Alternative Dispute Resolution (ADR)

Special Rules of Court on ADR

Chapters 10 & 11

Chapter 10 Special Rules of Court on ADR

Provisions Specific to Mediation
General Rule: Rules of procedure for court proceedings relative to arbitration are also applicable to mediation, to
a dispute subject to construction arbitrations, and to other forms of ADR if more akin to arbitration than mediation,
whenever appropriate or are not consistent with the specific rules.
Special ADR Rules 14 & 15 govern the situation where the parties to mediation entered into and executed written
mediated settlement agreements. However, does not cover mediated settlement agreements or compromise
agreements arrived in a court-annexed mediation.
Processes or proceeding regarding the mediated settlement agreements:
1. Deposit of mediated settlement agreements.
o

Why: To be enforceable by judicial actions.

Who: Any party to a mediation that is not court-annexed.

When: Any time after an agreement is reached.

Where: Clerk of Court of the Regional Trial Court (a) where the principal place of business in the
Philippines of any of the parties is located; (b) if any of the parties is an individual, where any of those
individuals resides; or (c) in the National Capital Judicial Region.

Clerk of Court is required to keep a Registry Book to list or enroll chronologically all the mediated
settlement agreements/settlement awards that are deposited with the court as well as the names and
address of the parties thereto and the date of enrollment and shall issue a Certificate of Deposit to the
party that made the deposit.

2. Enforcement of the mediated settlement agreements.

o

Who: Any party to a mediated settlement agreement which was deposited with the Clerk of Court.

When: Upon breach of agreement.

How: Filing of a verified petition in court.

Contents of petition. The verified petition shall:

a. Name and designate, as petitioner or respondent, all parties to the mediated settlement agreement
and those who may be affected by it;
b. State the following:
(i). The addresses of the petitioner and respondents; and
(ii). The ultimate facts that would show that the adverse party has defaulted to perform its
obligation under said agreement; and
c. Have attached to it the following:
(i). An authentic copy of the mediated settlement agreement; and
(ii). Certificate of Deposit showing that the mediated settlement agreement was deposited
with the Clerk of Court.

Adverse party: May file an opposition to the petition within 15 days from receipt of notice or service or
petition.

Court: Conducts a summary hearing to determine whether or not the mediated settlement agreement
is valid and the respondent has breached the agreement in whole or in part and render judgment by
either enforcing the agreement or dismissing the petition.

Alternative Dispute Resolution (ADR)

Special Rules of Court on ADR
Chapters 10 & 11

Provisions Specific to Other Forms of ADR

Special ADR Rule 18 applies to early neutral evaluation, neutral evaluation, mini-trial, mediation-arbitration, any
combinations of ADR forms, or any other ADR form.
General Rule: Rules of procedure applicable to different forms of ADR shall be those agreed upon by the
parties.
Absence an agreement: Specific rules on these forms of ADR shall be applicable.
Default rule: Rules on mediation shall suppletorily apply to the forms of ADR which are more akin to mediation,
otherwise, rules on arbitration for those which are more akin to arbitration.
Akin to mediation if neutral third party merely assists the parties in reaching a voluntary agreement
Akin to arbitration if neutral third party is given the power to render a binding resolution of the dispute.

Chapter 11 Special Rules of Court on ADR

Remedies available to parties for challenging the orders, decisions or judgments rendered by the RTC on matters
relating to ADR are as follows:
1. Motion for reconsideration
2. Appeal to the Court of Appeals
3. Special Civil Action for Certiorari
4. Appeal by Certiorari to the Supreme Court

Motion for Reconsideration

Rules 19.1-19.11, Special ADR Rules
Rule 37,1997 Rules of Civil Procedure MR is filed when findings or conclusions of the judgment or final order
are not supported by evidence or that evidence or final order is contrary to law.
Rule 19, Special Rules of Court on ADR MR is filed with RTC within 15 days from receipt based on the
following:
a. That the arbitration agreement is inexistent, invalid or unenforceable pursuant to Rule 3.10 (B);
b. Upholding or reversing the arbitral tribunals jurisdiction pursuant to Rule 3.19;
c. Denying a request to refer the parties to arbitration;
d. Granting or denying a party an interim measure of protection;
e. Denying a petition for the appointment of an arbitrator;
f. Refusing to grant assistance in taking evidence;
g. Enjoining or refusing to enjoin a person from divulging confidential information;
h. Confirming, vacating or correcting a domestic arbitral award;
i. Suspending the proceedings to set aside an international commercial arbitral award and referring the case
back to the arbitral tribunal;
j. Setting aside an international commercial arbitral award;
k. Dismissing the petition to set aside an international commercial arbitral award, even if the court does not
recognize and/or enforce the same;
l. Recognizing and/or enforcing, or dismissing a petition to recognize and/or enforce an international commercial
arbitral award;

