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REPUBLIC ACT No.

7902
AN ACT EXPANDING THE JURISDICTION
OF THE COURT OF APPEALS,
AMENDING FOR THE PURPOSE
SECTION NINE OF BATAS PAMBANSA
BLG. 129, AS AMENDED, KNOWN AS
THE JUDICIARY REORGANIZATION ACT
OF 1980
Section 1. Section 9 of Batas
Pambansa Blg. 129, as amended,
known as the Judiciary Reorganization
Act of 1980, is hereby further amended
to read as follows:
"Sec. 9.
Jurisdiction. The Court
of Appeals shall exercise:
"(1)
Original jurisdiction to issue
writs of mandamus, prohibition,
certiorari, habeas corpus, and quo
warranto, and auxiliary writs or
processes, whether or not in aid of its
appellate jurisdiction;
"(2)
Exclusive original jurisdiction
over actions for annulment of
judgment of Regional Trial Courts; and
"(3)
Exclusive appellate jurisdiction
over all final judgments, decisions,
resolutions, orders or awards of
Regional Trial Courts and quasi-judicial
agencies, instrumentalities, boards or
commissions, including the Securities
and Exchange Commission, the Social
Security Commission, the Employees
Compensation Commission and the
Civil Service Commission, except those
falling within the appellate jurisdiction
of the Supreme Court in accordance
with the Constitution, the Labor Code
of the Philippines under Presidential
Decree No. 442, as amended, the
provisions of this Act, and of
subparagraph (1) of the third
paragraph and subparagraph (4) of the
fourth paragraph of Section 17 of the
Judiciary Act of 1948.
"The Court of Appeals shall have the
power to try cases and conduct
hearings, receive evidence and
perform any and all acts necessary to

resolve factual issues raised in cases


falling within its original and appellate
jurisdiction, including the power to
grant and conduct new trials or further
proceedings. Trials or hearings in the
Court of Appeals must be continuous
and must be completed within three
(3) months, unless extended by the
Chief Justice."
Section 2. All provisions of laws and
rules inconsistent with the provisions
of this Act are hereby repealed or
amended accordingly.
Section 3. This Act shall take effect
after fifteen (15) days following its
publication in a newspaper of general
circulation.
Approved: February 23, 1995

Republic Act No. 7691


25, 1994

March

AN ACT EXPANDING THE JURISDICTION


OF THE METROPOLITAN TRIAL COURTS,
MUNICIPAL TRIAL COURTS, AND
MUNICIPAL CIRCUIT TRIAL COURTS,
AMENDING FOR THE PURPOSE BATAS
PAMBANSA, BLG. 129, OTHERWISE
KNOWN AS THE "JUDICIARY
REORGANIZATION ACT OF 1980"
Be it enacted by the Senate and House
of Representatives of the Philippines in
Congress assembled::
Section 1. Section 19 of Batas
Pambansa Blg. 129, otherwise known
as the "Judiciary Reorganization Act of
1980", is hereby amended to read as
follows:
"Sec. 19.
Jurisdiction in civil cases.
Regional Trial Courts shall exercise
exclusive original jurisdiction.
"(1)
In all civil actions in which the
subject of the litigation is incapable of
pecuniary estimation;

"(2)
In all civil actions which involve
the title to, or possession of, real
property, or any interest therein, where
the assessed value of the property
involved exceeds Twenty thousand
pesos (P20,000,00) or, for civil actions
in Metro Manila, where such value
exceeds Fifty thousand pesos
(P50,000.00) except actions for forcible
entry into and unlawful detainer of
lands or buildings, original jurisdiction
over which is conferred upon the
Metropolitan Trial Courts, Municipal
Trial Courts, and Municipal Circuit Trial
Courts;
"(3)
In all actions in admiralty and
maritime jurisdiction where the
demand or claim exceeds One hundred
thousand pesos (P100,000.00) or, in
Metro Manila, where such demand or
claim exceeds Two hundred thousand
pesos (P200,000.00);
"(4)
In all matters of probate, both
testate and intestate, where the gross
value of the estate exceeds One
hundred thousand pesos (P100,000.00)
or, in probate matters in Metro Manila,
where such gross value exceeds Two
Hundred thousand pesos
(P200,000.00);
"(5)
In all actions involving the
contract of marriage and marital
relations;
"(6)
In all cases not within the
exclusive jurisdiction of any court,
tribunal, person or body exercising
jurisdiction of any court, tribunal,
person or body exercising judicial or
quasi-judicial functions;
"(7)
In all civil actions and special
proceedings falling within the exclusive
original jurisdiction of a Juvenile and
Domestic Relations Court and of the
Court of Agrarian Relations as now
provided by law; and
"(8)
In all other cases in which the
demand, exclusive of interest,
damages of whatever kind, attorney's
fees, litigation expenses, and costs or

