1

REFERENCE AND RESEARCH BUREAU

LEGISLATIVE RESEARCH SERVICE



MATERIALS ON MEDIATION AS A
SPEEDY AND INEXPENSIVE ALTERNATIVE PROCEDURE
FOR SETTLING DISPUTES


This report collates materials on mediation process, the role of Philippine
Judicial Academy (PHILJA), guidelines for implementation of mediation
proceedings, functions of the Philippine Mediation Center (PMC), standards and
procedures for accreditation of mediators for court-referred, court-related
mediation cases, code of ethical standards for mediators and mediation in the
courts. Also included are news clippings of the commentaries of Atty. Francis Lim
in the Philippine Star, on the mediation of cases in the Court of Appeals as well as
his proposal to establish a Philippine Mediation Center.


1. CONSTITUTIONAL PROVISION AND SUPREME COURT
RESOLUTION

1.1 Sec. 5, par. 5, Art. VIII, 1987 Constitution

Sec. 5, provides:

Sec.5. The Supreme Court shall have the following
powers: x x x x (5) promulgate rules concerning the protection and
enforcement of constitutional rights, x x x. Such rules shall
provide a simplified and expensive procedure for the speedy
disposition of cases, x x x.

1.2 Sec. 2 (a), Rule 18 of the 1997 Rules of Civil Procedure

Sec. 2(a), provides:

Sec. 2. Nature and Purpose. The pre-trial is mandatory.
The court shall consider: (a) the possibility of an amicable
settlement or of a submission to alternative modes of dispute
resolution; x x x.
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1.3 Supreme Court Resolution, A. M. No. 02-2-17SC, April 16, 2002
(ANNEX "A")

A Supreme Court Resolution issued on April 16, 2002, for the
purpose of pilot-testing the efficacy of mediation for settling cases pending
in the Court of Appeals as requested by the Philippine Judicial Academy
(PHILJA).

1.4 Supreme Court Resolution, A.M. No. 01-10-5-SC-PHILJA, October 16,
2001 (ANNEX B)

A Supreme Court Resolution issued on October 16, 2001 approving
the issuance of PHILJA proposed resolutions: Designating PHILJA as a
component unit of the Supreme Court for court-referred, court-related
mediation cases, and other forms of Alternative Dispute Resolution
Mechanisms; Revised Guidelines for the Implementation of Mediation
Proceedings; Standards and Procedures for Accreditation of Mediators for
Court Referred, Court Related Mediation Cases; and Code of Ethical
Standards for Mediators.

1.5. Supreme Court Resolution, A.M. No. 99-01-SC-PHILJA, October 19,
1999 ( ANNEX C)

A Supreme Court Resolution issued on October 19, 1999 approving
the issuance of PHILJA proposed resolution to pilot test the efficacy of
Mandatory Mediation/Conciliation in the pilot areas of Mandaluyong City
and Valenzuela City.

2. DEFINITION OF TERMS
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2.1 Mediation is a process of resolving disputes with the aid of a neutral person
who help parties identify issues and develop proposals to resolve their
disputes. Unlike arbitration, the mediator is not empowered to decide
disputes.
2


2.2 Mediation. The act of mediating. The intervention of a third party in a
dispute for the purpose of conciliating the contending parties (p. 569)

2.3 Negotiation. Intercourse between two or more states conducted for the
purpose of affecting an understanding between them; or the conduct of
discussions between the parties to a dispute designed to produce a
settlement of the dispute (p. 607).


1
Sibal, Jose A., Philippine Legal Encyclopedia, pp. 54, 154, 569, 607.
2
Information Division, Philippine Mediation Center, PHILJA, Supreme Court (2002)
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2.4 Conciliation. The process of referring a dispute to a commission of
persons who are empowered to examine the facts and to submit a report
containing recommendations for the settlement of the dispute: their
recommendations or proposals, however, do not have the bending effect of
an award or judgment, as is the case in arbitration. (p. 154)

2.5 Arbitration. The submission of a disputed matter for decision to private,
unofficial persons, selected in a manner provided by law or agreement.
There are two kinds, compulsory or voluntary. Compulsory exists where
the consent of one of the parties is enforceable by statutory enactment
(Labor Code) either in a Court of law or before a justice of peace.
Voluntary where it is affected by mutual agreement of the parties by means
of a rule of court or otherwise. (p. 54)


3. MEDIATION PROCESS
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Mediation is a process where the parties to a pending case are directed by
the court to submit their dispute to a neutral third party (the Mediator), who works
with them to reach a settlement of their controversy. The Mediator acts as a
facilitator for the parties to arrive at a mutually acceptable arrangement, which will
be the basis for the court to render a judgment based on a compromise.

