TABLE OF CONTENTS

Rule of Procedure for Small Claims, As Amended ......................................................................1

Provisions of the Local Government Code on Katarungang Pambarangay .................................7
Guidelines on the Katarungang Pambrangay Conciliation Procedure .......................................14
Special Rules of Court on Alternative Dispute Resolution .........................................................17
Domestic Adoption Act of 1998 .................................................................................................71
Inter-Country Adoption Act of 1995 ...........................................................................................81
Rule on Adoption ......................................................................................................................89
Rule on Custody of Minors and Writ of Habeas Corpus in Relation to Custody of Minors........ 103
Rule on Change of Name Without Court Intervention .............................................................. 109
Judicial Affidavit Rule .............................................................................................................. 113
Efficient Use of Paper Rule ..................................................................................................... 118
Rules of Procedure for Environmental Cases .......................................................................... 120
Rule on Guardinship of Minors ................................................................................................ 144
Rule on Service of Summons Upon Foreign Private Juridical Entity ........................................ 151
Act Number 3135 .................................................................................................................... 152
Periods of Prescription for Violations Penalized by Special Acts and Municipal Ordinances ... 154
The Chattel Mortgage Law ...................................................................................................... 155
The 2011 NLRC Rules of Procedure ....................................................................................... 161


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RULE OF PROCEDURE FOR SMALL CLAIMS CASES AS AMENDED
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SECTION 1. Title.This Rule shall be known as "The Rule of Procedure for Small Claims
Cases.

SEC. 2. Scope.This Rule shall govern the procedure in actions before the Metropolitan Trial
Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts
for payment of money where the value of the claim does not exceed One Hundred Thousand
Pesos (P100,000.00) exclusive of interest and costs.

SEC. 3. Definition of Terms.For purposes of this Rule:

(a) Plaintiff refers to the party who initiated a small claims action. The term includes a
defendant who has filed a counterclaim against plaintiff;

(b) Defendant is the party against whom the plaintiff has filed a small claims action. The
term includes a plaintiff against whom a defendant has filed a claim, or a person who
replies to the claim;

(c) Person is an individual, corporation, partnership, limited liability partnership,
association, or other juridical entity endowed with personality by law;

(d) Individual is a natural person;

(e) Motion means a party's request, written or oral, to the court for an order or other
action. It shall include an informal written request to the court, such as a letter;

(f) Good cause means circumstances sufficient to justify the requested order or other
action, as determined by the judge; and

(g) Affidavit means a written statement or declaration of facts that are sworn or affirmed
to be true.

SEC. 4. Applicability.The Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal
Trial Courts, and Municipal Circuit Trial Courts shall apply this Rule in all actions which are: (a)
purely civil in nature where the claim or relief prayed for by the plaintiff is solely for payment or
reimbursement of sum of money, and (b) the civil aspect of criminal actions, either filed before
the institution of the criminal action, or reserved upon the filing of the criminal action in court,
pursuant to Rule 111 of the Revised Rules Of Criminal Procedure.

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Effectivity of the Rule to all pilot courts for small claims cases October 1, 2008
Effectivity of the amendments to the Rule November 3, 2009
Effective date of the implementation/roll-out of the Rule, as amended, to all first level courts,
except the Shari'a Circuit Courts March 18, 2010

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These claims or demands may be:

(a) For money owed under any of the following:

1. Contract of Lease;

2. Contract of Loan;

3. Contract of Services;

4. Contract of Sale; or

5. Contract of Mortgage;

(b) For damages arising from any of the following:

1. Fault or negligence;

2. Quasi-contract; or

3. Contract;

(c) The enforcement of a barangay amicable settlement or an arbitration award involving
a money claim covered by this Rule pursuant to Sec. 417 of Republic Act 7160,
otherwise known as the Local Government Code of 1991.

SEC. 5. Commencement of Small Claims Action.A small claims action is commenced by filing
with the court an accomplished and verified Statement of Claim (Form 1-SCC) in duplicate,
accompanied by a Certification of Non-forum Shopping (Form 1-A, SCC), and two (2) duly
certified photocopies of the actionable document/s subject of the claim, as well as the affidavits
of witnesses and other evidence to support the claim. No evidence shall be allowed during the
hearing which was not attached to or submitted together with the Claim, unless good cause is
shown for the admission of additional evidence.

No formal pleading, other than the Statement of Claim described in this Rule, is
necessary to initiate a small claims action.

SEC. 6. Joinder of Claims.Plaintiff may join in a single statement of claim one or more
separate small claims against a defendant provided that the total amount claimed, exclusive of
interest and costs, does not exceed P100,000.00.

SEC. 7. Affidavits.The affidavits submitted under this Rule shall state only facts of direct
personal knowledge of the affiants which are admissible in evidence.

A violation of this requirement shall subject the party, and the counsel who assisted the party in
the preparation of the affidavits, if any, to appropriate disciplinary action. The inadmissible
affidavit(s) or portion(s) thereof shall be expunged from the record.

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SEC. 8. 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.

A claim filed with a motion to sue as indigent (Form 6-SCC) shall be referred to the Executive
Judge for immediate action in case of multi-sala courts, or to the Presiding Judge of the court
hearing the small claims case. 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 (5) 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 P1,000.00 fee for service of summons and
processes in civil cases.

SEC. 9. Dismissal of the Claim.After the court determines that the case falls under this Rule, it
may, from an examination of the allegations of the Statement of Claim and such evidence
attached thereto, by itself, dismiss the case outright on any of the grounds apparent from the
Claim for the dismissal of a civil action.

SEC. 10. Summons and Notice of Hearing.If no ground for dismissal is found, the court shall
forthwith issue Summons (Form 2-SCC) on the day of receipt of the Statement of Claim,
directing the defendant to submit a verified Response.

The court shall also issue a Notice (Form 4-SCC) to both parties, directing them to appear
before it on a specific date and time for hearing, with a warning that no unjustified postponement
shall be allowed, as provided in Section 19 of this Rule.

The summons and notice to be served on the defendant shall be accompanied by a copy of the
Statement of Claim and documents submitted by plaintiff, and a copy of the Response (Form 3-
SCC) to be accomplished by the defendant. The Notice shall contain an express prohibition
against the filing of a motion to dismiss or any other motion under Section 14 of this Rule.

SEC. 11. Response. The defendant shall file with the court and serve on the plaintiff a duly
accomplished and verified Response within a non-extendible period of ten (10) days from
receipt of summons. The Response shall be accompanied by certified photocopies of
documents, as well as affidavits of witnesses and other evidence in support thereof. No
evidence shall be allowed during the hearing which was not attached to or submitted together
with the Response, unless good cause is shown for the admission of additional evidence.

The grounds for the dismissal of the claim, under Rule 16 of the Rules of Court, should be
pleaded.

SEC. 12. Effect of Failure to File Response. Should the defendant fail to file his Response
within the required period, and likewise fail to appear at the date set for hearing, the court shall
render judgment on the same day, as may be warranted by the facts.

Should the defendant fail to file his Response within the required period but appears at the date
set for hearing, the court shall ascertain what defense he has to offer and proceed to hear,
mediate or adjudicate the case on the same day as if a Response has been filed.

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SEC. 13. Counterclaims Within the Coverage of this Rule.If at the time the action is
commenced, the defendant possesses a claim against the plaintiff that (a) is within the coverage
of this Rule, exclusive of interest and costs; (b) arises out of the same transaction or event that
is the subject matter of the plaintiff's claim; (c) does not require for its adjudication the joinder of
third parties; and (d) is not the subject of another pending action, the claim shall be filed as a
counterclaim in the Response; otherwise, the defendant shall be barred from suit on the
counterclaim.
The defendant may also elect to file a counterclaim against the plaintiff that does not arise out of
the same transaction or occurrence, provided that the amount and nature thereof are within the
coverage of this Rule and the prescribed docket and other legal fees are paid.

SEC. 14. Prohibited Pleadings and Motions. The following pleadings, motions, or petitions
shall not be allowed in the cases covered by this Rule:

(a) Motion to dismiss the complaint;

(b) Motion for a bill of particulars;

(c) Motion for new trial, or for reconsideration of a judgment, or for reopening of trial;

(d) Petition for relief from judgment;

(e) Motion for extension of time to file pleadings, affidavits, or any other paper;

(f) Memoranda;

(g) Petition for certiorari, mandamus, or prohibition against any interlocutory order issued
by the court;

(h) Motion to declare the defendant in default;

(i) Dilatory motions for postponement;

(j) Reply;

(k) Third-party complaints; and

(l) Interventions.

SEC. 15. Availability of Forms; Assistance by Court Personnel.The Clerk of Court or other
court personnel shall provide such assistance as may be requested by a plaintiff or a defendant
regarding the availability of forms and other information about the coverage, requirements as
well as procedure for small claims cases.

SEC. 16. Appearance. The parties shall appear at the designated date of hearing personally.

Appearance through a representative must be for a valid cause. The representative of an
individual-party must not be a lawyer, and must be related to or next-of-kin of the individual-
party. Juridical entities shall not be represented by a lawyer in any capacity.

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The representative must be authorized under a Special Power of Attorney (Form 5-SCC) to
enter into an amicable settlement of the dispute and to enter into stipulations or admissions of
facts and of documentary exhibits.

SEC. 17. Appearance of Attorneys Not Allowed.No attorney shall appear in behalf of or
represent a party at the hearing, unless the attorney is the plaintiff or defendant.

If the court determines that a party cannot properly present his/her claim or defense and needs
assistance, the court may, in its discretion, allow another individual who is not an attorney to
assist that party upon the latter's consent.

SEC. 18. Non-appearance of Parties.Failure of the plaintiff to appear shall be cause for the
dismissal of the claim without prejudice. The defendant who appears shall be entitled to
judgment on a permissive counterclaim.

Failure of the defendant to appear shall have the same effect as failure to file a Response under
Section 12 of this Rule. This shall not apply where one of two or more defendants who are sued
under a common cause of action and have pleaded a common defense appears at the hearing.

Failure of both parties to appear shall cause the dismissal with prejudice of both the claim and
counterclaim.

SEC. 19. Postponement When Allowed.A request for postponement of a hearing may be
granted only upon proof of the physical inability of the party to appear before the court on the
scheduled date and time. A party may avail of only one (1) postponement.

SEC. 20. Duty of the Court.At the beginning of the court session, the judge shall read aloud a
short statement explaining the nature, purpose and the rule of procedure of small claims cases.

SEC. 21. Hearing. At the hearing, the judge shall exert efforts to bring the parties to an
amicable settlement of their dispute. Any settlement (Form 7-SCC) or resolution (Form 8-SCC)
of the dispute shall be reduced into writing, signed by the parties and submitted to the court for
approval (Form 12-SCC)

Settlement discussions shall be strictly confidential and any reference to any settlement made in
the course of such discussions shall be punishable by contempt.

Sec. 22. Failure of Settlement. If efforts at settlement fail, the hearing shall proceed in an
informal and expeditious manner and be terminated within one (1) day. Either party may move
in writing (Form 10-SCC) to have another judge hear and decide the case. The reassignment of
the case shall be done in accordance with existing issuances.

The referral by the original judge to the Executive Judge shall be made within the same day the
motion is filed and granted, and by the Executive Judge to the designated judge within the same
day of the referral. The new judge shall hear and decide the case within five (5) working days
from receipt of the order of reassignment.

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SEC. 23. Decision.After the hearing, the court shall render its decision on the same day,
based on the facts established by the evidence (Form 13-SCC). The decision shall immediately
be entered by the Clerk of Court in the court docket for civil cases and a copy thereof forthwith
served on the parties.

The decision shall be final and unappealable.

SEC. 24. Execution.If the decision is rendered in favor of the plaintiff, execution shall issue
upon motion (Form 9-SCC).

SEC. 25. Applicability of the Rules of Civil Procedure.The Rules of Civil Procedure shall apply
suppletorily insofar as they are not inconsistent with this Rule.

SEC. 26. Effectivity*.This Rule shall take effect on October 1, 2008 for the pilot courts
designated to apply the procedure for small claims cases following its publication in two
newspapers of general circulation.

The amendments to this Rule shall take effect ninety (90) days from publication in two (2)
newspapers of general circulation.

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RA 7160
PROVISIONS OF THE LOCAL GOVERNMENT CODE ON KATARUNGANG
PAMBARANGAY



CHAPTER VII
Katarungang Pambarangay

Section 399. Lupong Tagapamayapa.

(a) There is hereby created in each barangay a lupong tagapamayapa, hereinafter
referred to as the lupon, composed of the punong barangay, as chairman and ten (10) to
twenty (20) members. The lupon shall be constituted every three (3) years in the manner
provided herein.

(b) Any person actually residing or working, in the barangay, not otherwise expressly
disqualified by law, and possessing integrity, impartiality, independence of mind, sense
of fairness, and reputation for probity, may be appointed a member of the lupon.

(c) A notice to constitute the lupon, which shall include the names of proposed members
who have expressed their willingness to serve, shall be prepared by the punong
barangay within the first fifteen (15) days from the start of his term of office. Such notice
shall be posted in three (3) conspicuous places in the barangay continuously for a period
of not less than three (3) weeks;

(d) The punong barangay, taking into consideration any opposition to the proposed
appointment or any recommendations for appointment as may have been made within
the period of posting, shall within ten (10) days thereafter, appoint as members those
whom he determines to be suitable therefor. Appointments shall be in writing, signed by
the punong barangay, and attested to by the barangay secretary.

(e) The list of appointed members shall be posted in three (3) conspicuous places in the
barangay for the entire duration of their term of office; and

(f) In barangays where majority of the inhabitants are members of indigenous cultural
communities, local systems of settling disputes through their councils of datus or elders
shall be recognized without prejudice to the applicable provisions of this Code.

Section 400. Oath and Term of Office. - Upon appointment, each lupon member shall take an
oath of office before the punong barangay. He shall hold office until a new lupon is constituted
on the third year following his appointment unless sooner terminated by resignation, transfer of
residence or place of work, or withdrawal of appointment by the punong barangay with the
concurrence of the majority of all the members of the lupon.

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Section 401. Vacancies. - Should a vacancy occur in the lupon for any cause, the punong
barangay shall immediately appoint a qualified person who shall hold office only for the
unexpired portion of the term.

Section 402. Functions of the Lupon. - The lupon shall:
(a) Exercise administrative supervision over the conciliation panels provided herein;

(b) Meet regularly once a month to provide a forum for exchange of ideas among its
members and the public on matters relevant to the amicable settlement of disputes, and
to enable various conciliation panel members to share with one another their
observations and experiences in effecting speedy resolution of disputes; and

(c) Exercise such other powers and perform such other duties and functions as may be
prescribed by law or ordinance.

Section 403. Secretary of the Lupon. - The barangay secretary shall concurrently serve as the
secretary of the lupon. He shall record the results of mediation proceedings before the punong
barangay and shall submit a report thereon to the proper city or municipal courts. He shall also
receive and keep the records of proceedings submitted to him by the various conciliation
panels.

Section 404. Pangkat ng Tagapagkasundo. -

(a) There shall be constituted for each dispute brought before the lupon a conciliation
panel to be known as the pangkat ng tagapagkasundo, hereinafter referred to as the
pangkat, consisting of three (3) members who shall be chosen by the parties to the
dispute from the list of members of the lupon.

Should the parties fail to agree on the pangkat membership, the same shall be
determined by lots drawn by the lupon chairman.

(b) The three (3) members constituting the pangkat shall elect from among themselves
the chairman and the secretary. The secretary shall prepare the minutes of the pangkat
proceedings and submit a copy duly attested to by the chairman to the lupon secretary
and to the proper city or municipal court. He shall issue and cause to be served notices
to the parties concerned.

The lupon secretary shall issue certified true copies of any public record in his custody
that is not by law otherwise declared confidential.

Section 405. Vacancies in the Pangkat. - Any vacancy in the pangkat shall be chosen by the
parties to the dispute from among the other lupon members. Should the parties fail to agree on
a common choice, the vacancy shall be filled by lot to be drawn by the lupon chairman.

Section 406. Character of Office and Service of Lupon Members. -

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(a) The lupon members, while in the performance of their official duties or on the
occasion thereof, shall be deemed as persons in authority, as defined in the Revised
Penal Code.