the value of the property in


controversy exceeds One hundred
thousand pesos (P100,000.00) or, in
such other cases in Metro Manila,
where the demand exclusive of the
abovementioned items exceeds Two
Hundred thousand pesos
(P200,000.00)."
Section 2. Section 32 of the same law
is hereby amended to read as follows:
"Sec. 32.
Jurisdiction of
Metropolitan Trial Courts, Municipal
Trial Courts and Municipal Circuit Trial
Courts in Criminal Cases. Except in
cases falling within the exclusive
original jurisdiction of Regional Trial
Courts and of the Sandiganbayan, the
Metropolitan Trial Courts, Municipal
Trial Courts, and Municipal Circuit Trial
Courts shall exercise:
"(1)
Exclusive original jurisdiction
over all violations of city or municipal
ordinances committed within their
respective territorial jurisdiction; and
"(2)
Exclusive original jurisdiction
over all offenses punishable with
imprisonment not exceeding six (6)
years irrespective of the amount of
fine, and regardless of other imposable
accessory or other penalties, including
the civil liability arising from such
offenses or predicated thereon,
irrespective of kind, nature, value or
amount thereof: Provided, however,
That in offenses involving damage to
property through criminal negligence,
they shall have exclusive original
jurisdiction thereof."
Section 3. Section 33 of the same law
is hereby amended to read as follows:
"Sec. 33.
Jurisdiction of
Metropolitan Trial Courts, Municipal
Trial Courts and Municipal Circuit Trial
Courts in Civil Cases. Metropolitan
Trial Courts, Municipal Trial Courts, and
Municipal Circuit Trial Courts shall
exercise:

"(1)
Exclusive original jurisdiction
over civil actions and probate
proceedings, testate and intestate,
including the grant of provisional
remedies in proper cases, where the
value of the personal property, estate,
or amount of the demand does not
exceed One hundred thousand pesos
(P100,000.00) or, in Metro Manila
where such personal property, estate,
or amount of the demand does not
exceed Two hundred thousand pesos
(P200,000.00), exclusive of interest,
damages of whatever kind, attorney's
fees, litigation expenses, and costs,
the amount of which must be
specifically alleged: Provided, That
interest, damages of whatever kind,
attorney's fees, litigation expenses,
and costs shall be included in the
determination of the filing fees:
Provided, further, That where there are
several claims or causes of actions
between the same or different parties,
embodied in the same complaint, the
amount of the demand shall be the
totality of the claims in all the causes
of action, irrespective of whether the
causes of action arose out of the same
or different transactions;
"(2)
Exclusive original jurisdiction
over cases of forcible entry and
unlawful detainer: Provided, That
when, in such cases, the defendant
raises the questions of ownership in his
pleadings and the question of
possession cannot be resolved without
deciding the issue of ownership, the
issue of ownership shall be resolved
only to determine the issue of
possession; and
"(3)
Exclusive original jurisdiction in
all civil actions which involve title to, or
possession of, real property, or any
interest therein where the assessed
value of the property or interest
therein does not exceed Twenty
thousand pesos (P20,000.00) or, in
civil actions in Metro Manila, where
such assessed value does not exceed
Fifty thousand pesos (P50,000.00)
exclusive of interest, damages of
whatever kind, attorney's fees,

litigation expenses and costs:


Provided, That in cases of land not
declared for taxation purposes, the
value of such property shall be
determined by the assessed value of
the adjacent lots."
Section 4. Section 34 of the same law
is hereby amended to read as follows:
"Sec. 34.
Delegated Jurisdiction in
Cadastral and Land Registration Cases.
Metropolitan Trial Courts, Municipal
Trial Courts, and Municipal Circuit Trial
Courts may be assigned by the
Supreme Court to hear and determine
cadastral or land registration cases
covering lots where there is no
controversy or opposition, or contested
lots where the value of which does not
exceed One hundred thousand pesos
(P100,000.00), such value to be
ascertained by the affidavit of the
claimant or by agreement of the
respective claimants if there are more
than one, or from the corresponding
tax declaration of the real property.
Their decisions in these cases shall be
appealable in the same manner as
decisions of the Regional Trial Courts."
Section 5. After five (5) years from the
effectivity of this Act, the jurisdictional
amounts mentioned in Sec. 19(3), (4),
and (8); and Sec. 33(1) of Batas
Pambansa Blg. 129 as amended by this
Act, shall be adjusted to Two hundred
thousand pesos (P200,000.00). Five (5)
years thereafter, such jurisdictional
amounts shall be adjusted further to
Three hundred thousand pesos
(P300,000.00): Provided, however,
That in the case of Metro Manila, the
abovementioned jurisdictional
amounts shall be adjusted after five (5)
years from the effectivity of this Act to
Four hundred thousand pesos
(P400,000.00).
Section 6. All laws, decrees, and
orders inconsistent with the provisions
of this Act shall be considered
amended or modified accordingly.
Section 7. The provisions of this Act
shall apply to all civil cases that have
not yet reached the pre-trial stage.
However, by agreement of all the

parties, civil cases cognizable by


municipal and metropolitan courts by
the provisions of this Act may be
transferred from the Regional Trial
Courts to the latter. The executive
judge of the appropriate Regional Trial
Courts shall define the administrative
procedure of transferring the cases
affected by the redefinition of
jurisdiction to the Metropolitan Trial
Courts, Municipal Trial Courts, and
Municipal Circuit Trial Courts. Section
8. This Act shall take effect fifteen (15)
days following its publication in the
Official Gazette or in two (2) national
newspapers of general circulation.
Approved: March 25, 1994
ADMINISTRATIVE CIRCULAR NO.
09-94 June 14, 1994
TO:
THE COURT OF APPEALS,
SANDIGANBAYAN, REGIONAL TRIAL
COURT, METROPOLITAN TRIAL COURTS,
METROPOLITAN TRIAL COURTS,
MUNICIPAL TRIAL COURTS, MUNICIPAL
CIRCUIT TRIAL COURT, ALL MEMBERS
OF THE GOVERNMENT PROSECUTION
SERVICE AND ALL MEMBERS OF THE
INTEGRATED BAR OF THE PHILIPPINES
SUBJECT:
GUIDELINES IN THE
IMPLEMENTATION OF REPUBLIC ACT
NO. 7691. ENTITLED "AN ACT
EXPANDING THE JURISDICTION OF THE
METROPOLITAN TRIAL COURTS,
MUNICIPAL TRIAL COURTS AND
MUNICIPAL TRIAL COURTS AND
MUNICIPAL CIRCUIT TRIAL COURTS,
AMENDING FOR THE PURPOSE BATAS
PAMBANSA BLG. 129, OTHERWISE
KNOWN AS THE 'JUDICIARY
REORGANIZATION ACT OF 1980."
For the guidance of the bench and the
Bar, the following guidelines are to be
followed in the implementation of
Republic Act No. 7691, entitled "An Act
Expanding the Jurisdiction of the
Metropolitan Trial Courts, Municipal
Trial Courts, and Municipal Circuit Trial
Courts, Amending for the Purpose
Batas Pambansa Blg. 129, Otherwise

