitrator shall immediately disclose such
information to the parties. Thereafter the parties may agree in writing:

(a) To waive the presumptive disqualifying circumstances; or

(b) To declare the office of such arbitrator vacant. Any such vacancy shall be filed in the same manner as
the original appointment was made.

 What is the procedure to be followed by the Arbitrator?

Subject to the terms of the submission or contract, if any are specified therein, are arbitrators
selected as prescribed herein must, within five days after the appointment if the parties to the
controversy reside within the same city or province, or within fifteen days after the appointment if the
parties reside in different provinces, set a time and place for the hearing of the matters submitted to
them, and must cause notice thereof to be given to each of the parties. The hearing can be postponed or
adjourned by the arbitrators only by agreement of the parties; otherwise, an adjournment may be
ordered by the arbitrators upon their motion only at the hearing and for good and sufficient cause. No
adjournment shall extend the hearing beyond the day fixed in the submission or contract for rendering
the award, unless the time so fixed is extended by the written agreement of the parties to the
submission or contract or their attorneys, or unless the parties have continued with the arbitration
without objection to such adjournment.

The hearing may proceed in the absence of any party who, after due notice, fails to be present at
such hearing or fails to obtain an adjournment thereof. An award shall not be made solely on the default
of a party. The arbitrators shall require the other party to submit such evidence as they may require for
making an award.

No one other than a party to said arbitration, or a person in the regular employ of such party duly
authorized in writing by said party, or a practicing attorney-at-law, shall be permitted by the arbitrators
to represent before him or them any party to the arbitration. Any party desiring to be represented by
counsel shall notify the other party or parties of such intention at least five days before the hearing.

The arbitrators shall arrange for the taking of a stenographic record of the testimony when such a
record is requested by one or more parties, and when payment of the cost thereof is assumed by such
party or parties.

Persons having a direct interest in the controversy which is the subject of arbitration shall have the
right to attend any hearing, but the attendance of any other person shall be at the discretion of the
arbitrators.

 Are Arbitrators required to take an oath?

Yes. Before hearing any testimony, arbitrators must be sworn, by any officer authorized by law to
administer an oath, faithfully and fairly to hear and examine the matters in controversy and to make a
just award according to the best of their ability and understanding. Arbitrators shall have the power to
administer the oaths to all witnesses requiring them to tell the whole truth and nothing but the truth in
any testimony which they may give in any arbitration hearing. This oath shall be required of every
witness before any of his testimony is heard.

 Do Arbitrators have the power to issue subpoena duces tecum and ad testificandum?

Yes. Arbitrators shall have the power to require any person to attend a hearing as a witness. They
shall have the power to subpoena witnesses and documents when the relevancy of the testimony and
the materiality thereof has been demonstrated to the arbitrators. Arbitrators may also require the
retirement of any witness during the testimony of any other witness. All of the arbitrators appointed in
any controversy must attend all the hearings in that matter and hear all the allegations and proofs of the
parties, but an award by the majority of them is valid unless the concurrence of all of them is expressly
required in the submission or contract to arbitrate.

 How is the hearing of Arbitration conducted?

Arbitrators may, at the commencement of the hearing, ask both parties for brief statements of the
issues in controversy and/or an agreed statement of facts. Thereafter the parties may offer such
evidence as they desire and shall produce such additional evidence as the arbitrators shall require or
deem necessary to an understanding and determination of the dispute. The arbitrators shall be the sole
judge of the relevancy and materiality of the evidence offered or produced, and shall not be bound to
conform to the Rules of Court of evidence.

Arbitrators shall receive as exhibits in evidence any document which the parties may wish to
submit and the exhibits shall be properly identified at the time of submission. All exhibits shall remain in
the custody of the Clerk of Court during the arbitration and shall be returned to the parties at the time
the award is made. The arbitrators may make an ocular inspection of any matter or premises which are
in dispute, but such inspection shall be made only in the presence of all parties to the arbitration, unless
any party who shall have received notice thereof fails to appear, in which event such inspection shall be
made in the absence of such party.

 When May parties’ briefs are filed?

