Alternative Dispute Resolution (ADR) Alternative Dispute Resolution Any process or procedure used to resolve a dispute or controversy other

er 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 or these Rules, resolve a dispute by rendering an award. A non-adversarial settlement wherein the parties are free to choose the arbitrators that will compose the tribunal, the procedure, venue and substantive law that will govern the proceedings. 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. Mediator will facilitate communication to ensure a voluntary and uncoerced settlement. Classic form of public attorney.* Kinds of Mediation i. Court-annexed Mediation Any mediation process conducted under the auspices of the court and in accordance with Supreme Court approved guidelines, after such court has acquired jurisdiction of the dispute. Compromise agreement (civil aspect) The court will conduct or supervise. ii. Court-referred Mediation Mediation ordered by a court to be conducted in accordance with the agreement of the parties when an action is prematurely commenced in violation of such agreement. c. Mini-Trial A structured dispute resolution method in which the merits of the case are argued before a panel compromising of senior

decision-makers, with or without the presence of a neutral third person, before which the parties seek a negotiated settlement. d. Early Neutral Evaluation ADR process wherein parties and their lawyers are brought together early in the pre-trial phase to present summaries of their cases and to receive a non-binding assessment by an experienced neutral person, with expertise in the subject matter or substance of the dispute. e. Combination of ADR (Mediation-arbitration) 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. ADR as a Better Alternative to Litigation 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 a 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 a. Labor disputes covered by PD 442 (Labor Code); b. the civil status of persons; c. the validity of marriage; d. any ground for legal separation; e. the jurisdiction of courts (BP 129);

f. future legitime; g. Criminal liability; h. Those disputes which by law cannot be compromised; and i. Disputes referred to court-annexed mediation Declaration of Policy a. To promote party autonomy in the resolution of disputes or the freedom of the parties to make their own arrangements to resolve their dispute; b. To encourage and actively promote the use of ADR as an important means to achieve speedy and impartial justice and to declog court dockets; c. To provide means for the use of ADR as an efficient tool and an alternative procedure for the resolution of appropriate cases; and d. To enlist active private sector participation in the settlement of disputes through ADR.