Amicable settlement can be enforced by village ‘lupon’

Dear PAO,
My neighbor and I entered into an amicable settlement over my vehicle, which he had damaged in an accident. Under such settlement, he agreed to pay me P 3,000.00 a month for twelve months starting January 2016. He, however, has not paid me anything. May I enforce our agreement?

Sincerely yours,    
BJ

Dear BJ,
For your information, Articles 416 and 417 of Republic Act (RA) 7160 or the Local Government Code of the Philippines, states:

SEC. 416. Effect of Amicable Settlement and Arbitration Award. – The amicable settlement and arbitration award shall have the force and effect of a final judgment of a court upon the expiration of ten (10) days from the date thereof, unless repudiation of the settlement has been made or a petition to nullify the award has been filed before the proper city or municipal court. However, this provision shall not apply to court cases settled by the lupon [village council] under the last paragraph of Section 408 of this Code, in which case the compromise settlement agreed upon by the parties before the lupon chairman or the pangkat [group] chairman shall be submitted to the court and upon approval thereof, has the force and effect of a judgment of said court.

SEC. 417. Execution. – The amicable settlement or arbitration award may be enforced by execution by the lupon within six (6) months from the date of the settlement. After the lapse of such time, the settlement may be enforced by action in the appropriate city or municipal court.

Clearly, when you and your neighbor settled your differences in the barangay [village] and you came up with an agreement relative to that, the same is considered of force and in effect ten (10) days after its award or agreement, if the same is not duly repudiated. Within six (6) months thereafter, the same maybe executed by the barangay lupon, but beyond that time, the filing of a Motion for Execution before the proper Municipal/Metropolitan Trial Court becomes the proper remedy, which is apt in your situation.

Again, we find it necessary to mention that this opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when the facts are changed or elaborated.

We hope that we were able to enlighten you on the matter.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net