3.1 Orders for Mediation

The trial court, after determining the possibility of an amicable
settlement or of a submission to alternative modes of dispute resolution,
shall issue an Order referring the case to the Philippine Mediation Center
(PMC) unit for mediation and directing the parties to proceed immediately
to the PMC unit. The Order shall be personally given to the parties during
the re-trial. Copy of the Order together with the copy of the complaint
and answers, shall be furnished the PMC Unit within the same date.

3.2 The Selection of a Mediator

The supervisor of the PMC Unit shall assist the parties select a
mutually acceptable mediator from a list of duly accredited mediators and
inform the parties about fees, if any, and the mode of payment. If the
parties cannot agree on a mediator, then the supervisor shall assign the
mediator. The trial court shall immediately be notified of the name of the
mediator, and shall thereafter confirm the selection or appointment of the
mediator.




3
Information Division, Philippine Mediation Center, PHILJA, Supreme Court (2002).
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3.3 Calling Off of Mediation and Non Compliance to Compromise
Agreement

Mediation is a purely voluntary process. The parties or party in
mediation can call it off at any time when it does not seem to be working
and go back to the court and pursue litigation. In noncompliance to
agreements the party affected can immediately apply for execution of the
judgment or order to the trial court that approved the compromise
agreement.

Upon promulgation of judgment based on a compromise agreement,
the Division Clerk of Court shall forthwith issue an entry of judgment and
remand the records of the case to the court of origin for execution of
judgment.

3.4 Mediation Fees

The mediation fee shall be a certain percentage of the filling fee, to
be paid separately from the filling fee, and in accordance with the Level of
Mediators and the schedules presented below:


LEVEL
AMOUNT
CHARGEABLE
MINIMUM
FEE
MAXIMUM
FEE
Accredited mediators who have
handled less than 50 cases (Level I)
20% of filling
fee
P1, 000 P10, 000
Accredited mediators who have
handled more than 50 cases (Level II)
20% of filling
fee
P2, 000 P30, 000
Accredited mediators who have
handled more than 100 cases (Level III)
30% of filling
Fee

P3, 000 P50, 000

Before the start of the mediation, 50% of the mediation fee shall be
paid to the clerk of court. Upon settlement of the case, the balance of the
mediation fee shall also be paid to the clerk of court. If no compromise is
reached, the down payment is forfeited.


4. THE PHILIPPINE JUDICIAL ACADEMY (PHILJA)

The Philippine Judicial Academy was created by the Supreme Court under
Administrative Order No. 35-96 on March 16, 1996 and Republic Act No. 8557
entitled, An Act Establishing the Philippine Judicial Academy, Defining Its
Powers and Functions, Appropriating Funds Therefore, and for Other Purposes,
February 26, 1998.

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In accordance with the guidelines set forth in Supreme Court en banc
Resolution in Adm. Matter No. O1-10-5-SC-PHILJA, dated October 16, 2001,
PHILJA:

4.1 Is designated as the component unit for court-referred, court-related
mediation cases, and other forms of Alternative Dispute Resolution
Mechanisms;

4.2 Directs and manages PMC, initiating for this purpose the technical and
management assistance of appropriate and qualified organizations or
individuals, on such terms as may be stipulated in a Memorandum of
Agreement between PHILJA, through its Chancellor, and such other
organizations or individuals, subject to ratification by the PHILJA Board of
Trustees. The technical assistance include:

a) Establishment of mediation chapters with their respective
supervisors;
b) Recruitment, training and education, monitoring and
performance evaluation of Supervisors and Mediators who will
be assigned to different PMC units;
c) Assignment of trainors, monitors and lecturers for purposes of
instruction, internship, monitoring and evaluation;
d) Training and education in mediation of judges, court personnel,
trainors, educators, lawyers, and officials and personnel of
quasi-judicial agencies;
e) Continuing education, training, skills development, and
upgrading of accredited Mediators at least once every two (2)
years;
f) Development of training and other instructional materials;
g) Development of systems and programs for the selection,
monitoring and periodic evaluation of Mediators;
h) Administrative supervision of Supervisors and Mediators in
each unit;
i) Preparation for submission to and approval by the PHILJA
Board of Trustees and this Court of: (a) Code of Ethical
Standards for Mediators; (b) Guidelines on Mediation; and (c)
Compensation Guidelines for Mediators and Supervisors;
j) Development of a system of evaluating the efficacy of
mediation;
k) Setting up of a viable funding system to make the mediation
process self-sustaining at the earliest possible time;
l) Development of administrative systems for case intake,
screening, evaluation, documentation and record keeping, and
other related activities; and
m) Conduct periodic public information campaigns.

