0% found this document useful (0 votes)
858 views19 pages

Alternative Dispute Resolution

The document contains a student's answers to a quiz on alternative dispute resolution. 1. It defines mediation as a voluntary process where a neutral third party helps facilitate communication between disputing parties to reach a mutually agreeable solution. Arbitration is defined as a process where a neutral third party is appointed to resolve the dispute by rendering a decision. 2. It explains the difference between an arbitration agreement and a submission agreement based on whether the dispute existed at the time of the agreement or not. 3. It lists some key features of alternative dispute resolution including party autonomy, use of a neutral third party, confidentiality, consensual process, and speedy resolution of disputes.

Uploaded by

Chris Javier
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
858 views19 pages

Alternative Dispute Resolution

The document contains a student's answers to a quiz on alternative dispute resolution. 1. It defines mediation as a voluntary process where a neutral third party helps facilitate communication between disputing parties to reach a mutually agreeable solution. Arbitration is defined as a process where a neutral third party is appointed to resolve the dispute by rendering a decision. 2. It explains the difference between an arbitration agreement and a submission agreement based on whether the dispute existed at the time of the agreement or not. 3. It lists some key features of alternative dispute resolution including party autonomy, use of a neutral third party, confidentiality, consensual process, and speedy resolution of disputes.

Uploaded by

Chris Javier
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
  • Introduction to Arbitration: Discusses the basics of arbitration as a dispute resolution process, including relevant definitions and principles.
  • Mediation Overview: Explains mediation, its voluntary nature, and how it assists parties in reaching agreements.
  • Alternative Dispute Resolution Features: Outlines the distinct features of ADR, discussing various rules and principles.
  • Submissions and Agreements: Differentiates between mediation, arbitration, and submission agreements with examples.
  • Principles of Competence-Competence and Separability: Describes legal doctrines such as competence-competence and separability within arbitration.
  • Case Studies and Applications: Provides case studies on the practical application of mediation and arbitration.

1

ADAMSON UNVERSITY
Manila

Name: Antona, Christopher J. Date: July 30, 2020


Subject: Alternative Dispute Resolution Schedule: TTHS (3:00pm-6:00pm)
Professor: Atty. Myra Gallardo-Batungbakal SY: Mid-Year Class 2020

Quiz No.1

1. Arbitration is a voluntary dispute resolution process in which one or more arbitrators,


appointed in accordance with the agreement of the parties, or rules promulgated, resolve a
dispute by rendering an award decided by the arbitrator/s. On the other hand, mediation is a
voluntary process in which a mediator, a third party neutral, selected by the disputing parties,
facilitates communication and negotiation, and assists the parties in reaching a voluntary
agreement regarding a dispute.

2. There is a submission agreement when two or more persons or parties submit to the
arbitration of one or more arbitrators any controversy existing between them at the time of the
submission. On the other hand, it is an arbitration agreement when the parties to any contract
agree to settle by arbitration a controversy thereafter arising between them.

3.
● Party Autonomy – where the parties under arbitration proceedings have the freedom to
choose their arbitrator/s, substantive law or procedural law of their arbitration, place of
arbitration, time of arbitration, etc.
● Speedy disposition of case – the arbitration proceeding shall be concluded within 6
months as provided in the Special ADR Rules compare with the court-initiated
proceedings that take several years to be decided.
● Less expensive – arbitration is a cost-efficient way of settling controversies in the sense
that a party may no longer resort to engage services of a lawyers, filing pleadings before
the court, etc.
● Declog court’s cases – it helps the court to declog numerous numbers of cases as the
same, in arbitration, need not be filed in court.
● Security of enforcement – the arbitration award gives ample security for its enforcement
because under Section 17 of the Special ADR Rules, once the arbitral award has been
deposited by the parties before the proper Clerk of Court of the RTC who has jurisdiction
over such award, upon motion of a party, the same shall be enforced in case there is
non-performance of such award.

4. The competence-competence doctrine refers to the matter that the arbitral tribunal shall be
accorded the first opportunity or competence to rule on the issue of whether or not it has the
competence or jurisdiction to decide a dispute submitted to it for decision, including any
objection with respect to the existence or validity of the arbitration agreement. The court must
exercise judicial restraint and remand the same to the competence or jurisdiction of the arbitral
tribunal when a court is asked to rule upon issue/s affecting the competence or jurisdiction of an
arbitral tribunal in a dispute brought before it, either before or after the arbitral tribunal is
constituted.