(b) The lupon or pangkat members shall serve without compensation, except as
provided for in Section 393 and without prejudice to incentives as provided for in this
Section and in Book IV of this Code. The Department of the Interior and Local
Government shall provide for a system of granting economic or other incentives to the
lupon or pangkat members who adequately demonstrate the ability to judiciously and
expeditiously resolve cases referred to them. While in the performance of their duties,
the lupon or pangkat members, whether in public or private employment, shall be
deemed to be on official time, and shall not suffer from any diminution in compensation
or allowance from said employment by reason thereof.

Section 407. Legal Advice on Matters Involving Questions of Law. - The provincial, city legal
officer or prosecutor or the municipal legal officer shall render legal advice on matters involving
questions of law to the punong barangay or any lupon or pangkat member whenever necessary
in the exercise of his functions in the administration of the katarungang pambarangay.

Section 408. Subject Matter for Amicable Settlement; Exception Thereto. - The lupon of each
barangay shall have authority to bring together the parties actually residing in the same city or
municipality for amicable settlement of all disputes except:

(a) Where one party is the government, or any subdivision or instrumentality thereof;

(b) Where one party is a public officer or employee, and the dispute relates to the
performance of his official functions;

(c) Offenses punishable by imprisonment exceeding one (1) year or a fine exceeding
Five thousand pesos (P5,000.00);

(d) Offenses where there is no private offended party;

(e) Where the dispute involves real properties located in different cities or municipalities
unless the parties thereto agree to submit their differences to amicable settlement by an
appropriate lupon;

(f) Disputes involving parties who actually reside in barangays of different cities or
municipalities, except where such barangay units adjoin each other and the parties
thereto agree to submit their differences to amicable settlement by an appropriate lupon;

(g) Such other classes of disputes which the President may determine in the interest of
Justice or upon the recommendation of the Secretary of Justice.

The court in which non-criminal cases not falling within the authority of the lupon under
this Code are filed may, at any time before trial motu propio refer the case to the lupon
concerned for amicable settlement.

Section 409. Venue. -
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(a) Disputes between persons actually residing in the same barangay shall be brought
for amicable settlement before the lupon of said barangay.

(b) Those involving actual residents of different barangays within the same city or
municipality shall be brought in the barangay where the respondent or any of the
respondents actually resides, at the election of the complaint.

(c) All disputes involving real property or any interest therein shall be brought in the
barangay where the real property or the larger portion thereof is situated.

(d) Those arising at the workplace where the contending parties are employed or at the
institution where such parties are enrolled for study, shall be brought in the barangay
where such workplace or institution is located.

Objections to venue shall be raised in the mediation proceedings before the punong
barangay; otherwise, the same shall be deemed waived. Any legal question which may
confront the punong barangay in resolving objections to venue herein referred to may be
submitted to the Secretary of Justice, or his duly designated representative, whose ruling
thereon shall be binding.

Section 410. Procedure for Amicable Settlement. -

(a) Who may initiate proceeding - Upon payment of the appropriate filing fee, any
individual who has a cause of action against another individual involving any matter
within the authority of the lupon may complain, orally or in writing, to the lupon chairman
of the barangay.

(b) Mediation by lupon chairman - Upon receipt of the complaint, the lupon chairman
shall within the next working day summon the respondent(s), with notice to the
complainant(s) for them and their witnesses to appear before him for a mediation of their
conflicting interests. If he fails in his mediation effort within fifteen (15) days from the first
meeting of the parties before him, he shall forthwith set a date for the constitution of the
pangkat in accordance with the provisions of this Chapter.

(c) Suspension of prescriptive period of offenses - While the dispute is under mediation,
conciliation, or arbitration, the prescriptive periods for offenses and cause of action
under existing laws shall be interrupted upon filing the complaint with the punong
barangay. The prescriptive periods shall resume upon receipt by the complainant of the
complainant or the certificate of repudiation or of the certification to file action issued by
the lupon or pangkat secretary: Provided, however, That such interruption shall not
exceed sixty (60) days from the filing of the complaint with the punong barangay.

(d) Issuance of summons; hearing; grounds for disqualification - The pangkat shall
convene not later than three (3) days from its constitution, on the day and hour set by
the lupon chairman, to hear both parties and their witnesses, simplify issues, and
explore all possibilities for amicable settlement. For this purpose, the pangkat may issue
summons for the personal appearance of parties and witnesses before it. In the event
that a party moves to disqualify any member of the pangkat by reason of relationship,
bias, interest, or any other similar grounds discovered after the constitution of the
pangkat, the matter shall be resolved by the affirmative vote of the majority of the
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pangkat whose decision shall be final. Should disqualification be decided upon, the
resulting vacancy shall be filled as herein provided for.

(e) Period to arrive at a settlement - The pangkat shall arrive at a settlement or
resolution of the dispute within fifteen (15) days from the day it convenes in accordance
with this section. This period shall, at the discretion of the pangkat, be extendible for
another period which shall not exceed fifteen (15) days, except in clearly meritorious
cases.

Section 411. Form of settlement. - All amicable settlements shall be in writing, in a language or
dialect known to the parties, signed by them, and attested to by the lupon chairman or the
pangkat chairman, as the case may be. When the parties to the dispute do not use the same
language or dialect, the settlement shall be written in the language known to them.

Section 412. Conciliation.

(a) Pre-condition to Filing of Complaint in Court. - No complaint, petition, action, or
proceeding involving any matter within the authority of the lupon shall be filed or
instituted directly in court or any other government office for adjudication, unless
there has been a confrontation between the parties before the lupon chairman or the
pangkat, and that no conciliation or settlement has been reached as certified by the
lupon secretary or pangkat secretary as attested to by the lupon or pangkat
chairman or unless the settlement has been repudiated by the parties thereto.

(b) Where Parties May Go Directly to Court. - The parties may go directly to court in the
following instances:

(1) Where the accused is under detention;

(2) Where a person has otherwise been deprived of personal liberty calling for
habeas corpus proceedings;

(3) Where actions are coupled with provisional remedies such as preliminary
injunction, attachment, delivery of personal property and support pendente lite;
and

(4) Where the action may otherwise be barred by the statute of limitations.

(c) Conciliation among members of indigenous cultural communities. - The customs and
traditions of indigenous cultural communities shall be applied in settling disputes
between members of the cultural communities.

Section 413. Arbitration. -

(a) The parties may, at any stage of the proceedings, agree in writing that they shall
abide by the arbitration award of the lupon chairman or the pangkat. Such agreement to
arbitrate may be repudiated within five (5) days from the date thereof for the same
grounds and in accordance with the procedure hereinafter prescribed. The arbitration
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award shall be made after the lapse of the period for repudiation and within ten (10) days
thereafter.

(b) The arbitration award shall be in writing in a language or dialect known to the parties.
When the parties to the dispute do not use the same language or dialect, the award shall
be written in the language or dialect known to them.

Section 414. Proceedings Open to the Public; Exception. - All proceedings for settlement shall
be public and informal: Provided, however, That the lupon chairman or the pangkat chairman,
as the case may be, may motu proprio or upon request of a party, exclude the public from the
proceedings in the interest of privacy, decency, or public morals.

Section 415. Appearance of Parties in Person. - In all katarungang pambarangay proceedings,
the parties must appear in person without the assistance of counsel or representative, except
for minors and incompetents who may be assisted by their next-of-kin who are not lawyers.

Section 416. Effect of Amicable Settlement and Arbitration Award. - The amicable settlement
and arbitration award shall have the force and effect of a final judgment of a court upon the
expiration of ten (10) days from the date thereof, unless repudiation of the settlement has been
made or a petition to nullify the award has been filed before the proper city or municipal court.
However, this provision shall not apply to court cases settled by the lupon under the last
paragraph of Section 408 of this Code, in which case the compromise or the pangkat chairman
shall be submitted to the court and upon approval thereof, have the force and effect of a
judgment of said court.

Section 417. Execution. - The amicable settlement or arbitration award may be enforced by
execution by the lupon within six (6) months from the date of the settlement. After the lapse of
such time, the settlement may be enforced by action in the appropriate city or municipal court.

Section 418. Repudiation. - Any party to the dispute may, within ten (10) days from the date of
the settlement, repudiate the same by filing with the lupon chairman a statement to that effect
sworn to before him, where the consent is vitiated by fraud, violence, or intimidation. Such
repudiation shall be sufficient basis for the issuance of the certification for filing a complaint as
hereinabove provided.

Section 419. Transmittal of Settlement and Arbitration. - Award to the Court. - The secretary of
the lupon shall transmit the settlement or the arbitration award to the appropriate city or
municipal court within five (5) days from the date of the award or from the lapse of the ten-day
period repudiating the settlement and shall furnish copies thereof to each of the parties to the
settlement and the lupon chairman.

Section 420. Power to Administer Oaths. - The punong barangay, as chairman of the lupong
tagapamayapa, and the members of the pangkat are hereby authorized to administer oaths in
connection with any matter relating to all proceedings in the implementation of the katarungang
pambarangay.

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Section 421. Administration; Rules and Regulations. - The city or municipal mayor, as the case
may be, shall see to the efficient and effective implementation and administration of the
katarungang pambarangay. The Secretary of Justice shall promulgate the rules and regulations
necessary to implement this Chapter.

Section 422. Appropriations. - Such amount as may be necessary for the effective
implementation of the katarungang pambarangay shall be provided for in the annual budget of
the city or municipality concerned.



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ADMINISTRATIVE CIRCULAR NO. 14-93



TO: ALL REGIONAL TRIAL COURTS, METROPOLITAN TRIAL COURTS, MUNICIPAL TRIAL
COURTS AND MUNICIPAL CIRCUIT TRIAL COURTS

SUBJECT: GUIDELINES ON THE KATARUNGANG PAMBARANGAY CONCILIATION
PROCEDURE TO PREVENT CIRCUMVENTION OF THE REVISED KATARUNGANG
PAMBARANGAY LAW [SECTIONS 399-422, CHAPTER VII, TITLE I, BOOK III, R. A. 7160,
OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991].

The Revised Katarungang Pambarangay Law under R. A. 7160, otherwise known as the Local
Government Code of 1991, effective on January 1, 1992 and which repealed P. D. 1508,
introduced substantial changes not only in the authority granted to the Lupong Tagapamayapa
but also in the procedure to be observed in the settlement of disputes within the authority of the
Lupon.

In order that the laudable purpose of the law may not be subverted and its effectiveness
undermined by indiscriminate, improper and/or premature issuance of certifications to file
actions in court by the Lupon or Pangkat Secretaries, attested by the Lupon/Pangkat Chairmen,
respectively, the following guidelines are hereby issued for the information of trial court judges in
cases brought before them coming from the Barangays:

I. All disputes are subject to Barangay conciliation pursuant to the Revised Katarungang
Pambarangay Law [formerly P. D. 1508, repealed and now replaced by Secs. 399-422, Chapter
VII, Title I, Book III, and Sec. 515, Title I, Book IV, R.A. 7160, otherwise known as the Local
Government Code of 1991], and prior recourse thereto is a pre-condition before filing a
complaint in court or any government offices, except in the following disputes:

[1] Where one party is the government, or any subdivision or instrumentality thereof;

[2] Where one party is a public officer or employee and the dispute relates to the
performance of his official functions;

[3] Where the dispute involves real properties located in different cities and
municipalities, unless the parties thereto agree to submit their difference to amicable
settlement by an appropriate Lupon;

[4] Any complaint by or against corporations, partnerships or juridical entities, since only
individuals shall be parties to Barangay conciliation proceedings either as complainants
or respondents [Sec. 1, Rule VI, Katarungang Pambarangay Rules];

[5] Disputes involving parties who actually reside in barangays of different cities or
municipalities, except where such barangay units adjoin each other and the parties
thereto agree to submit their differences to amicable settlement by an appropriate
Lupon;

15

[6] Offenses for which the law prescribes a maximum penalty of imprisonment exceeding
one [1] year or a fine of over five thousand pesos (P5,000.00);

[7] Offenses where there is no private offended party;

[8] Disputes where urgent legal action is necessary to prevent injustice from being
committed or further continued, specifically the following:
[a] Criminal cases where accused is under police custody or detention [See Sec.
412 (b) (1), Revised Katarungang Pambarangay Law];

[b] Petitions for habeas corpus by a person illegally deprived of his rightful
custody over another or a person illegally deprived of or on acting in his behalf;

[c] Actions coupled with provisional remedies such as preliminary injunction,
attachment, delivery of personal property and support during the pendency of the
action; and

[d] Actions which may be barred by the Statute of Limitations.

[9] Any class of disputes which the President may determine in the interest of justice or
upon the recommendation of the Secretary of Justice;

[10] Where the dispute arises from the Comprehensive Agrarian Reform Law (CARL)
[Secs. 46 & 47, R. A. 6657];

[11] Labor disputes or controversies arising from employer-employee relations [Montoya
vs. Escayo, et al., 171 SCRA 442; Art. 226, Labor Code, as amended, which grants
original and exclusive jurisdiction over conciliation and mediation of disputes, grievances
or problems to certain offices of the Department of Labor and Employment];
[12] Actions to annul judgment upon a compromise which may be filed directly in court
[See Sanchez vs. Tupaz, 158 SCRA 459].

II. Under the provisions of R. A. 7160 on Katarungang Pambarangay conciliation, as
implemented by the Katarungang Pambarangay Rules and Regulations promulgated by the
Secretary of Justice, the certification for filing a complaint in court or any government office shall
be issued by Barangay authorities only upon compliance with the following requirements:

[1] Issued by the Lupon Secretary and attested by the Lupon Chairman (Punong
Barangay), certifying that a confrontation of the parties has taken place and that a
conciliation settlement has been reached, but the same has been subsequently
repudiated (Sec. 412, Revised Katarungang Pambarangay Law; Sec. 2[h], Rule III,
Katarungang Pambarangay Rules);

[2] Issued by the Pangkat Secretary and attested by the Pangkat Chairman certifying
that:
[a] a confrontation of the parties took place but no conciliation/settlement has
been reached (Sec. 4[f], Rule III, Katarungang Pambarangay Rules); or

[b] that no personal confrontation took place before the Pangkat through no fault
of the complainant (Sec. 4[f], Rule III, Katarungang pambarangay Rules).

16

[3] Issued by the Punong Barangay as requested by the proper party on the ground of
failure of settlement where the dispute involves members of the same indigenous
cultural community, which shall be settled in accordance with the customs and traditions
of that particular cultural community, or where one or more of the parties to the aforesaid
dispute belong to the minority and the parties mutually agreed to submit their dispute to
the indigenous system of amicable settlement, and there has been no settlement as
certified by the datu or tribal leader or elder to the Punong Barangay of place of
settlement (Secs. 1,4 & 5, Rule IX, Katarungang Pambarangay Rules); and

[4] If mediation or conciliation efforts before the Punong Barangay proved unsuccessful,
there having been no agreement to arbitrate (Sec. 410 [b], Revised Katarungang
Pambarangay Law; Sec. 1, c. (1), Rule III, Katarungang Pambarangay Rules), or where
the respondent fails to appear at the mediation proceeding before the Punong Barangay
(3rd par. Sec. 8, a, Rule VI, Katarungang Pambarangay Rules), the Punong Barangay
shall not cause the issuance at this stage of a certification to file action, because it is
now mandatory for him to constitute the Pangkat before whom mediation, conciliation, or
arbitration proceedings shall be held.

III. All complaints and/or informations filed or raffled to your sala/branch of the Regional Trial
Court shall be carefully read and scrutinized to determine if there has been compliance with
prior Barangay conciliation procedure under the Revised Katarungang Pambarangay Law and
its Implementing Rules and Regulations as a pre-condition to judicial action, particularly whether
the certification to file action attached to the records of the case comply with the requirements
hereinabove enumerated in Par. II;

IV. A case filed in court without compliance with prior Barangay conciliation which is a pre-
condition for formal adjudication (Sec. 412 [a] of the Revised Katarungang Pambarangay Law)
may be dismissed upon motion of defendant/s, not for lack of jurisdiction of the court but for
failure to state a cause of action or prematurity (Royales vs. IAC, 127 SCRA 470; Gonzales vs.
CA, 151 SCRA 289), or the court may suspend proceedings upon petition of any party under
Sec. 1, Rule 21 of the Rules of Court; and refer the case motu proprio to the appropriate
Barangay authority applying by analogy Sec. 408 [g], 2nd par., of the Revised Katarungang
Pambarangay Law which reads as follows:
"The court in which non-criminal cases not falling within the authority of the Lupon under this
Code are filed may, at any time before trial, motu proprio refer case to the Lupon concerned for
amicable settlement.
Strict observance of these guidelines is enjoined. This Administrative Circular shall be effective
immediately.