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4.3 Supervises and have operational control over PMC units and Mediation
Chapters with respect to court-referred, court-related mediation cases
through its Mediation Division, in coordination with the Office of the Court
Administrator (OCA).

4.4 Shall determine, with the previous approval of the Supreme Court, when to
conduct annual and or semi-annual settlements week or weeks, without
prejudice to year-round mediation.

4.5 Is directed to study and recommend the use of other forms of court-
diversion or other modes of alternative dispute resolution, and upon its
approval, to implement the same in accordance with such rules as may be
promulgated by the Supreme Court.


5. GUIDELINES FOR THE IMPLEMENTATION OF MEDIATION
PROCEEDINGS

The Supreme Court en banc Resolution in Adm Matter No 01-10-5-SC-
PHILJA, dated October 16, 2001 approved and issued the second revised
guidelines on mediation. The following rules issued with regard to court-referred
mediation are:

5.1 Coverage

The following cases are referable to mediation:

a) All civil cases, settlement of estates, and cases covered by the Rule
on Summary Procedure, except those which by law may not be
compromised;
b) Cases cognizable by the Lupong Tagapamayapa under the
Katarungang Pambarangay Law;
c) The civil aspect of BP 22 cases; and
d) The civil aspect of quasi offenses under Title 14 of the Revised
Penal Code.

5.2 Order for Mediation

The trial court, after determining the possibility of an amicable
settlement or of a submission to alternative modes of dispute resolution,
shall issue an Order referring the case to the Philippine Mediation Center
(PMC) Unit for mediation and directing the parties to proceed immediately
to the PMC Unit. The Order shall be personally given to the parties during
the pre-trial. Copy of the Order together with a copy of the Complaint and
Answer/s, shall be furnished the PMC Unit within the same date.

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5.3 The PMC Unit

There shall be a PMC Unit in courthouses or near the premises of
the trial court for court-referred mediation proceedings.

5.4 Selection of Mediator

The Supervisor of the PMC Unit shall assist the parties select a
mutually acceptable Mediator from a list of duly accredited Mediators and
inform the parties about the fees, if any, and the mode of payment. If the
parties cannot agree on a Mediator, then the Supervisor shall assign the
Mediator. The trial court shall immediately be notified of the name of the
Mediator, and shall thereafter confirm the selection/appointment of the
Mediator.

5.5 Presence of Lawyers

Lawyers may attend the mediation proceedings and shall cooperate
with the Mediator towards the amicable settlement of the dispute.

5.6 Mediation Proceedings

a) The Mediator shall be considered as an officer of the court.
b) A conference before the Mediator shall first be held with both
parties present. The mediator shall explain the mediation
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 may, with the consent of
both parties, hold separate caucuses with each party to enable the
Mediator to determine their respective real interests in the dispute.
Thereafter, another joint conference may be held to consider
various options proposed by the parties to the Mediator to resolve
the disputes.
c) The Mediator shall not record the proceedings in any manner, but
he may take down personal notes to guide him.
d) The Mediator shall submit to the trial court, which referred the case
to mediation, a status report on the progress of the proceedings at
the end of the mediation period.
e) The PMC shall not keep a file of mediation proceedings except the
report of the Mediator. All other records or documents that have
been submitted by the parties shall be returned to them.

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

5.7 Confidentiality of Records

The mediation proceedings and all incidents thereto shall be kept
strictly confidential, unless otherwise specifically provided by law, and all
admissions or statements made therein shall be inadmissible for any
purpose in any proceeding.


