Mediation pushed as business dispute resolution mechanism

March 27, 2023 05:00:00

MANILA  — Philippine Exporters Confederation Inc. (Philexport) has partnered with the National Center for Mediation (NCM) to promote mediation as an alternative mode of dispute resolution.

Philexport recently signed a memorandum of agreement (MOA) with the NCM, with both parties agreeing to work together to raise awareness of the benefits of alternative dispute resolution (ADR) mechanisms.

The MOA was signed by Philexport president Sergio Ortiz-Luis, Jr. and NCM president Apolinar Aure.

"NCM and Philexport agreed to develop and implement programs to institutionalize the use and practice of ADR, particularly mediation, and jointly conduct researches and studies on developments in domestic and international ADR practice," Philexport said.

"As part of this, NCM will serve as the training arm of Philexport, providing resource speakers, lecturers, trainers and facilitators for the conduct of trainings, seminars and workshops," the trade group said further.

As part of the agreement, Philexport members will also insert a mediation clause in all their contracts as a way of resolving any future disputes

Any disputes arising from and related to this contract shall be brought to the National Center for Mediation, Taguig City, Philippines, for mediation," the mediation clause in the agreement read.

Philexport said that mediation had long been promoted even by the government itself, citing Republic Act No. 9285 or the "Alternative Dispute Resolution Act of 2004."

It has been a state policy to promote party autonomy in resolving disputes and encourage the use of ADR mechanisms as a means to achieve speedy and impartial justice to declog court dockets, according to the exporters' group.

"Interest in mediation in the commercial world has increased sharply in recent years partly because of dissatisfaction with the cost, delays and length of litigation. Where mediation has been used, it has enjoyed very high rates of success in achieving a result acceptable to both sides to a dispute" Philexport said.

"And even if the disputants do not resolve the dispute, mediation frequently will bring out the real issues and enhance communications between the parties, fostering an improved working relationship," it added