Known as the 'Judiciary Reorganization


Act of 1980":
1.
The new jurisdiction of the
Regional Trial Courts, Metropolitan Trial
Courts, Municipal Trial Courts, and
Municipal Circuit Trial Courts in civil
and original cases, and in cadastral
and land registration cases, under
Section 19, 32, 33 and 34 of B.P. Blg.
129, as amended by R.A. No. 7691.
Was effective on April 15, 1994, fifteen
(15) days after the publication in the
Malaya and in the Times Journal on
March 30, 1994, pursuant to Section 8
of the R.A. No. 7691.
2.
The exclusion of the term
"damages of whatever kind" in
determining the jurisdictional amount
under Section 19 (8) and Section 33
(1) of B.P. Blg. 129, as amended by
R.A. No. 7691, applies to cases where
the damages are merely incidental to
or a consequence of the main cause of
action. However, in cases where the
claim for damages is the main cause of
action, or one of the causes of action,
the amount of such claim shall be
considered in determining the
jurisdiction of the court.
3.
The criminal jurisdiction of the
Metropolitan Trial Courts, Municipal
Trial Courts, and Municipal Trial Courts
under Section 32 (2) of B.P. Blg. 129,
as amended by R.A. No. 7691, has
been increased to cover offenses
punishable with imprisonment not
exceeding six (6) years irrespective of
the amount of the fine. As a
consequence, the Regional Trial Courts
have no more original jurisdiction over
offenses committed by public officers
and employees in relation to their
office, where the offense is punishable
by more than four (4) years and two
(2) months up to six (6) years.
4.
The provisions of Section 32 (2)
of B.P. 129 as amended by R.A. No.
7691, apply only to offenses
punishable by imprisonment or fine, or
both, in which cases the amount of the
fine is disregarded in determining the

jurisdiction of the court. However, in


cases where the only penalty provided
by law is a fine, the amount thereof
shall determine the jurisdiction of the
court in accordance with the original
provisions of Section 32 (2) of B.P. Blg.
129 which fixed original exclusive
jurisdiction of the Metropolitan Trial
Courts, Municipal Trial Courts, and
Municipal Circuit Trial Courts over
offenses punishable with a fine of not
more than four thousand pesos. If the
amount of the fine exceeds four
thousand pesos, the Regional Trial
Court shall have jurisdiction, including
offenses committed by public officers
and employees in relation to their
office, where the amount of the fine
does not exceed six thousand pesos.
However, this rule does not apply to
offenses involving damage to property
through criminal negligence which are
under the exclusive original jurisdiction
of the Metropolitan Trial Courts,
Municipal Trial Courts, and Municipal
Circuit Trial Courts, irrespective of the
amount of the imposable fine.

REPUBLIC ACT NO. 8369


AN ACT ESTABLISHING FAMILY COURTS,
GRANTING THEM EXCLUSIVE ORIGINAL
JURISDICTION OVER CHILD AND FAMILY
CASES, AMENDING BATAS PAMBANSA
BILANG 129,AS AMENDED,
OTHERWISE KNOWN AS ACT OF 1980,
APPROPRIATING FUNDS THEREFOR
AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House
of Representatives of the Philippines in
Congress assembled:
Section 1. Title. - This Act shall be
known as the "Family Courts Act of
1997".
Sec. 2. Statement of National Policies. The State shall protect the rights and
promote the welfare of children in
keeping with the mandate of the
Constitution and the precepts of the
United Nations Convention on the
rights of the Child. The State shall
provide a system of adjudication for
youthful offenders which takes into
account their peculiar circumstances.
The State recognizes the sanctity of
family life and shall protect and
strengthen the family as a basic
autonomous social institution. The
courts shall preserve the solidarity of
the family, provide procedures for the
reconciliation of spouses and the
amicable settlement of family
controversy.
Sec. 3. Establishment of Family Courts.
- There shall be established a Family
Court in every province and city in the
country. In case where the city is the
capital of the province, the Family
Court shall be established in the