6. FUNCTIONS OF THE PHILIPPINE MEDIATION CENTER (PMC)

The functions of the PMC:

6.1 Establish, in coordination with the Office of the Court Administrator
(OCA), units of the Philippine Mediation Center (PMC) in courthouses,
and in such other places as may be necessary. Each unit, manned by
Mediators and Supervisors, shall render mediation services to parties in
court-referred, court-related mediation cases;
6.2 Recruit, screen, train and recommend Mediators for accreditation to this
Court;
6.3 Require prospective Mediators to undergo four-week internship programs;
6.4 Provide training in mediation to judges, court personnel, educators, trainors,
lawyers, and officials and personnel of quasi-judicial agencies;
6.5 Oversee and evaluate the performance of Mediators and Supervisors who
are assigned cases by the courts;
6.6 Prepare a Code of Ethical Standards for Mediators for approval by the
PHILJA Board of Trustees and this Court;
6.7 Implement the procedures in the assignment by the PMC Units of court-
referred, court-related mediation cases to particular Mediators;
6.8 Propose to the Supreme Court (a) Guidelines on Mediation and (b)
Compensation Guidelines for Mediators and Supervisors; and
6.9 Perform other related functions.






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7 STANDARDS AND PROCEDURES FOR ACCREDITATION OF
MEDIATORS FOR COURT REFERRED, COURT RELATED MEDIATION
CASES
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7.1 Basic Qualifications of Prospective Mediators:

1) Bachelors degree
2) At least 30 years of age
3) Good moral character
4) Willingness to learn new skills and render public service
5) Proficiency in oral and written communication in English and Pilipino

7.2 Requirements/Procedure

1) All applicants must submit the following to PHILJA:
- Curriculum Vitae with 2x2 picture
- College School Records
- NBI/Police Clearance
- Certificates of good moral character from two (2) persons who
are not related to the applicant

2) Upon submission, PHILJA and its technical assistant shall:
- Administer a short written comprehension examination
- Interview and evaluate each applicant
- Schedule qualified applicants for training

3) All qualified applicants must successfully complete the following:
- Basic Mediation Seminar-Workshop including a short written
exercise to test their proficiency in oral and written
communication;
- Four-week Internship Program

4) PHILJA requests training services from other organizations or
individuals, the organization or individual shall submit to PHILJA
after the training of the following:
- certification of satisfactory completion of the program;
- summarized report on the overall performance of each
trainee/applicant




4
Supreme Court en banc Resolution in Adm Matter No. 01-10-5-SC-PHILJA, October 16, 2001
10



5) Upon satisfactory completion of all the requirements, the PMC or
the training organization shall prepare a report of the overall
performance of each trainee/applicant for submission to PHILJA.

6) On the basis of the report, PHILJA shall submit to the Court its
recommendation of Mediators for accreditation.

7) If approved by the Court, the accreditation shall be effective for a
period of two (2) years. To maintain good standing, the Mediator
must: a) continue to be of good moral character; b) render
mediation services at least once a week to any PMC Unit; c)
participate during Settlement Weeks; and d) complete refresher
courses to be prescribed by PHILJA within the two (2) year period.

Failure to maintain good standing shall be a cause for the revocation
and/or non-renewal of the accreditation.

The Mediator may request PHILJA, in writing, for the cancellation
of his/her accreditation. Upon confirmation of the cancellation of
accreditation, the Mediator shall surrender his/her Mediators identification
card and shall be dropped from the List of Accredited Mediators.


8 CODE OF ETHICAL STANDARDS FOR MEDIATORS
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8.1 Responsibilities to Courts

A Mediator shall be candid, accurate, and fully responsible to the
trial court concerning his qualifications, availability, and all other pertinent
matters. A Mediator shall observe all administrative policies, applicable
procedural rules, and statutes. A Mediator is responsible to the judiciary
for the propriety of his activities and must observe judicial standards of
fidelity and diligence.

8.2 Responsibilities to Parties

1) Impartiality. The Mediator shall maintain impartiality toward all
parties. Impartiality means freedom from favoritism or bias either by
appearance, word or by action, and a commitment to serve all parties as
opposed to a single party. No time may a Mediator meet with any of
the parties to discuss a case referred.


5
Supreme Court en banc Resolution in Adm. Matter No. 01-10-5-SC-PHILJA, October 16, 2001
11


2) Competence. - A mediator shall maintain professional competence in
mediation skills, including but not limited to:

(a) staying informed of and abiding by all statutes, rules, and
administrative orders relevant to the practice of mediation;
and
(b) regularly engaging in educational activities promoting
professional growth.

