CIVIL CODE PROVISIONS ON ADR (Art.

2028-2046)
DEFINITION:

Article 2031. The courts may mitigate the damages to

be paid by the losing party who has shown a sincere
desire for compromise.

COMPROMISES - is a contract whereby the parties, by

making reciprocal concessions, avoid a litigation or put
an end to one already commenced. (Article 2028)

Art. 2032. The courts approval is necessary in

compromises entered into by guardians, parents,
absentees representatives, and administrators or
executors of decedents estates.

ESSENCE:

OTHER RULES:

The element of reciprocal concessions is the very

heart and life of every compromise.

1) An agent needs a special power to compromise. (Art

1878, CC)

CHARACTERISTICS:

2) If an attorney is not authorized by the client, he

cannot compromise his clients claim. Unless, the client
fails to repudiate promptly the act after knowing of it,
in which case the client will be in estoppel.

(1) Consensual
(2) Reciprocal
(3) Nominate
(4) Onerous
(5) Accessory (a prior conflict is presupposed)
(6) Once accepted, it is binding on the parties,
provided there is no vitiated consent
(7) Principally settlement of a controversy;
Incidentally settlement of a claim.

3) Art 225 of the Family Code, does not give the widow
the authority as the legal administratix to compromise
the children under parental authority claims for
indemnity arising from the from their fathers death.
Art 2033. Juridical persons may compromise only in the
form and with the requisites which may be necessary
to alienate their property.
RULES FOR COMPROMISE ENTERED INTO BY JURIDICAL
PERSONS

KINDS:
(1) JUDICIAL to end a pending litigation
(2) EXTRAJUDICIAL to prevent a litigation from arising
Article 2029. The court shall endeavor to persuade the
litigants in a civil case to agree upon some fair
compromise.
(1) Duty of the Court to Persuade Litigants to
Compromise
REASON: litigation must, if possible, be avoided or
minimized.
(2) Right of Attorney to Compromise for His Client
* The Rules of Court require a special authority
before a attorney can compromise in behalf of his
client.
- Written Authority
- Oral Authority must be duly established by evidence
other than self-serving assertion of counsel himself
that such authority had been given to him orally.
Article 2030. Every civil action or proceeding shall be
suspended:
(1) If willingness to discuss a possible compromise is
expressed by one or both parties; or
(2) If it appears that one of the parties, before the
commencement of the action or proceeding, offered to
discuss a possible compromise but the other party
refused the offer.

a. A corporation may compromise thru authority

granted by the Board of Directors.
b. The Municipal Council can also compromise
provided that the legal requirements for the alienation
of property are complied with, and provided further
that the provincial approves the compromises.
Art 2034. There may be a compromise upon the civil
liability arising from an offense, but such compromise
shall not extinguish the public action for the imposition
of the legal penalty.
Generally, No Compromise on Criminal Aspect
If a crime has been committed, there can be a
compromise on the civil liability but not on the criminal
liability. When Compromise is allowed In some crimes,
there can be a sort of compromise as in the case of
crimes against chastity and violations of the Internal
Revenue Code.

In a civil case, the compromise must be

entered into before or during litigation, never
after final judgment.

The compromise during litigation may even be

in the form of a confession of judgment.

Art 2035. No compromise upon the following questions:

(1) The civil status of persons;
(2) The validity of a marriage or a legal separation;
(3) Any ground for legal separation;
(4) Future support

The duration and terms of the suspension of the civil

action or proceeding and similar matters shall be
governed by such provisions of the rules of court shall
likewise provide for the appointment and duties of
amicable compounders.
-

While postponements must be discouraged,

still they can be allowed when the parties are
trying to reach an amicable settlement.

This article does not include offers to arbitrate.

It refers only to a compromise, upon terms that

the court can ascertain and determine if they
are reasonable.

A compromise could dispense with a trial; but

an arbitration would merely prolong the case,
since the arbiters decision would remain
appealable.

(5) The jurisdiction of courts;

(6) Future legitime.
CIVIL STATUS
Civil status is a term used mostly by government
bodies or organizations to show a person's status as a
citizen. These may include your marriage, birth or
death status and records.
MARRIAGE/LEGAL SEPARATION
Marriage is a special contract of permanent union
between a man and a woman entered into in
accordance with law for the establishment of conjugal
and family life. It is the foundation of the family and an
inviolable
social
institution
whose
nature,
consequences, and incidents are governed by law and
not subject to stipulation, except that marriage
settlements may fix the property relations during the

marriage within the limits provided by this Code. (52a)

Article 1, Family Code

Amparo, et al., 91 Phil. 228).

