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Title XIV COMPROMISES OR ARBITRARTIONS Chapter 1 COMPROMISES Art 2028. A compromi e i a co!tract "here#$ the partie % #$ ma&i!

' reciprocal co!ce io! % a(oi) a liti'atio! or p*t a! e!) to o!e alrea)$ comme!ce). E e!ce o+ Compromi e io! is the very

According to the Code of Commission, the element of reciprocal co!ce heart and life of every compromise.

Reciprocal is interchanged, given, or owed to each other: http://www.thefreedictionary.com/reciprocal

Concession is the act or an instance of conceding (as by granting something as a right, accepting something as true, or acknowledging defeat). http://www.merriamwebster.com/dictionary/concession

,iti'atio! An action brought in court to enforce a particular right. The act or process of bringing a
lawsuit in and of itself; a judicial contest; any dispute. http://legal-

dictionary.thefreedictionary.com/litigation Characteri tic -NO CRABS. Consensual Reciprocal Nominate Onerous Accessory (in the sense that a prior conflict is presupposed) inding (upon acceptance of the parties) !ettlement of a controversy principally /i!) -0E. "udicial (to end a pending litigation) #$tra%udicial (to prevent litigation from arising) 1he! A'reeme!t i Not Reall$ A Compromi e 2The 3compromi e a'reeme!t3 *#mitte) to the co*rt a!) i!corporate) i! it )eci io! co!tai!e) !othi!' more tha! a reco'!itio! o+ the o#li'atio! o+ appella!t le ee *!)er the +act )i clo e) i! their plea)i!' % i! co!+ormit$ "ith e4i ti!' la". It "a !ot a tr*e compromi e% the essence of &hich resides in reciprocal concessions (Civil Code of the

'hilippines, Art. ()(*). Conse+uently, the rules on the need of special authority for an attorney to effectuate a compromise are not opposite and are totally inapplica,le. That the tip*latio! "a la#ele) 3compromi e3 )oe !ot ma&e it o!e i! +act. 05,IA 6E ,A MERCE6% ET A,. (. T7E ROMAN CAT7O,IC ARC7BIS7OP O8 MANI,A% ET A,. 9.R. No. ,:2;<1;. A*'* t 1=% 1><= R5,IN9S? CASES "urisprudence in a lone line of decisions has esta,lished &ithout +uestion that compromise a'reeme!t reache) #$ the partie i! a ca e a!) +ile) #e+ore either the Co*rt o+ Appeal or the S*preme Co*rt% ha(e #ee! appro(e) a!)?or * tai!e) #$ thi Co*rt. -hus, it has ,een held that a compromi e ma$ *per e)e all a'reeme!t a!) procee)i!'s that had previously ta.en place and may co! tit*te a +i!al a!) )e+i!ite ettleme!t o+ the co!tro(er ie #$ a!) #et"ee! the partie . /rom the time a compromise is validly entered into, it #ecome the o*rce o+ the ri'ht a!) o#li'atio! o+ the partie thereto, the purpose of a compromise ,eing precisely to replace and terminate controverted claims (Article ()(*, Civil Code). A compromise has upon the parties the effect and authority of res %udicata, and is enforcea,le ,y e$ecution upon approval ,y the court (Article ()01, Civil Code2 Repu,lic v. #sten3o, (4 !CRA 5(( 6578*9). ,AN6OI, RESO5RCES CORPORATION.% ET A,. (.7ON. 05STICES RICAR6O TENS5AN.% ET A,.% 9.R. No. ===@@ 6ecem#er 20% 1>88 2The a'reeme!t e!tere) i!to #$ the compa!$ a!) the *!io!% moreo(er% "a i! the !at*re o+ a compromi e a'reeme!t, i.e., :an agreement ,et&een t&o or more persons, &ho for preventing or putting an end to a la&suit, ad%ust their difficulties ,y mutual consent in the manner &hich they agree on, and &hich everyone of them prefers to the hope of gaining, ,alanced ,y the danger of losing.: 6(79 -hus, in the agreement, each party made concessions in favor of the other to avoid a protracted litigation. 1hile "e )o !ot a#a!)o! the r*le that 3*!+air la#or practice act are #e$o!) a!) o*t i)e the phere o+ compromi e %3 A@0B the a'reeme!t herei! "a (ol*!taril$ e!tere) i!to a!) repre e!t a rea o!a#le ettleme!t% th* it #i!) the partie .C6059RE8ORMIST 5NION O8 R. B. ,INER% INC.% ET AL.% v. NATIONA, ,ABOR RE,ATIONS COMMISSION.% ET AL.% 9.R. No. 120;82. 0a!*ar$ 2=%1>>= Art 202>. The co*rt hall e!)ea(or to per *a)e the liti'a!t i! a ci(il ca e to a'ree *po! ame +air compromi e. D*e tio!E 1h$ it i the )*t$ o+ the co*rtF A! "erE ,iti'atio! m* t% i+ po i#le% #e a(oi)e) or mi!imiGe).

Ri'ht o+ Attor!e$ to Compromi e +or hi clie!t. -he Rules of Court re+uire a pecial a*thorit$H ,efore an attorney can compromise in ,ehalf of his client. -he authority may ,e in &riting, or may ,e oral.

Art. 20@0. E(er$ ci(il actio! or procee)i!' hall #e * pe!)e)E

-1. I+ "illi!'!e or

to )i c*

a po

i#le compromi e i e4pre

e) #$ o!e or #oth partie I

-2. I+ it appear that o!e o+ the partie % #e+ore the comme!ceme!t o+ the actio! or procee)i!'% o++ere) to )i c* a po i#le compromi e #*t the other part$ re+* e) the o++er. The )*ratio! a!) term o+ the * pe! io! o+ the ci(il actio! or procee)i!' a!) imilar matter hall #e 'o(er!e) #$ *ch pro(i io! o+ the r*le o+ co*rt a the S*preme Co*rt hall prom*l'ate. Sai) r*le o+ co*rt hall li&e"i e pro(i)e +or the appoi!tme!t a!) )*tie o+ amica#le compo*!)er . -!. S* pe! io! o+ Ci(il Actio! or Procee)i!' Revised Rules of Court ; suspension Motio! to 6i mi -he Revised Rules of Court mentions as one of the ground to dismiss ; the fact that no attempt has ,een made to arrive at a compromise. (Rev Rules of Court, Rule 58) R5,EE <n cases &here the la& allo&s a compromise, the fact that an attempt to arrive at one has ,een made ; should ,e stated in the complaint ; other&ise, the complaint can ,e dismissed. Po tpo!eme!t J are allo&ed ,ut discouraged D*e tio!E 1he! article i!applica#leF A! "erE -his Article does not include o++er to ar#itrate. <t refers o!l$ to a compromi e, upon terms that the court can ascertain and determine if they are reasona,le. D*e tio!E 1h$ "e m* t )i ti!'*i hF A! "erE A compromise could )i pe! e &ith a trial. ut an ar,itration &ould merel$ prolo!' the ca e, since the ar#iterH )eci io! &ould remain appeala#le. Art. 20@1. The co*rt ma$ miti'ate the )ama'e to #e pai) #$ the lo i!' part$ "ho ha ho"! a i!cere )e ire +or a compromi e. -!.