Manila, Philippines; July 15, 1993.

17

A.M. No. 07-11-08-SC
SPECIAL RULES OF COURT ON ALTERNATIVE DISPUTE RESOLUTION



PART I
GENERAL PROVISIONS AND POLICIES

RULE 1: GENERAL PROVISIONS

Rule 1.1. Subject matter and governing rules.-The Special Rules of Court on Alternative Dispute
Resolution (the "Special ADR Rules") shall apply to and govern the following cases:

a. Relief on the issue of Existence, Validity, or Enforceability of the Arbitration
Agreement;

b. Referral to Alternative Dispute Resolution ("ADR");

c. Interim Measures of Protection;

d. Appointment of Arbitrator;

e. Challenge to Appointment of Arbitrator;

f. Termination of Mandate of Arbitrator;

g. Assistance in Taking Evidence;

h. Confirmation, Correction or Vacation of Award in Domestic Arbitration;

i. Recognition and Enforcement or Setting Aside of an Award in International
Commercial Arbitration;

j. Recognition and Enforcement of a Foreign Arbitral Award;

k. Confidentiality/Protective Orders; and

l. Deposit and Enforcement of Mediated Settlement Agreements.

Rule 1.2. Nature of the proceedings.-All proceedings under the Special ADR Rules are special
proceedings.

Rule 1.3. Summary proceedings in certain cases.-The proceedings in the following instances
are summary in nature and shall be governed by this provision:

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a. Judicial Relief Involving the Issue of Existence, Validity or Enforceability of the
Arbitration Agreement;

b. Referral to ADR;


c. Interim Measures of Protection;

d. Appointment of Arbitrator;

e. Challenge to Appointment of Arbitrator;

f. Termination of Mandate of Arbitrator;

g. Assistance in Taking Evidence;

h. Confidentiality/Protective Orders; and

i. Deposit and Enforcement of Mediated Settlement Agreements.

(A) Service and filing of petition in summary proceedings.-The petitioner shall serve, either by
personal service or courier, a copy of the petition upon the respondent before the filing thereof.
Proof of service shall be attached to the petition filed in court.

For personal service, proof of service of the petition consists of the affidavit of the person who
effected service, stating the time, place and manner of the service on the respondent. For
service by courier, proof of service consists of the signed courier proof of delivery. If service is
refused or has failed, the affidavit or delivery receipt must state the circumstances of the
attempted service and refusal or failure thereof.

(B) Notice.-Except for cases involving Referral to ADR and Confidentiality/Protective Orders
made through motions, the court shall, if it finds the petition sufficient in form and substance,
send notice to the parties directing them to appear at a particular time and date for the hearing
thereof which shall be set no later than five (5) days from the lapse of the period for filing the
opposition or comment. The notice to the respondent shall contain a statement allowing him to
file a comment or opposition to the petition within fifteen (15) days from receipt of the notice.

The motion filed pursuant to the rules on Referral to ADR or Confidentiality/Protective Orders
shall be set for hearing by the movant and contain a notice of hearing that complies with the
requirements under Rule 15 of the Rules of Court on motions.

(C) Summary hearing. - In all cases, as far as practicable, the summary hearing shall be
conducted in one (1) day and only for purposes of clarifying facts.
Except in cases involving Referral to ADR or Confidentiality/Protective Orders made through
motions, it shall be the court that sets the petition for hearing within five (5) days from the lapse
of the period for filing the opposition or comment.

(D) Resolution. - The court shall resolve the matter within a period of thirty (30) days from the
day of the hearing.

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Rule 1.4. Verification and submissions. -Any pleading, motion, opposition, comment, defense or
claim filed under the Special ADR Rules by the proper party shall be supported by verified
statements that the affiant has read the same and that the factual allegations therein are true
and correct of his own personal knowledge or based on authentic records and shall contain as
annexes the supporting documents.

The annexes to the pleading, motion, opposition, comment, defense or claim filed by the proper
party may include a legal brief, duly verified by the lawyer submitting it, stating the pertinent
facts, the applicable law and jurisprudence to justify the necessity for the court to rule upon the
issue raised.

Rule 1.5. Certification Against Forum Shopping. - A Certification Against Forum Shopping is one
made under oath made by the petitioner or movant: (a) that he has not theretofore commenced
any action or filed any claim involving the same issues in any court, tribunal or quasi-judicial
agency and, to the best of his knowledge, no such other action or claim is pending therein; (b) if
there is such other pending action or claim, a complete statement of the present status thereof;
and (c) if he should thereafter learn that the same or similar action or claim has been filed or is
pending, he shall report that fact within five (5) days therefrom to the court wherein his
aforementioned petition or motion has been filed.

A Certification Against Forum Shopping shall be appended to all initiatory pleadings except a
Motion to Refer the Dispute to Alternative Dispute Resolution.

Rule 1.6. Prohibited submissions. - The following pleadings, motions, or petitions shall not be
allowed in the cases governed by the Special ADR Rules and shall not be accepted for filing by
the Clerk of Court:

a. Motion to dismiss;

b. Motion for bill of particulars;

c. Motion for new trial or for reopening of trial;

d. Petition for relief from judgment;

e. Motion for extension, except in cases where an ex-parte temporary order of protection
has been issued;

f. Rejoinder to reply;

g. Motion to declare a party in default; and

h. Any other pleading specifically disallowed under any provision of the Special ADR
Rules.

The court shall motu proprio order a pleading/motion that it has determined to be dilatory in
nature be expunged from the records.

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Rule 1.7. Computation of time. - In computing any period of time prescribed or allowed by the
Special ADR Rules, or by order of the court, or by any applicable statute, the day of the act or
event from which the designated period of time begins to run is to be excluded and the date of
performance included. If the last day of the period, as thus computed, falls on a Saturday, a
Sunday, or a legal holiday in the place where the court sits, the time shall not run until the next
working day.

Should an act be done which effectively interrupts the running of the period, the allowable
period after such interruption shall start to run on the day after notice of the cessation of the
cause thereof.

The day of the act that caused the interruption shall be excluded from the computation of the
period.

Rule 1.8. Service and filing of pleadings, motions and other papers in non-summary
proceedings. - The initiatory pleadings shall be filed directly with the court. The court will then
cause the initiatory pleading to be served upon the respondent by personal service or courier.
Where an action is already pending, pleadings, motions and other papers shall be filed and/or
served by the concerned party by personal service or courier. Where courier services are not
available, resort to registered mail is allowed.

(A) Proof of filing. - The filing of a pleading shall be proved by its existence in the record of the
case. If it is not in the record, but is claimed to have been filed personally, the filing shall be
proved by the written or stamped acknowledgment of its filing by the clerk of court on a copy of
the same; if filed by courier, by the proof of delivery from the courier company.

(B) Proof of service. - Proof of personal service shall consist of a written admission by the party
served, or the official return of the server, or the affidavit of the party serving, containing a full
statement of the date, place and manner of service. If the service is by courier, proof thereof
shall consist of an affidavit of the proper person, stating facts showing that the document was
deposited with the courier company in a sealed envelope, plainly addressed to the party at his
office, if known, otherwise at his residence, with postage fully pre-paid, and with instructions to
the courier to immediately provide proof of delivery.

(C) Filing and service by electronic means and proof thereof. - Filing and service of pleadings by
electronic transmission may be allowed by agreement of the parties approved by the court. If
the filing or service of a pleading or motion was done by electronic transmission, proof of filing
and service shall be made in accordance with the Rules on Electronic Evidence.

Rule 1.9. No summons. - In cases covered by the Special ADR Rules, a court acquires authority
to act on the petition or motion upon proof of jurisdictional facts, i.e., that the respondent was
furnished a copy of the petition and the notice of hearing.

(A) Proof of service. - A proof of service of the petition and notice of hearing upon respondent
shall be made in writing by the server and shall set forth the manner, place and date of service.

(B) Burden of proof. - The burden of showing that a copy of the petition and the notice of
hearing were served on the respondent rests on the petitioner.
The technical rules on service of summons do not apply to the proceedings under the Special
ADR Rules. In instances where the respondent, whether a natural or a juridical person, was not
21

personally served with a copy of the petition and notice of hearing in the proceedings
contemplated in the first paragraph of Rule 1.3 (B), or the motion in proceedings contemplated
in the second paragraph of Rule 1.3 (B), the method of service resorted to must be such as to
reasonably ensure receipt thereof by the respondent to satisfy the requirement of due process.

Rule 1.10. Contents of petition/motion. - The initiatory pleading in the form of a verified petition
or motion, in the appropriate case where court proceedings have already commenced, shall
include the names of the parties, their addresses, the necessary allegations supporting the
petition and the relief(s) sought.

Rule 1.11. Definition. - The following terms shall have the following meanings:

a. "ADR Laws" refers to the whole body of ADR laws in the Philippines.

b. "Appointing Authority" shall mean the person or institution named in the arbitration
agreement as the appointing authority; or the regular arbitration institution under whose
rule the arbitration is agreed to be conducted. Where the parties have agreed to submit
their dispute to institutional arbitration rules, and unless they have agreed to a different
procedure, they shall be deemed to have agreed to procedure under such arbitration
rules for the selection and appointment of arbitrators. In ad hoc arbitration, the default
appointment of arbitrators shall be made by the National President of the Integrated Bar
of the Philippines or his duly authorized representative.

c. "Authenticate" means to sign, execute or use a symbol, or encrypt a record in whole
or in part, intended to identify the authenticating party and to adopt, accept or establish
the authenticity of a record or term.

d. "Foreign Arbitral Award" is one made in a country other than the Philippines.

e. "Legal Brief" is a written legal argument submitted to a court, outlining the facts
derived from the factual statements in the witness's statements of fact and citing the
legal authorities relied upon by a party in a case submitted in connection with petitions,
counter-petitions (i.e., petitions to vacate or to set aside and/or to correct/modify in
opposition to petitions to confirm or to recognize and enforce, or petitions to confirm or to
recognize and enforce in opposition to petitions to vacate or set aside and/or
correct/modify), motions, evidentiary issues and other matters that arise during the
course of a case. The legal brief shall state the applicable law and the relevant
jurisprudence and the legal arguments in support of a party's position in the case.

f. "Verification" shall mean a certification under oath by a party or a person who has
authority to act for a party that he has read the pleading/motion, and that he certifies to
the truth of the facts stated therein on the basis of his own personal knowledge or
authentic documents in his possession. When made by a lawyer, verification shall mean
a statement under oath by a lawyer signing a pleading/motion for delivery to the Court or
to the parties that he personally prepared the pleading/motion, that there is sufficient
factual basis for the statements of fact stated therein, that there is sufficient basis in the
facts and the law to support the prayer for relief therein, and that the pleading/motion is
filed in good faith and is not interposed for delay.

22

Rule 1.12. Applicability of Part II on Specific Court Relief. - Part II of the Special ADR Rules on
Specific Court Relief, insofar as it refers to arbitration, shall also be applicable to other forms of
ADR.

Rule 1.13. Spirit and intent of the Special ADR Rules. In situations where no specific rule is
provided under the Special ADR Rules, the court shall resolve such matter summarily and be
guided by the spirit and intent of the Special ADR Rules and the ADR Laws.


RULE 2: STATEMENT OF POLICIES

Rule 2.1. General policies. - It is the policy of the State to actively promote the use of various
modes of ADR and to respect party autonomy or the freedom of the parties to make their own
arrangements in the resolution of disputes with the greatest cooperation of and the least
intervention from the courts. To this end, the objectives of the Special ADR Rules are to
encourage and promote the use of ADR, particularly arbitration and mediation, as an important
means to achieve speedy and efficient resolution of disputes, impartial justice, curb a litigious
culture and to de-clog court dockets.

The court shall exercise the power of judicial review as provided by these Special ADR Rules.
Courts shall intervene only in the cases allowed by law or these Special ADR Rules.

Rule 2.2. Policy on arbitration.-
(A) Where the parties have agreed to submit their dispute to arbitration, courts shall refer the
parties to arbitration pursuant to Republic Act No. 9285 bearing in mind that such arbitration
agreement is the law between the parties and that they are expected to abide by it in good faith.
Further, the courts shall not refuse to refer parties to arbitration for reasons including, but not
limited to, the following:

a. The referral tends to oust a court of its jurisdiction;

b. The court is in a better position to resolve the dispute subject of arbitration;

c. The referral would result in multiplicity of suits;

d. The arbitration proceeding has not commenced;

e. The place of arbitration is in a foreign country;

f. One or more of the issues are legal and one or more of the arbitrators are not lawyers;

g. One or more of the arbitrators are not Philippine nationals; or

h. One or more of the arbitrators are alleged not to possess the required qualification
under the arbitration agreement or law.

(B) Where court intervention is allowed under ADR Laws or the Special ADR Rules, courts shall
not refuse to grant relief, as provided herein, for any of the following reasons:

23

a. Prior to the constitution of the arbitral tribunal, the court finds that the principal action
is the subject of an arbitration agreement; or

b. The principal action is already pending before an arbitral tribunal.

The Special ADR Rules recognize the principle of competence-competence, which means that
the arbitral tribunal may initially rule on its own jurisdiction, including any objections with respect
to the existence or validity of the arbitration agreement or any condition precedent to the filing of
a request for arbitration.

The Special ADR Rules recognize the principle of separability of the arbitration clause, which
means that said clause shall be treated as an agreement independent of the other terms of the
contract of which it forms part. A decision that the contract is null and void shall not entail ipso
jure the invalidity of the arbitration clause.

Rule 2.3. Rules governing arbitral proceedings. - The parties are free to agree on the procedure
to be followed in the conduct of arbitral proceedings. Failing such agreement, the arbitral
tribunal may conduct arbitration in the manner it considers appropriate.

Rule 2.4. Policy implementing competence-competence principle. - The arbitral tribunal shall be
accorded the first opportunity or competence to rule on the issue of whether or not it has the
competence or jurisdiction to decide a dispute submitted to it for decision, including any
objection with respect to the existence or validity of the arbitration agreement. When a court is
asked to rule upon issue/s affecting the competence or jurisdiction of an arbitral tribunal in a
dispute brought before it, either before or after the arbitral tribunal is constituted, the court must
exercise judicial restraint and defer to the competence or jurisdiction of the arbitral tribunal by
allowing the arbitral tribunal the first opportunity to rule upon such issues.

Where the court is asked to make a determination of whether the arbitration agreement is null
and void, inoperative or incapable of being performed, under this policy of judicial restraint, the
court must make no more than a prima facie determination of that issue.

Unless the court, pursuant to such prima facie determination, concludes that the arbitration
agreement is null and void, inoperative or incapable of being performed, the court must suspend
the action before it and refer the parties to arbitration pursuant to the arbitration agreement.

Rule 2.5. Policy on mediation. - The Special ADR Rules do not apply to Court-Annexed
Mediation, which shall be governed by issuances of the Supreme Court.

Where the parties have agreed to submit their dispute to mediation, a court before which that
dispute was brought shall suspend the proceedings and direct the parties to submit their dispute
to private mediation. If the parties subsequently agree, however, they may opt to have their
dispute settled through Court-Annexed Mediation.

Rule 2.6. Policy on Arbitration-Mediation or Mediation-Arbitration. - No arbitrator shall act as a
mediator in any proceeding in which he is acting as arbitrator; and all negotiations towards
settlement of the dispute must take place without the presence of that arbitrator. Conversely, no
mediator shall act as arbitrator in any proceeding in which he acted as mediator.

24

Rule 2.7. Conversion of a settlement agreement to an arbitral award. - Where the parties to
mediation have agreed in the written settlement agreement that the mediator shall become the
sole arbitrator for the dispute or that the settlement agreement shall become an arbitral award,
the sole arbitrator shall issue the settlement agreement as an arbitral award, which shall be
subject to enforcement under the law.


PART II
SPECIFIC COURT RELIEF

RULE 3: JUDICIAL RELIEF INVOLVING THE ISSUE OF EXISTENCE, VALIDITY AND
ENFORCEABILITY OF THE ARBITRATION AGREEMENT

Rule 3.1. When judicial relief is available. - The judicial relief provided in Rule 3, whether
resorted to before or after commencement of arbitration, shall apply only when the place of
arbitration is in the Philippines.

A. Judicial Relief before Commencement of Arbitration

Rule 3.2. Who may file petition. - Any party to an arbitration agreement may petition the
appropriate court to determine any question concerning the existence, validity and enforceability
of such arbitration agreement serving a copy thereof on the respondent in accordance with Rule
1.4 (A).