Alternative Dispute Resolution (ADR)

Special Rules of Court on ADR
Chapters 10 & 11

m. Declining a request for assistance in taking evidence;

n. Adjourning or deferring a ruling on a petition to set aside, recognize and/or enforce an international
commercial arbitral award;
o. Recognizing and/or enforcing a foreign arbitral award, or refusing recognition and/or enforcement of the
same; and
p. Granting or dismissing a petition to enforce a deposited mediated settlement agreement.
No motion for reconsideration shall be allowed from the following rulings of the Regional Trial Court:
a. A prima facie determination upholding the existence, validity or enforceability of an arbitration agreement
pursuant to Rule 3.1 (A);
b. An order referring the dispute to arbitration;
c. An order appointing an arbitrator;
d. Any ruling on the challenge to the appointment of an arbitrator;
e. Any order resolving the issue of the termination of the mandate of an arbitrator; and
f. An order granting assistance in taking evidence.

General Provisions on Appeal and Certiorari

The Court of Appeals (CA) and Supreme Court (SC) modes of review of decisions/orders of the RTC
(1997 Rules of Civil Procedure):
1) Rule 44- Ordinary appeal by notice of appeal to the CA on errors of: fact, law, or mixed fact and law;
2) Rule 42- Petition for Review to the CA on decisions rendered in the exercise of RTC's appellate jurisdiction
on errors of: fact, law, or mixed fact and law;
3) Rule 45- Appeal by certiorari direct to the SC on: pure questions of law;
4) Rule 65- Special civil action for certiorari to the CA on the ground of grave abuse of discretion amounting to
lack/excess of jurisdiction (when there is no appeal or any plain, speedy and adequate remedy under the ordinary course
of law).
HOWEVER, when the Special ADR Rules speaks of:
a) appeals and petitions for certiorari of RTC rulings; or
b) petitions for review on certiorari of resolutions or decisions of the CA to the SC; it refers only to petitions akin to
those under Rules 42, 45, and 65.

Ordinary appeal to the CA (decisions rendered by the RTC in the exercise of its original exclusive jurisdiction) is
not available as remedy under the Special ADR Rules.

Because the RTC, in passing judgment over actions involving ADR is NOT exercising its original jurisdiction.
Rather, RTC only acts as a review court for decisions, awards, and orders of arbitral tribunals.

Principles the RTC should have observed and the appellate/reviewing court must take into account in
the allowable appeal/review in ADR related cases:
1. Party to arbitration is precluded from filing an appeal/petition for certiorari questioning the merits of an arbitral
award.
Reason: Agreement to refer a dispute to arbitration is tantamount to an implied agreement that the arbitral award shall be
final and binding.
2. Appeals through petitions for review and special civil actions for certiorari from a decision of the RTC are
exceptional and mutually exclusive remedies.
Allowed only when: a) provided under the Special ADR Rules; and b) only in the manner provided therein.

Alternative Dispute Resolution (ADR)

Special Rules of Court on ADR
Chapters 10 & 11

3. General rule: grounds and infirmities provided for under R.A. 876 (Arbitration Law), the Model Law, and the
Special ADR Rules for vacating/setting aside a domestic or international commercial arbitral award, are
exclusive.
Thus, no other ground can be raised except if it amounts to violation of public policy.
4. The court can deny recognition and enforcement of foreign arbitral awards only upon grounds provided for in
Article VI of the New York Convention.
Reason: Court has no power to vacate/set aside such award because it was rendered by an entity outside the Philippine
jurisdiction.

Appeal to the CA (Petition for Review)

Rules 19.12-19.25, Special ADR Rules

The appeal from final orders and judgments of RTC in ADR related cases to the CA under Rules 19.12-19.25 is
akin to a petition under Rule 42 of the Rules of Civil Procedure (based on errors of fact and/or law).