municipality which has the highest


population.
Sec. 4. Qualification and Training of
Family Court Judges. - Sec. 15 of Batas
Pambansa Blg. 129, as amended, is
hereby further amended to read as
follows:
"Sec. 15. (a) Qualification. - No person
shall be appointed Regional Trial Judge
or Presiding Judge of the Family Court
unless he is a natural-born citizen of
the Philippines, at least thirty-five (35)
years of age, and, for at least ten (10)
years, has been engaged in the
practice of law in the Philippines or has
held a public office in the Philippines
requiring admission to the practice of
law as indispensable requisite.
"(b) Training of Family Court Judges. The Presiding Judge, as well as the
court personnel of the Family Courts,
shall undergo training and must have
the experience and demonstrated
ability in dealing with child and family
cases.
"The Supreme Court shall provide a
continuing education program on child
and family laws, procedure and other
related disciplines to judges and
personnel of such courts."
Sec. 5. Jurisdiction offamily Courts. The Family Courts shall have exclusive
original jurisdiction to hear and decide
the following cases:
a) Criminal cases where one or more of
the accused is below eighteen (18)
years of age but not less than nine (9)
years of age but not less than nine (9)
years of age or where one or more of
the victims is a minor at the time of
the commission of the offense:
Provided, That if the minor is found
guilty, the court shall promulgate
sentence and ascertain any civil
liability which the accused may have
incurred.
The sentence, however, shall be
suspended without need of application
pursuant to Ptesidential Decree No.

603, otherwise known as the "Child


and Youth Welfare Code";
b) Petitions for guardianship, custody
of children, habeas corpus in relation
to the latter;
c) Petitions for adoption of children and
the revocation thereof;
d) Complaints for annulment of
marriage, declaration of nullity of
marriage and those relating to marital
status and property relations of
husband and wife or those living
together under different status and
agreements, and petitions for
dissolution of conjugal partnership of
gains;
e) Petitions for support and/or
acknowledgment;
f) Summary judicial proceedings
brought under the provisions of
Executive Order No. 209, otherwise
known as the "Family Code of the
Philippines";
g) Petitions for declaration of status of
children as abandoned, dependent o
neglected children, petitions for
voluntary or involuntary commitment
of children; the suspension,
termination, or restoration of parental
authority and other cases cognizable
under Presidential Decree No. 603,
Executive Order No. 56, (Series of
1986), and other related laws;
h) Petitions for the constitution of the
family home;
i) Cases against minors cognizable
under the Dangerous Drugs Act, as
amended;
j) Violations of Republic Act No. 7610,
otherwise known as the "Special
Protection of Children Against Child
Abuse, Exploitation and Discrimination
Act," as amended by Republic Act No.
7658; and
k) Cases of domestic violence against:
1) Women - which are acts of gender
based violence that results, or are
likely to result in physical, sexual or
psychological harm or suffering to
women; and other forms of physical
abuse such as battering or threats and
coercion which violate a woman's
personhood, integrity and freedom
movement; and

2) Children - which include the


commission of all forms of abuse,
neglect, cruelty, exploitation, violence,
and discrimination and all other
conditions prejudicial to their
development.
If an act constitutes a criminal offense,
the accused or batterer shall be
subject to criminal proceedings and
the corresponding penalties.
If any question involving any of the
above matters should arise as an
incident in any case pending in the
regular courts, said incident shall be
determined in that court.
Sec. 6. Use of Income. - All Family
Courts shall be allowed the use of ten
per cent (10%) of their income derived
from filing and other court fees under
Rule 141 of the Rules of Court for
research and other operating expenses
including capital outlay: Provided, That
this benefit shall likewise be enjoyed
by all courts of justice.
The Supreme Court shall promulgate
the necessary guidelines to effectively
implement the provisions of this Sec.
Sec. 7. Special Provisional Remedies. In cases of violence among immediate
family members living in the same
domicile or household, the Family
Court may issue a restraining order
against the accused of defendant upon
verified application by the complainant
or the victim for relief from abuse.
The court may order the temporary
custody of children in all civil actions
for their custody. The court may also
order support pendente lite, including
deduction from the salary and use of
conjugal home and other properties in
all civil actions for support.
Sec. 8. Supervision of Youth Detention
Homes. - The judge of the Family
Court shall have direct control and
supervision of the youth detention
home which the local government unit
shall establish to separate the youth

offenders from adult criminals:


Provided, however, That alternatives to
detention and institutional care shall
be made available to the accused
including counseling, recognizance,
bail, community continuum, or
diversions from the justice system:
Provided, further, That the human
rights of the accused are fully
respected in a manner appropriate to
their well-being.
Sec. 9. Social Services and Counseling
Division. - Under the guidance ofthe
Department of Social Welfare and
Development (DSWD), a Social
Services and Counseling Division
(SSCD) shall be established in each
judicial region as the Supreme Court
shall deem necessary based on the
number of juvenile and family cases
existing in such jurisdiction. It shall
provide appropriate social services to
all juvenile and family cases filed with
the court and recommend the proper
social action. It shall also develop
programs, formulate uniform policies
and procedures, and provide technical
supervision and monitoring of all SSCD
in coordination with the judge.
Sec. 10. Social Services and
Counseling Division Staff. - The SSCD
shall have a staff composed of
qualified social workers and other
personnel with academic preparation
in behavioral sciences to carry out the
duties'of conducting intake
assessment, social case studies,
casework and counseling, and
othersocial services that may be
needed in connection with cases filed
with the court: Provided, however, That
in adoption cases and in petitions for
declaration of abandonment, the case
studies may be prepared by social
workers of duly licensed child caring or
child placement agencies, or the
DSWD. When warranted, the division
shall recommend that the court avail
itself of consultative services of
psychiatrists, psychologists, and other
qualified specialists presently
employed in other departments of the