5. The principle of separability means that the arbitration clause shall be treated as an
agreement independent of the other terms of the contract of which it forms part. The arbitration
clause shall remain valid even if the contract between the parties has been rendered null and
void.
2
ALISTAIR P. SALVADOR
201711766
Alternative Dispute Resolution
Quiz No. 1

1. Mediation is 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 while
in Arbitration would mean 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 RA No. 9285 in resolving a
dispute by rendering an award.

2. Under Section 2 of RA 876, what determines whether an agreement is a


submission agreement or an arbitration agreement is the time when the
controversy arises or when it I expected to arise (if it will ever arise). If the
controversy or dispute exists at the time that the parties have no
agreement to arbitrate the controversy or dispute, and it is only when the
controversy or dispute is already existing that the parties agree to submit
the dispute to arbitration, that agreement is a submission agreement. On
the other hand, if the parties enter into an agreement to settle by
arbitration a controversy or dispute which might arise in the future, that
agreement is an arbitration agreement.

3. Party Autonomy – It is the freedom of the parties in a contract to make


their own arrangements to resolve their disputes, freedom to choose their
mediator, freedom to choose the procedural rule, freedom to choose the
place/venue of the mediation, and freedom to choose the language to
be used in their mediation.
Speedy Disposition of Cases –There is a timeline to be considered to avoid
undue delay of the cases and helps to declog the dockets.
Less Costly on both parties – It would mean that both parties will not
spend much money in mediation.
Confidential – It would mean that all information, relative to the subject of
the mediation or arbitration, expressly intended by the source not to be
disclosed to anybody/anyone.
There is a third party neutral – Any person who conducts
mediation/arbitration in which the third party neutral must be impartial
and independent.
4. The Special ADR Rules recognize the principle of
competence-competence, which means that the arbitral tribunal may
initially rule on its own jurisdiction, including any objections with respect to
the existence or validity of the arbitration agreement or any condition
precedent to the filing of a request for arbitration.

5. The Special ADR Rules recognize the principle of separability of the


arbitration clause, which means that said clause shall be treated as an
agreement independent of the other terms of the contract of the
contract which it forms part. A decision that the contract is null and void
shall not entail ipso jure the invalidity of the arbitration clause.
3
ADAMSON UNIVERSITY
Manila

Name: Anna Marie B. Dayanghirang Date: July 30, 2020


Subject: Alternative Dispute Resolution Schedule: TTHS (3:00-6:00pm)
Professor: Atty. Myra Gallardo SY: Mid-Year Class 2020

QUIZ #1

1. Mediation is a voluntary process in which a mediator facilitates communication


and negotiation, and assist the parties in reaching a voluntary agreement, the
process in non adversarial and focuses on the parties’ resolving the dispute
themselves using the skills of a mediator. Whereas, a voluntary dispute
resolution process where one or more arbitrators are appointed in accordance
with the agreement of the parties, resolve a dispute by rendering an award is
called Arbitration. In mediation, a mediator is appointed by the parties to help
establish effective communication and by doing so, finds a solution. While in
arbitration, an arbitrator makes the determination in favor of one of the parties.
There is a win-win situation in mediation, however there in none in arbitration.

2. An arbitration agreement is an agreement by the parties to submit to arbitration


disputes, which have arisen, or which may arise between the parties, it exists
when parties to any contract agree to settle a dispute or controversy between
the parties through arbitration. While in submission agreement, parties submit to
the arbitration any controversy existing between them at the time of submission.
Submission agreements are prepared after the dispute has arisen.

3. The following the features of Alternative Dispute Resolution:

First, there is Party Autonomy since there is freedom of the parties to make their
own agreements to resolve their disputes and the process is determined and
controlled by the said parties and decision-making authority rests in the parties.
Alternative Dispute Resolution involves a third party neutral to achieve a
settlement and help frame options for solution/s. Moreover, Alternative Dispute
Resolution is generally confidential; Special ADR Rules expressly provides that
information obtained through mediation shall be privileged and confidential.
Fourth, ADR is a consensual process; there exist the ability of the parties to
structure a process that is tailored to the situation and the dispute at hand.
Lastly, there is speedy disposition of cases in ADR, since resorting to the said
process affords prompt, economical and amicable resolution to the parties.

