 REMEDIES WHEN THERE IS FAILURE TO COMPLY WITH ‘BARANGAY’

SETTLEMENT
Dear PAO,

I want to seek advice for my aunt. She borrowed money from her co-worker last January 5, 2017,
and payable after four months or on May 5, 2017. Unfortunately, she was unable to pay because
of financial constraints. Her co-worker wanted to settle the matter, so she brought the matter to
barangay (village) authorities. They reached an amicable settlement on May 20, 2017 to the effect
that my aunt conceded to pay her in five equal monthly instalments, the last instalment to be made
on October 20, 2017.
I can honestly say that my aunt tried her best to pay her debt but, unfortunately, she was still
unable to do so. Now, she told me that her co-worker threatened to sue her in court for the full
amount with damages. Is this really possible? I mean, can she really bring a case to court given
that they have already reached an amicable settlement? Shouldn’t she just be allowed to enforce
or execute their settlement before the barangay? My aunt is really worried because she does not
want to have a case filed against her in court. Please advise us.
Robby
Dear Robby,
Republic Act (RA) 7610 or the Local Government Code of 1991 provides a channel for parties to
settle their disputes without having to go to court. It is clearly provided under Section 408 of the
Local Government Code (LGC) that the lupon (council) of each barangay (village) has authority
to bring together parties actually residing in the same city or municipality for amicable settlement
of all disputes, save those exceptions mentioned therein. An amicable settlement appropriately
reached before the barangay has a binding effect and it may thereafter be enforced. As stated
under the LGC:
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“SECTION 416. The amicable settlement and 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 to nullify the award has been filed before
the proper city or municipal court.
xxx
SECTION 417. The amicable settlement and arbitration award may be enforced by execution by
the lupon within six (6) months from the date of settlement. After the lapse of such time, the
settlement may be enforced by action in the appropriate city or municipal court.”
Accordingly, your aunt’s co-worker has the option of enforcing the subject settlement they reached
before the barangay, but only within six (6) months from reaching such settlement or enforce it by
filing an appropriate action before the proper court.
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We wish to further emphasize that the remedies mentioned under Section 417 of the same code
do not rule out the possible availment of another remedy mentioned under our civil laws, which is
to regard the amicable settlement as rescinded and insist upon his original demand by court
action. As stated under Article 2041 of the New Civil Code:
“If one of the parties fails or refuses to abide by the compromise, the other party may either
enforce the compromise or regard it as rescinded and insist upon his original demand.”
Our Supreme Court explained in the case of Miguel vs. Montanez (G.R. No. 191336; January 25,
2012; ponente, Associate Justice Bienvenido Reyes):
“Thus, under Section 417 of the Local Government Code,19 such amicable settlement or
arbitration award may be enforced by execution by the Barangay Lupon within six (6) months
from the date of settlement, or by filing an action to enforce such settlement in the appropriate
city or municipal court, if beyond the six-month period.
xxx
It must be emphasized, however, that enforcement by execution of the amicable settlement, either
under the first or the second remedy, is only applicable if the contracting parties have not
repudiated such settlement within ten (10) days from the date thereof in accordance with Section
416 of the Local Government Code. If the amicable settlement is repudiated by one party, either
expressly or [implicitly], the other party has two options, namely, to enforce the compromise in
accordance with the Local Government Code or Rules of Court as the case may be, or to consider
it rescinded and insist upon his original demand. This is in accord with Article 2041 of the Civil
Code, which qualifies the broad application of Article 2037, viz:
If one of the parties fails or refuses to abide by the compromise, the other party may either enforce
the compromise or regard it as rescinded and insist upon his original demand.
xxx
In the case at bar, the Revised Katarungang Pambarangay Law provides for a two-tiered mode
of enforcement of an amicable settlement, to wit: (a) by execution by the Punong Barangay that
is quasi-judicial and summary in nature on mere motion of the party entitled thereto; and (b) an
action in regular form, which remedy is judicial. However, the mode of enforcement does not rule
out the right of rescission under Art. 2041 of the Civil Code. The availability of the right of
rescission is apparent from the wording of Sec. 417 itself which provides that the amicable
settlement “may” be enforced by execution by the lupon within six (6) months from its date or by
action in the appropriate city or municipal court, if beyond that period. The use of the word “may”
clearly makes the procedure provided in the Revised Katarungang Pambarangay Law directory
or merely optional in nature.
x x x”
We hope that we were able to answer your queries. Please be reminded that this advice is based
solely on the facts you have narrated and our appreciation of the same. Our opinion may vary
when other facts are changed or elaborated

