CIVIL PROCEDURE

RULE 3: PARTIES IN
CIVIL ACTION
Presented by: Emely Magno

Prof. JUSTICE CARMELITA S. MANAHAN (Ret.)

SEC. 16, RULE 3 ON THE RULES OF
CIVIL PROCEDURE
DEATH OF A PARTY AND DUTY OF THE COUNSEL
SEC. 16: DEATH OF PARTY; DUTY OF COUNSEL-
The claim is not extinguished whenever a party to a pending action dies. It shall be the duty of his counsel to inform
the court within thirty (30) days after such death of the fact thereof, and to give the name and address of his legal
representative or representatives. Counsel’s failure to comply with this duty shall be a ground for disciplinary action.
The heirs of the deceased may be allowed to be substituted for the deceased, without requiring the appointment of an
executor or administrator and the court may appoint a guardian ad litem for the minor heirs.
The court shall forthwith order said legal representative or representatives to appear and be substituted within a period of
thirty (30) days from notice.
The court may order the opposing party, within a specified time, to procure the appointment of an executor or
administrator for the estate of the deceased and the latter shall immediately appear for and on behalf of the deceased if
no legal representative is named by the counsel for the deceased party, or if the one so named shall fail to appear within
the specified period. The court charges in procuring such appointment, if defrayed by the opposing party, may be
recovered as costs.
What is the purpose of the rule?

 The rule is intended to protect every party’s right to due process.

 The estate of the deceased party will continue to be properly represented in the
suit, through the duly appointed legal representative. Moreover, no adjudication can
be made against the successor of the deceased if the fundamental right to a day in
court is denied. (Jose Ramilo O. Regalado vs. Chaucer B. Regalado, G.R. No.
196919, June 6, 2011)
Is formal notice of substitution required if the heirs already
participated in the case?

 No. A formal substitution of the heirs in place of the deceased is no longer

necessary if the heirs continued to appear and participated in the proceedings of
the case. (Joel Cardenas, Heir of the Late Elinaida L. Alcantara, represented by
Antonio Ignacio, Jr. vs. Heirs of the Late Sps Simplicia Aguilar, et al., G.R. No.
191079, March 2, 2016)
When will the substituting heirs appear before the court?

 It is the duty of the court to order the

legal representative or heir to appear
arises only upon proper notice.
(Generoso Saligumba vs Monica
Palanog, G.R. No. 143365, December 4,
2008)
What is the effect of failure of the counsel to inform the court of the
fact of death of the party and to file a substitution of heirs?

 The failure of counsel to comply with his duty to inform the court of the death of his
client and the non- substitution of such party will not invalidate the proceedings and
the judgement thereon if the action survives the death of such party. The decision
rendered shall bind the party’s successor-in-interest. The rules operate on the
presumption that the attorney for the deceased party is in better position than the
attorney for the adverse party to know about the death of his client and to inform
the court of the name and address of his legal representative. (Generoso Saligumba
vs Monica Palanog, supra)
What is the nature of the rule on substitution of heirs?

 The rule on substitution by heir is not a

matter of jurisdiction, but a requirement
of due process. Mere failure to
substitute a deceased party is not
sufficient ground to nullify a trial court’s
decision. The part alleging nullity must
prove that there was an undeniable
violation of due process. (Capitolina
Vivero Napere vs. Armando Barbarona,
G.R. No. 160426, January 31, 2008)
How to determine whether the action survives or not?

 The action as to whether an action survives or not depends on the nature of the
action and the damage sued for. In the causes of action which survive the wrong
complained affects primarily and principally property and property rights, the
injuries to the person being merely incidental, while in the causes of action which do
not survive, the injury complained of is to the person, the property and rights of
property affected being incidental. (Pacific Rehouse Corp. vs. Joven Ngo, as
represented by Oscar Garcia, G.R. No. 214934, April 12, 2016)
SEC. 17, RULE 3 ON THE RULES OF
CIVIL PROCEDURE
DEATH OR SEPARATION OF A PARTY WHO IS A PUBLIC OFFICER
SEC. 17: DEATH OR SEPARATION OF A PARTY WHO
IS A PUBLIC OFFICER
When a public officer is a party in an action in his official capacity and during its pendency dies,
resigns, or otherwise ceases to hold office, the action may be continued and maintained by or
against his successor if, within thirty (30) days after the successor take office or such time as
may be granted by the court, it is satisfactorily shown to the court by any party that there is a
substantial need for continuing or maintaining it and that the successor adopts or continues or
threatens to adopt or continue the action of his predecessor. Before a substitution is made, the
party or officer to be affected , unless expressly assenting thereto, shall be given reasonable
notice of the application therefor and accorded an opportunity to be heard.
What are the effects in case of death or separation of a
party who is a public officer?
When a public officer is a party in an action in his
official capacity and during its pendency dies,
resigns, or otherwise ceases to hold office, the
action may be:

1. Continued and maintained by or against

his successor of, within 30 days after the
successor takes office or such time as may
be granted by the court, if it is satisfactorily
shown to the court by any party that there is
a substantial need for continuing or
maintaining it and that the successor adopts
or continues or threatens to adopt or
continue the action of his predecessor.