Legal separation is a decree from the court permitting

the husband and the wife to live separately from each
other.

(3) Effect of Appeal

GROUNDS FOR LEGAL SEPARATION

(1) Repeated physical violence or grossly abusive
conduct directed against the petitioner, a common
child, or a child of the petitioner;
(2) Physical violence or moral pressure to compel the
petitioner to change religious or political affiliation;
(3) Attempt of respondent to corrupt or induce the
petitioner, a common child, or a child of the petitioner,
to engage in prostitution, or connivance in such
corruption or inducement;
(4) Final judgment sentencing the respondent to
imprisonment of more than six years, even if pardoned;
(5) Drug addiction or habitual alcoholism of the
respondent;

If a judgment is rendered but appealed, there can in

the meantime be a compromise.
Art. 2041. If one of the parties fails or refuses to abide
by the compromise, the other party may either enforce
the compromise or regard it as rescinded and insist
upon his original demand.
(1) Effect if Compromise Agreement Is Not Fulfilled
(a) enforce the compromise;
(2) No Necessity for Judicial Rescission
Under this Article, there is no necessity for a judicial
declaration of rescission, for the party aggrieved may
regard the compromise agreement as already
rescinded. (Leonor v. Sycip, L-14220, Apr. 29, 1961).

(6) Lesbianism or homosexuality of the respondent;

(7) Contracting by the respondent of a subsequent
bigamous marriage, whether in the Philippines or
abroad;
(8) Sexual infidelity or perversion;
(9) Attempt by the respondent against the life of the
petitioner; or
(10) Abandonment of petitioner by respondent without
justifiable cause for more than one year.
For purposes of this Article, the term "child" shall
include a child by nature or by adoption. (9a) Article
55, Family Code
JURISDICTION OF COURTS
Refers to the power of a court to hear and determine a
case. Jurisdiction of courts over the subject matter
cannot be considered by the parties. Upon the other
hand, parties cannot be deprive a court of its
jurisdiction.
Art. 2039. When the parties compromise generally on
all differences which they might have with each other,
the discovery of documents referring to one or more
but not to all of the questions settled shall not itself be
a cause for annulment or rescission of the
compromise, unless said documents have been
concealed by one of the parties.
But the compromise may be annulled or rescinded if it
refers only to one thing to which one of the parties has
no right, as shown by the newly-discovered
documents.
Effect of Discovery of Documents Referring to Matters
Compromised Upon
(a) The first paragraph refers to a compromise on ALL
differences; the second, to a compromise on one thing.
The effect of the discovery of the documents is set
forth in the Article.
Art. 2040. If after a litigation has been decided by a
final judgment, a compromise should be agreed upon,
either or both parties being unaware of the existence
of the final judgment, the compromise may be
rescinded.
Ignorance of a judgment which may be revoked or set
aside is not a valid ground for attacking a compromise.
(1) Compromise Entered Into in Ignorance of a Final
Judgment
A compromise in a case like this may be RESCINDED.
The ignorance of the judgment may have been on the
part of one party or on the part of both parties.
(2) Reason for Allowing a Rescission
Here, there was no more need for the compromise in
view of the existence of the fi nal judgments. (See
Rovero v.

(3) No Rescission After Benefi ts are Enjoyed

Art. 2042. The same persons who may enter into a
compromise may submit their controversies to one or
more arbitrators for decision.
Definition:
Arbitration is the process whereby by mutual
agreement a third party decides a dispute between two
persons.
Arbitration vs. Compromise
In Arbitration, a third party gives the solution; in
compromise, the decision is arrived at by the parties
concerned.
Art. 2043. The provisions of the preceding Chapter
upon compromises shall also be applicable to
arbitrations.
the articles on compromise (chapter I) apply to
arbitration also.
Art. 2044. Any stipulation that the arbitrators award or
decision shall be final, is valid, without prejudice to
Articles 2038, 2039, and 2040.
Art. 2045. Any clause giving one of the parties power
to choose more arbitrators than the other is void and of
no effect.
Art. 2046. The appointment of arbitrators and the
procedure for arbitration shall be governed by the
provisions of such rules of court as the Supreme Court
shall promulgate.