VIII.
DISPUTE RESOLUTION
Dispute Resolution- refers to number of processes used to resolve conflict/dispute
between parties.
Ex. A divorcing couple cannot agree on child custody arrangements. They hire a
mediator who helps them communicate more effectively and reach a custody
agreement that considers the best interests of their children.
Mediator- a person who tries to end a disagreement by helping the two sides to talk
about and agree on a solution
Dispute- a disagreement, argument, or controversy, that gives rise to a legal
proceeding such as arbitration, mediation, or a lawsuit.
Types of Dispute Resolution:
1. Litigation- the process of resolving disputes by filing or answering a complaint
through the public court system.
Ex. A homeowner sues a contractor for breach of contract after the contractor
fails to complete a renovation project as agreed. The case goes to court, where
a judge hears the evidence and legal arguments, ultimately ruling in favor of the
homeowner and awarding damages.
2. Alternative Dispute Resolution- refers to the procedure for settling disputes
without litigation, such as arbitration, mediation, or negotiation.
Ex.
Alternative Dispute Resolution System in the Philippines
Republic Act No. 9285- "Alternative Dispute Resolution Act of 2004."
(a) "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 in this Act, 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;
❖ It is a process used to resolve a dispute, other than resolving the dispute or case
in a formal judgment, usually by a judge or an officer of a government agency. It
can be also resolve by a neutral third party participates to assist in the resolution
of dispute, such as arbitration, mediation, conciliation, early neutral evaluation,
mini-trial, etc. as define in RA9285
Types of Alternative Dispute Resolution:
1. Arbitration- means a voluntary dispute resolution process in which one or more
arbitrators, appointed in accordance with the agreement of the parties, or rules
promulgated pursuant to this Act, resolve a dispute by rendering an award;
--Arbitrator- means the person appointed to render an award, alone or
with others, in a dispute that is the subject of an arbitration agreement;
--Award- means any partial or final decision by an arbitrator in resolving
the issue in a controversy;
❖ Arbitration is a process where parties in a disagreement voluntarily agree to
resolve their conflict outside of court. Instead of a judge, one or more neutral
arbitrators are appointed, either as agreed upon by the parties or as specified
by certain rules or laws. These arbitrators listen to both sides, review the
evidence, and then make a binding decision, known as an award, to settle the
dispute.
Ex. Imagine two businesses, Company A and Company B, have a contract to supply
goods. A dispute arises because Company A believes that Company B delivered
defective products. Instead of going to court, both companies agree to use arbitration
to resolve their issue. Of course, they will be an arbitration hearing, where the two
parties will present their evidence or arguments. After reviewing all the evidence and
listening to both sides, the arbitrator makes a decision or what we call giving an
arbitration award
2. Mediation- means a voluntary process in which a mediator, selected by the
disputing parties, facilitates communication and negotiation, and assist the
parties in reaching a voluntary agreement regarding a dispute.
--Mediator- means a person who conducts mediation;
--Information obtain through mediation is privileged and confidential
❖ Mediation is a voluntary process where parties that have conflicts/dispute,
choose a neutral third party, which is the mediator, to help them communicate
and negotiate. The mediator's role is to discuss and assist the parties to a
mutually agree to resolve their conflict. Unlike a judge or arbitrator, the mediator
does not impose a decision, instead, they guide the parties to find their own
solution.
Ex. Imagine two neighbors, John and Sarah, who are in a conflict/dispute over the
boundary line between their properties. They have been arguing for months. So to
avoid the conflict and possibly going to court, they decide to try mediation. The
mediator encourages them to express their viewpoints and understand each other’s
perspectives. After that, John and Sarah had a brainstorming solution, and make a
written agreement, and sign with it. By that, they mutually agree to resolve their dispute
without the need for litigation.
3. Conciliation- also known as negotiation, it is the least formal type of ADR. The
goal of conciliation is to help parties to come to a consensus on their own,
parties can involve a neutral third party into their conciliation to help facilitate an
agreement.
❖ It is also known as negotiation, the least formal type of ADR. Conciliation is like
having a calm conversation to resolve a problem without going to court. It’s like
people sit down and talk things through. Unlike mediation, where the mediator is
suggesting solutions, conciliator role is to keep the discussion productive and to
work together to find a solution they can all agree on.
Ex. Let's say two neighbors, John and Sarah are arguing over a property line. Instead of
immediately going to court, they decide to try conciliation. The conciliator helps them
communicate effectively and keeps the conversation focused on finding a solution.
With the help of the conciliator, they work together to have a new boundary
agreement that satisfies both parties.
