September 4, 2001

EN BANC

A.M. No. 00-8-10-SC

Re : Transfer of Cases from the Securities and Exchange Commission to
the Regional Trial Court.

RESOLUTION

CLARIFICATION ON THE LEGAL FEES TO BE COLLECTED AND THE APPLICABLE

PERIOD OF APPEAL IN CASES FORMERLY COGNIZABLE BY THE SECURITIES AND
EXCHANGE COMMISSION
Clari cation has been sought on the legal fees to be collected and the period of
appeal applicable in cases formerly cognizable by the Securities and Exchange
Commission. It appears that the Interim Rules of Procedure on Corporate Rehabilitation
and the Interim Rules of Procedure for Intra-Corporate Controversies do not provide
the basis for the assessment of ling fees and the period of appeal in cases
transferred from the Securities and Exchange Commission to particular Regional Trial
Courts.
The nature of the above mentioned cases should rst be ascertained. Section
3(a) Rule 1 of the 1997 Rules of Civil Procedure de nes civil action as one by which a
party sues another for the enforcement or protection of a right, or the prevention or
redress of a wrong. It further states that a civil action may either be ordinary or special,
both being governed by the rules for ordinary civil actions subject to the special rules
prescribed for special civil actions. Section 3(c) of the same Rule, de nes a special
proceeding as a remedy by which a party seeks to establish a status, a right, or a
particular fact.
Applying these de nitions, the cases covered by the Interim Rules for Intra-
Corporate Controversies should be considered as ordinary civil actions. These cases
either seek the recovery of damages/property or speci c performance of an act
against a party for the violation or protection of a right. These cases are:
(1) Devices or schemes employed by, or any act of, the board of
directors, business associates, o cers 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;
(2) Controversies arising out of intra-corporate, 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;
(3) Controversies in the election or appointment of directors, trustees,
officers, or managers of corporations, partnerships, or associations;
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 (4) Derivative suits; and
(5) Inspection of corporate books.
On the other hand, a petition for rehabilitation, the procedure for which is
provided in the Interim Rules of Procedure on Corporate Recovery, should be
considered as a special proceeding. It is one that seeks to establish the status of a
party or a particular fact. As provided in section I, Rule 4 of the Interim Rules on
Corporate Recovery, the status or fact sought to be established is the inability of the
corporate debtor to pay its debts when they fall due so that a rehabilitation plan,
containing the formula for the successful recovery of the corporation, may be approved
in the end. It does not seek a relief from an injury caused by another party.
Section 7 of Rule 141 (Legal Fees) of the Revised Rules of Court lays the amount
of ling fees to be assessed for actions or proceedings led with the Regional Trial
Court. Section 7(a) and (b) apply to ordinary civil actions while 7(d) and (g) apply to
special proceedings.
In ne, the basis for computing the ling fees in intra-corporate cases shall be
section 7(a) and (b) 1 & 3 of Rule 141. For petitions for rehabilitation, section 7(d) shall
be applied. aSEDHC

Notwithstanding the foregoing, cases involving intra-corporate disputes and

petitions for rehabilitation shall be entered, recorded and docketed in a single and
special docket book separate from civil actions and special proceedings.
As a reminder to the judges and clerks of courts, the fees collected shall be
allocated between the General Fund and the Judiciary Development Fund in accordance
with the guidelines prescribed in Administrative Order No. 3-2000.
Following the discussion above, the period of appeal provided in section 3, Rule
41 of the 1997 Rules of Civil Procedure for ordinary civil actions shall apply to cases
involving intra-corporate disputes. Corollarily, the period of appeal provided in
paragraph 19(b) of the Interim Rules Relative to the Implementation of B.P. Blg. 129 for
special proceedings shall apply to petitions for rehabilitation.
This resolution shall take effect on October 1, 2001, fteen (15) days after its
publication in two (2) newspapers of general circulation. TAScID

Promulgated this 4th day of September, 2001.

(SGD.) HILARIO G. DAVIDE, JR.

Chief of Justice
(SGD.) JOSUE N. BELLOSILLO
Associate Justice
Supreme Court of the Philippines

(SGD) REYNATO S. PUNO

Associate Justice
Supreme Court of the Philippines

(SGD.) SANTIAGO M. KAPUNAN

Associate Justice
Supreme Court of the Philippines

(SGD) ARTEMIO V. PANGANIBAN

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 Associate Justice
Supreme Court of the Philippines

(SGD.) BERNARDO P. PARDO

Associate Justice
Supreme Court of the Philippines

(SGD.) MINERVA P. GONZAGA-REYES

Associate Justice
Supreme Court of the Philippines

(SGD) SABINO R. DE LEON, JR.

Associate Justice
Supreme Court of the Philippines

(SGD.) JOSE R. MELO

Associate Justice
Supreme Court of the Philippines

(SGD.) JOSE C. VITUG

Associate Justice
Supreme Court of the Philippines

(SGD.) VICENTE V. MENDOZA

Associate Justice
Supreme Court of the Philippines

(SGD.) LEONARDO A. QUISUMBING

Associate Justice
Supreme Court of the Philippines

(SGD.) ARTURO B. BUENA

Associate Justice
Supreme Court of the Philippines

(SGD.) CONSUELO YNARES-SANTIAGO

Associate Justice
Supreme Court of the Philippines

(SGD.) ANGELINA SANDOVAL-GUTIERREZ

Associate Justice
Supreme Court of the Philippines

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