3) Conflict of Interest. The Mediator shall refrain from participating in
the mediation of any dispute if he/she perceives that participation, as a
Mediator will be a clear conflict of interest.

4) Avoidance of Delays. A Mediator shall plan a work schedule, refrain
from accepting appointments when it becomes apparent that completion
of the mediation assignments cannot be done in a timely and
expeditious manner, and perform the mediation services in such a way
as to avoid delays.

5) Prohibition Against Solicitation or Advertising. A Mediator shall not
use, the mediation process to solicit, encourage, or otherwise incur
future professional services and financial gain from either or both
parties.

6) Prohibition Against Coercion. A Mediator shall not coerce or unfairly
influence a party into a settlement agreement and shall not make
substantive decisions for any party to a mediation process.

a) Prohibition Against Misrepresentation. A Mediator shall not
intentionally or knowingly misrepresent material facts or
circumstances in the course of conducting a mediation.
b) A Balanced Process. A Mediator shall promote a balanced
process and shall encourage the parties to conduct the
mediation deliberations in a non-adversarial manner.
c) Mutual Respect. A Mediator shall promote mutual respect
among the parties throughout the mediation process.

7) Personal Opinion. While a Mediator may point out possible outcomes
of the case, under no circumstance may a Mediator offer a personal or
professional opinion as to how the trial court, where the case has been
filed, will resolve the dispute.



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8) Disclosure of Fees. Except for his/her authorized fees, the Mediator in
Court-Referred Mediation shall not accept any commission, gift or
other similar forms or remuneration from parties or their
representatives.

9) Confidentiality. The Mediator shall treat information revealed in
mediation in strict confidentiality, except for the following:

(1) Information that is statutorily mandated to be reported;
(2) Information that, in the judgment of the Mediator reveals a
danger of serious physical harm either to a third person or to
himself/herself.

10) Role of Mediator in Settlement. The Mediator has the responsibility
to see to it that the parties consider and understand the terms of the
settlement.

8.3 Relationship with other Professionals

The Mediator shall respect the relationship between mediation and
other professional disciplines including law, medicine, science, accounting,
mental health and social services and shall promote harmony and
cooperation between Mediators and other professionals.

8.4 Responsibilities to Society

1) Pro Bono Service. A Mediator has a professional responsibility to
provide competent service to persons seeking assistance including
those unable to pay for such services. As a means of meeting the
needs of the financially disadvantaged, a Mediator should provide
mediation services pro bono or at a reduced rate of compensation.

2) Support of Mediation. A Mediator should support the
advancement of mediation by encouraging and participating in
research, evaluation, or other forms of professional development
and public education.









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9. MEDIATION OF CASES IN THE COURT OF APPEALS

The Supreme Court in its resolution, A.M. No. 02-2-17-SC, dated April 16,
2002, approved and allowed the pilot testing of mediation proceedings in the Court of
Appeals, as requested by the Philippine Judicial Academy (PHILJA). The objectives
and rules to govern the mediation process are:

9.1 Objectives of the mediation

a. To prove the viability of mediation in appealed cases before the
Court;
b. To test the rules governing the mediation process in appealed cases
before the Court; and

c. To discover the most efficient manner to implement the mediation
program.

9.2 Rules to Govern the Mediation Process

a. Court of Appeals Settlement Month

A month of the year, preferably May, shall be set aside for the
purpose of pilot-testing the efficacy of mediation for settling disputes in the
Court of Appeals, which shall be known a Settlement Month.

b. Coverage

1) Civil cases brought on ordinary appeal with:
i. Both appeal briefs filed; or
ii. Only the appellants brief filed; or
iii. With no appeal briefs filed but with memoranda
Filed before the lower court.
Exception:
i. Criminal cases
ii. Habeas corpus petitions
iii. Cases with pending application for restraining orders/
Preliminary injunctions, unless both parties consent to
Mediation
iv. Civil cases brought on ordinary appeal without the
appellants brief or memoranda

2) Labor cases;
3) Special civil actions; and
4) Other cases, e.g., high impact economic cases.

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c. Selection of Cases and Resolution to Appear

1) Each Justice shall select one case for each category of the
covered cases in Section b above

2) The Justice, with the concurrence of the other members of the
Division, shall issue a resolution directing the parties, with or
without counsel, to appear before the concerned Division of the
Court of Appeals to consider the possibility of mediation.