4. Under Special Rules of Court in Alternative Dispute Resolution, the principle of


competence-competence means that the arbitral tribunal may initially rule on its
own jurisdiction, including any objects with respect to the existence or validity of
the arbitration agreement or any condition precedent to the filing of a request for
arbitration. Under Special Rules of Court in Alternative Dispute Resolution, the
arbitral tribunal shall be accorded the first opportunity or competence to rule on
the issue whether or not it has the competence or jurisdiction to decide a
dispute submitted to it for decision, including any objection with respect to the
existence or validity of the arbitration agreement.

5. The Doctrine of Separability means the arbitration clause shall be treated as an


agreement independent of the other terms of the contract of which it forms part.
A decision that the contract is null and void shall not entail ipso jure the invalidity
of the arbitration clause. Here, arbitration agreement is independent of the main
contract even if it is contained in an arbitral clause.
4
Samantha G. Gonzales Adamson University
Alternative Dispute Resolution

Quiz # 1

1. Differentiate mediation from arbitration.

The difference between a mediation and arbitration are the following:

a) In mediation, the dispute is referred to a third-party neutral called a


mediator while in arbitration the dispute is submitted for resolution to an
arbitrator;

b) In mediation, the mediator only facilitates the communication and


negotiation of the parties and assist them in reaching a voluntary
agreement to resolve the dispute, whereas in arbitration, the arbitrator
controls the process of arbitration and he renders an award;

c) In mediation, the mediator only recommends, and it is up to the parties


whether or not they will consider it, while in arbitration, the arbitrator
decides who will win in the dispute by rendering an award;

d) In mediation, the voluntary agreement made by the parties is not legally


binding, while in arbitration, the award is legally binding and enforceable
to the court; and

e) In mediation, there is no winner or loser while in arbitration there is a


winner and a loser.

2. Differentiate an Arbitral Agreement from a Submission Agreement.

The two may be distinguished in the following ways:

a) An arbitral agreement is a clause in a contract while a submission


agreement is a separate written agreement made by the parties;

b) An arbitral agreement is a clause which states that the parties agree to


settle a dispute relating to the contract that may arise in the future in a
process outside the court. On the other hand, a submission agreement is
a written agreement made by the parties to settle an ongoing or past
dispute through arbitration; and

c) An arbitral agreement is made before the litigation commence as it is


already in the contract between the parties while a submission
agreement can be made during litigation to remove the dispute in the
jurisdiction of the court.

3. Give at least 5 features of ADR and briefly explain each.

The following are the features of ADR:

a) It has party autonomy which means that the parties can freely choose the
arrangements on how their dispute will be resolved. This includes the
appointment of a mediator or arbitrator, the law or rules that will be followed
and the place where it will be conducted;

b) It is less expensive because the process is shorter than a litigation, employing


mediator or arbitrator costs significantly less than employing lawyers and
there are no docket fees;

c) It is confidential because according to R.A. 9285, all communications and


information in the mediation and arbitration are privileged and confidential;

d) It is speedy because the parties can decide on the rules that will govern their
mediation or arbitration without the complexities of court procedures; and

e) It is impartial because the parties can freely choose the 3rd party neutral that
will be their mediator, arbitrator or arbitrator tribunal.

4. What is competence-competence?

The Principle of Competence-Competence is a generally accepted principle whereby


a legal body such as an arbitral tribunal has the competence or jurisdiction to rule as to the
extent of its own competence on an issue presented before it.

5. What is Doctrine of Separability

Doctrine of Separability states that an arbitration agreement in a contract remains


valid even if the whole contract is declared as null and void. It allows the arbitration
agreement to be considered as entirely separate from the contract to which it is contained.
5
Magdalena, Diwee Mariz B. Alternative Dispute Resolution
July 30, 2020 T-Th-Sat. 3:00-6:00

Quiz #1

1. Mediation is a procedure in which the parties discuss their disputes with a


mediator who assists them in reaching a settlement. It is also less expensive for
the parties. While Arbitration is a private process where disputing parties agree
that one or several individuals can make a decision about the dispute it is also a
mode of settlement where in it is keen to litigation. It is a binding resolution
upheld by the court except in very narrow circumstance.