2. Before a substitution is made, the party or

officer to be affected, unless expressly
assenting thereto, shall be given reasonable
notice of the application therefor and
accorded an opportunity to be heard.
SEC. 18, RULE 3 ON THE RULES OF
CIVIL PROCEDURE
INCOMPETENCY OF INCAPACITY OF A PARTY
SEC. 18. INCOMPETENCY OR INCAPACITY
When a party becomes incompetent or incapacitated, the court, upon motion with notice, may
allow the action to be continued by or against the incompetent or incapacitated person assisted
by his legal guardian or guardian ad litem
What is the effect if the party to the action becomes
incompetent or incapacitated?

 If a party becomes incompetent or

incapacitated, the court, upon motion
with notice, may allow the action to be
continued by or against the incompetent
or incapacitated person assisted by his
legal guardian or guardian ad litem.
SEC. 19, RULE 3 ON THE RULES OF
CIVIL PROCEDURE
TRANSFER OF INTEREST
SEC. 19. TRANSFER OF INTEREST
The action may be continued by or against the original party in case of any transfer of interest,
unless the court upon motion directs the person to whom the interest is transferred to be
substituted in the action or joined with the original party.
What is the effect in case of transfer of interest by the party?

 In case of any transfer of interest by the

party, the court may allow:
1.The action may be continued by or
against the original party;
2. Unless the court upon motion
directs the person to whom the interest is
transferred to be substituted in the action
or joined with the original party.
What is the nature of substitution of parties on account of
transfer of interest?

 The rule on substitution of parties on account of transfer of interest is not

mandatory but rather discretionary.
 The language of Sec. 19 reflects a wide latitude and considerable leeway given to
the court in ascertaining the propriety of substituting a party by another on account
of a transfer of interest.
 Whether or not a change or substitution of party can take place is left to the sound
discretion of the court. However, it is equally true that the discretionary nature of
allowing the substitution or joinder by the transferee demands that the court’s
determination must be well- within the sphere of law, guided by applicable statutory
principles, and supported by factual and legal bases.
SEC. 20, RULE 3 ON THE RULES OF
CIVIL PROCEDURE
ACTION ON CONTRACTUAL MONEY CLAIMS
SEC. 20.- ACTION ON CONTRACTUAL MONEY
CLAIMS
When the action is for recovery of money arising from contract, express or implied, and the
defendant dies before entry of final judgement in the court in which the action was pending at
the time of such death, it shall not be dismissed but shall instead be allowed to continue until
entry of final judgement. A favorable judgement obtained by the plaintiff therein shall be
enforced in the manner especially provided in these Rues for prosecuting claims against the
estate of a deceased person.
What is the effect in case of death of a party in an action based
on a contractual money claims?

 When the action is for a recovery of money arising from a contract, express or
implied, and the defendant dies before entry of final judgement in the court in which
the action was pending at the time of such death, the case shall:
a. It will not be dismissed but shall instead be allowed to continue until entry of
final judgement; and
b. In case of a favorable judgement obtained by the plaintiff therein shall be
enforced in the manner especially provided in these Rules for prosecuting claims
against the estate of a deceased person.
 In the event that the respondent-debtor dies during the pendency of the case, the
same is not dismissed but is allowed to continue. If, eventually, the court rules
against the deceased respondent, the same shall be enforced as a claim against his
estate, and not against the individual heirs. (Pasda, Inc. vs. Reynaldo Dimayacyac
Sr., substituted by the Heirs , G. R. No. 220479, August 17, 2016)
What are the actions that survives the death of the party?

 Actions that survive the death of the party under the rules are as follows, to wit:

1. Action for the recovery of money arising from contract, express or implied (Sec.
20, Rule 3);
2. Actions to recover real property;
3. Recovery of personal property or an interest therein, from the estate, or to
enforce a lien thereon; and
4. Actions to recover damages for an injury to person or property, real or
personal, may be commenced against him. (Sec. 1, Rule 87)
What is the nature of an action for quieting of title?

 An action for quieting of title with

damages is an action involving real
property which is an action that survives
as the claim is not extinguished by the
death of a party. And when a party dies
in an action that survives, Sec 17of Rule
3 provides for the procedure. (Generoso
Saligumba vs Monica Palanog, G.R. No.
143365, December 4, 2008)
How will the judgement be enforced in case of death of a party
during the pendency of the action?