Rule 3.3. When the petition may be filed. - The petition for judicial determination of the
existence, validity and/or enforceability of an arbitration agreement may be filed at any time prior
to the commencement of arbitration.

Despite the pendency of the petition provided herein, arbitral proceedings may nevertheless be
commenced and continue to the rendition of an award, while the issue is pending before the
court.

Rule 3.4. Venue. - A petition questioning the existence, validity and enforceability of an
arbitration agreement may be filed before the Regional Trial Court of the place where any of the
petitioners or respondents has his principal place of business or residence.

Rule 3.5. Grounds. - A petition may be granted only if it is shown that the arbitration agreement
is, under the applicable law, invalid, void, unenforceable or inexistent.

Rule 3.6. Contents of petition. - The verified petition shall state the following:

a. The facts showing that the persons named as petitioner or respondent have legal
capacity to sue or be sued;

b. The nature and substance of the dispute between the parties;
25


c. The grounds and the circumstances relied upon by the petitioner to establish his
position; and

d. The relief/s sought.

Apart from other submissions, the petitioner must attach to the petition an authentic copy of the
arbitration agreement.

Rule 3.7. Comment/Opposition.-The comment/opposition of the respondent must be filed within
fifteen (15) days from service of the petition.

Rule 3.8. Court action. - In resolving the petition, the court must exercise judicial restraint in
accordance with the policy set forth in Rule 2.4, deferring to the competence or jurisdiction of
the arbitral tribunal to rule on its competence or jurisdiction.

Rule 3.9. No forum shopping. - A petition for judicial relief under this Rule may not be
commenced when the existence, validity or enforceability of an arbitration agreement has been
raised as one of the issues in a prior action before the same or another court.

Rule 3.10. Application for interim relief. - If the petitioner also applies for an interim measure of
protection, he must also comply with the requirements of the Special ADR Rules for the
application for an interim measure of protection.

Rule 3.11. Relief against court action. - Where there is a prima facie determination upholding
the arbitration agreement.-A prima facie determination by the court upholding the existence,
validity or enforceability of an arbitration agreement shall not be subject to a motion for
reconsideration, appeal or certiorari.

Such prima facie determination will not, however, prejudice the right of any party to raise the
issue of the existence, validity and enforceability of the arbitration agreement before the arbitral
tribunal or the court in an action to vacate or set aside the arbitral award. In the latter case, the
court's review of the arbitral tribunal's ruling upholding the existence, validity or enforceability of
the arbitration agreement shall no longer be limited to a mere prima facie determination of such
issue or issues as prescribed in this Rule, but shall be a full review of such issue or issues with
due regard, however, to the standard for review for arbitral awards prescribed in these Special
ADR Rules.


B. Judicial Relief after Arbitration Commences

Rule 3.12. Who may file petition. - Any party to arbitration may petition the appropriate court for
judicial relief from the ruling of the arbitral tribunal on a preliminary question upholding or
declining its jurisdiction. Should the ruling of the arbitral tribunal declining its jurisdiction be
reversed by the court, the parties shall be free to replace the arbitrators or any one of them in
26

accordance with the rules that were applicable for the appointment of arbitrator sought to be
replaced.

Rule 3.13. When petition may be filed. - The petition may be filed within thirty (30) days after
having received notice of that ruling by the arbitral tribunal.

Rule 3.14. Venue. - The petition may be filed before the Regional Trial Court of the place where
arbitration is taking place, or where any of the petitioners or respondents has his principal place
of business or residence.

Rule 3.15. Grounds. - The petition may be granted when the court finds that the arbitration
agreement is invalid, inexistent or unenforceable as a result of which the arbitral tribunal has no
jurisdiction to resolve the dispute.

Rule 3.16. Contents of petition. - The petition shall state the following:

a. The facts showing that the person named as petitioner or respondent has legal
capacity to sue or be sued;

b. The nature and substance of the dispute between the parties;

c. The grounds and the circumstances relied upon by the petitioner; and

d. The relief/s sought.

In addition to the submissions, the petitioner shall attach to the petition a copy of the request for
arbitration and the ruling of the arbitral tribunal.

The arbitrators shall be impleaded as nominal parties to the case and shall be notified of the
progress of the case.

Rule 3.17. Comment/Opposition. - The comment/opposition must be filed within fifteen (15)
days from service of the petition.

Rule 3.18. Court action.

(A) Period for resolving the petition.- The court shall render judgment on the basis of the
pleadings filed and the evidence, if any, submitted by the parties, within thirty (30) days from the
time the petition is submitted for resolution.

(B) No injunction of arbitration proceedings. - The court shall not enjoin the arbitration
proceedings during the pendency of the petition.
Judicial recourse to the court shall not prevent the arbitral tribunal from continuing the
proceedings and rendering its award.

27

(C) When dismissal of petition is appropriate. - The court shall dismiss the petition if it fails to
comply with Rule 3.16 above; or if upon consideration of the grounds alleged and the legal
briefs submitted by the parties, the petition does not appear to be prima facie meritorious.

Rule 3.19. Relief against court action. - The aggrieved party may file a motion for
reconsideration of the order of the court. The decision of the court shall, however, not be subject
to appeal. The ruling of the court affirming the arbitral tribunal's jurisdiction shall not be subject
to a petition for certiorari. The ruling of the court that the arbitral tribunal has no jurisdiction may
be the subject of a petition for certiorari.

Rule 3.20. Where no petition is allowed. - Where the arbitral tribunal defers its ruling on
preliminary question regarding its jurisdiction until its final award, the aggrieved party cannot
seek judicial relief to question the deferral and must await the final arbitral award before seeking
appropriate judicial recourse.

A ruling by the arbitral tribunal deferring resolution on the issue of its jurisdiction until final
award, shall not be subject to a motion for reconsideration, appeal or a petition for certiorari.

Rule 3.21. Rendition of arbitral award before court decision on petition from arbitral tribunal's
preliminary ruling on jurisdiction. - If the arbitral tribunal renders a final arbitral award and the
Court has not rendered a decision on the petition from the arbitral tribunal's preliminary ruling
affirming its jurisdiction, that petition shall become ipso facto moot and academic and shall be
dismissed by the Regional Trial Court. The dismissal shall be without prejudice to the right of
the aggrieved party to raise the same issue in a timely petition to vacate or set aside the award.

Rule 3.22. Arbitral tribunal a nominal party. - The arbitral tribunal is only a nominal party. The
court shall not require the arbitral tribunal to submit any pleadings or written submissions but
may consider the same should the latter participate in the proceedings, but only as nominal
parties thereto.


RULE 4: REFERRAL TO ADR

Rule 4.1. Who makes the request. - A party to a pending action filed in violation of the arbitration
agreement, whether contained in an arbitration clause or in a submission agreement, may
request the court to refer the parties to arbitration in accordance with such agreement.

Rule 4.2. When to make request.

(A) Where the arbitration agreement exists before the action is filed. - The request for referral
shall be made not later than the pre-trial conference. After the pre-trial conference, the court will
only act upon the request for referral if it is made with the agreement of all parties to the case.

(B) Submission agreement. - If there is no existing arbitration agreement at the time the case is
filed but the parties subsequently enter into an arbitration agreement, they may request the
court to refer their dispute to arbitration at any time during the proceedings.
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Rule 4.3. Contents of request. - The request for referral shall be in the form of a motion, which
shall state that the dispute is covered by an arbitration agreement.
Apart from other submissions, the movant shall attach to his motion an authentic copy of the
arbitration agreement.

The request shall contain a notice of hearing addressed to all parties specifying the date and
time when it would be heard. The party making the request shall serve it upon the respondent to
give him the opportunity to file a comment or opposition as provided in the immediately
succeeding Rule before the hearing.

Rule 4.4. Comment/Opposition. - The comment/opposition must be filed within fifteen (15) days
from service of the petition. The comment/opposition should show that: (a) there is no
agreement to refer the dispute to arbitration; and/or (b) the agreement is null and void; and/or
(c) the subject-matter of the dispute is not capable of settlement or resolution by arbitration in
accordance with Section 6 of the ADR Act.

Rule 4.5. Court action. - After hearing, the court shall stay the action and, considering the
statement of policy embodied in Rule 2.4, above, refer the parties to arbitration if it finds prima
facie, based on the pleadings and supporting documents submitted by the parties, that there is
an arbitration agreement and that the subject-matter of the dispute is capable of settlement or
resolution by arbitration in accordance with Section 6 of the ADR Act. Otherwise, the court shall
continue with the judicial proceedings.

Rule 4.6. No reconsideration, appeal or certiorari. - An order referring the dispute to arbitration
shall be immediately executory and shall not be subject to a motion for reconsideration, appeal
or petition for certiorari.

An order denying the request to refer the dispute to arbitration shall not be subject to an appeal,
but may be the subject of a motion for reconsideration and/or a petition for certiorari.

Rule 4.7. Multiple actions and parties. - The court shall not decline to refer some or all of the
parties to arbitration for any of the following reasons:

a. Not all of the disputes subject of the civil action may be referred to arbitration;

b. Not all of the parties to the civil action are bound by the arbitration agreement and
referral to arbitration would result in multiplicity of suits;

c. The issues raised in the civil action could be speedily and efficiently resolved in its
entirety by the court rather than in arbitration;

d. Referral to arbitration does not appear to be the most prudent action; or

e. The stay of the action would prejudice the rights of the parties to the civil action who
are not bound by the arbitration agreement.

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The court may, however, issue an order directing the inclusion in arbitration of those parties who
are not bound by the arbitration agreement but who agree to such inclusion provided those
originally bound by it do not object to their inclusion.



Rule 4.8. Arbitration to proceed.- Despite the pendency of the action referred to in Rule 4.1,
above, arbitral proceedings may nevertheless be commenced or continued, and an award may
be made, while the action is pending before the court.



RULE 5: INTERIM MEASURES OF PROTECTION

Rule 5.1. Who may ask for interim measures of protection. - A party to an arbitration agreement
may petition the court for interim measures of protection.

Rule 5.2. When to petition. - A petition for an interim measure of protection may be made (a)
before arbitration is commenced, (b) after arbitration is commenced, but before the constitution
of the arbitral tribunal, or (c) after the constitution of the arbitral tribunal and at any time during
arbitral proceedings but, at this stage, only to the extent that the arbitral tribunal has no power to
act or is unable to act effectively.

Rule 5.3. Venue. - A petition for an interim measure of protection may be filed with the Regional
Trial Court, which has jurisdiction over any of the following places:

a. Where the principal place of business of any of the parties to arbitration is located;

b. Where any of the parties who are individuals resides;

c. Where any of the acts sought to be enjoined are being performed, threatened to be
performed or not being performed; or

d. Where the real property subject of arbitration, or a portion thereof is situated.

Rule 5.4. Grounds. - The following grounds, while not limiting the reasons for the court to grant
an interim measure of protection, indicate the nature of the reasons that the court shall consider
in granting the relief:

a. The need to prevent irreparable loss or injury;

b. The need to provide security for the performance of any obligation;

c. The need to produce or preserve evidence; or

d. The need to compel any other appropriate act or omission.

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Rule 5.5. Contents of the petition. - The verified petition must state the following:

a. The fact that there is an arbitration agreement;

b. The fact that the arbitral tribunal has not been constituted, or if constituted, is unable
to act or would be unable to act effectively;

c. A detailed description of the appropriate relief sought;

d. The grounds relied on for the allowance of the petition

Apart from other submissions, the petitioner must attach to his petition an authentic copy of the
arbitration agreement.

Rule 5.6. Type of interim measure of protection that a court may grant.- The following, among
others, are the interim measures of protection that a court may grant:

a. Preliminary injunction directed against a party to arbitration;

b. Preliminary attachment against property or garnishment of funds in the custody of a
bank or a third person;

c. Appointment of a receiver;

d. Detention, preservation, delivery or inspection of property; or,

e. Assistance in the enforcement of an interim measure of protection granted by the
arbitral tribunal, which the latter cannot enforce effectively.

Rule 5.7. Dispensing with prior notice in certain cases. - Prior notice to the other party may be
dispensed with when the petitioner alleges in the petition that there is an urgent need to either
(a) preserve property, (b) prevent the respondent from disposing of, or concealing, the property,
or (c) prevent the relief prayed for from becoming illusory because of prior notice, and the court
finds that the reason/s given by the petitioner are meritorious.

Rule 5.8. Comment/Opposition. - The comment/opposition must be filed within fifteen (15) days
from service of the petition. The opposition or comment should state the reasons why the
interim measure of protection should not be granted.

Rule 5.9. Court action. - After hearing the petition, the court shall balance the relative interests
of the parties and inconveniences that may be caused, and on that basis resolve the matter
within thirty (30) days from (a) submission of the opposition, or (b) upon lapse of the period to
file the same, or (c) from termination of the hearing that the court may set only if there is a need
for clarification or further argument.

If the other parties fail to file their opposition on or before the day of the hearing, the court
shall motu propriorender judgment only on the basis of the allegations in the petition that are
substantiated by supporting documents and limited to what is prayed for therein.

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In cases where, based solely on the petition, the court finds that there is an urgent need to
either (a) preserve property, (b) prevent the respondent from disposing of, or concealing, the
property, or (c) prevent the relief prayed for from becoming illusory because of prior notice, it
shall issue an immediately executory temporary order of protection and require the petitioner,
within five (5) days from receipt of that order, to post a bond to answer for any damage that
respondent may suffer as a result of its order. The ex-parte temporary order of protection shall
be valid only for a period of twenty (20) days from the service on the party required to comply
with the order. Within that period, the court shall:

a. Furnish the respondent a copy of the petition and a notice requiring him to comment
thereon on or before the day the petition will be heard; and

b. Notify the parties that the petition shall be heard on a day specified in the notice,
which must not be beyond the twenty (20) day period of the effectivity of the ex-parte
order.

The respondent has the option of having the temporary order of protection lifted by posting an
appropriate counter-bond as determined by the court.

If the respondent requests the court for an extension of the period to file his opposition or
comment or to reset the hearing to a later date, and such request is granted, the court shall
extend the period of validity of the ex-partetemporary order of protection for no more than
twenty days from expiration of the original period.

After notice and hearing, the court may either grant or deny the petition for an interim measure
of protection. The order granting or denying any application for interim measure of protection in
aid of arbitration must indicate that it is issued without prejudice to subsequent grant,
modification, amendment, revision or revocation by an arbitral tribunal.
Rule 5.10. Relief against court action. - If respondent was given an opportunity to be heard on a
petition for an interim measure of protection, any order by the court shall be immediately
executory, but may be the subject of a motion for reconsideration and/or appeal or, if warranted,
a petition for certiorari.

Rule 5.11. Duty of the court to refer back. - The court shall not deny an application for
assistance in implementing or enforcing an interim measure of protection ordered by an arbitral
tribunal on any or all of the following grounds:

a. The arbitral tribunal granted the interim relief ex parte; or
b. The party opposing the application found new material evidence, which the arbitral
tribunal had not considered in granting in the application, and which, if considered, may
produce a different result; or

c. The measure of protection ordered by the arbitral tribunal amends, revokes, modifies
or is inconsistent with an earlier measure of protection issued by the court.

If it finds that there is sufficient merit in the opposition to the application based on letter (b)
above, the court shall refer the matter back to the arbitral tribunal for appropriate determination.

Rule 5.12. Security. - The order granting an interim measure of protection may be conditioned
upon the provision of security, performance of an act, or omission thereof, specified in the order.
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The Court may not change or increase or decrease the security ordered by the arbitral tribunal.

Rule 5.13. Modification, amendment, revision or revocation of court's previously issued interim
measure of protection. - Any court order granting or denying interim measure/s of protection is
issued without prejudice to subsequent grant, modification, amendment, revision or revocation
by the arbitral tribunal as may be warranted.

An interim measure of protection issued by the arbitral tribunal shall, upon its issuance be
deemed to have ipso jure modified, amended, revised or revoked an interim measure of
protection previously issued by the court to the extent that it is inconsistent with the subsequent
interim measure of protection issued by the arbitral tribunal.

Rule 5.14. Conflict or inconsistency between interim measure of protection issued by the court
and by the arbitral tribunal. - Any question involving a conflict or inconsistency between an
interim measure of protection issued by the court and by the arbitral tribunal shall be
immediately referred by the court to the arbitral tribunal which shall have the authority to decide
such question.

