PHILIPPINES Law and Practice Contributed by: Leland R Villadolid Jr, Gilberto D Gallos, Antonio Jose Gerardo T Paz and Leo Frederick Z Cruz, Angara Abello Concepcion Regala & Cruz
7.8 General Timeframes for Proceedings The timeframe for proceedings from commence- ment through to trial and judgment by the trial court varies significantly based on the complex- ity of the case, whether interim relief is applied for and whether discovery 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 presentation of witnesses. The evidential hear- ings and the submission of memoranda by the parties may take one and a half to two years. It may take the court six months to issue its deci- sion. Any party may file a motion for reconsid- eration within 15 days from receipt of the deci- sion. It may take the court another six months to resolve this. To be valid, compromise agreements by way of settlement 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 agree- ment with the force and effect of law between the parties. Nevertheless, parties to a compromise agree- ment almost always seek court approval for pur- poses of officially terminating the proceedings, out of deference to the court, and most impor- tantly to give the agreement the force and effect of a judgment of a court. 8. Settlement 8.1 Court Approval
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 unappealable, except when there is vitiation of consent, mistake, forgery, fraud or coercion. 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. They may, alternatively, submit a simple compromise agreement to the court for approval, and may enter into a separate but related agreement con- taining the details of the compromise agreement that they prefer to remain private and confiden- tial 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 judgments of the court. This is because once a compromise agreement is judicially approved it becomes a judgment on the mer- its of the case. A party seeking to enforce the compromise agreement may file a motion with the court to execute the judgment based on compromise 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.
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