A.M. No. 05-3-25-SC-PHILJA, April 26, 2005

RE: RESOLUTION NO. 05-04, re: APPROVAL OF THEDRAFT ADMINISTRATIVE CIRCULAR, ENTITLED

“IMPLEMENTING GUIDELINES FOR THE UTILIZATIONAND DISBURSEMENT OF THE MEDIATION FUND

PROVIDED FOR IN SECTION 9 OF THE REVISED RULE141 OF THE RULES OF COURT ON LEGAL FEES”

Sirs/Mesdames:

Quoted hereunder, for your information, is a resolution of this Court En Banc dated 26 April 2005

“A.M. No. 05-3-25-SC-PHILJA.- Re: Resolution No. 05-04.. re: Approval of the Draft Administrative

Circular, entitled “Implementing Guidelines for the Utilization and Disbursement of the Mediation

Fund Provided For in Section 9 of the Revised Rule 141 of the Rules of Court on Legal Fees”.- The

Court Resolved to APPROVE the draft Administrative Circular, entitled Implementing Guidelines for

the Utilization and Disbursement of the Mediation Fund Provided For in Section 9 of the Revised

Rule 141 of the Rules of Court on Legal Fees, to wit:

ADMINISTRATIVE CIRCULAR No.___

Re: IMPLEMENTING GUIDELINES FOR THE UTILIZATION AND DISBURSEMENT OF THE

MEDIATION FUND PROVIDED FOR IN SECTION 9 OF THE REVISED RULE 141 OF THE

RULES OF COURT ON LEGAL FEES

WHEREAS, the Supreme Court, in A.M. No. 01-10-5 SC-PHILJA, dated October 16, 2001,

designated the Philippine Judicial Academy (PHILJA) as the component unit of the Supreme Court

for “court-referred, court-related mediation cases and other Alternative Dispute Resolution

Mechanisms,” and established the Philippine Mediation Center (PMC) under the direction and

management of PHILJA.

WHEREAS; the Supreme Court, in AC No. 20-2002, dated April 24, 2002, directed PHILJA to

formulate and issue implementing rules and regulations for the proper implementation of “court-

referred mediation.”

WHEREAS, A.M. No, 01-10-5 SC-PHILJA further authorized PHILJA to enlist the technical and

management assistance of appropriate and qualified organizations or individuals to assist it in

supervising PMC Units, subject to ratification of the PHILJA Board of Trustees.

WHEREAS, in 2001, PHILJA created the ADR Committee to assist it in the promotion, planning,

supervision, and institutionalization of court- annexed mediation nationwide and in the formulation of

guidelines, rules and regulations as may be needed in the fulfillment of its mandate as the

component unit of the Supreme Court for court-annexed mediation.

WHEREAS, since 2001, PHILJA, in coordination with the Office of the Court Administrator, has been

creating, directing, managing and supervising IJMC Units in Metro Manila, Cebu City, Mandaue,

Lapu-Lapu, Davao City, Oigos, Tagum. Panabo, Cagayan de Oro City, and for the JURIS Project, in

San Fernando, Pampanga. And in Bacolod City, Negros Occidental, or a total of 37 units.

WHEREAS, notwithstanding PHILJA’s efforts, the expansion of mediation in other areas has been

hampered largely due to funding constraints and shortage of personnel;

WHEREAS, the Supreme Court, in A.M. No. 04-02-04 SC; approved the “Proposed Revision of Rule

141, Revised Rules of Court on Legal Fees,” dated July 20, 2004, effective on August 16, 2004,

providing among others for a Mediation Fundin Section 9 thereof, which section reads in pan as

follows’:

“‘The amount collected shall be receipted and separated as part of a special fund to be known as the

‘Mediation Fund’ and shall accrue SC-PHILJA-PMC Fund, disbursements from which are and shall be

pLirsinm q guidelines approved by the Supreme Count. “ “x x x x”

WHEREAS, pursuant thereto, the PHILJA, ADR Committee has adopted and submitted to the

Supreme Court for its approval the herein Proposed Guidelines on the Utilization and Disbursement

of the Mediation Fund:

NOW, THEREFORE, the following Guidelines for the Utilization, Disposition, and Disbursement of

the Mediation Fund, under Section 9, Rule 14] on Legal Fees, are hereby issued:

A. Purpose and Utilization of the Mediation Fund

The Fund shall be used for:

a)Establishment of PMC Units;

b)Training seminars / workshops / internship programs for Mediators

c) Payment of Mediators1 Fees, including the PMC Unit Supervisor;

d) Payment of Operating Expenses;

e) Advocacy and promotion of court-annexed mediation and other relevant modes of ADR’

f) Such other expenses as authorized by Section 9. Rule 141[1] of the Rules of Court.

The Fund shall be managed by PHILJA subject to accounting and auditing rules and regulations.

B. Deposit of the Mediation Fund

The Fund shall be deposited in (1) SC PHILJA PMC Trust Fund (Rule 1.41) I-BP Savings Account

No. 3472-1000-08, for collections under Section 9, Rule 141, of the Rules of Court; and (2) the SC-

PFULJA-PMC-TRUST Fund, LBP Account No. 0592-1055-60, for collections under A.M. No, 01-10-

5-SC-PHILJA.

HILARIO G. DAVIDE, JR. Chief Justice

(97)

Very truly yours,

LUZVIMINDA D. PUNO Clerk of Court

By:

(Sgd.) MA. LUISA D. VILLARAMA Assistant Clerk of Court

[1] “The Fund shall be utilized for the promotion of court-annexed mediation and other relevant modes

of alternative dispute resolution (ADR), training of mediators, payment of mediator’s fees, and

operating expenses of the Philippine Mediation Center (PMC) units including expenses for

technical sssiscance and organizations/individuals, transportation/communication expanses,

photocopying, supplies and equipment, expenis allowance and miscellaneous expenses,

whenever necessary, subject to auditing rules and regulations. In view thereof, the mediation fees

shall not form part of the Judiciary Development Fund (JDF) under P.D, No. 1949 nor of the special

allowances granted to justices and judges under Republic Act No, 9227″ (sec. 9, Rule A as revised).