Rule 5.15. Court to defer action on petition for an interim measure of protection when informed
of constitution of the arbitral tribunal. - The court shall defer action on any pending petition for an
interim measure of protection filed by a party to an arbitration agreement arising from or in
connection with a dispute thereunder upon being informed that an arbitral tribunal has been
constituted pursuant to such agreement. The court may act upon such petition only if it is
established by the petitioner that the arbitral tribunal has no power to act on any such interim
measure of protection or is unable to act thereon effectively.

Rule 5.16. Court assistance should arbitral tribunal be unable to effectively enforce interim
measure of protection. - The court shall assist in the enforcement of an interim measure of
protection issued by the arbitral tribunal which it is unable to effectively enforce.


RULE 6: APPOINTMENT OF ARBITRATORS

Rule 6.1. When the court may act as Appointing Authority. - The court shall act as Appointing
Authority only in the following instances:

a. Where any of the parties in an institutional arbitration failed or refused to appoint an
arbitrator or when the parties have failed to reach an agreement on the sole arbitrator (in
an arbitration before a sole arbitrator) or when the two designated arbitrators have failed
to reach an agreement on the third or presiding arbitrator (in an arbitration before a
panel of three arbitrators), and the institution under whose rules arbitration is to be
conducted fails or is unable to perform its duty as appointing authority within a
reasonable time from receipt of the request for appointment;

b. In all instances where arbitration is ad hoc and the parties failed to provide a method
for appointing or replacing an arbitrator, or substitute arbitrator, or the method agreed
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upon is ineffective, and the National President of the Integrated Bar of the Philippines
(IBP) or his duly authorized representative fails or refuses to act within such period as
may be allowed under the pertinent rules of the IBP or within such period as may be
agreed upon by the parties, or in the absence thereof, within thirty (30) days from receipt
of such request for appointment;

c. Where the parties agreed that their dispute shall be resolved by three arbitrators but
no method of appointing those arbitrators has been agreed upon, each party shall
appoint one arbitrator and the two arbitrators thus appointed shall appoint a third
arbitrator. If a party fails to appoint his arbitrator within thirty (30) days of receipt of a
request to do so from the other party, or if the two arbitrators fail to agree on the third
arbitrator within a reasonable time from their appointment, the appointment shall be
made by the Appointing Authority. If the latter fails or refuses to act or appoint an
arbitrator within a reasonable time from receipt of the request to do so, any party or the
appointed arbitrator/s may request the court to appoint an arbitrator or the third arbitrator
as the case may be.

Rule 6.2. Who may request for appointment. - Any party to an arbitration may request the court
to act as an Appointing Authority in the instances specified in Rule 6.1 above.

Rule 6.3. Venue. - The petition for appointment of arbitrator may be filed, at the option of the
petitioner, in the Regional Trial Court (a) where the principal place of business of any of the
parties is located, (b) if any of the parties are individuals, where those individuals reside, or (c)
in the National Capital Region.

Rule 6.4. Contents of the petition. -The petition shall state the following:

a. The general nature of the dispute;

b. If the parties agreed on an appointment procedure, a description of that procedure
with reference to the agreement where such may be found;

c. The number of arbitrators agreed upon or the absence of any agreement as to the
number of arbitrators;

d. The special qualifications that the arbitrator/s must possess, if any, that were agreed
upon by the parties;

e. The fact that the Appointing Authority, without justifiable cause, has failed or refused
to act as such within the time prescribed or in the absence thereof, within a reasonable
time, from the date a request is made; and

f. The petitioner is not the cause of the delay in, or failure of, the appointment of the
arbitrator.

Apart from other submissions, the petitioner must attach to the petition (a) an authentic copy of
the arbitration agreement, and (b) proof that the Appointing Authority has been notified of the
filing of the petition for appointment with the court.

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Rule 6.5. Comment/Opposition. - The comment/opposition must be filed within fifteen (15) days
from service of the petition.

Rule 6.6. Submission of list of arbitrators. - The court may, at its option, also require each party
to submit a list of not less than three (3) proposed arbitrators together with their curriculum vitae.

Rule 6.7. Court action. - After hearing, if the court finds merit in the petition, it shall appoint an
arbitrator; otherwise, it shall dismiss the petition.

In making the appointment, the court shall have regard to such considerations as are likely to
secure the appointment of an independent and impartial arbitrator.

At any time after the petition is filed and before the court makes an appointment, it shall also
dismiss the petition upon being informed that the Appointing Authority has already made the
appointment.

Rule 6.8. Forum shopping prohibited. - When there is a pending petition in another court to
declare the arbitration agreement inexistent, invalid, unenforceable, on account of which the
respondent failed or refused to participate in the selection and appointment of a sole arbitrator
or to appoint a party-nominated arbitrator, the petition filed under this rule shall be dismissed.

Rule 6.9. Relief against court action. - If the court appoints an arbitrator, the order appointing an
arbitrator shall be immediately executory and shall not be the subject of a motion for
reconsideration, appeal or certiorari. An order of the court denying the petition for appointment
of an arbitrator may, however, be the subject of a motion for reconsideration, appeal or
certiorari.


RULE 7: CHALLENGE TO APPOINTMENT OF ARBITRATOR

Rule 7.1. Who may challenge. - Any of the parties to an arbitration may challenge an arbitrator.

Rule 7.2. When challenge may be raised in court. - When an arbitrator is challenged before the
arbitral tribunal under the procedure agreed upon by the parties or under the procedure
provided for in Article 13 (2) of the Model Law and the challenge is not successful, the
aggrieved party may request the Appointing Authority to rule on the challenge, and it is only
when such Appointing Authority fails or refuses to act on the challenge within such period as
may be allowed under the applicable rule or in the absence thereof, within thirty (30) days from
receipt of the request, that the aggrieved party may renew the challenge in court.

Rule 7.3. Venue. - The challenge shall be filed with the Regional Trial Court (a) where the
principal place of business of any of the parties is located, (b) if any of the parties are
individuals, where those individuals reside, or (c) in the National Capital Region.

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Rule 7.4. Grounds. - An arbitrator may be challenged on any of the grounds for challenge
provided for in Republic Act No. 9285 and its implementing rules, Republic Act No. 876 or the
Model Law. The nationality or professional qualification of an arbitrator is not a ground to
challenge an arbitrator unless the parties have specified in their arbitration agreement a
nationality and/or professional qualification for appointment as arbitrator.

Rule 7.5. Contents of the petition. - The petition shall state the following:

a. The name/s of the arbitrator/s challenged and his/their address;

b. The grounds for the challenge;

c. The facts showing that the ground for the challenge has been expressly or impliedly
rejected by the challenged arbitrator/s; and

d. The facts showing that the Appointing Authority failed or refused to act on the
challenge.

The court shall dismiss the petition motu proprio unless it is clearly alleged therein that the
Appointing Authority charged with deciding the challenge, after the resolution of the arbitral
tribunal rejecting the challenge is raised or contested before such Appointing Authority, failed or
refused to act on the challenge within thirty (30) days from receipt of the request or within such
longer period as may apply or as may have been agreed upon by the parties.

Rule 7.6. Comment/Opposition. - The challenged arbitrator or other parties may file a comment
or opposition within fifteen (15) days from service of the petition.

Rule 7.7. Court action. - After hearing, the court shall remove the challenged arbitrator if it finds
merit in the petition; otherwise, it shall dismiss the petition.

The court shall allow the challenged arbitrator who subsequently agrees to accept the challenge
to withdraw as arbitrator.

The court shall accept the challenge and remove the arbitrator in the following cases:

a. The party or parties who named and appointed the challenged arbitrator agree to the
challenge and withdraw the appointment.

b. The other arbitrators in the arbitral tribunal agree to the removal of the challenged
arbitrator; and

c. The challenged arbitrator fails or refuses to submit his comment on the petition or the
brief of legal arguments as directed by the court, or in such comment or legal brief, he
fails to object to his removal following the challenge.

The court shall decide the challenge on the basis of evidence submitted by the parties.

The court will decide the challenge on the basis of the evidence submitted by the parties in the
following instances:
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a. The other arbitrators in the arbitral tribunal agree to the removal of the challenged
arbitrator; and

b. If the challenged arbitrator fails or refuses to submit his comment on the petition or the
brief of legal arguments as directed by the court, or in such comment or brief of legal
arguments, he fails to object to his removal following the challenge.

Rule 7.8. No motion for reconsideration, appeal or certiorari. - Any order of the court resolving
the petition shall be immediately executory and shall not be the subject of a motion for
reconsideration, appeal, or certiorari.

Rule 7.9. Reimbursement of expenses and reasonable compensation to challenged arbitrator. -
Unless the bad faith of the challenged arbitrator is established with reasonable certainty by
concealing or failing to disclose a ground for his disqualification, the challenged arbitrator shall
be entitled to reimbursement of all reasonable expenses he may have incurred in attending to
the arbitration and to a reasonable compensation for his work on the arbitration. Such expenses
include, but shall not be limited to, transportation and hotel expenses, if any. A reasonable
compensation shall be paid to the challenged arbitrator on the basis of the length of time he has
devoted to the arbitration and taking into consideration his stature and reputation as an
arbitrator. The request for reimbursement of expenses and for payment of a reasonable
compensation shall be filed in the same case and in the court where the petition to replace the
challenged arbitrator was filed. The court, in determining the amount of the award to the
challenged arbitrator, shall receive evidence of expenses to be reimbursed, which may consist
of air tickets, hotel bills and expenses, and inland transportation. The court shall direct the
challenging party to pay the amount of the award to the court for the account of the challenged
arbitrator, in default of which the court may issue a writ of execution to enforce the award.


RULE 8: TERMINATION OF THE MANDATE OF ARBITRATOR

Rule 8.1. Who may request termination and on what grounds.- Any of the parties to an
arbitration may request for the termination of the mandate of an arbitrator where an arbitrator
becomes de jure or de facto unable to perform his function or for other reasons fails to act
without undue delay and that arbitrator, upon request of any party, fails or refuses to withdraw
from his office.

Rule 8.2. When to request. - If an arbitrator refuses to withdraw from his office, and
subsequently, the Appointing Authority fails or refuses to decide on the termination of the
mandate of that arbitrator within such period as may be allowed under the applicable rule or, in
the absence thereof, within thirty (30) days from the time the request is brought before him, any
party may file with the court a petition to terminate the mandate of that arbitrator.

Rule 8.3. Venue. - A petition to terminate the mandate of an arbitrator may, at that petitioner's
option, be filed with the Regional Trial Court (a) where the principal place of business of any of
the parties is located, (b) where any of the parties who are individuals resides, or (c) in t he
National Capital Region.
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Rule 8.4. Contents of the petition. - The petition shall state the following:

a. The name of the arbitrator whose mandate is sought to be terminated;

b. The ground/s for termination;

c. The fact that one or all of the parties had requested the arbitrator to withdraw but he
failed or refused to do so;

d. The fact that one or all of the parties requested the Appointing Authority to act on the
request for the termination of the mandate of the arbitrator and failure or inability of the
Appointing Authority to act within thirty (30) days from the request of a party or parties or
within such period as may have been agreed upon by the parties or allowed under the
applicable rule.

The petitioner shall further allege that one or all of the parties had requested the arbitrator to
withdraw but he failed or refused to do so.

Rule 8.5. Comment/Opposition. - The comment/opposition must be filed within fifteen (15) days
from service of the petition.

Rule 8.6. Court action. - After hearing, if the court finds merit in the petition, it shall terminate the
mandate of the arbitrator who refuses to withdraw from his office; otherwise, it shall dismiss the
petition.

Rule 8.7. No motion for reconsideration or appeal. - Any order of the court resolving the petition
shall be immediately executory and shall not be subject of a motion for reconsideration, appeal
or petition for certiorari.

Rule 8.8. Appointment of substitute arbitrator. - Where the mandate of an arbitrator is
terminated, or he withdraws from office for any other reason, or because of his mandate is
revoked by agreement of the parties or is terminated for any other reason, a substitute arbitrator
shall be appointed according to the rules that were applicable to the appointment of the
arbitrator being replaced.


RULE 9: ASSISTANCE IN TAKING EVIDENCE

Rule 9.1. Who may request assistance. - Any party to an arbitration, whether domestic or
foreign, may request the court to provide assistance in taking evidence.

Rule 9.2. When assistance may be sought. - Assistance may be sought at any time during the
course of the arbitral proceedings when the need arises.

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Rule 9.3. Venue. - A petition for assistance in taking evidence may, at the option of the
petitioner, be filed with Regional Trial Court where (a) arbitration proceedings are taking place,
(b) the witnesses reside or may be found, or (c) where the evidence may be found.

Rule 9.4. Ground. - The court may grant or execute the request for assistance in taking
evidence within its competence and according to the rules of evidence.

Rule 9.5. Type of assistance. - A party requiring assistance in the taking of evidence may
petition the court to direct any person, including a representative of a corporation, association,
partnership or other entity (other than a party to the ADR proceedings or its officers) found in the
Philippines, for any of the following:

a. To comply with a subpoena ad testificandum and/or subpoena duces tecum;

b. To appear as a witness before an officer for the taking of his deposition upon oral
examination or by written interrogatories;

c. To allow the physical examination of the condition of persons, or the inspection of
things or premises and, when appropriate, to allow the recording and/or documentation
of condition of persons, things or premises (i.e., photographs, video and other means of
recording/documentation);

d. To allow the examination and copying of documents; and

e. To perform any similar acts.

Rule 9.6. Contents of the petition. - The petition must state the following:

a. The fact that there is an ongoing arbitration proceeding even if such proceeding could
not continue due to some legal impediments;

b. The arbitral tribunal ordered the taking of evidence or the party desires to present
evidence to the arbitral tribunal;

c. Materiality or relevance of the evidence to be taken; and

d. The names and addresses of the intended witness/es, place where the evidence may
be found, the place where the premises to be inspected are located or the place where
the acts required are to be done.

Rule 9.7. Comment/Opposition. - The comment/opposition must be filed within fifteen (15) days
from service of the petition.

Rule 9.8. Court action. - If the evidence sought is not privileged, and is material and relevant,
the court shall grant the assistance in taking evidence requested and shall order petitioner to
pay costs attendant to such assistance.

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Rule 9.9. Relief against court action. - The order granting assistance in taking evidence shall be
immediately executory and not subject to reconsideration or appeal. If the court declines to
grant assistance in taking evidence, the petitioner may file a motion for reconsideration or
appeal.

Rule 9.10. Perpetuation of testimony before the arbitral tribunal is constituted. - At anytime
before arbitration is commenced or before the arbitral tribunal is constituted, any person who
desires to perpetuate his testimony or that of another person may do so in accordance with Rule
24 of the Rules of Court.

Rule 9.11. Consequence of disobedience. - The court may impose the appropriate sanction on
any person who disobeys its order to testify when required or perform any act required of him.


RULE 10: CONFIDENTIALITY/PROTECTIVE ORDERS

Rule 10.1. Who may request confidentiality. - A party, counsel or witness who disclosed or who
was compelled to disclose information relative to the subject of ADR under circumstances that
would create a reasonable expectation, on behalf of the source, that the information shall be
kept confidential has the right to prevent such information from being further disclosed without
the express written consent of the source or the party who made the disclosure.

Rule 10.2. When request made. - A party may request a protective order at anytime there is a
need to enforce the confidentiality of the information obtained, or to be obtained, in ADR
proceedings.

Rule 10.3. Venue. - A petition for a protective order may be filed with the Regional Trial Court
where that order would be implemented.

If there is a pending court proceeding in which the information obtained in an ADR proceeding is
required to be divulged or is being divulged, the party seeking to enforce the confidentiality of
the information may file a motion with the court where the proceedings are pending to enjoin the
confidential information from being divulged or to suppress confidential information.

Rule 10.4. Grounds. - A protective order may be granted only if it is shown that the applicant
would be materially prejudiced by an unauthorized disclosure of the information obtained, or to
be obtained, during an ADR proceeding.

Rule 10.5. Contents of the motion or petition. - The petition or motion must state the following:

a. That the information sought to be protected was obtained, or would be obtained,
during an ADR proceeding;

b. The applicant would be materially prejudiced by the disclosure of that information;

40

c. The person or persons who are being asked to divulge the confidential information
participated in an ADR proceedings; and

d. The time, date and place when the ADR proceedings took place.

Apart from the other submissions, the movant must set the motion for hearing and contain a
notice of hearing in accordance with Rule 15 of the Rules of Court.