 In case of death of the defendant, the

case will continue and judgement shall
be enforced against the estate. (Pasda,
Inc. vs. Reynaldo Dimayacyac Sr.,
substituted by the Heirs , G. R. No.
220479, August 17, 2016)
When to file the claim against the estate based on a favorable
judgement?

 It shall be filed immediately after granting letters testamentary or of administration,

the court shall issue a notice requiring all persons having money claims against the
decedent to file them in the office of the clerk of said court.
 Procedural Basis: Sec. 1, Rule 86 of the Rules of Court.

“Sec. 1. Notice to creditors to be issued by court. - Immediately after granting

letters testamentary or of administration, the court shall issue a notice requiring all
persons having money claims against the decedent to file them in the office of the
clerk of said court.
What are the claims which can be charged against the estate?

 The following may be claimed against the estate of the deceased:

1. All claims for money against the decedent, arising from contract, express or
implied, whether the same be due, not due, or contingent;
2. All claims for funeral expenses;
3. Expenses for the last sickness of the decedent; and
4. Judgement for money against the decedent, must be filed within the time
limited in the notice.
What is the effect if the claim is not filed within the period
prescribed?

 Claims after notice issued by the court

must be filed within the time limited in
the notice; otherwise they are barred
forever.(Sec. 5, Rule 86)
What is the remedy of the claimant if he failed to file his claim
within the time prescribed?

 Claims not filed may be set forth as

counter claims in any action that the
executor or administrator may bring
against the claimants. (Sec. 5, Rule 86)
What are the remedies of the debtor in case an action is commenced
by the deceased and prosecuted by the executor or administrator?

 Where an executor or administrator commences an action, or prosecutes an action

already commenced by the deceased in his lifetime, the debtor may:
a. Set forth by answer the claims he has against the decedent, instead of
presenting independently to the court;
b. Mutual claims may be set off against each other in such action;
c. If final judgement is rendered in favor of the defendant, the amount so
determined shall be considered the true balance against the estate, as though the
claim had been presented directly before the court in the administration proceedings;
and
d. Claims not yet due, or contingent, may be approved at their present value.
SEC. 21, RULE 3 ON THE RULES OF
CIVIL PROCEDURE
INDIGENT PARTY
SEC. 21. INDIGENT PARTY
If the court, upon an ex parte application and hearing, is satisfied that the party is one who has no
money or property sufficient and available for food, shelter and basic necessities for himself and his
family, a party may be authorized to litigate his action, claim or defense as an indigent.
Such authority shall include an exemption from payment of docket and other lawful fees, and of
transcripts of stenographic notes which the indigent was exempted from paying shall be a lien on any
judgement rendered in the case favorable to the indigent, unless the court otherwise provides.
Any adverse party may contest the grant of such authority at any time before judgement is
rendered by the trial court. The proper docket and other lawful fees shall be assessed and collected
by the clerk of court if it determined after hearing that the party declared as an indigent is in fact a
person with sufficient income or property. If payment is not made within the time fixed by the court,
execution shall issue for the payment thereof, without prejudice to such other sanctions as the court
may impose.
Who is an indigent party?

 An indigent party is one who is allowed

to litigate an action who has no money
or property sufficient and available for
food, shelter, and basic necessities for
himself and his family.
What are the requirements to be declared as an indigent?

 A party may be authorized to litigate his action, claim or defense as an indigent if

the court allows subject to the following requirements:
1. Upon an ex parte application and hearing;
2. The court is satisfied that the party is one who has no money or property
sufficient and available for food, shelter, and basic necessities for himself and his
family.
What are the effects of declaration of a party as an indigent?

 If a party is declared by the court as an

indigent party, the authority shall
include:
1. An exemption from the payment of
docket and other lawful fees; and
2. Exemption from the payment of
transcripts of stenographic notes which the
court may order to furnish him.
Note: The amount of the docket and other
lawful fees which the indigent was
exempted from paying shall be a lien on
any judgement rendered in the case
favorable to the indigent, unless the court
otherwise provides.
Any adverse party may contest the grant of such authority at
any time before the judgment is rendered by the trial court.