2. Arbitration agreement is a contract in which two or more parties agrees to settle


a dispute outside the court. It also defines when the parties to any contract agree
to settle by arbitration a controversy arising between them. On the other hand,
submission agreement is when two or more persons or parties submit to the
arbitration of one or more arbitrators and any controversy existing between them
at the time of the submission

3. The features of Alternative Dispute Resolution are the following:


A. Party Autonomy – in settling disputes, the parties have their party autonomy
in choosing who will be the mediator who will help them to settle the conflict.
In that way the parties exercises their right to choose who will be the mediator
with mutual decision.
B. Declog Court Dockets – this feature of ADR helps the courts in settling
issues without going to their court of jurisdiction for the settling of disputes. It
is an advantage for the courts to prioritize the cases that needs litigation if a
conflict may be settled by means of mediation process.
C. Achieving speedy disposition or resolving of cases – this feature of ADR
helps the parties to settle the disposition of cases in faster and more
convenient way because the mediator helps the parties to settle the conflict
without going to the court.
D. Less costly – going to a process of mediation is less costly for the parties
because they don’t have to go to courts to settle the disputes also in
mediation there’s no need to pay fees such as docket fees and other fees that
courts charge.
E. Impartial third party neutral – the mediator chose by the parties shall be
impartial. Meaning the mediator shall not be bias. He shall put himself to the
situation of the parties and settle the conflict without giving favor between the
parties.
4. The principle of competence-competence is the arbitral tribunal shall be
accorded the first opportunity or competence to rule on the issue whether or not it
has the competence or jurisdiction to decide a dispute submitted to it for decision
including any objection with respect to the existence or validity of the arbitration
agreement.

5. Doctrine of Separability is a legal doctrine that allows an arbitration agreement


to be considered entirely separately from the underlying contract in which it is
contained. It also states that the arbitration agreement is to be treated separate
from the main contractual responsibility. It also recognizes the arbitration clause
in a main contract as a separate contract, independent and distinct from the main
contract.
6
ADAMSON UNIVERSITY
Manila

Name: Char Mae C. Casil Date: July 28, 2020


Subject: Alternative Dispute Resolution Schedule: TTHS(3:00-6:00pm)
Professor: Atty. Myra Gallardo SY: Mid-Year Class 2020

Quiz No. 1

1. Mediation and arbitration are both considered as basic alternative dispute


resolution. The difference between them is that in mediation, the third party
neutral only guides or helps the conflicting parties by giving advice in attaining a
voluntary agreement regarding the dispute, whereas in arbitration, the arbitrator
resolves a dispute by rendering an award.

2. The differences between arbitral agreement and submission agreement are: first,
in the former, there is an arbitral agreement clause which can be found in the
contract where if future conflict arises between the contracting parties, they may
resolve the dispute through arbitration. On the other hand, submission
agreement is done between the parties if there is no arbitral agreement clause in
their contract but they wanted to resolve a current dispute that has arose
through arbitration.

3. The first feature of alternative dispute resolution is party autonomy which refers
to the independence of the parties to promulgate their own rules in resolving a
dispute, its venue and the people that should be involved in the process.
Second, since there is party autonomy, the parties may agree to resolve
conflicts within a short span of time which constitutes speedy disposition of
their case. Third, it is less costly because the parties intending to resolve
disputes through ADR are not subject to payment for the court fees. Next, it
helps de-clog the court by resolving cases without a court hearing and lastly,
the third party neutral appointed by the parties can be challenged by the parties
if conflict of interest arises or when a clear bias has been posited by him/her.