Rule 10.6. Notice. - Notice of a request for a protective order made through a motion shall be
made to the opposing parties in accordance with Rule 15 of the Rules of Court.

Rule 10.7. Comment/Opposition. - The comment/opposition must be filed within fifteen (15)
days from service of the petition. The opposition or comment may be accompanied by written
proof that (a) the information is not confidential, (b) the information was not obtained during an
ADR proceeding, (c) there was a waiver of confidentiality, or (d) the petitioner/movant is
precluded from asserting confidentiality.

Rule 10.8. Court action. - If the court finds the petition or motion meritorious, it shall issue an
order enjoining a person or persons from divulging confidential information.
In resolving the petition or motion, the courts shall be guided by the following principles
applicable to all ADR proceedings: Confidential information shall not be subject to discovery and
shall be inadmissible in any adversarial proceeding, whether judicial or quasi judicial. However,
evidence or information that is otherwise admissible or subject to discovery does not become
inadmissible or protected from discovery solely by reason of its use therein.

For mediation proceedings, the court shall be further guided by the following principles:

a. Information obtained through mediation shall be privileged and confidential.

b. A party, a mediator, or a nonparty participant may refuse to disclose and may prevent
any other person from disclosing a mediation communication.

c. In such an adversarial proceeding, the following persons involved or previously
involved in a mediation may not be compelled to disclose confidential information
obtained during the mediation: (1) the parties to the dispute; (2) the mediator or
mediators; (3) the counsel for the parties: (4) the nonparty participants; (5) any persons
hired or engaged in connection with the mediation as secretary, stenographer; clerk or
assistant; and (6) any other person who obtains or possesses confidential information by
reason of his/ her profession.

d. The protection of the ADR Laws shall continue to apply even if a mediator is found to
have failed to act impartially.

e. A mediator may not be called to testify to provide information gathered in mediation. A
mediator who is wrongfully subpoenaed shall be reimbursed the full cost of his attorney
fees and related expenses.

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Rule 10.9. Relief against court action. - The order enjoining a person or persons from divulging
confidential information shall be immediately executory and may not be enjoined while the order
is being questioned with the appellate courts.

If the court declines to enjoin a person or persons from divulging confidential information, the
petitioner may file a motion for reconsideration or appeal.

Rule 10.10. Consequence of disobedience. - Any person who disobeys the order of the court to
cease from divulging confidential information shall be imposed the proper sanction by the court.


RULE 11: CONFIRMATION, CORRECTION OR VACATION OF AWARD IN DOMESTIC
ARBITRATION

Rule 11.1. Who may request confirmation, correction or vacation. - Any party to a domestic
arbitration may petition the court to confirm, correct or vacate a domestic arbitral award.

Rule 11.2. When to request confirmation, correction/modification or vacation. -

(A) Confirmation. - At any time after the lapse of thirty (30) days from receipt by the
petitioner of the arbitral award, he may petition the court to confirm that award.

(B) Correction/Modification. - Not later than thirty (30) days from receipt of the arbitral
award, a party may petition the court to correct/modify that award.

(C) Vacation. - Not later than thirty (30) days from receipt of the arbitral award, a party
may petition the court to vacate that award.

(D) A petition to vacate the arbitral award may be filed, in opposition to a petition to
confirm the arbitral award, not later than thirty (30) days from receipt of the award by the
petitioner. A petition to vacate the arbitral award filed beyond the reglementary period
shall be dismissed.

(E) A petition to confirm the arbitral award may be filed, in opposition to a petition to
vacate the arbitral award, at any time after the petition to vacate such arbitral award is
filed. The dismissal of the petition to vacate the arbitral award for having been filed
beyond the reglementary period shall not result in the dismissal of the petition for the
confirmation of such arbitral award.

(F) The filing of a petition to confirm an arbitral award shall not authorize the filing of a
belated petition to vacate or set aside such award in opposition thereto.

(G) A petition to correct an arbitral award may be included as part of a petition to confirm
the arbitral award or as a petition to confirm that award.

Rule 11.3. Venue. - The petition for confirmation, correction/modification or vacation of a
domestic arbitral award may be filed with Regional Trial Court having jurisdiction over the place
42

in which one of the parties is doing business, where any of the parties reside or where
arbitration proceedings were conducted.

Rule 11.4. Grounds. - (A) To vacate an arbitral award. - The arbitral award may be vacated on
the following grounds:

a. The arbitral award was procured through corruption, fraud or other undue means;

b. There was evident partiality or corruption in the arbitral tribunal or any of its members;

c. The arbitral tribunal was guilty of misconduct or any form of misbehavior that has
materially prejudiced the rights of any party such as refusing to postpone a hearing upon
sufficient cause shown or to hear evidence pertinent and material to the controversy;

d. One or more of the arbitrators was disqualified to act as such under the law and
willfully refrained from disclosing such disqualification; or

e. The arbitral tribunal exceeded its powers, or so imperfectly executed them, such that
a complete, final and definite award upon the subject matter submitted to them was not
made.

The award may also be vacated on any or all of the following grounds:

a. The arbitration agreement did not exist, or is invalid for any ground for the revocation
of a contract or is otherwise unenforceable; or

b. A party to arbitration is a minor or a person judicially declared to be incompetent.

The petition to vacate an arbitral award on the ground that the party to arbitration is a minor or a
person judicially declared to be incompetent shall be filed only on behalf of the minor or
incompetent and shall allege that (a) the other party to arbitration had knowingly entered into a
submission or agreement with such minor or incompetent, or (b) the submission to arbitration
was made by a guardian or guardian ad litem who was not authorized to do so by a competent
court.

In deciding the petition to vacate the arbitral award, the court shall disregard any other ground
than those enumerated above.


(B) To correct/modify an arbitral award. - The Court may correct/modify or order the arbitral
tribunal to correct/modify the arbitral award in the following cases:

a. Where there was an evident miscalculation of figures or an evident mistake in the
description of any person, thing or property referred to in the award;

b. Where the arbitrators have awarded upon a matter not submitted to them, not
affecting the merits of the decision upon the matter submitted;

c. Where the arbitrators have omitted to resolve an issue submitted to them for
resolution; or

43

d. Where the award is imperfect in a matter of form not affecting the merits of the
controversy, and if it had been a commissioner's report, the defect could have been
amended or disregarded by the Court.

Rule 11.5. Form of petition. - An application to vacate an arbitral award shall be in the form of a
petition to vacate or as a petition to vacate in opposition to a petition to confirm the same award.

An application to correct/modify an arbitral award may be included in a petition to confirm an
arbitral award or in a petition to vacate in opposition to confirm the same award.
When a petition to confirm an arbitral award is pending before a court, the party seeking to
vacate or correct/modify said award may only apply for those reliefs through a petition to vacate
or correct/modify the award in opposition to the petition to confirm the award provided that such
petition to vacate or correct/modify is filed within thirty (30) days from his receipt of the award. A
petition to vacate or correct/modify an arbitral award filed in another court or in a separate case
before the same court shall be dismissed, upon appropriate motion, as a violation of the rule
against forum-shopping.

When a petition to vacate or correct/modify an arbitral award is pending before a court, the party
seeking to confirm said award may only apply for that relief through a petition to confirm the
same award in opposition to the petition to vacate or correct/modify the award. A petition to
confirm or correct/modify an arbitral award filed as separate proceeding in another court or in a
different case before the same court shall be dismissed, upon appropriate motion, as a violation
of the rule against forum shopping.

As an alternative to the dismissal of a second petition for confirmation, vacation or
correction/modification of an arbitral award filed in violation of the non-forum shopping rule, the
court or courts concerned may allow the consolidation of the two proceedings in one court and
in one case.

Where the petition to confirm the award and petition to vacate or correct/modify were
simultaneously filed by the parties in the same court or in different courts in the Philippines,
upon motion of either party, the court may order the consolidation of the two cases before either
court.

In all instances, the petition must be verified by a person who has knowledge of the jurisdictional
facts.

Rule 11.6. Contents of petition. - The petition must state the following:

a. The addresses of the parties and any change thereof;

b. The jurisdictional issues raised by a party during arbitration proceedings;

c. The grounds relied upon by the parties in seeking the vacation of the arbitral award
whether the petition is a petition for the vacation or setting aside of the arbitral award or
a petition in opposition to a petition to confirm the award; and

d. A statement of the date of receipt of the arbitral award and the circumstances under
which it was received by the petitioner.

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Apart from other submissions, the petitioner must attach to the petition the following:

a. An authentic copy of the arbitration agreement;

b. An authentic copy of the arbitral award;

c. A certification against forum shopping executed by the applicant in accordance with
Section 5 of Rule 7 of the Rules of Court; and

d. An authentic copy or authentic copies of the appointment of an arbitral tribunal.

Rule 11.7. Notice. - Upon finding that the petition filed under this Rule is sufficient both in form
and in substance, the Court shall cause notice and a copy of the petition to be delivered to the
respondent allowing him to file a comment or opposition thereto within fifteen (15) days from
receipt of the petition. In lieu of an opposition, the respondent may file a petition in opposition to
the petition.

The petitioner may within fifteen (15) days from receipt of the petition in opposition thereto file a
reply.

Rule 11.8. Hearing. - If the Court finds from the petition or petition in opposition thereto that
there are issues of fact, it shall require the parties, within a period of not more than fifteen (15)
days from receipt of the order, to simultaneously submit the affidavits of all of their witnesses
and reply affidavits within ten (10) days from receipt of the affidavits to be replied to. There shall
be attached to the affidavits or reply affidavits documents relied upon in support of the
statements of fact in such affidavits or reply affidavits.

If the petition or the petition in opposition thereto is one for vacation of an arbitral award, the
interested party in arbitration may oppose the petition or the petition in opposition thereto for the
reason that the grounds cited in the petition or the petition in opposition thereto, assuming them
to be true, do not affect the merits of the case and may be cured or remedied. Moreover, the
interested party may request the court to suspend the proceedings for vacation for a period of
time and to direct the arbitral tribunal to reopen and conduct a new hearing and take such other
action as will eliminate the grounds for vacation of the award. The opposition shall be supported
by a brief of legal arguments to show the existence of a sufficient legal basis for the opposition.

If the ground of the petition to vacate an arbitral award is that the arbitration agreement did not
exist, is invalid or otherwise unenforceable, and an earlier petition for judicial relief under Rule 3
had been filed, a copy of such petition and of the decision or final order of the court shall be
attached thereto. But if the ground was raised before the arbitral tribunal in a motion to dismiss
filed not later than the submission of its answer, and the arbitral tribunal ruled in favor of its own
jurisdiction as a preliminary question which was appealed by a party to the Regional Trial Court,
a copy of the order, ruling or preliminary award or decision of the arbitral tribunal, the appeal
therefrom to the Court and the order or decision of the Court shall all be attached to the petition.

If the ground of the petition is that the petitioner is an infant or a person judicially declared to be
incompetent, there shall be attached to the petition certified copies of documents showing such
fact. In addition, the petitioner shall show that even if the submission or arbitration agreement
was entered into by a guardian or guardian ad litem, the latter was not authorized by a
competent court to sign such the submission or arbitration agreement.
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If on the basis of the petition, the opposition, the affidavits and reply affidavits of the parties, the
court finds that there is a need to conduct an oral hearing, the court shall set the case for
hearing. This case shall have preference over other cases before the court, except criminal
cases. During the hearing, the affidavits of witnesses shall take the place of their direct
testimonies and they shall immediately be subject to cross-examination thereon. The Court shall
have full control over the proceedings in order to ensure that the case is heard without undue
delay.

Rule 11.9. Court action. - Unless a ground to vacate an arbitral award under Rule 11.5 above is
fully established, the court shall confirm the award.

An arbitral award shall enjoy the presumption that it was made and released in due course of
arbitration and is subject to confirmation by the court

In resolving the petition or petition in opposition thereto in accordance with these Special ADR
Rules, the court shall either confirm or vacate the arbitral award. The court shall not disturb the
arbitral tribunal's determination of facts and/or interpretation of law.

In a petition to vacate an award or in petition to vacate an award in opposition to a petition to
confirm the award, the petitioner may simultaneously apply with the Court to refer the case back
to the same arbitral tribunal for the purpose of making a new or revised award or to direct a new
hearing, or in the appropriate case, order the new hearing before a new arbitral tribunal, the
members of which shall be chosen in the manner provided in the arbitration agreement or
submission, or the law. In the latter case, any provision limiting the time in which the arbitral
tribunal may make a decision shall be deemed applicable to the new arbitral tribunal.

In referring the case back to the arbitral tribunal or to a new arbitral tribunal pursuant to Rule 24
of Republic Act No. 876, the court may not direct it to revise its award in a particular way, or to
revise its findings of fact or conclusions of law or otherwise encroach upon the independence of
an arbitral tribunal in the making of a final award.


RULE 12: RECOGNITION AND ENFORCEMENT OR SETTING ASIDE OF AN
INTERNATIONALCOMMERCIAL ARBITRATION AWARD

Rule 12.1. Who may request recognition and enforcement or setting aside. - Any party to an
international commercial arbitration in the Philippines may petition the proper court to recognize
and enforce or set aside an arbitral award.

Rule 12.2. When to file petition.

(A) Petition to recognize and enforce. - The petition for enforcement and recognition of an
arbitral award may be filed anytime from receipt of the award. If, however, a timely petition to set
aside an arbitral award is filed, the opposing party must file therein and in opposition thereto the
petition for recognition and enforcement of the same award within the period for filing an
opposition.

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(B) Petition to set aside. - The petition to set aside an arbitral award may only be filed within
three (3) months from the time the petitioner receives a copy thereof. If a timely request is made
with the arbitral tribunal for correction, interpretation or additional award, the three (3) month
period shall be counted from the time the petitioner receives the resolution by the arbitral
tribunal of that request.

A petition to set aside can no longer be filed after the lapse of the three (3) month period. The
dismissal of a petition to set aside an arbitral award for being time-barred shall not automatically
result in the approval of the petition filed therein and in opposition thereto for recognition and
enforcement of the same award. Failure to file a petition to set aside shall preclude a party from
raising grounds to resist enforcement of the award.

Rule 12.3. Venue. - A petition to recognize and enforce or set aside an arbitral award may, at
the option of the petitioner, be filed with the Regional Trial Court: (a) where arbitration
proceedings were conducted; (b) where any of the assets to be attached or levied upon is
located; (c) where the act to be enjoined will be or is being performed; (d) where any of the
parties to arbitration resides or has its place of business; or (e) in the National Capital Judicial
Region.

Rule 12.4. Grounds to set aside or resist enforcement. - The court may set aside or refuse the
enforcement of the arbitral award only if:

a. The party making the application furnishes proof that:

(i). A party to the arbitration agreement was under some incapacity, or the said
agreement is not valid under the law to which the parties have subjected it or,
failing any indication thereof, under Philippine law; or

(ii). The party making the application to set aside or resist enforcement was not
given proper notice of the appointment of an arbitrator or of the arbitral
proceedings or was otherwise unable to present his case; or

(iii). The award deals with a dispute not contemplated by or not falling within the
terms of the submission to arbitration, or contains decisions on matters beyond
the scope of the submission to arbitration; provided that, if the decisions on
matters submitted to arbitration can be separated from those not so submitted,
only that part of the award which contains decisions on matters not submitted to
arbitration may be set aside or only that part of the award which contains
decisions on matters submitted to arbitration may be enforced; or

(iv). The composition of the arbitral tribunal or the arbitral procedure was not in
accordance with the agreement of the parties, unless such agreement was in
conflict with a provision of Philippine law from which the parties cannot derogate,
or, failing such agreement, was not in accordance with Philippine law;

b. The court finds that:

(i). The subject-matter of the dispute is not capable of settlement by arbitration
under the law of the Philippines; or

47

(ii). The recognition or enforcement of the award would be contrary to public
policy.

In deciding the petition, the Court shall disregard any other ground to set aside or enforce the
arbitral award other than those enumerated above.

The petition to set-aside or a pleading resisting the enforcement of an arbitral award on the
ground that a party was a minor or an incompetent shall be filed only on behalf of the minor or
incompetent and shall allege that (a) the other party to arbitration had knowingly entered into a
submission or agreement with such minor or incompetent, or (b) the submission to arbitration
was made by a guardian or guardian ad litem who was not authorized to do so by a competent
court.

