Pilot Test of Efficacy of Mandatory Mediation/Conciliation

November 16, 1999

A.M. No. 99-6-01-SC

Gentlemen:

Quoted hereunder for your information, is a resolution of the Court En Banc dated 16 November 1999

"AM No. 99-6-01-SC-PHILJA -Re: Recommendation No. C-12 proposing "TO PILOT TEST THE EFFICACY OF MANDATORY MEDIATION/CONCILIATION". — Acting on the Letter dated 25 October 1999 of retired Justice Jose Y: Feria, Acting Chairman, Committee on Revision of the Rules of Court, recommending approval of the amended guidelines for the implementation of Mediation/Conciliation Proceedings in the Pilot Areas of Mandaluyong City and Valenzuela, Metro Manila, filed in compliance with the resolution of 19 October 1999, the Court Resolved to APPROVE the aforesaid amended guidelines for the Implementation of Mediation/Conciliation Proceedings in the Pilot Areas of Mandaluyong City and Valenzuela"

Very truly yours

 

(SGD.) LUZVIMINDA D. PUNOClerk of Court

By:

 

(SGD.) MA. LUISA D. VILLARAMAAssistant Clerk of CourtSupreme Court of the Philippines

 

Pursuant to par. (5), Section 5, Article VIII of the 1987 Constitution mandating the Supreme Court to promulgate rules that shall provide a simplified and inexpensive procedure for the speedy disposition of cases and Section 2(a), Rule 18 of the 1997 Rules of Civil Procedure, as amended, requiring the courts to "consider the possibility of an amicable settlement or of a submission to alternative modes of resolution";

Considering that Mediation/Conciliation is one of such alternative modes of dispute resolution that is not only speedy but inexpensive as well; and

Recognizing that there is a need to implement Rule 18 of the 1997 Rules of Civil Procedure, as amended, and test the conclusion that mediation/conciliation is a speedy, unexpensive and simplified mode of dispute resolution by actual experiment in selected pilot areas of Mandaluyong City and Valenzuela City, the following guidelines are hereby issued for the information and direction of the Regional Trial Courts and Metropolitan Trial Courts of the aforementioned areas:

1. Applicability — These rules on mediation/conciliation proceedings shall apply to the following cases:

a. Civil cases involving members of the same family within the sixth civil degree of consanguinity or affinity, except those which by law cannot be the subject of compromise, and civil disputes between residents of the same municipality or city cognizable by the Lupon Tagapamayapa in accordance with Section 408 of the Local Government Code of 1991 (Republic Act 7160);

b. Collection cases based on creditor and debtor relationship;

c. Claims for civil damages;

d. Disputes arising out of lessor-lessee tenant relationship.

2. List of Mediators/Conciliators — The Supreme Court shall provide the Regional Trial Courts and Metropolitan Trial Courts a list of Mediators/Conciliators consisting of persons who are of known probity and impartiality, innovative, patient, understanding and approachable and who have undergone proper and appropriate training on mediation/conciliation. DcSEHT

3. Initial Conference —

a. Order to attend — After the filing of the pre-trial briefs, the COURT motuproprio may call the parties to a conference without the assistance of counsel provided that, at the option of the parties, counsel may be allowed to provide legal assistance to their clients. When circumstances warrant or when the parties signify their intention to settle their dispute, the Court may, even during trial, order mediation and appoint a mediator to assist the parties reach settlement.

b. Matters to be taken up — During the conference, the Presiding Judge shall encourage the parties to submit their dispute to mediation/conciliation for a fair and mutually beneficial compromise that will terminate the pending action.

c. Referral — The Court shall issue an Order suspending the proceedings for thirty (30) days to allow the parties a reasonable time to reach a compromise agreement with aid of the designated Mediator/Conciliator: A copy of this Order shall be furnished the Mediator/Conciliator and the parties directing them to meet on a time and date stated therein at a designated place.

4. Mediation/Conciliation Proceedings —

a. A joint conference shall first be held with both parties-litigants present. The Mediator/Conciliator shall explain the mediation/conciliation proceedings stressing the benefits of an early settlement of the dispute and shall attempt immediate settlement. If no settlement is reached at this conference, the Mediator/Conciliator may then hold separate conferences with each party on such dates and times as may be agreed upon by the parties and the Mediator/Conciliator to determine their respective real interest in the dispute. Thereafter, another joint conference may be held to consider various options proposed by the Mediator/Conciliator to resolve the dispute.

b. Mediators/Conciliators shall be considered as officers of the court when they are in the actual performance of duties, or when acting on the occasion or by reason thereof.

c. The Mediator/Conciliator shall submit to the Court where the case is pending, a report on the progress of the proceedings once every thirty (30) days.

d. At the end of the thirty (30) day period allowed by the Court, if no settlement has been reached, the case must be returned to the Court for further proceedings, unless the parties agree to further continue the mediation/conciliation in which case a last extension of thirty (30) days may be granted by the Court.

5. Proceedings in case of Successful Settlement —

a. If the mediation/conciliation is successful, the court shall immediately be informed and given the original Compromise Agreement entered into by the parties as basis for the rendition of a judgment by compromise which may be enforced by execution.

b. If the party obliged by the mediated/conciliated settlement forthwith fully complies with his undertaking to pay, deliver, perform, vacate do some other act, so that nothing more remains to be done, a Certificate of Satisfaction shall be signed by the party concerned and the case may be dismissed upon his motion or upon the Court's own motion.

6. Proceedings in case of Failure to Settle — If the mediation/conciliation is not successful, the Mediator/Conciliator concerned shall issue a Certificate of Failed Mediation/Conciliation" for the purpose of returning the case for further judicial proceedings.

7. Confidentiality of Records — To encourage the spontaneity that is conducive to effective communication, thereby enhancing the possibility of successful mediation/conciliation efforts, the mediation/conciliation proceedings and all incidents thereto shall be kept strictly confidential including any admissions, statements, or other evidence adduced therein.

8. Compensation of Mediators/Conciliators — The Court shall allow the Mediator/Conciliator such reasonable compensation as the circumstances of the case warrant, to be taxed as against the party obligor under the Compromise Agreement, or apportioned between the parties, as justice requires. DTaSIc

9. Period of mediation excluded — The period during which the case is undergoing mediation/conciliation shall be excluded from the regular and mandatory periods for trial and rendition of judgment in ordinary cases and in cases under summary procedure.

10. Forms — The judges shall be provided the necessary legal forms to implement this order.

Strict compliance with these guidelines is enjoined. This Administrative Order shall be effective immediately.

Manila, Philippines, November 15, 1999.