This document summarizes key points about alternative dispute resolution (ADR) in the Philippines. It discusses [1] the confidential nature of ADR proceedings, [2] the jurisdiction of the Construction Industry Arbitration Commission (CIAC) over construction contract disputes, and [3] some advantages of ADR such as arbitrators being less corruptible than courts. It also analyzes several court cases that address issues such as what constitutes a valid arbitration agreement and when courts have jurisdiction versus ADR bodies.
This document summarizes key points about alternative dispute resolution (ADR) in the Philippines. It discusses [1] the confidential nature of ADR proceedings, [2] the jurisdiction of the Construction Industry Arbitration Commission (CIAC) over construction contract disputes, and [3] some advantages of ADR such as arbitrators being less corruptible than courts. It also analyzes several court cases that address issues such as what constitutes a valid arbitration agreement and when courts have jurisdiction versus ADR bodies.
This document summarizes key points about alternative dispute resolution (ADR) in the Philippines. It discusses [1] the confidential nature of ADR proceedings, [2] the jurisdiction of the Construction Industry Arbitration Commission (CIAC) over construction contract disputes, and [3] some advantages of ADR such as arbitrators being less corruptible than courts. It also analyzes several court cases that address issues such as what constitutes a valid arbitration agreement and when courts have jurisdiction versus ADR bodies.
This document summarizes key points about alternative dispute resolution (ADR) in the Philippines. It discusses [1] the confidential nature of ADR proceedings, [2] the jurisdiction of the Construction Industry Arbitration Commission (CIAC) over construction contract disputes, and [3] some advantages of ADR such as arbitrators being less corruptible than courts. It also analyzes several court cases that address issues such as what constitutes a valid arbitration agreement and when courts have jurisdiction versus ADR bodies.
ADR - Absolutory confidential while it is being litigated - CIAC to CA (Rule 43) - Once a case is filed with the CA, it becomes a public record; the information will now be leaked to media broadcasting/publishing companies
Custodio Parlade – leading practitioner of ADR
CIAC Philippine Dispute Resolution
Justice Robeniol
Section 4 of Executive Order 1008 expressly vests in the CIAC original and exclusive jurisdiction over disputes arising from or connected with construction contracts entered into by parties that have agreed to submit their dispute to voluntary arbitration. It is undisputed that the parties submitted themselves to the jurisdiction of the Commission by virtue of their Agreement to Arbitrate. Commercial Dispute - RA 876; does not involve construction firm. - Ad hoc arbitration
International commercial dispute
- UNCITRAL model
Advantage of ADR: - Arbitrators are NOT corruptible - These arbitrators owe nothing to the one who appointed them.
1. CHUNG FU vs. CA Article 2044, Civil Code Section 19, EO 1008 - The decision of the CIAC is final and unappealable except on questions of law. - Chung Fu: the award is still subject to judicial review - Chung Fu: an award was rendered by the CIAC. What is the mode of appeal? Rule 43 (if you want to question the decision of the CIAC); decisions rendered by quasi-judicial bodies
2. BF CORP. vs. SHANG RI-LA
For an arbitration contract to be valid, it must be: (important, mandatory requisites for a valid arbitration agreement) - In writing - Subscribed (signed) by the parties (See RA 876)
- An arbitration clause/agreement was part and parcel of the mother contract.
Page 1 of 2 ALTERNATIVE DISPUTE RESOLUTION Notes & Jurisprudence | Atty. Benigno G. Par Jr.
- Such sub-agreement which was annexed to the main agreement (mother agreement), for as long as the main agreement was signed, then it forms an integral part of the main agreement. - Stipulations governing ADR like arbitration should be construed liberally towards its validity and enforceability. Example: - Atty. Par signed the letter of dispute settlement through arbitration and was sent to X. X also signed and sent the letter of dispute settlement through arbitration to Atty. Par. Is that valid? YES. (See requisites for a valid arbitration agreement) - E-signatures are valid and binding.
3. PHILROCK vs. CIAC
- The parties cannot stipulate on jurisdiction of courts, including quasi-judicial agencies.
- Jurisdiction cannot be a subject of stipulation (civil procedure) - There is an agreement to submit their arbitration to CIAC. Can they agree to do away with their prior agreement and instead refer to RTC? No more. The jurisdiction of the CIAC is vested already; they cannot change their minds. - Construction contract dispute: Proper remedy: file with RTC a motion to dismiss. Why? The ground is jurisdictional. RTC has no jurisdiction; CIAC has original and exclusive jurisdiction - If it does not involve construction dispute, the nature of agreement is merely commercial, and it is governed by RA 876, the remedy: file motion to suspend proceedings (the ground is NOT jurisdictional) and NOT dismissal; the case will be referred to ad hoc arbitration body. Once there has been an award, it will be referred to the RTC for confirmation of the award.
4. LM POWER ENGINEERING CORP vs. CAPITOL INDUSTRIAL CONSTRUCTION GROUPS
- RTC must dismiss the case; an initiatory pleading must be filed with CIAC (ad hoc arbitration body pursuant to RA 876) since what is involved here is a dispute involving construction contract. - Last sentence in the first issue: It is the policy of the state to encourage ADR methods. Courts should liberally construe arbitration clauses. - In the interpretation of the issue as to the validity/defect of arbitration agreement, it should be resolved in favor of its validity.
5. RCBC vs. MAGWIN MARKETING CORP.
- The Court cannot compel the parties to sign compromise agreement. What the Court can do is to suspend proceedings only.