 If the court should determine after hearing that the party declared as an indigent is
in fact a person with sufficient income or property that court may:
1. Order that the proper docket and other lawful fees shall be assessed and
collected by the clerk of court;
2. If payment is not made within the time fixed by the court, execution shall issue
for the payment thereof, without prejudice to such other sanctions as the court may
impose.
(A) AMENDMENT ON RULE 141 ON THE
PAYMENT OF DOCKET FEES
(A.M. NO. 00-2-01, MARCH 1, 2000)
SEC. 18, RULE 141(AS AMENDED). INDIGENT-
LITIGANTS EXEMPTS FROM PAYMENT OF LEGAL
FEES
Indigent litigants (a) whose gross income and that of their immediate family do not exceed four
thousand (Php 4, 000) pesos a month if residing in Metro Manila, and three thousand(Php 3, 000) pesos
if residing outside Metro Manila, and (b) who do not own real property with an assessed value of more
than fifty thousand (Php 50, 000) shall be exempt from the payment of legal fees.
The legal fees shall be a lien on any judgement rendered in the cases favorably to the indigent
litigant, unless the court otherwise provides.
To be entitled to the exemption herein provided, the litigant shall execute an affidavit that he and his
immediate family do not earn a gross income abovementioned, nor they own any real property with the
assessed value aforementioned, supported by an affidavit of a disinterested person attesting to the truth
of the litigant’s affidavit.
Any falsity in the affidavit of a litigant or disinterested person shall be sufficient cause to strike out
the pleading of that party, without prejudice to whatever criminal liability may have been incurred.
What are the requirements for a party to be declared as an
indigent?

 Indigent litigants shall have the following qualification to be declared as such:

1. Whose gross income and that of their immediate family do not exceed four
thousand (Php 4,000) pesos a month if residing in Metro Manila and three thousand
(Php 3, 000) pesos a month if residing outside Metro Manila; and
2. Who do not own real property with an assessed value of more than fifty
thousand (Php 50, 000) pesos shall be exempt from the payment of legal fees.
What are the other documentary requirements for the litigant
to comply?

 To be entitled to the exemption, the litigant shall execute and affidavit and shall
state that:
1. He and his immediate family do not earn a gross income abovementioned;
2.They do not own any real property with the assessed value aforementioned;
3. It must be supported by an affidavit of a disinterested person attesting to the
truth of the litigant’s affidavit.
What is the effect in case the litigant made a falsity in his
affidavit?

 Any falsity in the affidavit of a litigant or

disinterested person shall be sufficient
cause to strike out the pleading of that
party, without prejudice to whatever
criminal liability may have been
incurred.
Is an erroneous granting of a Motion to Declare as pauper
litigants a jurisdictional error?

 No. If the non-payment is not entirely attributable to the plaintiff, it becomes error in the exercise of
jurisdiction on the part of the judge.

 It is true that the non-payment of the filing fees usually prevents the trial court from acquiring
jurisdiction over the claim stated in the complaint. But for the CA to annul the judgement rendered after
trial based solely on such non-payment was not right and just considering that the non-payment of the
filing fees had not been entirely attributable to the plaintiff alone. The trial court was more, if not
exclusively, to blame for the omission. The exemption of the clients of the PAO like him from the
payment of the legal fees was expressly declared by law in RA No. 9406 (Public Attorneys Office).
(Samsoden Pangcatan vs Alexandro Maghuyop, et al., and Bankiao et al. vs Samsoden Pangcatan, G.R.
No. 194412/ G.R. No. 194566, November 16, 2016)
(B) RULE ON INDIGENT PARTY IN SMALL
CLAIMS CASES
SEC. 10. PAYMENT OF FILING FEES.
The plaintiff shall pay the docket and other legal fees prescribed under Rule 141 of the
revised Rules of Court, unless allowed to litigate as an indigent. Exemption from the payment of
filing fees shall be granted only by the Supreme Court.
What is the rule on indigent party under the Rules on Small
Claims?

 The plaintiff shall pay the docket and

other legal fees prescribed under Rule
141 of the Revised Rules of Court, unless
allowed to litigate as an indigent.
Exemption from the payment of filing
fees shall be granted only by the
Supreme Court.
How will the party be declared as an indigent party?

 A claim filed with a motion to sue as indigent shall be referred to the Executive
Judge for immediate action in case of multi-sala courts.
 If the motion is granted by the Executive Judge, the case shall be raffled off or
assigned to the court designated to hear small claims cases.
 If the motion is denied, the plaintiff shall be given five days within which to pay the
docket fees, otherwise, the case shall be dismissed without prejudice.
 In no case shall a party , even if declared an indigent, be exempt from the payment
of the Php 1, 000 fee for service of summons and processes.
(C) CONSTITUTIONAL BASIS OF THE RULE
ON INDIGENT PARTY
Sec. 11, Art. III of the 1987 Constitution provides for the rights of the person to free access to
courts and legal assistance. It provides that:

“Sec. 11. Free access to courts and quasi-judicial bodies and adequate legal assistance
shall not be denied by reason of poverty.”
THANK YOU!

Emely R. Magno