Rule 12.5. Exclusive recourse against arbitral award. - Recourse to a court against an arbitral
award shall be made only through a petition to set aside the arbitral award and on grounds
prescribed by the law that governs international commercial arbitration. Any other recourse from
the arbitral award, such as by appeal or petition for review or petition for certiorari or otherwise,
shall be dismissed by the court.

Rule 12.6. Form. - The application to recognize and enforce or set aside an arbitral award,
whether made through a petition to recognize and enforce or to set aside or as a petition to set
aside the award in opposition thereto, or through a petition to set aside or petition to recognize
and enforce in opposition thereto, shall be verified by a person who has personal knowledge of
the facts stated therein.

When a petition to recognize and enforce an arbitral award is pending, the application to set it
aside, if not yet time-barred, shall be made through a petition to set aside the same award in the
same proceedings.

When a timely petition to set aside an arbitral award is filed, the opposing party may file a
petition for recognition and enforcement of the same award in opposition thereto.

Rule 12.7. Contents of petition. - (A) Petition to recognize and enforce. - The petition to
recognize and enforce or petition to set aside in opposition thereto, or petition to set aside or
petition to recognize and enforce in opposition thereto, shall state the following:

a. The addresses of record, or any change thereof, of the parties to arbitration;

b. A statement that the arbitration agreement or submission exists;

c. The names of the arbitrators and proof of their appointment;

d. A statement that an arbitral award was issued and when the petitioner received it; and

e. The relief sought.

Apart from other submissions, the petitioner shall attach to the petition the following:

a. An authentic copy of the arbitration agreement;
48


b. An authentic copy of the arbitral award;

c. A verification and certification against forum shopping executed by the applicant in
accordance with Sections 4 and 5 of Rule 7 of the Rules of Court; and

d. An authentic copy or authentic copies of the appointment of an arbitral tribunal.

(B) Petition to set aside. - The petition to set aside or petition to set aside in opposition to a
petition to recognize and enforce an arbitral award in international commercial arbitration shall
have the same contents as a petition to recognize and enforce or petition to recognize and
enforce in opposition to a petition to set aside an arbitral award. In addition, the said petitions
should state the grounds relied upon to set it aside.

Further, if the ground of the petition to set aside is that the petitioner is a minor or found
incompetent by a court, there shall be attached to the petition certified copies of documents
showing such fact. In addition, the petitioner shall show that even if the submission or arbitration
agreement was entered into by a guardian or guardian ad litem, the latter was not authorized by
a competent court to sign such the submission or arbitration agreement.

In either case, if another court was previously requested to resolve and/or has resolved, on
appeal, the arbitral tribunal's preliminary determination in favor of its own jurisdiction, the
petitioner shall apprise the court before which the petition to recognize and enforce or set aside
is pending of the status of the appeal or its resolution.

Rule 12.8. Notice. - Upon finding that the petition filed under this Rule is sufficient both in form
and in substance, the court shall cause notice and a copy of the petition to be delivered to the
respondent directing him to file an opposition thereto within fifteen (15) days from receipt of the
petition. In lieu of an opposition, the respondent may file a petition to set aside in opposition to a
petition to recognize and enforce, or a petition to recognize and enforce in opposition to a
petition to set aside.

The petitioner may within fifteen (15) days from receipt of the petition to set aside in opposition
to a petition to recognize and enforce, or from receipt of the petition to recognize and enforce in
opposition to a petition to set aside, file a reply.

Rule 12.9. Submission of documents. - If the court finds that the issue between the parties is
mainly one of law, the parties may be required to submit briefs of legal arguments, not more
than fifteen (15) days from receipt of the order, sufficiently discussing the legal issues and the
legal basis for the relief prayed for by each of them.

If the court finds from the petition or petition in opposition thereto that there are issues of fact
relating to the ground(s) relied upon for the court to set aside, it shall require the parties within a
period of not more than fifteen (15) days from receipt of the order simultaneously to submit the
affidavits of all of their witnesses and reply affidavits within ten (10) days from receipt of the
affidavits to be replied to. There shall be attached to the affidavits or reply affidavits, all
documents relied upon in support of the statements of fact in such affidavits or reply affidavits.

49

Rule 12.10. Hearing. - If on the basis of the petition, the opposition, the affidavits and reply
affidavits of the parties, the court finds that there is a need to conduct an oral hearing, the court
shall set the case for hearing. This case shall have preference over other cases before the
court, except criminal cases. During the hearing, the affidavits of witnesses shall take the place
of their direct testimonies and they shall immediately be subject to cross-examination thereon.

The court shall have full control over the proceedings in order to ensure that the case is heard
without undue delay.

Rule 12.11. Suspension of proceedings to set aside. - The court when asked to set aside an
arbitral award may, where appropriate and upon request by a party, suspend the proceedings
for a period of time determined by it to give the arbitral tribunal an opportunity to resume the
arbitral proceedings or to take such other action as in the arbitral tribunal's opinion will eliminate
the grounds for setting aside. The court, in referring the case back to the arbitral tribunal may
not direct it to revise its award in a particular way, or to revise its findings of fact or conclusions
of law or otherwise encroach upon the independence of an arbitral tribunal in the making of a
final award.

The court when asked to set aside an arbitral award may also, when the preliminary ruling of an
arbitral tribunal affirming its jurisdiction to act on the matter before it had been appealed by the
party aggrieved by such preliminary ruling to the court, suspend the proceedings to set aside to
await the ruling of the court on such pending appeal or, in the alternative, consolidate the
proceedings to set aside with the earlier appeal.

Rule 12.12. Presumption in favor of confirmation. - It is presumed that an arbitral award was
made and released in due course and is subject to enforcement by the court, unless the
adverse party is able to establish a ground for setting aside or not enforcing an arbitral award.

Rule 12.13. Judgment of the court. - Unless a ground to set aside an arbitral award under Rule
12.4 above is fully established, the court shall dismiss the petition. If, in the same proceedings,
there is a petition to recognize and enforce the arbitral award filed in opposition to the petition to
set aside, the court shall recognize and enforce the award.

In resolving the petition or petition in opposition thereto in accordance with the Special ADR
Rules, the court shall either set aside or enforce the arbitral award. The court shall not disturb
the arbitral tribunal's determination of facts and/or interpretation of law.

Rule 12.14. Costs. - Unless otherwise agreed upon by the parties in writing, at the time the case
is submitted to the court for decision, the party praying for recognition and enforcement or
setting aside of an arbitral award shall submit a statement under oath confirming the costs he
has incurred only in the proceedings for such recognition and enforcement or setting aside. The
costs shall include the attorney's fees the party has paid or is committed to pay to his counsel of
record.

The prevailing party shall be entitled to an award of costs, which shall include reasonable
attorney's fees of the prevailing party against the unsuccessful party. The court shal l determine
the reasonableness of the claim for attorney's fees.

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RULE 13: RECOGNITION AND ENFORCEMENT OF A FOREIGN ARBITRAL AWARD

Rule 13.1. Who may request recognition and enforcement. - Any party to a foreign arbitration
may petition the court to recognize and enforce a foreign arbitral award.

Rule 13.2. When to petition. - At any time after receipt of a foreign arbitral award, any party to
arbitration may petition the proper Regional Trial Court to recognize and enforce such award.

Rule 13.3. Venue. - The petition to recognize and enforce a foreign arbitral award shall be filed,
at the option of the petitioner, with the Regional Trial Court (a) where the assets to be attached
or levied upon is located, (b) where the act to be enjoined is being performed, (c) in the principal
place of business in the Philippines of any of the parties, (d) if any of the parties is an individual,
where any of those individuals resides, or (e) in the National Capital Judicial Region.

Rule 13.4. Governing law and grounds to refuse recognition and enforcement. - The recognition
and enforcement of a foreign arbitral award shall be governed by the 1958 New York
Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the "New York
Convention") and this Rule. The court may, upon grounds of comity and reciprocity, recognize
and enforce a foreign arbitral award made in a country that is not a signatory to the New York
Convention as if it were a Convention Award.

A Philippine court shall not set aside a foreign arbitral award but may refuse it recognition and
enforcement on any or all of the following grounds:

a. The party making the application to refuse recognition and enforcement of the award
furnishes proof that:

(i). A party to the arbitration agreement was under some incapacity; or the said
agreement is not valid under the law to which the parties have subjected it or,
failing any indication thereof, under the law of the country where the award was
made; or

(ii). The party making the application was not given proper notice of the
appointment of an arbitrator or of the arbitral proceedings or was otherwise
unable to present his case; or

(iii). The award deals with a dispute not contemplated by or not falling within the
terms of the submission to arbitration, or contains decisions on matters beyond
the scope of the submission to arbitration; provided that, if the decisions on
matters submitted to arbitration can be separated from those not so submitted,
only that part of the award which contains decisions on matters not submitted to
arbitration may be set aside; or

(iv). The composition of the arbitral tribunal or the arbitral procedure was not in
accordance with the agreement of the parties or, failing such agreement, was not
in accordance with the law of the country where arbitration took place; or

51

(v). The award has not yet become binding on the parties or has been set aside
or suspended by a court of the country in which that award was made; or

b. The court finds that:

(i). The subject-matter of the dispute is not capable of settlement or resolution by
arbitration under Philippine law; or

(ii). The recognition or enforcement of the award would be contrary to public
policy.

The court shall disregard any ground for opposing the recognition and enforcement of a foreign
arbitral award other than those enumerated above.

Rule 13.5. Contents of petition. - The petition shall state the following:

a. The addresses of the parties to arbitration;

b. In the absence of any indication in the award, the country where the arbitral award
was made and whether such country is a signatory to the New York Convention; and

c. The relief sought.

Apart from other submissions, the petition shall have attached to it the following:

a. An authentic copy of the arbitration agreement; and

b. An authentic copy of the arbitral award.

If the foreign arbitral award or agreement to arbitrate or submission is not made in English, the
petitioner shall also attach to the petition a translation of these documents into English. The
translation shall be certified by an official or sworn translator or by a diplomatic or consular
agent.

Rule 13.6. Notice and opposition. - Upon finding that the petition filed under this Rule is
sufficient both in form and in substance, the court shall cause notice and a copy of the petition
to be delivered to the respondent allowing him to file an opposition thereto within thirty (30) days
from receipt of the notice and petition.

Rule 13.7. Opposition. - The opposition shall be verified by a person who has personal
knowledge of the facts stated therein.

Rule 13.8. Submissions. - If the court finds that the issue between the parties is mainly one of
law, the parties may be required to submit briefs of legal arguments, not more than thirty (30)
days from receipt of the order, sufficiently discussing the legal issues and the legal bases for the
relief prayed for by each other.

If, from a review of the petition or opposition, there are issues of fact relating to the ground/s
relied upon for the court to refuse enforcement, the court shall, motu proprio or upon request of
52

any party, require the parties to simultaneously submit the affidavits of all of their witnesses
within a period of not less than fifteen (15) days nor more than thirty (30) days from receipt of
the order. The court may, upon the request of any party, allow the submission of reply affidavits
within a period of not less than fifteen (15) days nor more than thirty (30) days from receipt of
the order granting said request. There shall be attached to the affidavits or reply affidavits all
documents relied upon in support of the statements of fact in such affidavits or reply affidavits.

Rule 13.9. Hearing. - The court shall set the case for hearing if on the basis of the foregoing
submissions there is a need to do so. The court shall give due priority to hearings on petitions
under this Rule. During the hearing, the affidavits of witnesses shall take the place of their direct
testimonies and they shall immediately be subject to cross-examination. The court shall have
full control over the proceedings in order to ensure that the case is heard without undue delay.

Rule 13.10. Adjournment/deferment of decision on enforcement of award. - The court before
which a petition to recognize and enforce a foreign arbitral award is pending, may adjourn or
defer rendering a decision thereon if, in the meantime, an application for the setting aside or
suspension of the award has been made with a competent authority in the country where the
award was made. Upon application of the petitioner, the court may also require the other party
to give suitable security.

Rule 13.11. Court action. - It is presumed that a foreign arbitral award was made and released
in due course of arbitration and is subject to enforcement by the court.

The court shall recognize and enforce a foreign arbitral award unless a ground to refuse
recognition or enforcement of the foreign arbitral award under this rule is fully established.

The decision of the court recognizing and enforcing a foreign arbitral award is immediately
executory.

In resolving the petition for recognition and enforcement of a foreign arbitral award in
accordance with these Special ADR Rules, the court shall either [a] recognize and/or enforce or
[b] refuse to recognize and enforce the arbitral award. The court shall not disturb the arbitral
tribunal's determination of facts and/or interpretation of law.

Rule 13.12. Recognition and enforcement of non-convention award. - The court shall, only upon
grounds provided by these Special ADR Rules, recognize and enforce a foreign arbitral award
made in a country not a signatory to the New York Convention when such country extends
comity and reciprocity to awards made in the Philippines. If that country does not extend comity
and reciprocity to awards made in the Philippines, the court may nevertheless treat such award
as a foreign judgment enforceable as such under Rule 39, Section 48, of the Rules of Court.



PART III
PROVISIONS SPECIFIC TO MEDIATION


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RULE 14: GENERAL PROVISIONS

Rule 14.1. Application of the rules on arbitration. - Whenever applicable and appropriate, the
pertinent rules on arbitration shall be applied in proceedings before the court relative to a
dispute subject to mediation.


RULE 15: DEPOSIT AND ENFORCEMENT OF MEDIATED SETTLEMENT AGREEMENTS

Rule 15.1. Who makes a deposit. - Any party to a mediation that is not court-annexed may
deposit with the court the written settlement agreement, which resulted from that mediation.

Rule 15.2. When deposit is made. - At any time after an agreement is reached, the written
settlement agreement may be deposited.

Rule 15.3. Venue. - The written settlement agreement may be jointly deposited by the parties or
deposited by one party with prior notice to the other party/ies with the Clerk of Court of the
Regional Trial Court (a) where the principal place of business in the Philippines of any of the
parties is located; (b) if any of the parties is an individual, where any of those individuals
resides; or (c) in the National Capital Judicial Region.

Rule 15.4. Registry Book. - The Clerk of Court of each Regional Trial Court shall keep a
Registry Book that shall chronologically list or enroll all the mediated settlement
agreements/settlement awards that are deposited with the court as well as the names and
address of the parties thereto and the date of enrollment and shall issue a Certificate of Deposit
to the party that made the deposit.

Rule 15.5. Enforcement of mediated settlement agreement. - Any of the parties to a mediated
settlement agreement, which was deposited with the Clerk of Court of the Regional Trial Court,
may, upon breach thereof, file a verified petition with the same court to enforce said agreement.

Rule 15.6. Contents of petition. - The verified petition shall:

a. Name and designate, as petitioner or respondent, all parties to the mediated
settlement agreement and those who may be affected by it;

b. State the following:

(i). The addresses of the petitioner and respondents; and

(ii). The ultimate facts that would show that the adverse party has defaulted to
perform its obligation under said agreement; and

c. Have attached to it the following:

(i). An authentic copy of the mediated settlement agreement; and
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(ii). Certificate of Deposit showing that the mediated settlement agreement was
deposited with the Clerk of Court.

Rule 15.7. Opposition. - The adverse party may file an opposition, within fifteen (15) days from
receipt of notice or service of the petition, by submitting written proof of compliance with the
mediated settlement agreement or such other affirmative or negative defenses it may have.

Rule 15.8. Court action. - After a summary hearing, if the court finds that the agreement is a
valid mediated settlement agreement, that there is no merit in any of the affirmative or negative
defenses raised, and the respondent has breached that agreement, in whole or in part, the court
shall order the enforcement thereof; otherwise, it shall dismiss the petition.



PART IV
PROVISIONS SPECIFIC TO CONSTRUCTION ARBITRATION

RULE 16: GENERAL PROVISIONS

Rule 16.1. Application of the rules on arbitration. - Whenever applicable and appropriate, the
rules on arbitration shall be applied in proceedings before the court relative to a dispute subject
to construction arbitration.


RULE 17: REFERRAL TO CIAC

Rule 17.1. Dismissal of action. - A Regional Trial Court before which a construction dispute is
filed shall, upon becoming aware that the parties have entered into an arbitration
agreement, motu proprio or upon motion made not later than the pre-trial, dismiss the case and
refer the parties to arbitration to be conducted by the Construction Industry Arbitration
Commission (CIAC), unless all parties to arbitration, assisted by their respective counsel, submit
to the court a written agreement making the court, rather than the CIAC, the body that would
exclusively resolve the dispute.

