PHILIPPINES Law and Practice Contributed by: Leland R Villadolid J, Gilberto D Gallos, Antonio Jose Gerardo T Paz and Leo Frederick Z Cruz, Angara Abello Concepcion Regala & Cruz (ACCRALAW)
7.8 General Timeframes for Proceedings The timeframe for proceedings from commencement through to trial and judgment by the trial court var- ies significantly based on the complexity of the case, whether interim relief is applied for and whether dis- covery measures are availed of. The case load of the court also significantly affects timeframes as it imposes limitations on setting the intervals between hearing dates. By way of very rough estimate, it may take a year to a year and a half from the time the complaint is filed before the evidential hearings or the initial presenta- tion of witnesses. The evidential hearings and the sub- mission of memoranda by the parties may take one and a half to two years. It may take the court six months to issue its decision. Any party may file a motion for reconsideration within 15 days from receipt of the decision. It may take the court another six months to resolve this. To be valid, compromise agreements by way of set- tlement of a case do not require court approval. As long as the compromise agreement complies with the requisites and principles of contracts, it is deemed a legally binding agreement with the force and effect of law between the parties. Nevertheless, parties to a compromise agreement almost always seek court approval for purposes of officially terminating the proceedings, out of deference to the court, and most importantly to give the agree- ment the force and effect of a court judgment. Once a compromise agreement is approved by the court, it becomes a determination of the controversy between the parties, having the force and effect of a judgment. It is immediately executory and unap- pealable, except when there is vitiation of consent, mistake, forgery, fraud or coercion. 8. Settlement 8.1 Court Approval
8.2 Settlement of Lawsuits and Confidentiality The parties may include a confidentiality clause in the compromise agreement, which becomes a valid and binding obligation for the parties. Alternatively, they may submit a simple compromise agreement to the court for approval, and may enter into a separate but related agreement containing the details of the com- promise agreement that they prefer to remain private and confidential and that will not be submitted to the court for approval. One drawback of this alternative is that the confidential version does not have, or loses, the desired effects of a court-approved compromise as a judgment of the court. 8.3 Enforcement of Settlement Agreements Compromise agreements, if judicially approved, can be enforced through execution similar to other judg- ments of the court. This is because once a compro- mise agreement is judicially approved it becomes a judgment on the merits of the case. A party seeking to enforce the compromise agreement may file a motion with the court to execute the judgment based on com- promise and to compel compliance with its provisions. If no judicial approval was sought, a compromise agreement may be enforced by filing a complaint for specific performance. 8.4 Setting Aside Settlement Agreements A compromise agreement may be set aside on grounds of vitiation of consent, mistake, forgery, fraud or coercion. The party seeking to set aside the compromise agreement may file a motion to set aside said agreement with the same court that approved the compromise. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant A prevailing litigant may generally be awarded only the relief they sought in their pleading. In an action for specific performance, the plaintiff will ask the court to direct the defendant to comply with the provisions of the contract. Aside from this, the most common form of relief sought and granted is
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