government in connection with its


cases.
The position of Social Work Adviser
shall be created under the Office of the
Court Administrator, who shall monitor
and supervise the SSCD ofthe Regional
Trial Court.
Sec. 11. Alternative Social Services. In accordance with Sec. 17 of this Act,
in areas where no Family Court has
been established or no Regional Trial
Court was designated by the Supreme
Court due to the limited number of
cases, the DSWD shall designate and
assign qualified, trained, and DSWD
accredited social workers of the local
government units to handle juvenile
and family cases filed in the
designated Regional Trial Court of the
place.
Sec. 12. Privacy and Confidentiality of
Proceedings. - All hearings and
conciliation of the child and family
cases shall be treated in a manner
consistent with the promotion of the
child's and the family's dignity and
worth, and shall respect their privacy
at all stages of the proceedings.
Records of the cases shall be dealt
with utmost confidentiality and the
identity of parties shall not be divulged
unless necessary and with authority of
the judge.
Sec. 13. Special Rules of Procedure. The Supreme Court shall promulgate
special rules of procedure for the
transfer of cases to the new courts
during the transition period and for the
disposition of family cases with the
best interests of the child and the
protection of the family as primary
consideration taking into account the
United Nations Convention on the
Rights of the Child.
Sec. 14. Appeals. - Decisions and
orders of the court shall be appealed in
the same manner and subject to the
same conditions as appeals from the
ordinary Regional Trial Courts.

Sec. 15. Appropriations. - The amount


necessary to carry out the provisions
of this Act shall be included in the
General Appropriations Act of the year
following in its enactment into law and
thereafter.
Sec. 16. Implementing Rules and
Regulations. - The Supreme Court, in
coordination with the DSWD, shall
formulate the necessary rules and
regulations for the effective
implementation of the social aspects of
this Act.
Sec. 17. Transitory Provisions. Pending the establishment of such
Family Courts, the Supreme Court shall
designate from among the branches
ofthe Regional Trial Court at least one
Family Court in each of the cities of
Manila, Quezon, Pasay, Caloocan,
Makati, Pasig, Mandaluyong,
Muntinlupa, Laoag, Baguio, Santiago,
Dagupan, Olongapo, Cabanatuan, San
Jose, Angeles, Cavite, Batangas,
Lucena, Naga, Iriga, Legazpi, Roxas,
Iloilo, Bacolod, Dumaguete, Tacloban,
Cebu, Mandaue, Tagbilaran, Surigao,
Butuan, Cagayan de Oro, Davao,
General Santos, Oroquieta, Ozamis,
Dipolog, Zamboanga, Pagadian, Iligan,
and in such other places as the
Supreme Court may deem necessary.
Additional cases other than those
provided in Sec. 5 may be assigned to
the Family Courts when their dockets
permit: Provided, That such additional
cases shall not be heard on the same
day family cases are heard.
In areas where there are no Family
Courts, the cases referred to in Sec. 5
of this Act shall be adjudicated by the
Regional Trial Court.
Sec. 18. Separability Clause. - In case
any provision of this Act is declared
unconstitutional, the other provisions
shall remain in effect.
Sec. 19. Repealing Clause. - All other
laws, decrees, executive orders, rules

or regulations inconsistent herewith


are hereby repealed, amended or
modified accordingly.
Sec. 20. Effectivity. - This Act shall take
effect fifteen (15) days after its
publication in at least two (2) national
newspapers of general circulation.

RULE 1
GENERAL PROVISIONS
SECTION 1. (a) Cases covered. These
Rules shall govern the procedure to be
observed in civil cases involving the
following:
Devices or schemes employed by, or
any act of, the board of directors,
business associates, officers or
partners, amounting to fraud or
misrepresentation which may be
detrimental to the interest of the
public and/or of the stockholders,
partners, or members of any
corporation, partnership, or
association;
Controversies arising out of intracorporate, partnership, or association
relations, between and among
stockholders, members, or associates;
and between, any or all of them and
the corporation, partnership, or
association of which they are
stockholders, members, or associates,
respectively;
Controversies in the election or
appointment of directors, trustees,
officers, or managers of corporations,
partnerships, or associations;
Derivative suits; and
Inspection of corporate books.
(b) prohibition against nuisance and
harassment suits. - Nuisance and
harassment suits are prohibited. In
determining whether a suit is a
nuisance or harassment suit, the court
shall consider, among others, the
following:

A.M. No. 01-2-04-SC. March 13,


2001
Re: PROPOSED INTERIM RULES OF
PROCEDURE GOVERNING INTRACORPORATE CONTROVERSIES
UNDER R. A. NO. 8799
RESOLUTION
INTERIM RULES OF PROCEDURE FOR
INTRA-CORPORATE CONTROVERSIES

The extent of the shareholding or


interest of the initiating stockholder or
member;
Subject matter of the suit;
Legal and factual basis of the
complaint;
Availability of appraisal rights for the
act or acts complained of; and
Prejudice or damage to the
corporation, partnership, or association
in relation to the relief sought.

In case of nuisance or harassment


suits, the court may, moto proprio or
upon motion, forthwith dismiss the
case.
SEC. 2. Suppletory application of the
Rules of Court. The Rules of Court, in
so far as they may be applicable and
are not inconsistent with these Rules,
are hereby adopted to form an integral
part of these Rules.
SEC. 3. Construction. These Rules
shall be liberally construed in order to
promote their objective of securing a
just, summary, speedy and
inexpensive determination of every
action or proceeding.
SEC. 4. Executory nature of decisions
and orders. All decisions and orders
issued under these Rules shall
immediately be executory. No appeal
or petition taken therefrom shall stay
the enforcement or implementation of
the decision or order, unless restrained
by an appellate court. Interlocutory
orders shall not be subject to appeal.
SEC. 5. Venue. All actions covered by
these Rules shall be commenced and
tried in the Regional Trial Court which
has jurisdiction over the principal office
of the corporation, partnership, or
association concerned. Where the
principal office of the corporation,
partnership or association is registered
in the Securities and Exchange
Commission as Metro Manila, the
action must be filed in the city or
municipality where the head office is
located.
SEC. 6. Service of pleadings. When so
authorized by the court, any pleading
and/or document required by these
Rules may be filed with the court
and/or served upon the other parties
by facsimile transmission (tax) or
electronic mail (e-mail. In such cases,
the date of transmission shall be
deemed to be prima facie the date of
service.

