The Local Government Code of 1991 (Republic Act No. 7160, Sections 399-422) provides for the creation of the Lupong Tagapamayapa in each barangay. The Lupon Chairperson is tasked to mediate between the parties in a complaint. In case the mediation effort fails, the matter will be referred to the Pangkat ng Tagapagkasundo.
There are instances when the parties arrive at a settlement agreement (“kasunduan” or however it is called), which shall be in writing, in a language or dialect known to the parties, signed by them, and attested to by the lupon chairman or the pangkat chairman, as the case may be.
This settlement agreement, if not repudiated by any party within ten (10) days from the date of the agreement, has the force and effect of a final judgment of a court. The settlement agreement may be enforced by:
1. Execution by the lupon within six (6) months from the date of the settlement.
2. After the lapse of 6 months, the settlement agreement may be enforced by action in the appropriate city or municipal court.