Characterization of Products

Special Rules of Court on ADR [AM No. 07-11-08-SC]

The parties may be submitted to ADR during pre-trial. If ADR fails, judge will schedule the continuance of the pre-trial conference The 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 issue [RA 9285, Sec. 3]

Policy Behind the ADR: To actively promote party autonomy in the resolution of disputes or the freedom of the party to make their own arrangements to resolve their disputes [RA 9285, Sec. 2]

In Relation to Pre-Trial:

(1) At the start of the pre-trial conference, the judge shall immediately refer the parties and/or their counsel if authorized by their clients to the PMC mediation unit for purposes of mediation if available.[AM No.

03-1-09-SC]

(2) The pre-trial briefs of parties must include the parties’ statement of their willingness to enter into an amicable settlement indicating the desired terms thereof or to submit the case to any of the alternative modes of dispute resolution [AM No. 03-1-09-SC]

Exception to the Application of RA 9285:

(1) labor disputes covered by the Labor Code;

(2) the civil status of persons;

(3) validity of a marriage;

(4) any ground for legal separation;

(5) the jurisdiction of courts;

(6) future legitime;

(7) criminal liability; and

(8) those which by law cannot be compromised.

Modes of Alternative Dispute Resolutions:

(1) Arbitration [RA 9285, Sec. 1)

(a) 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\

(b) Different Kinds:

(1) Domestic Arbitration – an arbritration that is not international; governed by RA 876 (Arbitration Law) [RA 9285, Sec.

32]

(2) International Arbitration - An arbitration is international if:

(a) the parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in different States; or (b) one of the following places is situated outside the State in which the parties have their places of business [Article 3, Model Law on International Commercial Arbritration]

(2) Mediation

(a) 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

(b) includes conciliation (3) Mini-Trial

(a) A structured dispute resolution method in which the merits of a case are argued before a panel comprising senior decision makers with or without the presence of a neutral third person after which the parties seek a negotiated settlement

(4) Early Neutral Evaluation

(a) An ADR process wherein parties and their lawyers are brought together early in a pre-trial phase to present summaries of their cases and receive a nonbinding assessment by an experienced, neutral person, with expertise in the subject in the substance of the dispute

(5) Combination of ADR

(a) Example: Med-Arb - step dispute resolution process involving both mediation and arbitration

Special Rules of Court on ADR [AM No. 07-11-08-SC]

The Special ADR Rules shall apply to and govern the following cases [Rule 1.1]

(1) Relief on the issue of Existence, Validity, or Enforceability of the Arbitration Agreement;

(2) Referral ADR

(3) Interim Measures of Protection;

(4) Appointment of Arbitrator;

(5) Challenge to Appointment of Arbitrator;

(6) Termination of Mandate of Arbitrator;

(7) Assistance in Taking Evidence;

(8) Confirmation, Correction or Vacation of Award in Domestic Arbitration;

(9) Recognition and Enforcement or Setting Aside of an Award in International Commercial Arbitration;

(10) Recognition and Enforcement of a Foreign Arbitral Award;

(11) Confidentiality/Protective Orders; and (12) Deposit and Enforcement of Mediated

Settlement Agreements.

Service and Filing of Petition – The petitioner shall serve, either by personal service or courier, a copy of the petition upon the respondent before the filing thereof. Proof of service shall be attached to the petition filed in court.

Notice – served once court finds petition sufficient in form and substance

1. Notice is sent to parties directing them to appear at a particular time and date for hearing

2. Hearing shall not be set no later than 5 days from lapse of period for filing opposition or comment

3. Notice to respondent shall contain a statement allowing him to file a comment or opposition to petition within 15 days from receipt of notice 4. For Referral to ADR or

Confidentiality/Protection Orders:

a. Follow Rule 15 Rules of Court Summary Hearing - In all cases, as far as practicable, the summary hearing shall be conducted in one (1) day and only for purposes of clarifying facts.

Prohibited Submissions [Rule 1.6]

1. Motion to dismiss;

2. Motion for bill of particulars;

3. Motion for new trial or for reopening of trial;

4. Petition for relief from judgment;

5. Motion for extension, except in cases where an ex-parte temporary order of protection has been issued;

6. Rejoinder to reply;

7. Motion to declare a party in default;

8. Any other pleading specifically and disallowed under any provision of the Special ADR Rules.

No summons (Rule 1.9 - In cases covered by the Special ADR Rules, a court acquires authority to act on the petition or motion upon proof of jurisdictional facts, i.e., that the respondent was furnished a copy of the petition and the notice of hearing.

NO SETTLEMENT AMICABLE SETTLEMENT FAILURE TO APPEAR

Agreements made by parties; Amendments to pleading; Schedule

of Trial

If plaintiff is absent when so required to attend, court may

dismiss the case

If defendant is absent, court may hear evidence of plaintiff ex

parte

TRIAL

COURT RENDERS DECISION If evidence is

insufficient to prove plaintiff’s cause of action or defendant’s

counterclaim, court rules in favor of either

one or dismisses the case PRE – TRIAL

INTERVENTION

A legal remedy whereby a person is permitted to become a party in a case, by either:

(1) Joining the plaintiff;

(2) Joining the defendant;

(3) Asserting his right against both plaintiff and defendant, considering that either:

(a) He has a legal interest in the subject matter of the action;

(b) He has legal interest in the success of either of the parties

(c) He has legal interest against both of the parties

(d) He is going to be adversely affected by the disposition of the property in the custody of the court [Rule 19, Sec. 1]

Intervention is never an independent action, but is ancillary and supplemental to the existing litigation. Its purpose is to afford one not an original party, yet having a certain right/interest in the pending case, the opportunity to appear and be joined so he could assert or protect such right/interest.

[Carino v. Ofilada, 1993]