SEC. 7. Signing of pleadings, motions


and other papers. Every pleading,
motion, and other paper of a party
represented by an attorney shall be
signed by at least one attorney of
record in the attorneys individual
name, whose address shall be stated.
A party who is not represented by an
attorney shall sign the pleading,
motion, or other paper and state his
address.
The signature of an attorney or party
constitutes a certification by the signer
that he has read the pleading, motion,
or other paper; that to the best of his
knowledge, information, and belief
formed after reasonable inquiry, it is
well grounded in fact and is warranted
by existing law or a good faith
argument for the extension,
modification, or reversal of existing
jurisprudence; and that it is not
interposed for any improper purpose,
such as to harass or to cause
unnecessary delay or needless
increase in the cost of litigation.
If a pleading, motion, or other paper is
not signed, it shall be stricken off the
record unless it is promptly signed by
the pleader or movant, after he is
notified of the omission.
SEC. 8. Prohibited pleadings. The
following pleadings are prohibited:
Motion to dismiss;
Motion for a bill of particulars;
Motion for new trial, or for
reconsideration of judgment or order,
or for re-opening of trial;
Motion for extension of time to file
pleadings, affidavits or any other
paper, except those filed due to clearly
compelling reasons. Such motion must
be verified and under oath; and
Motion for postponement and other
motions of similar intent, except those
filed due to clearly compelling reasons.
Such motion must be verified and
under oath.
SEC. 9. Assignment of cases. All
cases filed under these Rules shall be
tried by judges designated by the

Supreme Court to hear and decide


cases transferred from the Securities
and Exchange Commission to the
Regional Trial Courts and filed directly
with said courts pursuant to Republic
Act No. 8799, otherwise known as the
Securities and Regulation Cod
RULE 2 COMMENCEMENT OF
ACTION AND PLEADINGS
SECTION 1. Commencement of action.
An action under these Rules is
commenced by the filing of a verified
complaint with the proper Regional
Trial Court.
SEC. 2. Pleadings allowed. The only
pleadings allowed to be filed under
these Rules are the complaint, answer,
compulsory counterclaims or crossclaims pleaded in the answer, and the
answer to the counterclaims or crossclaims.
SEC. 3. Verification. The complaint
and the answer shall be verified by an
affidavit stating that the affiant has
read the pleading and the allegations
therein are true and correct based on
his own personal knowledge or on
authentic records.
SEC. 4. Complaint. The complaint
shall state or contain:
the names, addresses, and other
relevant personal or juridical
circumstances of the parties;
all facts material and relevant to the
plaintiffs cause or causes of action,
which shall be supported by affidavits
of the plaintiff or his witnesses and
copies of documentary and other
evidence supportive of such cause or
causes of action;
the law, rule, or regulation relied upon,
violated, or sought to be enforced;
a certification that (a) the plaintiff has
not theretofore commenced any action
or filed any claim involving the same
issues in any court, tribunal or quasijudicial agency, and, to the best of his
knowledge, no such other action or

claim is pending therein; (b) if there is


such other action or claim, a complete
statement of the present status
thereof; and (c) if he should thereafter
learn that the same or similar action or
claim has been filed or is pending, he
shall report that fact within five (5)
days therefrom to the court; and
the relief sought.
SEC. 5. Summons. The summons and
the complaint shall be served together
not later than five (5) days from the
date of filing of the complaint.
Service upon domestic private juridical
entities. If the defendant is a
domestic corporation, service shall be
deemed adequate if made upon any of
the statutory or corporate officers as
fixed by the by-laws or their respective
secretaries. If the defendant is a
partnership, service shall be deemed
adequate if made upon any of the
managing or general partners or upon
their respective secretaries. If the
defendant is an association, service
shall be deemed adequate if made
upon any of its officers or their
respective secretaries.
Service upon foreign private juridical
entity. When the defendant is a
foreign private juridical entity which is
transacting or has transacted business
in the Philippines, service may be
made on its resident agent designated
in accordance with law for that
purpose, or, if there be no such agent,
on the government official designated
by law to that effect, or on any of its
officers or agents within the
Philippines.
SEC. 6. Answer. The defendant shall
file his answer to the complaint,
serving a copy thereof on the plaintiff,
within fifteen (15) days from service of
summons.
In the answer, the defendant shall:
Specify each material allegation of fact
the truth of which he admits;
Specify each material allegation of fact
the truth of which he does not admit.

