Over the past week, I’ve had the opportunity to experience and understand firsthand the value of amicable settlement. Although it is natural to turn to adversarial proceedings when conflicts arise, sometimes the best path forward is to pause, take a breath, and find a way to compromise.
Amicable settlement, also known as alternative dispute resolution (ADR), refers to resolving disputes out of court, typically through mediation or negotiation, rather than through litigation. This approach prioritizes dialogue, compromise, and the preservation of relationships.
For instance, two neighbors dispute the use of a shared pathway in their area. Tensions rise as both parties claim the pathway for different personal uses, creating an ongoing disagreement. But through the Barangay Captain’s mediation, they come to an agreement to alternate usage times, ensuring each neighbor has exclusive access during their designated hours. They also agree to share the responsibility of cleaning the area. This resolution not only settles the dispute but also strengthens their sense of community and cooperation.
Several laws in the country promote and institutionalize amicable settlement.
The primary legal basis for amicable settlement at the barangay level is found in Presidential Decree No. 1508, now incorporated into the Local Government Code of 1991 (Republic Act No. 7160). These laws establish the Lupon Tagapamayapa in each barangay, which is tasked with facilitating the resolution of disputes among residents of the same city or municipality.
The law requires that certain disputes be brought first to the barangay for conciliation before escalating to courts, with exceptions for specific cases such as those involving government parties or serious offenses. This process is informal, excluding the presence of any lawyer (except for minors and incompetents), and aims to resolve conflicts peacefully.
If the parties reach an agreement, they sign an amicable settlement or Barangay Settlement Agreement. The agreement is recorded in the official barangay records and attested by the Punong Barangay. The settlement is transmitted to the local court for record-keeping and possible enforcement, if necessary.
A more formal mode of amicable settlement is through the Alternative Dispute Resolution Act or Republic Act No. 9285. It provides the framework for mediation, arbitration (domestic and international), and other ADR mechanisms. It promotes expedient dispute resolution. In mediation, a mediator who facilitates communication and negotiation, helping parties present their positions. This process is confidential and non-binding until a settlement is reached, which they sign in a settlement agreement.
Another mechanism under the ADR law is arbitration. The process begins with the requirement that the parties have an arbitration agreement, whether included as a clause within a contract or established as a separate agreement. A party initiates arbitration by giving notice to the other party, as specified in the agreement or applicable rules. Then, the parties select one or more arbitrators as agreed. If they cannot agree, the court may appoint the arbitrator. The parties submit their statements of claim and defense, along with supporting evidence. Then, the arbitrators render a written decision or award, which may be enforceable once approved by the court.
Likewise, the Rules of Court encourage amicable settlements. For instance, parties are often required to explore settlement possibilities during pre-trial conferences and through mediation-conciliation proceedings.
As part of the country’s culture, deeply rooted in values of ‘pakikisama’ and community harmony, amicable settlement provides an accessible way of resolving conflicts without resorting to hostility. From conflict to consensus, a little goes a long way through open communication, compromise, and mutual understanding to turn disputes into opportunities for unity.