At the close of the hearings, the arbitrators shall specifically inquire of all parties whether they have
any further proof or witnesses to present; upon the receipt of a negative reply from all parties, the
arbitrators shall declare the hearing closed unless the parties have signified an intention to file briefs.
Then the hearing shall be closed by the arbitrations after the receipt of briefs and/or reply briefs. A
definite time limit for the filing of such briefs must be fixed by the arbitrators at the close of the hearing.
Briefs may be filed by the parties within fifteen days after the close of the oral hearings; the reply briefs,
if any, shall be filed within five days following such fifteen-day period.

 May a hearing be re-opened?

The hearing may be reopened by the arbitrators on their motion or upon the request of any party,
upon good cause, shown at any time before the award is rendered. When hearings are thus reopened
the effective date for the closing of the hearings shall be the date of the closing of the reopened hearing.

 May parties submit their dispute to Arbitrator other than by oral hearing?

Yes. The parties to submission or contract to arbitrate may, by a written agreement, submit their
dispute to arbitration by other than oral hearing. The parties may submit an agreed statement of facts.
They may also submit their respective contentions to the duly appointed arbitrators in writing; this shall
include a statement of facts, together with all documentary proof. Parties may also submit a written
argument. Each party shall provide all other parties to the dispute with a copy of all statements and
documents submitted to the arbitrators. Each party shall have an opportunity to reply in writing to any
other party's statements and proofs; but if such party fails to do so within seven days after receipt of
such statements and proofs, he shall be deemed to have waived his right to reply. Upon the delivery to
the arbitrators of all statements and documents, together with any reply statements, the arbitrators
shall declare the proceedings instead of hearing closed.

 When is the proper time to render an award?

Unless the parties shall have stipulated by written agreement the time within which the arbitrators
must render their award, the written award of the arbitrators shall be rendered within thirty days after
the closing of the hearings or if the oral hearings shall have been waived, within thirty days after the
arbitrators shall have declared such proceedings instead of hearing closed. This period may be extended
by mutual consent of the parties.
  What must be the form and contents of the award?

The award must be made in writing and signed and acknowledged by a majority of the arbitrators if
more than one; and by the sole arbitrator if there is only one. Each party shall be furnished with a copy
of the award. The arbitrators in their award may grant any remedy or relief which they deem just and
equitable and within the scope of the agreement of the parties, which shall include, but not be limited
to, the specific performance of a contract.

If the parties to an arbitration have, during such arbitration, settled their dispute, they may request
of the arbitrators that such settlement be embodied in an award which shall be signed by the
arbitrators. No arbitrator shall act as a mediator in any proceeding in which he is acting as arbitrator,
and all negotiations towards the settlement of the dispute must take place without the presence of the
arbitrators.

The arbitrators shall have the power to decide only those matters which have been submitted to
them. The terms of the award shall be confined to such disputes.

The arbitrators shall have the power to assess in their award the expenses of any party against
another party when such assessment shall be deemed necessary.

 Is Arbitration a special proceeding?

Yes. Arbitration under a contract or submission shall be deemed a special proceeding, of which the
court specified in the contract or submission, or if none be specified, the Court of First Instance for the
province or city in which one of the parties resides or is doing business, or in which the arbitration was
held, shall have jurisdiction. Any application to the court, or a judge thereof, hereunder shall be made in
the manner provided for the making and hearing of motions, except as otherwise herein expressly
provided.

 When may an order of confirmation of award be made?

At any time within one month after the award is made, any party to the controversy which was
arbitrated may apply to the court having jurisdiction, as provided in section twenty-eight, for an order
confirming the award; and thereupon the court must grant such order unless the award is vacated,
modified or corrected, as prescribed herein. Notice of such motion must be served upon the adverse
party or his attorney as prescribed by law for the service of such notice upon an attorney in action in the
same court.

 What are the grounds to vacate an award?