KATARUNGANG PAMBARANGAY PROVISION UNDER RA 7160

SECTION 408. Subject Matter for Amicable Settlement; Exception Thereto. - The lupon of
each Barangay shall have authority to bring together the parties actually residing in the same
city or municipality for amicable settlement of all disputes except:
(a) Where one party is the government, or any subdivision or instrumentality thereof;
 (b) Where one party is a public officer or employee, and the dispute relates to the
performance of his official functions;
(c) Offenses punishable by imprisonment exceeding one (1) year or a fine exceeding
Five thousand pesos (Php5,000.00);
(d) Offenses where there is no private offended party;
(e) Where the dispute involves real properties located in different cities or municipalities
unless the parties thereto agree to submit their differences to amicable settlement by an
appropriate lupon;
(f) Disputes involving parties who actually reside in Barangays of different cities or
municipalities, except where such Barangay units adjoin each other and the parties thereto
agree to submit their differences to amicable settlement by an appropriate lupon;
(c) Such other classes of disputes which the President may determine in the interest of
justice or upon the recommendation of the secretary of Justice.
The court in which non-criminal cases not falling within the authority of the lupon under
this Code are filed may, at any time before trial, motu proprio refer the case to the lupon
concerned for amicable settlement.
SECTION 409. Venue. –
(a) Disputes between persons actually residing in the same Barangay shall be brought for
amicable settlement before the lupon of said Barangay.
(b) Those involving actual residents of different Barangays within the same city or municipality
shall be brought in the Barangay where the respondent or any of the respondents actually
resides, at the election of the complainant.
(c) All disputes involving real property or any interest therein shall be brought in the Barangay
where the real property or the larger portion thereof is situated.
(d) Those arising at the workplace where the contending parties are employed or at the
institution where such parties are enrolled for study, shall be brought in the Barangay where
such workplace or institution is located.
Objections to venue shall be raised in the mediation proceedings before the Punong Barangay;
otherwise, the same shall be deemed waived. Any legal question which may confront the
Punong Barangay in resolving objections to venue herein referred to may be submitted to the
secretary of Justice, or his duly designated representative, whose ruling thereon shall be
binding.
SECTION 410. Procedure for Amicable Settlement. –
(a) Who may initiate proceeding - Upon payment of the appropriate filing fee, any individual who
has a cause of action against another individual involving any matter within the authority of the
lupon may complain, orally or in writing, to the lupon chairman of the Barangay.
(b) Mediation by lupon chairman - Upon receipt of the complaint, the lupon chairman 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
mediation 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 in accordance with the provisions of this
Chapter.
(c) Suspension of prescriptive period of offenses - While the dispute is under mediation,
conciliation, or arbitration, the prescriptive periods for offenses and cause of action under
existing laws shall be interrupted upon filing of the complaint with the Punong Barangay. The
prescriptive periods shall resume upon receipt by the complainant of the complaint or the
certificate of repudiation or of the certification to file action issued by the lupon or pangkat
secretary: Provided, however, That such interruption shall not exceed sixty (60) days from the
filing of the complaint with the Punong Barangay.
(d) Issuance of summons; hearing; grounds for disqualification- The pangkat shall convene not
later than three (3) days from its constitution, on the day and hour set by the lupon chairman, to
hear both parties and their witnesses, simplify issues, and explore all possibilities for amicable
settlement. For this purpose, the pangkat may issue summons for the personal appearance of
parties and witnesses before it. In the event that a party moves to disqualify any member of the
pangkat by reason of relationship, bias, interest, or any other similar grounds 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 resulting vacancy shall be filled as herein provided for.
(e) Period to arrive at a settlement - The pangkat shall arrive at a settlement or resolution of the
dispute within fifteen (15) days from the day it convenes in accordance with this section. 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.
SECTION 411. Form of Settlement. - All amicable settlements shall be in writing, in a language
or dialect known to the parties, signed by them, and attested to by the lupon chairman or the
pangkat chairman, as the case may be. When the parties to the dispute do not use the same
language or dialect, the settlement shall be written in the language or dialect known to them.
SECTION 412. Conciliation. - (a) Pre-condition to Filing of Complaint in Court. - No complaint,
petition, action, or proceeding involving any matter within the authority of the lupon shall be filed
or instituted directly in court or any other government office for adjudication, unless there has
been a confrontation between the parties before the lupon chairman or the pangkat, and that no
conciliation or settlement has been reached as certified by the lupon secretary or pangkat
secretary as attested to by the lupon or pangkat chairman or unless the settlement has been
repudiated by the parties thereto.
(b) Where Parties May Go Directly to Court. - The parties may go directly to court in the
following instances: (1) Where the accused is under detention; (2) Where a person has
otherwise been deprived of personal liberty calling for habeas corpus proceedings; (3) Where
actions are 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.
(c) Conciliation among members of indigenous cultural communities. - The customs and
traditions of indigenous cultural communities shall be applied in settling disputes between
members of the cultural communities.
SECTION 413. Arbitration. - (a) The parties may, at any stage of the proceedings, agree in
writing that they shall abide by the arbitration award of the lupon chairman or the pangkat. Such
agreement to arbitrate may be repudiated within five (5) days from the date thereof for the same
grounds and in accordance with the procedure hereinafter prescribed. The arbitration award
shall be made after the lapse of the period for repudiation and within ten (10) days thereafter.
(b) 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 or dialect, the award shall be written in
the language or dialect known to them.
SECTION 414. Proceedings Open to the Public; Exception. - All proceedings for settlement
shall be public and informal: Provided, however, that the lupon chairman or the pangkat
chairman, as the case may be, may motu proprio or upon request of a party, exclude the public
from the proceedings in the interest of privacy, decency, or public morals.
SECTION 415. Appearance of Parties in Person. - In all katarungang pamBarangay
proceedings, the parties must appear in person without the assistance of counsel or
representative, except for minors and incompetents who may be assisted by their next-of-kin
who are not lawyers.
SECTION 416. Effect of Amicable Settlement and Arbitration Award. - The amicable
settlement and 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 to nullify the award has been filed before the proper city or
municipal court. However, this provision shall not apply to court cases settled by the lupon
under the last paragraph of section 408 of this Code, in which case the compromise settlement
agreed upon by the parties before the lupon chairman or the pangkat chairman shall be
submitted to the court and upon approval thereof, have the force and effect of a judgment of
said court.
SECTION 417. Execution. - The amicable settlement or arbitration award may be enforced by
execution by the lupon within six (6) months from the date of the settlement. After the lapse of
such time, the settlement may be enforced by action in the appropriate city or municipal court.
SECTION 418. Repudiation. - Any party to the dispute may, within ten (10) days from the date
of the settlement, repudiate the same by filing with the lupon chairman a statement to that effect
sworn to before him, where the consent is vitiated by fraud, violence, or intimidation. Such
repudiation shall be sufficient basis for the issuance of the certification for filing a complaint as
hereinabove provided.
SECTION 419. Transmittal of Settlement and Arbitration Award to the Court. - The
secretary of the lupon shall transmit the settlement or the arbitration award to the appropriate
city or municipal court within five (5) days from the date of the award or from the lapse of the
ten-day period repudiating the settlement and shall furnish copies thereof to each of the parties
to the settlement and the lupon chairman.

