Transfer of Cases from Securities and Exchange Commission to Regional Trial Court

Transfer of Cases from Securities and Exchange Commission to Regional Trial Court

<--!09042001-->A.M. No. 00-8-10-SCSep 4, 2001Supreme Court Issuances5 min read

On September 4, 2001, the Supreme Court of the Philippines issued a resolution clarifying the legal fees and appeal periods for cases transferred from the Securities and Exchange Commission (SEC) to Regional Trial Courts. It categorized intra-corporate controversies as ordinary civil actions, with specific filing fees applicable under Rule 141 of the Revised Rules of Court. Conversely, petitions for corporate rehabilitation were classified as special proceedings, governed by different fee structures. The resolution also established that these cases should be recorded in a separate docket from other civil actions and special proceedings. This ruling is effective from October 1, 2001, following its publication in two newspapers.

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What is Transfer of Cases from Securities and Exchange Commission to Regional Trial Court about?: On September 4, 2001, the Supreme Court of the Philippines issued a resolution clarifying the legal fees and appeal periods for cases transferred from the Securities and Exchange Commission (SEC) to Regional Trial Courts. It categorized intra-corporate controversies as ordinary civil actions, with specific filing fees applicable under Rule 141 of the Revised Rules of Court. Conversely, petitions for corporate rehabilitation were classified as special proceedings, governed by different fee structures. The resolution also established that these cases should be recorded in a separate docket from other civil actions and special proceedings. This ruling is effective from October 1, 2001, following its publication in two newspapers.
What type of law is <--!09042001-->A.M. No. 00-8-10-SC?: Transfer of Cases from Securities and Exchange Commission to Regional Trial Court (<--!09042001-->A.M. No. 00-8-10-SC) is a Philippine Supreme Court Issuances enacted by the Congress of the Philippines.
When was Transfer of Cases from Securities and Exchange Commission to Regional Trial Court enacted?: Transfer of Cases from Securities and Exchange Commission to Regional Trial Court (<--!09042001-->A.M. No. 00-8-10-SC) was enacted on Sep 4, 2001.
What is the citation for Transfer of Cases from Securities and Exchange Commission to Regional Trial Court?: Transfer of Cases from Securities and Exchange Commission to Regional Trial Court, <--!09042001-->A.M. No. 00-8-10-SC, Sep 4, 2001 (Philippines)

Law Information

Reference Number: <--!09042001-->A.M. No. 00-8-10-SC
Date Enacted: Sep 4, 2001
Category: Supreme Court Issuances
Subcategory: Resolutions
Jurisdiction: Philippines
Enacting Body: Congress of the Philippines

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.

R E S O L U T I O N

CLARIFICATION ON THE LEGAL FEES TO BE COLLECTED AND THE APPLICABLE PERIOD OF APPEAL IN CASES FORMERLY COGNIZABLE BY THE SECURITIES AND EXCHANGE COMMISSION

Clarification 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 filing 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 first be ascertained. Section 3(a) Rule 1 of the 1997 Rules of Civil Procedure defines 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, defines a special proceeding as a remedy by which a party seeks to establish a status, a right, or a particular fact.

Applying these definitions, 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 specific 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, 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;

(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;

(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 filing fees to be assessed for actions or proceedings filed 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 fine, the basis for computing the filing 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, fifteen (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