However, the allowed appeal in ADR related cases is not based on Rule 42 or 45, but on Section 26 of the ADR
Act of 2004.
RTC orders allowed for Petition for Review to the CA under the Special ADR Rules:
a) Granting/denying an interim measure of protection;
b) Denying a petition for appointment of an arbitrator;
c) Denying a petition for assistance in taking evidence;
d) Enjoining/refusing to enjoin a person from divulging confidential information;
e) Confirming, vacating or correcting/modifying a domestic arbitral award;
f) Setting aside an international commercial arbitral award;
g) Dismissing the petition to set aside an international commercial arbitration award even if the court does not
decide to recognize or enforce such award;
h) Recognizing and/or enforcing an international commercial arbitration award;
i) Recognizing and/or enforcing a foreign arbitral award;
j) Refusing recognition and/or enforcement of a foreign arbitral award;
k) Granting or dismissing a petition to enforce a deposited mediated settlement agreement; and
l) Reversing the ruling of the arbitral tribunal upholding its jurisdiction.

When to file appeal: Within 15 days from a) notice of the RTC decision; or b) denial of the petitioner's motion
for reconsideration

How: By filing a verified petition for review.

When may CA give due course to the petition: If it finds prima facie that the RTC has committed an error
warranting the reversal or modification of the judgment, final order, or resolution. The CA may then: a) direct the
transmittal of records; b) set the case for oral arguments; c) require the submission of memoranda; and d)
render judgment.

Difference between Rules 19.12-19.25 of the Special ADR Rules and Rule 42 of the Rules of
Civil
Procedure:
1. The filing of the appeal under the Special ADR Rules shall not stay the award, judgment, final order or
resolution unless the CA directs otherwise. Under Rule 42, judgment is stayed except in certain
instances (e.g. cases governed by the Rules on Summary Procedure).
2. The party appealing the decision/final order of the RTC under the Special ADR Rules shall be required
to post a bond in favor of the prevailing party equal to the amount of the bond in favor of the prevailing
party equal to the amount of the award. Otherwise, petition may be dismissed.

Alternative Dispute Resolution (ADR)

Special Rules of Court on ADR
Chapters 10 & 11

Special Civil Action for Certiorari (Petition for Certiorari)

Rules 19.26-19.35, Special ADR Rules

The special civil action for certiorari referred to in these Special Rules is akin to a petition for certiorari under
Rule 65 of the Rules of Civil Procedure.

Both are based on the same ground: RTC acted without or in excess of its jurisdiction, and there is no appeal
or any plain, speedy and adequate remedy under the ordinary course of law.
Comparing from Rule 65:

Coverage (grave abuse of discretion): Rule 65 can cover any and all kinds of grave abuse of discretion
committed by a tribunal, board or officer exercising judicial/quasi-judicial functions.
The Special ADR Rules is limited to grave abuse of discretion in the following orders of the RTC in ADR related
proceedings:
a) Holding that the arbitration agreement is inexistent, invalid or unenforceable;
b) Reversing the arbitral tribunal's preliminary determination upholding its jurisdiction;
c) Denying the request to refer the dispute to arbitration;
d) Granting or refusing an interim relief;
e) Denying a petition for the appointment of an arbitrator;
f) Confirming, vacating or correcting a domestic arbitral award;
g) Suspending the proceedings to set aside an international commercial arbitral award and referring the
case back to the arbitral tribunal;
h) Allowing a party to enforce an international commercial arbitral award pending appeal;
i) Adjourning or deferring a ruling on whether to set aside, recognize and or enforce an international
commercial arbitral award;
j) allowing a party to enforce a foreign arbitral award pending appeal; and
k) Denying a petition for assistance in taking evidence.
When filed: Under Rule 65, petition for certiorari can be filed within 60 days from notice of the judgment,
order or resolution sought to be assailed.
Under the Special ADR Rules, within 15 days from notice of the judgment, order or resolution sought to be annulled/set
aside, without extension.
NOTE: Erroneous filing under Rule 65, will not toll the 15-day period to file the proper petition for
certiorari under Rule 19 of the Special ADR Rules.