In any one of the following cases, the court must make an order vacating the award upon the
petition of any party to the controversy when such party proves affirmatively that in the arbitration
proceedings:

(a) The award was procured by corruption, fraud, or other undue means; or

(b) That there was evident partiality or corruption in the arbitrators or any of them; or

(c) That the arbitrators were guilty of misconduct in refusing to postpone the hearing upon sufficient
cause shown, or in refusing to hear evidence pertinent and material to the controversy; that one or
more of the arbitrators was disqualified to act as such under section nine hereof, and wilfully refrained
from disclosing such disqualifications or of any other misbehavior by which the rights of any party have
been materially prejudiced; or

(d) That the arbitrators exceeded their powers, or so imperfectly executed them, that a mutual, final,
and definite award upon the subject matter submitted to them was not made.

Where an award is vacated, the court, in its discretion, may direct a new hearing either before the
same arbitrators or before a new arbitrator or arbitrators to be chosen in the manner provided in the
submission or contract for the selection of the original arbitrator or arbitrators, and any provision
limiting the time in which the arbitrators may make a decision shall be deemed applicable to the new
arbitration and to commence from the date of the court's order.

Where the court vacates an award, costs, not exceeding fifty pesos and disbursements may be
awarded to the prevailing party and the payment thereof may be enforced in like manner as the
payment of costs upon the motion in an action.

 What are the Grounds for modifying or correcting an award

In any one of the following cases, the court must make an order modifying or correcting the award,
upon the application of any party to the controversy which was arbitrated:

(a) Where there was an evident miscalculation of figures or an evident mistake in the description of any
person, thing or property referred to in the award; or

(b) Where the arbitrators have awarded upon a matter not submitted to them, not affecting the merits
of the decision upon the matter submitted; or

(c) Where the award is imperfect in a matter of form not affecting the merits of the controversy, and if it
had been a commissioner's report, the defect could have been amended or disregarded by the court.

The order may modify and correct the award to effect the intent thereof and promote justice between
the parties

 When should notice of a motion to vacate, modify or correct the award be served?

Notice of a motion to vacate, modify or correct the award must be served upon the adverse party
or his counsel within thirty days after the award is filed or delivered, as prescribed by law for the service
upon an attorney in an action.

 When may a judgment be made?

Upon the granting of an order confirming, modifying, or correcting an award, judgment may be
entered in conformity therewith in the court wherein said application was filed. Costs of the application
and the proceedings subsequent thereto may be awarded by the court at its discretion. If awarded, the
amount thereof must be included in the judgment.

 What are the Papers to accompany motion to confirm, modify, correct, or vacate award?

(a) The submission, or contract to arbitrate; the appointment of the arbitrator or arbitrators; and each
written extension of the time, if any, within which to make the award.

(b) A verified of the award.

(c) Each notice, affidavit, or other paper used upon the application to confirm, modify, correct, or vacate
such award, and a copy of each of the court upon such application.

The judgment shall be docketed as if it were rendered in an action. The judgment so entered shall
have the same force and effect in all respects, as, and be subject to all the provisions relating to, a
judgment in an action; and it may be enforced as if it had been rendered in the court in which it is
entered.

 When may an appeal be taken?

An appeal may be taken from an order made in a proceeding under this Act, or from a judgment
entered upon an award through certiorari proceedings, but such appeals shall be limited to questions of
law. The proceedings upon such an appeal, including the judgment thereon, shall be governed by the
Rules of Court in so far as they are applicable.

 What is the consequence if a party dies after making a submission or a contract to arbitrate?
 Where a party dies after making a submission or a contract to arbitrate as prescribed in this Act,
the proceedings may be begun or continued upon the application of, or notice to, his executor or
administrator, or temporary administrator of his estate. In any such case, the court may issue an order
extending the time within which notice of a motion to confirm, vacate, modify or correct an award must
be served. Upon confirming an award, where a party has died since it was filed or delivered, the court
must enter judgment in the name of the original party; and the proceedings thereupon are the same as
where a party dies after a verdict.

KATARUNGANG PAMBARANGAY LAW (PD 1508)

 What is PD 1508?

This refers to an Act Establishing a System of Amicably settling Disputes at the Barangay Level.

 What is RA 7160?

