BizCLIR

The CDR situation in the Philippines is mixed. In many ways, CDR is more advanced than in other nations in the region. The legal architecture promoting alternative dispute resolution (ADR) continues to develop, but the use of this resource has been slow. Certain sectors, like the construction industry, have mechanisms that provide for a specialized commission with exclusive and original jurisdiction over relevant disputes. Contracts involving foreign direct investment often contain arbitration clauses that permit adjudication in foreign venues. Arbitration clauses are, for the most part, enforced by Philippine courts.

Any reforms of the CDR process in the Philippines should attempt to enhance the predictability, efficiency, and justness of the system. The Philippine legal education system has begun to incorporate mediation and arbitration into its curriculum, but not yet at a rate that would change cultural attitudes against non-court dispute resolutions. Further, the lack of technical expertise by courts handling these disputes presents a serious impediment to the court system’s ability to resolve them in a way that would not deter both domestic and international actors from investing in the Philippines.