Title
Guidelines for Cooperative Voluntary Arbitration
Law
Cda Memorandum Circular No. 2010-07
Decision Date
Aug 24, 2010
The Cooperative Development Authority (CDA) has issued guidelines on voluntary arbitration, a dispute resolution process for cooperative disputes, in accordance with the Alternative Dispute Resolution Act of 2004, providing procedures for the selection of arbitrators, conduct of hearings, and enforcement of decisions.

Law Summary

Key Definitions

  • Alternative Dispute Resolution (ADR): Any dispute resolution process other than court adjudication involving a neutral third party.
  • Award/Decision: Arbitrator's judgment resolving the dispute.
  • Dispute: Intra or inter-cooperative controversies including violations of membership rights.
  • Settlement: A compromise or arrangement resolving the dispute.
  • Voluntary Arbitration: Dispute resolution by arbitrators chosen by the parties.
  • Voluntary Arbitrator: Authorized CDA employee or accredited individual chosen to decide disputes.

Applicability and Governing Rules

  • Guidelines primarily govern voluntary arbitration.
  • Parties may agree on other proceedings if not contrary to law or guidelines.
  • Revised Rules of Court apply analogously or supplementarily.

Jurisdiction of Voluntary Arbitrator(s)

  • Hold exclusive and original jurisdiction over disputes.
  • Decisions appealable only to the Office of the President.

Powers and Authorities of Voluntary Arbitrators

  • Conduct hearings and receive evidence.
  • Summon witnesses and require documents.
  • Administer oaths.
  • Cite for contempt and issue writs of execution.
  • Exercise necessary powers to resolve disputes.

Nature of Proceedings

  • Voluntary arbitration is administrative, not strictly bound by technical court rules.
  • Due process must be observed.
  • Hearings may proceed despite absence of a party if duly notified.

Filing of Complaints

  • Any party to intra/inter-cooperative disputes unresolved by conciliation or mediation may file.
  • Verified complaints must be filed within 45 days from Certificate of Non-Settlement issuance.
  • Complaints filed late are dismissed.
  • Complaints filed at appropriate CDA Extension Offices with jurisdiction.

Requirements for Complaints

  • Must include names and addresses of parties, description and documentary evidence, and relief sought.
  • Complainants and respondents are parties to the complaint.

Caption and Official Filing Format

  • Formal caption includes Republic of the Philippines, CDA office, case number, parties, and nature of arbitration.

Commencement and Initial Procedures

  • File three originals of verified complaint with filing fee.
  • Accompanied by Certificate of Non-Settlement and Certification against Forum Shopping.
  • CDA issues summons to respondents to file answers within 15 days.

Preliminary Conference

  • Parties are notified and must appear or send authorized representative.
  • Non-appearance of complainant leads to dismissal.
  • Non-appearance of respondent leads to second summons and possible dismissal.
  • Publication may substitute personal service if respondent cannot be located.

Conference Proper and Submission Agreement

  • Parties encouraged to settle voluntarily.
  • If settlement not reached, parties sign Submission Agreement specifying disputes, arbitrators, fees, executing officials, and compliance.
  • Arbitrators must be impartial, unrelated, and free of conflicts.

Appointment and Replacement of Arbitrators

  • CDA appoints arbitrators chosen by parties.
  • Disclosure of bias must be immediate.
  • Parties may waive bias or replace arbitrator.

Termination and Replacement of Arbitrators

  • Written request by parties or voluntary termination/revocation leads to appointment of substitutes.

List of Qualified Arbitrators

  • Composed of CDA accredited, trained individuals.

Prohibited Pleadings

  • Motions such as to dismiss, for new trial, extension, or default declaration are prohibited to ensure speedy resolution.

Place and Representation

  • Arbitration place agreed by parties, within cooperative area.
  • Parties may be represented by counsel.

Summary Proceedings

  • Option for summary resolution by submitting position papers and affidavits.
  • Arbitrator must render judgment within 30 days after submission.

Hearing Procedures

  • Arbitrator controls proceedings and maintains decorum and confidentiality.
  • Opening statements, stipulation of facts, presentation and examination of evidence.
  • Formal offer of evidence may be waived.
  • Closing statements followed by submission of briefs.

Issuance of Decision/Award

  • Decision must be clear, concise, signed by all arbitrators.
  • Served personally or by registered mail.
  • Decision rendered within 30 days unless parties agree otherwise.

Settlement During Arbitration

  • Proceedings terminated if parties settle.
  • Settlement may be recorded as decision/award upon request.

Scope of Decision/Award

  • Arbitrators can decide only on matters submitted to arbitration.

Enforcement of Decision/Award

  • Parties must comply voluntarily.
  • Motion to enforce can be filed with arbitrator who may issue Writ of Execution.
  • Writ served by designated officers and returned with report of service.

Appeal Process

  • Decision/award appealable to the Office of the President within 15 days from receipt.
  • Failure to appeal makes decision final.

Stenographic Notes and Transcripts

  • Parties may request records at their own expense.

Costs and Fees

  • Costs shared equally unless agreed otherwise.
  • Arbitrators' fees must be reasonable and agreed in writing.
  • Costs include arbitrator travel, witnesses' approved expenses, and reasonable legal fees for the successful party.

Monitoring and Reporting

  • Arbitrators must submit monthly status reports to CDA.

Separability and Effectivity

  • Invalid portions do not affect the rest of the Guidelines.
  • Effective 15 days after publication in Official Gazette or national newspaper.

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