RA 7160 is otherwise known as the 1991 Local Government Code. This gives barangays the
mandate to enforce peace and order and provide support for the effective enforcement of human rights
and justice. Decentralization has facilitated the recognition of the Katarungang Pambarangay or
Barangay Justice System as an alternative venue for the resolution of disputes. The challenge facing local
governments now is to maximize and harness the katarungang pambarangay as one of the most
valuable mechanisms available in administering justice, advancing human rights protection, and
resolving and/or mediating conflict at the barangay level through non-adversarial means.

 What is Katarungang Pambarangay?

Katarungang Pambarangay is a system of justice administered at the barangay level for

amicable settling disputes through mediation, conciliation, or arbitration among the family or barangay
without resorting to the courts. The Katarungang Pambarangay or Barangay Justice System is a
community-based dispute settlement mechanism that is administered by the basic political unit of the
country, the barangay. As a community-based mechanism for dispute resolution, it covers disputes
between members of the same community and involves the Punong Barangay and other members of
the communities as intermediaries.

 NOTE: Under the Barangay Justice System, the main strategy for settling disputes is to provide a
venue for disputing parties to search for a mutually acceptable solution. Hence, the primary role
of the system is not to decide disputes and impose a solution on the parties but to assist the
parties in discussing the possible amicable settlement of their disputes. The Punong Barangay
and the community conciliators (Lupon Members) do not act as judges or adjudicators of
disputes but as facilitators for the disputing parties’ discussion of possible solutions. For this
reason, the personal appearance and participation of the disputing parties are necessary, while
the non-appearance of the parties will have corresponding sanctions. Also because of the need
for the disputing parties’ participation in the conciliation proceedings, disputes involving non-
natural persons like corporations are not subject to the conciliation proceedings of the Barangay
Justice System.

 What is Barangay? What is its role?

The Barangay, as the basic political unit, serves as the primary planning and implementing unit of the
government policies, plans, programs, projects, and activities in the community, and as a forum wherein
the collective views of the people may be expressed, crystallized, and where disputes may be amicably
settled.

 What are the Subject matters for amicable settlement?

The Lupon of each barangay shall have authority to bring together the parties residing in
the same city or municipality for amicable settlement of all disputes EXCEPT:

1. Where on a party is the government, or any subdivision or instrumentality thereof;

 2. Where one party is a public officer or employee, and the dispute relates to the performance of
his official functions;

3. Offenses punishable by imprisonment exceeding 30 days, or a fine exceeding P200.00;

4. Offenses where there is no private offended party;

5. Such other classes of disputes which the Prime Minister may in the interest of justice determine
upon recommendation of the Minister of Justice and the Minister of Local Government.

 Where is the Venue of amicable settlement?

Disputes between or among persons residing in the same barangay shall be brought for
amicable settlement before the Lupon of said barangay. Those involving actual residents of different
barangays within the same city or municipality shall be brought to the barangay where the respondent
or any of the respondents resides, at the election of the complainant. However, all disputes which
involved real property or any interest therein shall be brought in the barangay where the real property
or any part thereof is situated.

The Lupon shall have no authority over disputes:

1. Involving parties who reside in barangays of different cities or municipalities, except where such
barangays adjoin each other; and

2. Involving real property located in different municipalities.

 What is the procedure for amicable settlement?

1. Who may initiate proceedings

Any individual who has a cause of action against another individual involving any matter within the
authority of the Lupon as provided in Section 2 may complain orally or in writing, to the Barangay
Captain of the barangay referred to in Section 3 hereof.

2. Mediation by Barangay Captain

Upon receipt of the complaint, the Barangay Captain shall, within the next working day summon the
respondent/s with notice to the complainant/s for them and their witnesses to appear before him for a
mediation of their conflicting interests. If he fails in his effort within fifteen (15) days from the first
meeting of the parties before him, he shall forthwith set a date for the constitution of the Pangkat under
the provisions of Section 1 of this Decree.

3. Hearing before the Pangkat

The Pangkat shall convene not later than three (3) days from its constitution, on the day and hour set by
the Barangay Captain, to hear both parties and their witnesses, simplify issues, and explore all
possibilities for an amicable settlement. For this purpose, the Pangkat may issue a summons for the
personal appearance of parties and witnesses before it.

