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Sirs/Mesdames:

Quoted hereunder, for your information, is a resolution of this Court dated JULY 18 2006 .

"A.M. No. 05-12-22-SC.- Re: Sworn Letter of Mr. Rufino S. Gallano, Relative to His Observations and Complaints on Issues Concerning Court-Annexed Mediation.- The Court Resolved to

(a) NOTE the Letter dated July 6, 2006 filed by Vice-Chancellor Justo P. Torres, Jr., PhiIJA, in compliance with the resolution of June 20, 2006; and

(b) APPROVE the creation of a Committee to study the necessity of (i) amending the resolutions approving the circular and other issuances on court-annexed mediation with the end in view of upholding the provisions of Republic Act No. 8557 and Presidential Decree No. 828 to avoid overlapping of functions, and providing for a more stable funding source for court-annexed mediation and the expenditures appurtenant thereto, without impinging on the right of the people to access to justice; or (ii) amending Republic Act No. 8557 in order that the Philippine Judicial Academy may be vested with the additional function of managing court-annexed mediation, thus:

The payment of expense allowances of the Committee Members as well as the Secretariat of the said Committee, pursuant to Administrative Circular No. 13-99, is likewise APPROVED, charged to the PMC Trust Fund, under Land Bank of the Philippines Account No. 0592-105560 (Fund I).

The Court further Resolved to NOTE the

(a) 1^st Indorsement dated July 11, 2006 of Chief Justice Artemio V. Panganiban, referring the letter-explanation of Rufino S. Gallano; and

(b) Aforesaid Letter-Explanation dated July 10, 2006 filed by Rufino S. Gallano in compliance with the resolution of June 20, 2006." Azcuna J., on sick leave.

Very truly yours,

(SGd.) MA. LUISA D. VILLARAMA

Clerk of Court

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