Flashcards Studio

Facts: In a civil action for damages arising from a defective architectural design causing structural cracks, Plaintiff P sues Defendant A, an architectural firm, for PHP 2,000,000. The case is at the pre-trial stage. The trial court orders the parties to mediation on the civil liability. During mediation, the parties sign a written settlement under which A agrees to pay P PHP 1,200,000 and to reimburse P's appraisal costs of PHP 80,000, in full settlement of all claims. The written agreement also provides that it is without admission of liability and includes a non-monetary obligation: A will implement a professional-standards compliance program for architecture firms within 90 days and will submit quarterly compliance reports for six months. The written agreement is signed by both parties but has not yet been submitted to the court for approval. (a)Identify the governing rule on referring civil liability cases to mediation and determine whether the present case is a “case for mediation.” (b)If the mediated settlement is later submitted to the court for approval, discuss its enforceability and what steps the court must take to finalize the settlement, including its effect on the case.