If the party moves to disqualify any member of the Pangkat because of relationship, bias, interest, or
any other similar ground/s discovered after the constitution of the Pangkat, the matter shall be resolved
by the affirmative vote of the majority of the Pangkat whose decision shall be final. Should
disqualification be decided upon, the procedure provided for in paragraph (g) of Section 1 shall be
followed.

4. Sanctions

Refusal or willful failure of any party or witness to appear in compliance with the summons issued under
the preceding two (2) paragraphs may be punished by the city or municipal court as for direct contempt
of court upon an application filed therewith by the Lupon Chairman, the Pangkat Chairman, or by any of
the parties. Further, such refusal or willful failure to appear shall be reflected in the records of the Lupon
Secretary or the minutes of the Pangkat Secretary and shall bar the complainant from seeking judicial
recourse for the same cause of action, and the respondent, from filing any counterclaim arising out of or
necessarily connected therewith.

Willful failure or refusal without justifiable cause on the part of any Pangkat member to act as such, as
determined by the vote of a majority of all the other members of the Lupon, whose decision thereon
shall be final, shall result in his disqualification from public office in the city or municipality for one year.

5. Time limit

The Pangkat shall arrive at a settlement/resolution of the dispute within fifteen (15) days from the day it
convenes under paragraph (c) hereof. This period shall, at the discretion of the Pangkat, be extendible
for another period which shall not exceed fifteen (15) days except in clearly meritorious cases.

 What is the form of settlement?

All amicable settlements shall be in writing, in a language or dialect known to the parties, signed by
them and attested by the Barangay Captain or the Chairman of the Pangkat, as the case may be. When
the parties to the dispute do not use the same language/dialect, the settlement shall be written in the
languages; dialect known to them.

 What is the pre-condition in the filing of complaints?

No complaint, petition, action, or proceeding involving any matter within the authority of the Lupon
shall be filed or instituted in court or any other government office for adjudication unless there has been
a confrontation of the parties before the Lupon Chairman or the Pangkat and no conciliation or
settlement has been reached as certified by the Lupon Secretary or the Pangkat Secretary, attested by
the Lupon or Pangkat Chairman, or unless the settlement has been repudiated.

However, the parties may go directly to the court in the following cases:

1. Where the accused is under detention;

2. Where a person has otherwise been deprived of personal liberty calling for habeas corpus
proceedings;

3. Actions coupled with provisional remedies such as preliminary injunction, attachment, delivery
of personal property and support pendente lite; and

4. Where the action may otherwise be barred by the Statute of Limitations.

 How is Arbitration made?

The parties may, at any stage of the proceedings, agree in writing that they shall abide by
the arbitration award of the Barangay Captain or the Pangkat. Such agreement to arbitrate may within
five (5) days from the date thereof, he repudiated for the same grounds and under the procedure
prescribed in Section 13 hereof. The arbitration award shall be made after the lapse of the period for
repudiation and within ten (10) days thereafter.

The arbitration award shall be in writing in a language or dialect known to the parties. When
the parties to the dispute do not use the same language/dialect, the award shall be written in
languages/dialects known to them.

 What is the exception of public proceedings?

All proceedings for settlement shall be public and informal, Provided, that the Barangay
Captain or the Pangkat, as the case may be, may motu propio or upon request of a party exclude the
public from the proceedings in the interest of privacy, decency, or public morals.

 Is there a need for the parties to appear personally?

In all other proceedings provided for herein, the parties must appear in person without the
assistance of counsel/representative, except minors and incompetents who may be assisted by their
next of kin who are not lawyers.
  May Admissions made during the settlement be used as evidence?

Admissions made in the course of any proceedings for settlement may be admissible for any
purpose in any other proceeding.

 What is the effect of amicable settlement and arbitration award?

The amicable settlement and the arbitration award shall have the force and effect of a final
judgment of a court, upon the expiration of ten (10) days from the date thereof unless repudiation of
the settlement has been made or a petition for nullification of the award has been filed before the
proper city or municipal court.