Where the defendant desires to deny


only a part of an averment, he shall
specify so much of it as true and
material and shall deny only the
remainder;
Specify each material allegation of fact
as to which truth he has no knowledge
or information sufficient to form a
belief, and this shall have the effect of
a denial;
State the defenses, including grounds
for a motion to dismiss under the Rules
of Court;
State the law, rule, or regulation relied
upon;
Address each of the causes of action
stated in the complaint;
State the facts upon which he relies for
his defense, including affidavits of
witnesses and copies of documentary
and other evidence supportive of such
cause or causes of action;
State any compulsory counterclaim/s
and cross-claim/s; and
State the relief sought.
The answer to counterclaims or crossclaims shall be filed within ten (10)
days from service of the answer in
which they are pleaded.
SEC. 7. Effect of failure to answer. If
the defendant fails to answer within
the period above provided, he shall be
considered in default. Upon motion or
motu proprio, the court shall render
judgment either dismissing the
complaint or granting the relief prayed
for as the records may warrant. In no
case shall the court award a relief
beyond or different from that prayed
for.
SEC. 8. Affidavits, documentary and
other evidence. Affidavits shall be
based on personal knowledge, shall set
forth such facts as would be admissible
in evidence, and shall show
affirmatively that the affiant is
competent to testify on the matters
stated therein. The affidavits shall be
in question and answer form, and shall
comply with the rules on admissibility
of evidence.

Affidavits of witnesses as well as


documentary and other evidence shall
be attached to the appropriate
pleading; Provided, however, that
affidavits, documentary and other
evidence not so submitted may be
attached to the pre-trial brief required
under these Rules. Affidavits and other
evidence not so submitted shall not be
admitted in evidence, except in the
following cases:
Testimony of unwilling, hostile, or
adverse party witnesses. A witness is
presumed prima facie hostile if he fails
or refuses to execute an affidavit after
a written request therefor;
If the failure to submit the evidence is
for meritorious and compelling
reasons; and
Newly discovered evidence.
In case of (2) and (3) above, the
affidavit and evidence must be
submitted not later than five (5) days
prior to its introduction in evidence.
RULE 3 MODES OF DISCOVERY
SECTION 1. In general. A party can
only avail of any of the modes of
discovery not later than fifteen (15)
days from the joinder of issues.
SEC. 2. Objections. Any mode of
discovery such as interrogatories,
request for admission, production or
inspection of documents or things,
may be objected to within ten (10)
days from receipt of the discovery
device and only on the ground that the
matter requested is patently
incompetent, immaterial, irrelevant or
privileged in nature.
The court shall rule on the objections
not later than fifteen (15) days from
the filing thereof.
SEC. 3. Compliance. Compliance with
any mode of discovery shall be made
within ten (10) days from receipt of the
discovery device, or if there are
objections, from receipt of the ruling of
the court.

SEC. 4. Sanctions. The sanctions


prescribed in the Rules of Court for
failure to avail of, or refusal to comply
with, the modes of discovery shall
apply. In addition, the court may, upon
motion, declare a party non-suited or
as in default, as the case may be, if the
refusal to comply with a mode of
discovery is patently unjustified.
RULE 4 PRE-TRIAL
SECTION 1. Pre-trial conference;
mandatory nature. Within five (5)
days after the period for availment of,
and compliance with, the modes of
discovery prescribed in Rule 3 hereof,
whichever comes later, the court shall
issue and serve an order immediately
setting the case for pre-trial
conference and directing the parties to
submit their respective pre-trial briefs.
The parties shall file with the court and
furnish each other copies of their
respective pre-trial brief in such
manner as to ensure its receipt by the
court and the other party at least five
(5) days before the date set for the
pre-trial.
The parties shall set forth in their pretrial briefs, among other matters, the
following:
Brief statement of the nature of the
case, which shall summarize the
theory or theories of the party in clear
and concise language;
Allegations expressly admitted by
either or both parties;
Allegations deemed admitted by either
or both parties;
Documents not specifically denied
under oath by either or both parties;
Amendments to the pleadings;
Statement of the issues, which shall
separately summarize the factual and
legal issues involved in the case;
Names of witnesses to be presented
and the summary of their testimony as
contained in their affidavits supporting
their positions on each of the issues;
All other pieces of evidence, whether
documentary or otherwise and their
respective purposes;

Specific proposals for an amicable


settlement;
Possibility of referral to mediation or
other alternative modes of dispute
resolution;
Proposed schedule of hearings; and
Such other matters as may aid in the
just and speedy disposition of the
case.
SEC. 2. Nature and purpose of pre-trial
conference. During the pre-trial
conference, the court shall, with its
active participation, ensure that the
parties consider in detail all of the
following:
The possibility of an amicable
settlement;
Referral of the dispute to mediation or
other forms of dispute resolution;
Facts that need not be proven, either
because they are matters of judicial
notice or expressly or deemed
admitted;
Amendments to the pleadings;
The possibility of obtaining stipulations
and admissions of facts and
documents;
Objections to the admissibility of
testimonial, documentary and other
evidence;
Objections to the form or substance of
any affidavit, or part thereof;
Simplification of the issues;
The possibility of submitting the case
for decision on the basis of position
papers, affidavits, documentary and
real evidence;
A complete schedule of hearing dates;
and
Such other matters as may aid in the
speedy and summary disposition of the
case.
SEC. 3. Termination. The preliminary
conference shall be terminated not
later than ten (10) days after its
commencement, whether or not the
parties have agreed to settle amicably.
SEC. 4. Judgment before pre-trial. If,
after submission of the pre-trial briefs,
the court determines that, upon
consideration of the pleadings, the
affidavits and other evidence
submitted by the parties, a judgment