4. Competence-competence doctrine refers to the authority of the arbitration


tribunal to determine and decide disputes regarding to its own jurisdiction.
Therefore, courts shall wait first for the arbitrator’s decision regarding its
competence before it decides jurisdictional cases.
5. The Doctrine of Separability with regards to arbitral agreement establishes that if
some or all of the provisions in the contract are declared null and void, the
arbitration agreement clause shall remain valid.
7
ADAMSON UNIVERSITY
Manila

Name: Reynaldo A. Agawa Date: July 18, 2020


Subject: Alternative Dispute Resolution Schedule: TTHS (3:00-6:00pm)
Professor: Atty. Myra Gallardo SY: Mid-Year Class 2020

Quiz 1

1. Differentiate Mediation from Arbitration. (20 pts.)


In an arbitration, the arbitrator looks into the legal rights and wrongs of a dispute
and makes a decision. Once the arbitrator has arrived at a decision, it is binding
on parties whether they agree with it or not. It is very much like the way a court
case is decided by a judge, except that the process does not take place in a
court room, and it is not open to the public. As in a court case, there is usually a
winning and a losing party in an arbitration.

In a mediation, the mediator, essentially, helps parties to settle their disputes by


a process of discussion and narrowing differences. The mediator helps the
parties to arrive at an agreed solution. He does not decide the dispute. A
successful mediation results in an agreement signed by the parties, whereas a
contested arbitration results in a decision by the arbitrator himself without the
agreement of the parties. In a mediation, there is no such thing as a winning or
losing party, because there is no binding decision without both parties agreeing
to one.

2. Differentiate an Arbitral Agreement from a Submission Agreement. (20 pts.)


In arbitration agreement provides the basis for arbitration. It is defined as an
agreement to submit present or future disputes to arbitration.

In submission agreement, is the agreement by which the parties to a dispute


that has already arisen submit the dispute to arbitration. And if there is no
existing arbitration agreement at the time the case is filed but the parties
subsequently enter into an arbitration agreement, they may request the court to
refer their dispute to arbitration.

3. Give at least five features of ADR and briefly explain each. (20 pts.)
Features of ADR includes the following:
(1) party autonomy – there is the freedom of the party to make their own
arrangements to resolve their disputes.
(2) speedy – it takes less time to resolve disputes in ADR compared to courts
(3) active private sector participation in the settlement of disputes through ADR
– as compared to the courts which is controlled by the State.
(4) efficient – it resolves cases with less procedures
(5) flexible – it adjusts to the requirements of the parties involved

4. What is competence-competence? (20 pts.)


Competence-competence is a foundational principle of the modern law of
arbitration. According to this principle, an arbitral tribunal is competent to
decide its own competence. In other words, the tribunal has jurisdiction to
decide its own jurisdiction. That principle demands, in turn, that the arbitral
tribunal, and not the court, should in the first instance decide the tribunal’s
competence.

5. What is the Doctrine of Separability? (20 pts.)


The Doctrine of Separability provides that an arbitration agreement which forms
or was intended to form part of another agreement (whether or not in writing)
shall not be regarded as invalid, non-existent or ineffective because that other
agreement is invalid, or did not come into existence or has become ineffective,
and it shall for that purpose be treated as a distinct agreement. It allows an
arbitration agreement to be considered entirely separately from the underlying
contract in which it is contained.
8

ADAMSON UNIVERSITY COLLEGE OF LAW

Alternative Dispute Resolution

Mid-Year Term 2019, 2020

Prof. M.A. Gallardo-Batungbakal

Quiz #1 

Directions:  Answer direct to the point.  Answers should not exceed 5 sentences each.

Best of luck.  Submit answers at or before 5 PM today in our google classroom.  

1. Differentiate Mediation from Arbitration.  (20 pts.)

In Mediation, the parties decide and prepared the so called “Mediated


Settlement Agreement”; while in Arbitration, the arbitrator decides the dispute
by rendering an award.

Also, in Mediation, the mediator only facilitates the negotiations and


communication and his recommendations are not binding in the court and which
only serves as guidelines for the parties; while in Arbitration, the decision of the
arbitrator in the form of award is legally enforceable or binding in the court.

Further, Mediation is not based on merit or evidence–based; while


Arbitration is based on merits or evidence-based.

Furthermore, in Mediation, both parties have an amicable resolution or


settlement (win-win solution); while in Arbitration, one party wins and the other
party loses.
2. Differentiate an Arbitral Agreement from a Submission Agreement.  (20
pts.)

