Re: Petition for Recognition of the Exemption of the Government Service
Insurance System from Payment of Legal Fees, 612 SCRA 193
FACTS:
In a Petition dated 24 October 2011, Perpetual Help Community
Cooperative (PHCCI), through counsel, requests for the issuance of a court
order to clarify and implement the exemption of cooperatives from the payment
of court and sheriffs fees pursuant to Republic Act No. 6938, as amended by
Republic Act No. 9520, otherwise known as the Philippine Cooperative Act of
2008.
PHCCI contends that as a cooperative it enjoys the exemption provided
for under Section 6, Article 61 of Republic Act No. 9520, which states:
(6) Cooperatives shall be exempt from the payment of all court and sheriffs
fees payable to the Philippine Government for and in connection with all actions brought
under this Code, or where such actions is brought by the Authority before the court, to
enforce the payment of obligations contracted in favor of the cooperative.
It avers that despite the exemptions granted by the aforesaid laws and
issuances, PHCCI had been continuously assessed and required to pay legal and
other fees whenever it files cases in court.
PHCCI reports that it filed with the Office of the Executive Judge of
the Municipal Trial Court in Cities (MTCC), Dumaguete City, Negros Oriental,
a Motion to implement the exemption of cooperatives from the payment of court
and sheriffs fees in cases filed before the courts in his jurisdiction, but the
Executive Judge ruled that the matter is of national concern and should be
brought to the attention of the Supreme Court for it to come up with a straight
policy and uniform system of collection. In the meantime, the MTCC has
continued the assessment of filing fees against cooperatives.
ISSUE:
Whether cooperatives are exempt from the payment of court and sheriffs fees.
RULING:
Court citing Echegaray v. Secretary of Justice, stressed that the 1987
Constitution molded an even stronger and more independent judiciary; took
away the power of Congress to repeal, alter, or supplement rules concerning
pleading, practice and procedure; and held that the power to promulgate these
Rules is no longer shared by the Court with Congress, more so, with the
Executive, thus:
Since the payment of legal fees is a vital component of the
rules promulgated by this Court concerning pleading, practice and
procedure, it cannot be validly annulled, changed or modified by
Congress. As one of the safeguards of this Courts institutional
independence, the power to promulgate rules of pleading, practice
and procedure is now the Courts exclusive domain. That power is
no longer shared by this Court with Congress, much less with the
Executive.
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The separation of powers among the three co-equal
branches of our government has erected an impregnable wall that
keeps the power to promulgate rules of pleading, practice and
procedure within the sole province of this Court. The other branches
trespass upon this prerogative if they enact laws or issue orders that
effectively repeal, alter or modify any of the procedural rules
promulgated by this Court. Viewed from this perspective, the claim of a
legislative grant of exemption from the payment of legal fees under
Section 39 of R.A. 8291 necessarily fails.
With the foregoing categorical pronouncements of the Supreme Court,
it is evident that the exemption of cooperatives from payment of court and
sheriffs fees no longer stands. Cooperatives can no longer invoke Republic Act
No. 6938, as amended by Republic Act No. 9520, as basis for exemption from
the payment of legal fees.
WHEREFORE, in the light of the foregoing premises, the petition of
PHCCI requesting for this Court to issue an order clarifying and implementing
the exemption of cooperatives from the payment of court and sheriffs fees is
hereby DENIED.
The Office of the Court Administrator is DIRECTED to issue a
circular clarifying that cooperatives are not exempt from the payment of the
legal fees provided for under Rule 141 of the Rules of Court.
SO ORDERED.
Ruchie U. Etolle JD- I
