' 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.
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$H ,efore an attorney can compromise in ,ehalf of his client. -he authority may ,e in &riting, or may ,e oral.
-1. I+ "illi!'!e or
to )i c*
a po
-2. I+ it appear that o!e o+ the partie % #e+ore the comme!ceme!t o+ the actio! or procee)i!'% o++ere) to )i c* a po i#le compromi e #*t the other part$ 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. -!.