may be rendered, the court may order


the parties to file simultaneously their
respective memoranda within a nonextendible period of twenty (20) days
from receipt of the order. Thereafter,
the court shall render judgment, either
full or otherwise, not later than ninety
(90) days from the expiration of the
period to file the memoranda.
SEC. 5. Pre-trial order; judgment after
pre-trial. The proceedings in the pretrial shall be recorded. Within ten (10)
days after the termination of the pretrial, the court shall issue an order
which shall recite in detail the matters
taken up in the conference, the actions
taken thereon, the amendments
allowed in the pleadings, and the
agreements or admissions made by
the parties as to any of the matters
considered. The court shall rule on all
objections to or comments on the
admissibility of any documentary or
other evidence, including any affidavit
or any part thereof. Should the action
proceed to trial, the order shall
explicitly define and limit the issues to
be tried and shall strictly follow the
form set forth in Annex "A" of these
Rules.
The contents of the order shall control
the subsequent course of the action,
unless modified before trial to prevent
manifest injustice.
After the pre-trial, the court may
render judgment, either full or partial,
as the evidence presented during the
pre-trial may warrant.
RULE 5 TRIAL
SECTION 1. Witnesses. If the court
deems necessary to hold hearings to
determine specific factual matters
before rendering judgment, it shall, in
the pre-trial order, set the case for trial
on the dates agreed upon by the
parties.
Only persons whose affidavits were
submitted may be presented as
witnesses, except in cases specified in

section 8, Rule 2 of these Rules. The


affidavits of the witnesses shall serve
as their direct testimonies, subject to
cross-examination in accordance with
existing rules on evidence.
SEC. 2. Trial schedule. Unless
judgment is rendered pursuant to Rule
4 of these Rules, the initial hearing
shall be held not later than thirty (30)
days from the date of the pre-trial
order. The hearings shall be completed
not later than sixty (60) days from the
date of the initial hearing, thirty (30)
days of which shall be allotted to the
plaintiffs and thirty (30) days to the
defendants in the manner prescribed
in the rep-trial order. The failure of a
party to present a witness on a
scheduled hearing date shall be
deemed a waiver of such hearing date.
However, a party may present such
witness or witnesses within his
remaining allotted hearing dates.
SEC. 3. Written offer of evidence.
Evidence not otherwise admitted by
the parties or ruled upon by the court
during the pre-trial conference shall be
offered in writing not later than five (5)
days from the completion of the
presentation of evidence of the party
concerned. The opposing party shall
have five (5) days from receipt of the
offer to file his comments or
objections. The court shall make its
ruling on the offer within five (5) days
from the expiration of the period to file
comments or objections.
SEC. 4. Memoranda. Immediately
after ruling on the last offer of
evidence, the court shall order the
parties to simultaneously file, within
thirty (30) days from receipt of the
order, their respective memoranda.
The memoranda shall contain the
following:
A "Statement of the Case," which is a
clear and concise statement of the
nature of the action and a summary of
the proceedings;
A "Statement of the Facts," which is a
clear and concise statement in

narrative form of the established facts,


with reference to the testimonial,
documentary or other evidence in
support thereof;
A "Statement of the issues," which is a
clear and concise statement of the
issues presented to the court for
resolution;
The "Arguments," which is a clear and
concise presentation of the argument
in support of each issue; and
The "Relief," which is a specification of
the order or judgment which the party
seeks to obtain.
No reply memorandum shall be
allowed.
SEC. 5. Decision after trial. The court
shall render a decision not later than
(90) days from the lapse of the period
to file the memoranda, with or without
said pleading having been filed
RULE 6 ELECTION CONTESTS
SECTION 1. Cases covered. The
provisions of this rule shall apply to
election contests in stock and nonstock corporations.
SEC. 2. Definition. An election contest
refers to any controversy or dispute
involving title or claim to any elective
office in a stock or non-stock
corporation, the validation of proxies,
the manner and validity of elections,
and the qualifications of candidates,
including the proclamation of winners,
to the office of director, trustee or
other officer directly elected by the
stockholders in a close corporation or
by members of a non-stock corporation
where the articles of incorporation or
by-laws so provide.
SEC. 3. Complaint. In addition to the
requirements in section 4, Rule 2 of
these Rules, the complaint in an
election contest must state the
following:
The case was filed within fifteen (15)
days from the date of the election if
the by-laws of the corporation do not
provide for a procedure for resolution
of the controversy, or within fifteen

(15) days from the resolution of the


controversy by the corporation as
provided in its by-laws; and
The plaintiff has exhausted all intracorporate remedies in election cases
as provided for in the by-laws of the
corporation.
SEC. 4. Duty of the court upon the
filing of the complaint. Within two (2)
days from the filing of the complaint,
the court, upon a consideration of the
allegations thereof, may dismiss the
complaint outright if it is not sufficient
in form and substance, or, if it is
sufficient, order the issuance of
summons which shall be served,
together with a copy of the complaint,
on the defendant within two (2) days
from its issuance.
SEC. 5. Answer. The defendant shall
file his answer to the complaint,
serving a copy thereof on the plaintiff,
within ten (10) days from service of
summons and the complaint. The
answer shall contain the matters
required in section 6, Rule 2 of these
Rules.
SEC. 6. Affidavits, documentary and
other evidence. The parties shall
attach to the complaint and answer
the affidavits of witnesses,
documentary and other evidence in
support thereof, if any.

Acting on the Memorandum of the


Committee on SEC Cases submitting
for this Courts consideration and
approval the Proposed Interim Rules of
Procedure for Intra-Corporate
Controversies, the Court Resolved to
APPROVE the same.
The Interim Rules shall take effect on
April 1, 2001 following its publication in
two (2) newspapers of general
circulation.
March 13, 2001, Manila.