The Resolution shall have the following attachments:

1) Brochure of the Mediation program; and

2) Guidelines for the Pilot Testing of Mediation.

d. Resolution to Mediate

Should the parties agree to mediation, the Court shall issue a
Resolution to Mediate, in a form provided for the purpose, which
shall contain the following:

1) Statement that the case is placed under mediation;

2) Directive to parties/counsel to immediately appear before the
Philippine Mediation Center at the Court of Appeals
Auditorium to choose the Mediator and to set the time and date
of the initial mediation conference;

3) Suspension of the appellate proceedings from the date of the
Resolution to Mediate until the end of the Settlement Month.

A copy of the Resolution to Mediate shall be furnished
the Philippine Mediation Center (PMC) or the Philippine
Mediation Foundation Inc. (PMFI) together with the following
documents:

1) Appeal briefs or, if no appeal briefs are filed, memoranda;
and

2) Decisions or Orders of the lower court/tribunal being
appealed.




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e. Schedule of Mediation

1) All initial mediation conferences shall be held within the first
ten (10) working days of the Settlement Month.

2) The Mediator shall endeavor to complete the mediation within
the Settlement Month.

3) If significant progress toward settlement has been achieved and
an extension of time to mediate will most likely result in a
successful settlement of the case, the parties/counsel may, with
the concurrence of the Mediator, file with the Court a joint
motion for extension.

4) The Court, in its discretion, may grant the extension for a period
not exceeding thirty (30) days.

f. Party Participation

1) Individual party litigants are required to attend all mediation
conferences in person.

2) Corporate litigants shall attend mediation conferences through a
representative duly authorized to enter into an amicable
settlement.

g. Venue of Mediation Conferences

1) The mediation conferences shall be conducted in separate sites
within the vicinity of the Court of Appeals.

2) For parties/counsel located outside Metro Manila, mediation
conferences may be conducted in selected provinces depending
upon the volume of cases and the availability of resources of
the PMC/PMFI.

h. Confidentiality

All matters discussed, communication made and documents
presented during the mediation conferences shall be privileged and
confidential, and the same shall be inadmissible as evidence for any
purpose in any other proceeding.



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i. Qualifications of Mediators

1) Retired justices and judges

2) Senior members of the bar and senior law professors who have
creative problem-solving skills and a strong interest in
mediation, after undergoing orientation/training, may be
accredited by the Supreme Court for this pilot testing.

j. Recruitment of Mediators

1) The Court of Appeals and the PMC/PMFI shall suggest one
hundred (100) prospective mediators.

2) Invitations will be sent to the prospective mediators describing
the mediation program and inviting them to participate as
mediators.

3) Once the invitation is accepted, training in mediation shall be
given.

4) There shall be no other requirement than completion of the
mediation training.

k. Training of Mediators

A two (2)-part training is envisioned to cover both basic and
advance mediation, Filipino values and behavioral attitudes,
business and corporate culture.

l. Disclosures

1) The Mediator shall refrain from participating in the Mediation
of any dispute if he/she perceives that participation, as a
Mediator will be a clear conflict of interest.

2) The Mediator shall also disclose any circumstance that may
create or give the appearance of a conflict of interest and any
circumstance that may raise a question as to the Mediators
impartiality.

3) The duty to disclose is a continuing obligation throughout the
process.

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4) If a Mediator has represented either party in any capacity, the
Mediator should disclose that representation.

5) A Mediator shall disclose any known, significant current or
past personal or professional relationship with any part or
attorney involved in the mediation and the Mediator and parties
should discuss on a case-to-case basis whether or not to
continue.

6) After the Mediator makes disclosures, and a party does not
seek inhibition, the Mediator shall continue as such.

7) No Mediator shall have any interest in any property, real or
personal, that is the subject matter of the case referred to
him/her for mediation.

8) He/She may not offer to purchase or to sell such property,
whether at the inception, during, or at any time after the
mediation proceedings, either personally or through other
parties.

m. Authority of Mediator

1) Mediators shall have full discretion in the conduct of
mediation, including the manner and flow of discussions as
well as the calling of caucuses.

2) Mediators may terminate mediation at any time when they see
that the parties are not interested to settle.

