Title
ADR rules for disputes among government agencies
Law
Osg
Decision Date
Mar 22, 2010
The Rules on Alternative Dispute Resolution for Disputes between National Government Agencies in the Philippines provide a fair and efficient way to settle disputes among government agencies through mediation and arbitration, with the aim of promoting party autonomy and confidentiality in the process.

Law Summary

Definitions

  • ADR: Any non-judicial process resolving disputes (e.g., Mediation, Arbitration, Early Neutral Evaluation).
  • Arbitration: Dispute resolved by neutral third party issuing an award.
  • Mediation: Voluntary facilitation by neutral third party for amicable agreement.
  • Early Neutral Evaluation: Non-binding assessment to facilitate compromise.
  • NGA: Government entities vested by law with quasi-judicial powers, excluding government-owned or controlled corporations.

Choice of ADR Mode and Limitations

  • Solicitor General chooses appropriate ADR mode based on nature of dispute.
  • Disputes involving constitutional issues, public order, morals, or public interest are resolved by adjudication, not ADR.

Application and Technical Rules

  • ADR promotes party autonomy, confidentiality, prompt and amicable resolution.
  • Formal rules of evidence are not binding in ADR to ensure substantive due process.

Mediation Procedure

  • Applicable to disputes among NGAs excluding those involving constitutional or public interest issues.
  • Solicitor General evaluates and determines suitability for mediation.
  • Preliminary mediation conference requires authorized representatives with powers to negotiate and settle.
  • Parties select mediator from accredited OSG lawyer-mediators; if no consensus, Solicitor General assigns mediator.
  • Lawyers may attend mediation adhering to Supreme Court guidelines.
  • Joint initial conference involves opening statements, exploration of interests, and confidential caucuses if needed.
  • Mediation proceedings are confidential; statements and proposals are inadmissible in court.
  • Agreements reached are drafted as written compromise agreements, which may be converted into arbitration awards.
  • Mediation costs imposed by special assessment.

Arbitration Procedure

  • Parties: NGAs and indispensable private individuals/entities.
  • Cases eligible include first-instance arbitration petitions, cases after failed mediation, or Secretary of Justice referrals excluding cases with legal or constitutional questions.
  • Arbitration is a precondition before filing in courts.
  • Arbitration initiated by verified petition containing parties’ info, factual basis, signatures, and disclosure of pending cases.
  • Respondents must answer within 10 days; failure allows resolution on complaint alone.
  • No extensions granted except for compelling reasons.
  • Refusal to arbitrate does not impede proceedings; arbitrator appointed and evidence received to decide case.
  • Claims based on documents must annex originals or copies.
  • Solicitor General appoints sole arbitrator or tribunal from accredited lawyers.
  • Arbitrators must be impartial, without conflict of interest or bias.
  • Arbitrators control proceedings to ensure speedy and just resolution.
  • Arbitration is of record with AMD Secretariat acting as clerk and custodian.
  • Arbitrators empowered to issue subpoenas for witnesses and documents.
  • Preliminary conference to simplify issues and agree on procedures; failure to attend may result in dismissal or submission.
  • Arbitration procedures guided by expeditious and equitable practices; not bound by strict legal technicalities.
  • Witness testimonies are submitted via affidavits, with cross-examination at hearing.
  • Arbitrators may appoint experts at parties’ or tribunal’s request; costs allocated accordingly.
  • Arbitrators may issue interim measures to safeguard rights and property.
  • After concluding evidence, parties submit draft decisions; award rendered within 30 days.
  • Awards must state issues, facts, and legal basis clearly.
  • Settlement agreements during arbitration may be entered as awards.
  • Jurisdiction ends upon finality of award or appellate decision.
  • Awards notified and filed with AMD Secretariat; parties may request certified copies.
  • Motions to correct awards allowed for clerical or jurisdictional errors; motions for reconsideration or new trial prohibited.
  • Secretary of Justice may vacate awards on grounds of corruption, partiality, misconduct, or excess of power.
  • Awards become final and binding upon Secretary of Justice approval.
  • Appeals to Office of the President allowed within 15 days; award final upon affirmation.

General Provisions

  • Pleadings must have sufficient copies for parties, arbitrators, and AMD Secretariat.
  • Notices deemed effective upon receipt or registered mail delivery.
  • Arbitration proceedings are confidential unless parties consent to publication.
  • Proceedings may be recorded with copies available upon request for a fee.
  • Experts’ fees are shared or paid depending on who requests; subject to tribunal approval.
  • Filing and arbitration fees charged as special assessment based on claim amount; fees subject to OSG adjustment.

Execution and Enforcement

  • Final award is executory fifteen days after receipt by parties.
  • Appeals do not automatically stay execution unless ordered.
  • Enforcement may require bond posting from prevailing party if appealed.
  • Upon reversal of award, orders for restitution may be issued.

Amendment of Rules

  • Solicitor General to create committee to study proposed amendments.
  • Amendments have prospective effect only.
  • Amendments take effect 15 days after publication in a newspaper of general circulation.

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