Rule 65: The tribunal that issued the assailed judgment shall be named as a public respondent to the
petition (although merely a nominal party). Thus, private respondent has the duty to appear and defend in
his behalf and of the public respondent.
Same principles obtain under the Special ADR Rules.
HOWEVER, in petitions involving the recognition and enforcement of a foreign arbitral award, the
tribunal shall not be included as a nominal party, but it shall be notified of the proceedings and be
furnished with court processes. (No jurisdiction of PH courts)
Under both Rule 65 and the Special ADR Rules, filing of a special civil action for certiorari does not stay the
proceedings of the lower court/arbitral tribunal.
Thus, the court/tribunal, notwithstanding the filing and pendency of the special civil action, may
continue with the arbitral proceedings and render an award thereon. (Such however, is subject to the
final outcome of the pending petition for certiorari.)

Petitions allowed: Rule 65 allows institution of petitions for certiorari from orders or judgments of any
5

Alternative Dispute Resolution (ADR)

Special Rules of Court on ADR
Chapters 10 & 11

inferior courts.
Special ADR Rules speak only of petitions to the CA from orders, decisions, judgments of RTC in ADR related cases.

Appeal by Certiorari to the Supreme Court (Petition for Review on Certiorari)

Rules 19.36 to 19.42, Special ADR Rules Summary

The silence of the Special ADR Rules and the exclusionary rule under Rule 22.1 thereof preclude the filing
special civil actions for certiorari from orders, decisions or judgments of the CA to the SC.
Thus, the remedy of a party aggrieved by a final resolution or decision of the CA in an ADR related case is to file
a petition for review on certiorari with the SC under the ADR Act.
The appeal by certiorari to the SC under Rules 19.36-19.42 of the Special ADR Rules is akin to a petition for
review on certiorari under Rule 45 of the Rules of Civil Procedure.
Similarities:
a) Both are grounded on pure questions of law;
b) The petition under both Rules is not a matter of right and may be granted only for serious and compelling
reasons resulting in grave prejudice to the aggrieved party.
Nature and extent of judicial review through a petition for review under these Rules: Not a matter of right,
but of sound judicial discretion.
Thus, the mere fact that the petitioner disagrees with the CA's determination of questions of fact, law or
both questions of fact and law, shall not warrant the exercise of the SC's discretionary power.

Instances illustrated under the Special ADR Rules (Rule 19.36) when a petition for review on certiorari of the
decision of the CA to the SC may be granted:
a) When the CA failed to apply the applicable standard/test for judicial review prescribed in these Special ADR
Rules in arriving at its decision, resulting in substantial prejudice to the aggrieved party;
b) When the CA erred in upholding a final order or decision despite the lack of jurisdiction of the court that
rendered such final order or decision;
c) When the CA failed to apply any provision, principle, policy or rule contained in these Rules resulting in
substantial prejudice to the aggrieved party; and
d) When the CA committed an error so egregious and harmful to a party as to amount to an undeniable excess of
jurisdiction.
The error imputed to the CA must be grounded upon any of the above prescribed grounds for review or be
closely analogous thereto. (RBCB Capital Corp. v. BDO Unibank, Inc.)

When filed: Within 15 days from: a) notice of the CA's judgment or final order or resolution appealed from; or b)
denial of the petitioner's motion for new trial or reconsideration.
Such is without prejudice to a motion for the extension thereof for a period of 30 days for justifiable
reasons.
Grounds for motu proprio denial by the SC (similar to Rule 45 of Rules of Civil Procedure):
a) it is without merit; or
b) it is prosecuted manifestly for delay; or
c) the questions raised therein are too insubstantial to require consideration.
The Special ADR Rules is silent on the availability of a petition for review on pure questions of law direct from
the RTC to the SC (allowed under Rule 45).
Rule 19.37 of the Special ADR Rules speaks only of judgments, final orders or resolutions of the CA as
being reviewable in a petition for review on certiorari thereunder.
Hence, a petition for review direct to the SC from a judgment, final order, or resolution of the RTC in the
ADR related cases enumerated in Rule 1.1 is not available.
Group 8

Prepared by:

Alternative Dispute Resolution (ADR)

Special Rules of Court on ADR
Chapters 10 & 11

Analynn Oliveros
Camille Padlan
Rachel Cayangao
Hanna Genilo
Marga Yabut