When two or more persons or parties submit to the arbitration of one or


more arbitrators any controversy existing between them at the time of the
submission, it is a submission agreement. However, when the parties to any
contract may in such contract agree to settle by arbitration a controversy
thereafter arising between them, it is an arbitration agreement. (Section 2 of RA
No. 876).

3.      Give at least five features of ADR and briefly explain each. (20 pts.)

1) It is prompt since it declogs court dockets which ensures speedy


disposition of the disputes.

2) It is economical since it avoids the tedious and costly court trials or


litigation.

3) It promotes candor of all parties involved since there is confidentiality of


the process being upheld.

4) Means used to resolve a dispute or controversy which usually


involves the participation of neutral third-party who acts with
impartiality.

5) There is party autonomy in the resolution of disputes since parties are


free to make their own arrangements to resolve their disputes.

4.      What is competence-competence?  (20 pts.)

The principle of competence-competence in ADR means that the arbitral


tribunal has the first opportunity to rule on its own jurisdiction and
competence including any objections on the existence or validity of the
arbitration agreement, or any other condition precedent to the filing of a
request for arbitration. [Rule 2.2 (B) of Rule 2 of A.M. 07-11-08-SC].

5.      What is the Doctrine of Separability?  (20 pts.)


The Doctrine of Separability means that the arbitration clause can stand
alone or it is independent from the provisions or terms in the contract which it
forms part. [Rule 2.2 (B) of Rule 2 of A.M. 07-11-08-SC].

This means that the nullity or invalidity of a contract does not


automatically render the arbitration clause invalid or void.

9
ADAMSON UNIVERSITY
Manila

Name: Glenda V. Garrido Date: July 27, 2020


Subject: Alternative Dispute Resolution Schedule: TTHS (3:00-6:00pm)
Professor: Atty. Myra Gallardo SY: Mid-Year Class 2020

1. Mediation and Arbitration are voluntary dispute resolutions wherein there is a


third party neutral who will assist the parties in settling disputes. There are
other modes is settling controversy between parties, other than litigation. The
main difference between them is that, in mediation, the third party neutral, the
mediator/s, does not render any advice or award for the parties. The parties
will just be guided by the mediator/s to make their mediated settlement
agreement base on what they have agreed upon during the process of
mediation. In arbitration, on the other hand, the third party neutral or the
arbitrator/s will render a decision or award for the parties which shall be
binding among the parties.

2. Arbitral Agreement is a written clause on the contract of the parties that when
a controversy or dispute arises at the time of the fulfillment of the contract,
they will settle it by arbitration. It is usually written and subscribe by the
parties. The purpose of which is for future disputes. Submission Agreement,
on the other hand, is when a controversy arises between the parties, and
agreed to submit it to arbitration. The controversy already exists at the time
the parties submitted it to arbitration.
3. Some of the features of ADR (Alternative Dispute Resolution) are the
following:
a. Party Autonomy- it is when the parties have the right to choose the rules
and process of settling their disputes on their own terms. It may include
who will be there mediators or arbitrators, the language they will use and
the place of where the mediation or arbitration will be held;
b. Speedy Disposition of Case- Unlike with litigation, which takes years to
settle cases, in ADR the cases or disputes can be able to settle is fast
manner, most of the controversy can be resolve within thirty days (30);
c. Economical- ADR also helped the parties financially considering that they
will no longer pay for their counsels every hearing. And since it may done
anywhere they can saves time, and effort;
d. Confidentiality of the Mediation- all the information during the process will
remain confidential. Unless otherwise waived by the parties no one will be
allowed to disclose the information provided by the parties during the
mediation or arbitration; and
e. Impartial Justice- the parties may not say that one of the arbitrators or
mediators rendered impartiality during the proceedings considering that
they are the one who choose their arbitrators or mediators. It shows that
ADR promotes neutrality into its process.
4. It is when the arbitral tribunal has the first opportunity or competence to rule
on the issue of whether they have the competence or jurisdiction to decide
the dispute submitted. It may include any objection with respect to the
existence on the validity of the arbitration agreement. If the Court was asked
to rule over the jurisdiction of the arbitral tribunal, they may restrain from
doing so. Instead, they will refer it back to the arbitral tribunal and allows the
first opportunity to rule upon the issue. The Court cannot decide on this issue
immediately. The arbitral tribunal must be the first one to settle this matter.