3) During the conference, the Mediator, may:

a Inform the parties of the rules and procedures of mediation;
b. Analyze the strength and weaknesses of each partys
position;
c. Assess the risks and costs of continuing the litigation;
d. Draw out the parties underlying interests behind the
legal issues and explore common ground for settlement;
e. Suggest options for parties to consider; and
f. If practical or necessary, to seek the assistance of a co-
mediator to assess the strength and weaknesses of each
partys case.




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9.3 Agency on Mediation of Cases

The Philippine Mediation Center (PMC), under the supervision and
control of the Court of Appeals, which shall provide the necessary staff,
logistical support and technical assistance, shall head the project.


10. Mediation/Conciliation Proceeding in the Pilot Areas of
Mandaluyong City and Valenzuela City

The Supreme Court in en banc Resolution A.M. No. 99-01-SC-PHILJA
Re: Recommendation No. C-12, proposing, To Pilot Test the Efficacy of
Mandatory Mediation/Conciliation, (Annex C) dated October 19, 1999,
approved and issued the amended guidelines for the implementation of
mediation/conciliation proceedings in the pilot areas of Mandaluyong City and
Valenzuela City.

A. Coverage

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, LGC (1991);

b) Collection cases based on creditor and debtor relationships;

c) Claims for civil damages; and

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


B. Mediation Proceedings

a) Initial Conference

- Order to attend - After the filling of the pre-trial briefs, the
court motu propio 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 disputes, the Court may,
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even during trial, order mediation and appoint a mediator to
assist the parties reach settlement.

- 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;

- 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 the aid
of a designated mediator/conciliator and the parties directing
them to meet on a time and date stated therein at a designated
place.

b) Mediation/Conciliation Process

- A joint conference shall be held first with both parties-litigants
present. The mediation/conciliation proceedings explained,
stressing the benefits of an early settlement of the dispute. If
no settlement is reached, the mediator/conciliator may hold
separate conferences with each parties on dates and place
agreed upon, the mediator/conciliator to determine their
respective real interest in the dispute. Thereafter another
conference be held to consider various options proposed by the
mediator/conciliator to resolve the dispute;

- The mediator/conciliator shall be considered as officers of the
court in the actual performance of their duties, or when acting
on the occasion or by reason thereof;

- The mediator/conciliator shall submit to the Court a report on
the progress of the proceedings once every thirty (30) days; and

- The case is returned to the Court for further proceedings, if no
settlement has been reached at the end of the allowed 30 day
period. Another last 30 day extension may be granted by the
Court if the parties agree to continue with the mediation.

c) Successful Mediation/Conciliation Proceedings

- The Court renders a Judgment by Compromise which may
be enforced by execution, the original Compromise
Agreement entered into by the parties is its basis, if the
mediation/conciliation is successful;

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- A Certificate of Satisfaction shall be signed if the party
obliged by the mediated/conciliated settlement forthwith
fully complies with his undertaken to pay, deliver, perform,
vacate, do some other act, so that nothing more remains to
be done.

d) Unsuccessful Mediation/Conciliation Proceedings

- Issuance of a Certificate of Failed Mediation/Conciliation
by the mediator/conciliator, if the mediation/conciliation is
not successful for the purpose of returning the case for
further judicial proceedings.

e) Confidentiality of Records

The mediation/conciliation proceedings and all incidents
thereto shall be kept strictly confidential including any admissions,
statements, or other evidence adduced therein.

f) 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.

g) Period of Mediation/Conciliation 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 proceedings.


C. List of Mediators/Conciliators

The 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.





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11. NEWS CLIPPINGS (Philippine Star, Business Section)

10.1 Francis Lim

a. Mediation of Cases in the Court of Appeals July 16, 2002, p. B-4
(ANNEX "D")

Atty. Lim discusses the merits of the use of mediation to
amicably settle cases, between contending parties pending with the
Court of Appeals to decongest the Courts and improve the delivery
of justice.

Atty. Lim proposed also the establishment of a Philippine
Mediation Center, because a pilot test of mediation coordinated by
the Philippine Judicial Academy (PHILJA) showed promising
results.

b. How About a Philippine Mediation Center?
August 8, 2000, p.2. (ANNEX "E")

This item presents a proposal of Atty. Lim to adopt a
favorable view of mediation between parties as a means of
resolving through amicable settlements, disputes that are pending in
the Court of Appeals.










(JUDICIARY 2: PHIL. MEDIATION SYSTEM)

RRB/LRS
RHAB/PEP/amt/toe
2-04-03



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