Non-Exemption of Cooperatives from the Payment of Legal Fees

May 7, 2012

OCA CIRCULAR NO. 42-12

 

In the Resolution dated March 13, 2012 in Administrative Matter (A.M.) No. 12-2-03-0 (Re: In the Matter of Clarification of Exemption from Payment of all Court and Sheriff's Fees of Cooperatives duly registered in accordance with Republic Act No. 9520, otherwise known as the Philippine Cooperative Code of 2008), the Honorable Court En Banc denied the petition of the Perpetual Help Community Cooperative (PHCCI) to issue an order clarifying and implementing the exemption of cooperatives from the payment of court and sheriff's fees, and declared that cooperatives are no longer exempt from the payment of the legal fees provided for under Rule 141 of the Rules of Court, to wit: aCTcDS

"xxx xxx xxx

'In a decision dated 26 February 2010 in Baguio Market Multi-Purpose Cooperative (BAMARVEMPCO) v. Cabato-Cortes (G.R. No. 165922, 26 February 2010, 613 SCRA 733), this Court reiterated its ruling in the GSIS case when it denied the petition of the cooperative to be exempted from the payment of legal fees under Section 7 (c) of Rule 141 of the Rules of Court relative to fees in petitions for extra-judicial foreclosure.

'On 10 March 2010, relying again on the GSIS ruling, the Court En Banc issued a resolution clarifying that the National Power Corporation is not exempt from the payment of legal fees. (In Re: Exemption of the National Power Corporation from the Payment of Filing/Docket Fees, A.M. No. 05-10-20-SC, 10 March 2010, 615 SCRA 1)

'With the foregoing categorical pronouncements of the Supreme Court, it is evident that the exemption of cooperatives from payment of court and sheriff's 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 sheriff's fees is hereby DENIED." (Emphasis supplied)

In view of the foregoing, the guidelines set forth in the OCA Circular No. 44-2007 dated May 3, 2007 (Re: Clarification on the Exemption of Cooperatives from the Payment of all Court and Sheriff's Fees) EXEMPTING the cooperatives from the payment of all court and sheriff's fees payable to the Philippine Government for and in connection with all actions brought under Republic Act No. 6938 or the Cooperative Code of the Philippines, or where such action is brought by the Cooperative Development Authority before the court, to enforce the payment of obligations contracted in favor of the cooperative, is hereby REVOKED. CIETDc

Henceforth, all concerned are hereby DIRECTED to STRICTLY OBSERVE and IMPLEMENT the abovementioned pronouncements of the Court on the non-exemption of cooperatives from the payment of legal fees provided for under Rule 141 of the Rules of Court and, accordingly, the OCA Circular No. 44-2007 dated May 3, 2007 is hereby REVOKED.

This Circular shall take effect immediately.

 

(SGD.) JOSE MIDAS P. MARQUEZCourt Administrator