 How is the award executed?

The amicable settlement or arbitration award may be enforced by execution within one (1) year from
the date of the settlement. After the lapse of such time, the settlement may be enforced by action in the
appropriate city/municipal court.

 Can the award be repudiated?

Any party to the dispute may, within ten (10) days from the date of settlement, repudiate the
same by filing with the Barangay Captain a statement to that effect sworn to before him, where the
consent is vitiated by fraud, violence, or intimidation.

 Who will transmit the settlement and arbitration award to the court?

The Secretary of the Lupon shall transmit the settlement of arbitration award to the local city or
municipal court within five (5) days from the date of the award or from the lapse of ten-day period for
repudiating the settlement and shall furnish copies thereof to each of the parties to the settlement and
the Barangay Captain.

RESTORATIVE JUSTICE vs RETRIBUTIVE JUSTICE

 What are the distinctions between Retributive Justice and Restorative Justice?

The following are distinctions between retributive justice and restorative justice:

a) Retributive justice is an approach focused on determining what law was broken, who broke it, and
how shall offenders be punished; Restorative justice, on the other hand, is an approach focused
determining what is harm resulted from the crime, what needs to be done to repair the harm, and who
is responsible for repairing.

b) Retributive justice considers a crime as an act against the State, while Restorative justice considers a
crime as an act against the victim and the community.

c) In Retributive justice, the control of crimes lies to the criminal justice system, while in Restorative
justice the control of crimes lies to the community.

d) In Retributive justice, the community is represented by the State, while in Restorative justice the
community is the facilitator in the restorative process.

e) Retributive justice focuses on the past by determining the person to be blamed for the crime
committed, while Restorative justice focuses on the future to determine the matters to be considered so
that the crime will not be repeated.

f) Retributive justice on the offender’s past behavior, while Restorative justice focuses on the
consequences of the offender’s behavior.

g) Retributive justice emphasizes the adversarial relationship, while Restorative justice emphasizes
dialogue and negotiations.
h) Retributive justice considers crime as an individual act with individual responsibility,
while Restorative justice considers crime as both individual and social responsibility.

i) Retributive justice is based on the principle of lex talliones, while Restorative justice is based on
forgiveness and reconciliation.

 What is Restorative Justice?

Restorative justice refers to a principle, which requires a process of resolving conflicts with the
maximum involvement of the victim, the offender, and the community. It seeks to obtain reparation for
the victim; reconciliation of the offender, the offended, and the community; and reassurance to the
offender that he/she can be reintegrated into society. It also enhances public safety by activating the
offender, the victim, and the community in prevention strategies. It embraces a wide range of human
emotions healing, compassion, forgiveness, mercy, and reconciliation.

 What is the justification for introducing restorative justice?

The current Philippine criminal justice system, after considering the duties and functions of its
different pillars, reveals its defects and they are the following:

1. The victims of a crime may not pursue a criminal case against the perpetrator because of a lack
of support from the government especially the person arrested for the commission of a crime or
the accused persons have numerous rights compared to the victims of a crime;

2. The suspects who are fall guys may be convicted because they have no money to spend
especially in hiring experienced and skilled lawyers to defend them.

3. The criminal cases may be dismissed because of insufficiency of evidence or technically even if
the accused confessed that he was the one who committed the crime;

4. The accused may be convicted of a charge and a penalty is imposed by the court but the victim
or the society as a whole is not yet contented of the suffering that the accused may undergo;

5. The trial of a case may take a very period notwithstanding the presence of the Speedy Trial Act;

Even if a perpetrator is imprisoned or has undergone

i. a community-based treatment, he may not be reformed or rehabilitated;

ii. The person who was imprisoned because of the crime they committed may not effectively be
reintegrated into the community.

 What are the fundamental principles of Restorative Justice?

The fundamental principle of Restorative Justice are the following:

1. Justice requires that all must work to restore those who have been injured like the victims, the
community, and even the offenders;

2. Those most directly involved and affected by crime should have the opportunity to participate
fully in the response if they wish; and

3. The government is responsible for preserving just public order and the community establishes
peace.