Executive Order No. 229

SECTION 46. Barangay Agrarian Reform Committee (BARC). — Unless otherwise provided in
this Act, the provisions of Executive Order No. 229 regarding the organization of the Barangay
Agrarian Reform Committee (BARC) shall be in effect.
SECTION 47. Functions of the BARC. — In addition to those provided in Executive Order No.
229, the BARC shall have the following functions:
(a) Mediate and conciliate between parties involved in an agrarian dispute including matters
related to tenurial and financial arrangements;
(b) Assist in the identification of qualified beneficiaries and landowners within the barangay;
(c) Attest to the accuracy of the initial parcellary mapping of the beneficiary's tillage;
(d) Assist qualified beneficiaries in obtaining credit from lending institutions;
(e) Assist in the initial determination of the value of the land;
(f) Assist the DAR representatives in the preparation of periodic reports on the CARP
implementation for submission to the DAR;
(g) Coordinate the delivery of support services to beneficiaries; and
(h) Perform such other functions as may be assigned by the DAR.

(2) The BARC shall endeavour to mediate, conciliate and settle agrarian disputes lodged before
it within thirty (30) days from its taking cognizance thereof. If after the lapse of the thirty day period,
it is unable to settle the dispute, it shall issue a certificate of its proceedings and shall furnish a
copy thereof upon the parties within seven (7) days after the expiration of the thirty-day period.
SECTION 48. Legal Assistance. — The BARC or any member thereof may, whenever necessary
in the exercise of any of its functions hereunder, seek the legal assistance of the DAR and the
provincial, city, or municipal government.
SECTION 49. Rules and Regulations. — The PARC and the DAR shall have the power to issue
rules and regulations, whether substantive or procedural, to carry out the objects and purposes
of this Act. Said rules shall take effect ten (10) days after publication in two (2) national
newspapers of general circulation.