5. Arbitration agreement is independent of the main contract and it is to be


treated as a separate agreement and it does not automatically terminate even
though that the contract it was attached is invalid. This is what we Doctrine of
Separability. The invalidity of the contract does not invalidate the arbitration
agreement. Other than the contract, or be referred as the container, which is
binding among the parties, the arbitration agreement is another contract
binding to the parties. The unenforceability of the contract does not make the
Arbitration agreement, it is still valid and enforceable to the parties.
10
ESCOTO JAYSON G.
Alternative Dispute Resolution
Adamson University College of Law

1.
Under Section 3 (q) of RA 9285, the following are the distinctions to wit:

As to the modes of ADR, both are mechanisms on how to resolve the disputes;

As to who renders the award/voluntary agreement, in mediation it is the parties themselves who
negotiate. Whereas in arbitration one party wins and another party losses and it is the arbitrator
who renders the award; and

As to the tender of opinion, a mediator merely facilitates the settlement, mediators do not render
decision, order nor does it give opinion on any decision, whatever their agreement is because of
the two parties opted to adhere, it is not binding. Whereas in arbitration, the arbitrator renders
an award and such award becomes legally binding between the two.

2.
As to what determines whether an arbitration is a submission agreement or an agreement
arbitration, under Section 2 of RA 876, if the controversy or dispute exists at the time that the
parties have no agreement to arbitrate the controversy or dispute, and it is only when the
controversy or is dispute is already existing that the parties agree to submit the dispute to
arbitration, that agreement is a submission agreement. Whereas, if the parties enter into an
agreement to settle by arbitration a controversy or dispute which might arise in the future, that
agreement is an arbitration agreement.
In the case of Ormoc Sugarcane Planters’ Association, Inc. v CA, it makes the same distinction. A
submission agreement is an agreement submitting an existing matter or difference to arbitrators.
On the other hand, an agreement to submit to arbitration is an agreement to submit to
arbitration some future dispute usually stipulated upon a civil contract between the parties.

3. The following are the features of the ADR to wit;


a. Party Autonomy – Under Section 2 of RA 9285, Party autonomy is the freedom of the
parties in a contract to make their own arrangements with respect to the venue of
arbitration/mediation, language, mediator, substantive law and procedural aspects as to
the manner on how they aim to resolve the disputes;
b. Speedy Disposition of cases- As the State recognizes the constitutional right of every
person to a speedy disposition of cases, this feature of ADR promotes the thought of
having an integrated mechanism of dispute resolution where parties do not have to go to
the rigid rules of the court;
c. Less Expensive- This feature of ADR promotes the idea of having a dispute resolution
where parties do not have to pay substantial amount of docket fees, admin fees and
attorney fees. It can be observed that ADR is a less expensive means of conflict resolution
as compared with the judicial system of litigation;
d. Helps de-clog Dockets- This feature of ADR encourages people from public and private
sector to push towards the idea of private justice mainstream of ADR rather than going
to courts and enter into hostile and adversarial system of justice. Here, if a contract
provides for an arbitration clause, in a way, it will help reduce the number of dockets to
be filed before the civil courts; and
e. Impartial Third party neutral- As a mechanism of conflict resolution, just the same with
the judicial system of litigation, ADR promotes the rule of law and improves the
administration of justice.
4.
Under Rule 2.2 of the Special ADR Rules, the principle of competence-competence provides that
the arbitral tribunal may initially rule on its own jurisdiction, including any objections with
respect to the existence or validity of the arbitration agreement or any condition precedent to
the filing of a request for arbitration. This would very much mean that the arbitral tribunal shall
be accorded the first opportunity or competence to rule on the issue of whether or not it has the
competence or jurisdiction to decide a dispute submitted to it for decision.

5.
Under Rule 2.2 of the Special ADR Rules, the doctrine of separability means that the arbitration
clause shall be treated as an agreement independent of the other terms of the contract of which
it forms part. For instance, if a certain award of arbitration that provides that the contract is null
and void, such fact do not follow the invalidity of the arbitration clause.

In other words, the validity of the arbitration clause is not dependent on the validity of the
contract subject of arbitration.

You might also like