Rule 17.2. Form and contents of motion. - The request for dismissal of the civil action and
referral to arbitration shall be through a verified motion that shall (a) contain a statement
showing that the dispute is a construction dispute; and (b) be accompanied by proof of the
existence of the arbitration agreement.

If the arbitration agreement or other document evidencing the existence of that agreement is
already part of the record, those documents need not be submitted to the court provided that the
movant has cited in the motion particular references to the records where those documents may
be found.

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The motion shall also contain a notice of hearing addressed to all parties and shall specify the
date and time when the motion will be heard, which must not be later than fifteen (15) days after
the filing of the motion. The movant shall ensure receipt by all parties of the motion at least
three days before the date of the hearing.

Rule 17.3. Opposition. - Upon receipt of the motion to refer the dispute to arbitration by CIAC,
the other party may file an opposition to the motion on or before the day such motion is to be
heard. The opposition shall clearly set forth the reasons why the court should not dismiss the
case.

Rule 17.4. Hearing. - The court shall hear the motion only once and for the purpose of clarifying
relevant factual and legal issues.

Rule 17.5. Court action. - If the other parties fail to file their opposition on or before the day of
the hearing, the court shall motu proprio resolve the motion only on the basis of the facts
alleged in the motion.

After hearing, the court shall dismiss the civil action and refer the parties to arbitration if it finds,
based on the pleadings and supporting documents submitted by the parties, that there is a valid
and enforceable arbitration agreement involving a construction dispute. Otherwise, the court
shall proceed to hear the case.

All doubts shall be resolved in favor of the existence of a construction dispute and the arbitration
agreement.

Rule 17.6. Referral immediately executory. - An order dismissing the case and referring the
dispute to arbitration by CIAC shall be immediately executory.

Rule 17.7. Multiple actions and parties. - The court shall not decline to dismiss the civil action
and make a referral to arbitration by CIAC for any of the following reasons:

a. Not all of the disputes subject of the civil action may be referred to arbitration;

b. Not all of the parties to the civil action are bound by the arbitration agreement and
referral to arbitration would result in multiplicity of suits;

c. The issues raised in the civil action could be speedily and efficiently resolved in its
entirety by the Court rather than in arbitration;

d. Referral to arbitration does not appear to be the most prudent action; or

e. Dismissal of the civil action would prejudice the rights of the parties to the civil action
who are not bound by the arbitration agreement.

The court may, however, issue an order directing the inclusion in arbitration of those parties who
are bound by the arbitration agreement directly or by reference thereto pursuant to Section 34 of
Republic Act No. 9285.

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Furthermore, the court shall issue an order directing the case to proceed with respect to the
parties not bound by the arbitration agreement.

Rule 17.8. Referral - If the parties manifest that they have agreed to submit all or part of their
dispute pending with the court to arbitration by CIAC, the court shall refer them to CIAC for
arbitration.


PART V
PROVISIONS SPECIFIC TO OTHER FORMS OF ADR


RULE 18: GENERAL PROVISIONS

Rule 18.1. Applicability of rules to other forms of ADR. - This rule governs the procedure for
matters brought before the court involving the following forms of ADR:

a. Early neutral evaluation;

b. Neutral evaluation;

c. Mini-trial;

d. Mediation-arbitration;

e. A combination thereof; or

f. Any other ADR form.

Rule 18.2. Applicability of the rules on mediation. - If the other ADR form/process is more akin to
mediation (i.e., the neutral third party merely assists the parties in reaching a voluntary
agreement), the herein rules on mediation shall apply.

Rule 18.3. Applicability of rules on arbitration.-If the other ADR form/process is more akin to
arbitration (i.e., the neutral third party has the power to make a binding resolution of the
dispute), the herein rules on arbitration shall apply.

Rule 18.4. Referral. - If a dispute is already before a court, either party may before and during
pre-trial, file a motion for the court to refer the parties to other ADR forms/processes. At any
time during court proceedings, even after pre-trial, the parties may jointly move for suspension
of the action pursuant to Article 2030 of the Civil Code of the Philippines where the possibility of
compromise is shown.

Rule 18.5. Submission of settlement agreement. - Either party may submit to the court, before
which the case is pending, any settlement agreement following a neutral or an early neutral
evaluation, mini-trial or mediation-arbitration.
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PART VI
MOTION FOR RECONSIDERATION, APPEAL AND CERTIORARI


RULE 19: MOTION FOR RECONSIDERATION, APPEAL AND CERTIORARI

A. MOTION FOR RECONSIDERATION

Rule 19.1. Motion for reconsideration, when allowed. - A party may ask the Regional Trial to
reconsider its ruling on the following:

a. That the arbitration agreement is inexistent, invalid or unenforceable pursuant to Rule
3.10 (B);

b. Upholding or reversing the arbitral tribunal's jurisdiction pursuant to Rule 3.19;

c. Denying a request to refer the parties to arbitration;

d. Granting or denying a party an interim measure of protection;

e. Denying a petition for the appointment of an arbitrator;

f. Refusing to grant assistance in taking evidence;

g. Enjoining or refusing to enjoin a person from divulging confidential information;

h. Confirming, vacating or correcting a domestic arbitral award;

i. Suspending the proceedings to set aside an international commercial arbitral award
and referring the case back to the arbitral tribunal;

j. Setting aside an international commercial arbitral award;

k. Dismissing the petition to set aside an international commercial arbitral award, even if
the court does not recognize and/or enforce the same;

l. Recognizing and/or enforcing, or dismissing a petition to recognize and/or enforce an
international commercial arbitral award;

m. Declining a request for assistance in taking evidence;

n. Adjourning or deferring a ruling on a petition to set aside, recognize and/or enforce an
international commercial arbitral award;

o. Recognizing and/or enforcing a foreign arbitral award, or refusing recognition and/or
enforcement of the same; and

p. Granting or dismissing a petition to enforce a deposited mediated settlement
agreement.

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No motion for reconsideration shall be allowed from the following rulings of the Regional Trial
Court:

a. A prima facie determination upholding the existence, validity or enforceability of an
arbitration agreement pursuant to Rule 3.1 (A);

b. An order referring the dispute to arbitration;

c. An order appointing an arbitrator;

d. Any ruling on the challenge to the appointment of an arbitrator;

e. Any order resolving the issue of the termination of the mandate of an arbitrator; and

f. An order granting assistance in taking evidence.

Rule 19.2. When to move for reconsideration. - A motion for reconsideration may be filed with
the Regional Trial Court within a non-extendible period of fifteen (15) days from receipt of the
questioned ruling or order.

Rule 19.3. Contents and notice. - The motion shall be made in writing stating the ground or
grounds therefor and shall be filed with the court and served upon the other party or parties.

Rule 19.4. Opposition or comment. - Upon receipt of the motion for reconsideration, the other
party or parties shall have a non-extendible period of fifteen (15) days to file his opposition or
comment.

Rule 19.5. Resolution of motion. - A motion for reconsideration shall be resolved within thirty
(30) days from receipt of the opposition or comment or upon the expiration of the period to file
such opposition or comment.

Rule 19.6. No second motion for reconsideration. - No party shall be allowed a second motion
for reconsideration.

B. GENERAL PROVISIONS ON APPEAL AND CERTIORARI

Rule 19.7. No appeal or certiorari on the merits of an arbitral award. - An agreement to refer a
dispute to arbitration shall mean that the arbitral award shall be final and binding. Consequently,
a party to an arbitration is precluded from filing an appeal or a petition for certiorari questioning
the merits of an arbitral award.

Rule 19.8. Subject matter and governing rules. - The remedy of an appeal through a petition for
review or the remedy of a special civil action of certiorari from a decision of the Regional Trial
Court made under the Special ADR Rules shall be allowed in the instances, and instituted only
in the manner, provided under this Rule.

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Rule 19.9. Prohibited alternative remedies. - Where the remedies of appeal and certiorari are
specifically made available to a party under the Special ADR Rules, recourse to one remedy
shall preclude recourse to the other.

Rule 19.10. Rule on judicial review on arbitration in the Philippines. - As a general rule, the court
can only vacate or set aside the decision of an arbitral tribunal upon a clear showing that the
award suffers from any of the infirmities or grounds for vacating an arbitral award under Section
24 of Republic Act No. 876 or under Rule 34 of the Model Law in a domestic arbitration, or for
setting aside an award in an international arbitration under Article 34 of the Model Law, or for
such other grounds provided under these Special Rules.

If the Regional Trial Court is asked to set aside an arbitral award in a domestic or international
arbitration on any ground other than those provided in the Special ADR Rules, the court shall
entertain such ground for the setting aside or non-recognition of the arbitral award only if the
same amounts to a violation of public policy.

The court shall not set aside or vacate the award of the arbitral tribunal merely on the ground
that the arbitral tribunal committed errors of fact, or of law, or of fact and law, as the court
cannot substitute its judgment for that of the arbitral tribunal.

Rule 19.11. Rule on judicial review of foreign arbitral award. - The court can deny recognition
and enforcement of a foreign arbitral award only upon the grounds provided in Article V of the
New York Convention, but shall have no power to vacate or set aside a foreign arbitral award.

C. APPEALS TO THE COURT OF APPEALS

Rule 19.12. Appeal to the Court of Appeals. - An appeal to the Court of Appeals through a
petition for review under this Special Rule shall only be allowed from the following final orders of
the Regional Trial Court:

a. Granting or denying an interim measure of protection;

b. Denying a petition for appointment of an arbitrator;

c. Denying a petition for assistance in taking evidence;

d. Enjoining or refusing to enjoin a person from divulging confidential information;

e. Confirming, vacating or correcting/modifying a domestic arbitral award;

f. Setting aside an international commercial arbitration award;

g. Dismissing the petition to set aside an international commercial arbitration award even
if the court does not decide to recognize or enforce such award;

h. Recognizing and/or enforcing an international commercial arbitration award;

i. Dismissing a petition to enforce an international commercial arbitration award;

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j. Recognizing and/or enforcing a foreign arbitral award;

k. Refusing recognition and/or enforcement of a foreign arbitral award;

l. Granting or dismissing a petition to enforce a deposited mediated settlement
agreement; and

m. Reversing the ruling of the arbitral tribunal upholding its jurisdiction.

Rule 19.13. Where to appeal. - An appeal under this Rule shall be taken to the Court of Appeals
within the period and in the manner herein provided.

Rule 19.14. When to appeal. - The petition for review shall be filed within fifteen (15) days from
notice of the decision of the Regional Trial Court or the denial of the petitioner's motion for
reconsideration.

Rule 19.15. How appeal taken. - Appeal shall be taken by filing a verified petition for review in
seven (7) legible copies with the Court of Appeals, with proof of service of a copy thereof on the
adverse party and on the Regional Trial Court. The original copy of the petition intended for the
Court of Appeals shall be marked original by the petitioner.

Upon the filing of the petition and unless otherwise prescribed by the Court of Appeals, the
petitioner shall pay to the clerk of court of the Court of Appeals docketing fees and other lawful
fees of P3,500.00 and deposit the sum of P500.00 for costs.

Exemption from payment of docket and other lawful fees and the deposit for costs may be
granted by the Court of Appeals upon a verified motion setting forth valid grounds therefor. If the
Court of Appeals denies the motion, the petitioner shall pay the docketing and other lawful fees
and deposit for costs within fifteen days from the notice of the denial.

Rule 19.16. Contents of the Petition. - The petition for review shall (a) state the full names of the
parties to the case, without impleading the court or agencies either as petitioners or respondent,
(b) contain a concise statement of the facts and issues involved and the grounds relied upon for
the review, (c) be accompanied by a clearly legible duplicate original or a certified true copy of
the decision or resolution of the Regional Trial Court appealed from, together with certified true
copies of such material portions of the record referred to therein and other supporting papers,
and (d) contain a sworn certification against forum shopping as provided in the Rules of Court.

The petition shall state the specific material dates showing that it was filed within the period
fixed herein.

Rule 19.17. Effect of failure to comply with requirements. - The court shall dismiss the petition if
it fails to comply with the foregoing requirements regarding the payment of the docket and other
lawful fees, the deposit for costs, proof of service of the petition, the contents and the
documents, which should accompany the petition.

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Rule 19.18. Action on the petition. - The Court of Appeals may require the respondent to file a
comment on the petition, not a motion to dismiss, within ten (10) days from notice, or dismiss
the petition if it finds, upon consideration of the grounds alleged and the legal briefs submitted
by the parties, that the petition does not appear to be prima facie meritorious.

Rule 19.19. Contents of Comment. - The comment shall be filed within ten (10) days from notice
in seven (7) legible copies and accompanied by clearly legible certified true copies of such
material portions of the record referred to therein together with other supporting papers. The
comment shall (a) point out insufficiencies or inaccuracies in petitioner's statement of facts and
issues, and (b) state the reasons why the petition should be denied or dismissed. A copy thereof
shall be served on the petitioner, and proof of such service shall be filed with the Court of
Appeals.

Rule 19.20. Due course. - If upon the filing of a comment or such other pleading or documents
as may be required or allowed by the Court of Appeals or upon the expiration of the period for
the filing thereof, and on the basis of the petition or the records, the Court of Appeals finds
prima facie that the Regional Trial Court has committed an error that would warrant reversal or
modification of the judgment, final order, or resolution sought to be reviewed, it may give due
course to the petition; otherwise, it shall dismiss the same.

Rule 19.21. Transmittal of records. - Within fifteen (15) days from notice that the petition has
been given due course, the Court of Appeals may require the court or agency concerned to
transmit the original or a legible certified true copy of the entire record of the proceeding under
review. The record to be transmitted may be abridged by agreement of all parties to the
proceeding. The Court of Appeals may require or permit subsequent correction of or addition to
the record.

Rule 19.22. Effect of appeal. - The appeal shall not stay the award, judgment, final order or
resolution sought to be reviewed unless the Court of Appeals directs otherwise upon such terms
as it may deem just.

Rule 19.23. Submission for decision. - If the petition is given due course, the Court of Appeals
may set the case for oral argument or require the parties to submit memoranda within a period
of fifteen (15) days from notice. The case shall be deemed submitted for decision upon the filing
of the last pleading or memorandum required by the Court of Appeals.

The Court of Appeals shall render judgment within sixty (60) days from the time the case is
submitted for decision.

Rule 19.24. Subject of appeal restricted in certain instance. - If the decision of the Regional Trial
Court refusing to recognize and/or enforce, vacating and/or setting aside an arbitral award is
premised on a finding of fact, the Court of Appeals may inquire only into such fact to determine
the existence or non-existence of the specific ground under the arbitration laws of the
Philippines relied upon by the Regional Trial Court to refuse to recognize and/or enforce, vacate
and/or set aside an award. Any such inquiry into a question of fact shall not be resorted to for
the purpose of substituting the court's judgment for that of the arbitral tribunal as regards the
latter's ruling on the merits of the controversy.
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Rule 19.25. Party appealing decision of court confirming arbitral award required to post bond. -
The Court of Appeals shall within fifteen (15) days from receipt of the petition require the party
appealing from the decision or a final order of the Regional Trial Court, either confirming or
enforcing an arbitral award, or denying a petition to set aside or vacate the arbitral award to post
a bond executed in favor of the prevailing party equal to the amount of the award.

Failure of the petitioner to post such bond shall be a ground for the Court of Appeals to dismiss
the petition.

D. SPECIAL CIVIL ACTION FOR CERTIORARI

Rule 19.26. Certiorari to the Court of Appeals. - When the Regional Trial Court, in making a
ruling under the Special ADR Rules, has acted without or in excess of its jurisdiction, or with
grave abuse of discretion amounting to lack or excess of jurisdiction, and there is no appeal or
any plain, speedy, and adequate remedy in the ordinary course of law, a party may file a special
civil action for certiorari to annul or set aside a ruling of the Regional Trial Court.

A special civil action for certiorari may be filed against the following orders of the court.

a. Holding that the arbitration agreement is inexistent, invalid or unenforceable;

b. Reversing the arbitral tribunal's preliminary determination upholding its jurisdiction;

c. Denying the request to refer the dispute to arbitration;

d. Granting or refusing an interim relief;

e. Denying a petition for the appointment of an arbitrator;

f. Confirming, vacating or correcting a domestic arbitral award;

g. Suspending the proceedings to set aside an international commercial arbitral award
and referring the case back to the arbitral tribunal;

h. Allowing a party to enforce an international commercial arbitral award pending appeal;

i. Adjourning or deferring a ruling on whether to set aside, recognize and or enforce an
international commercial arbitral award;

j. Allowing a party to enforce a foreign arbitral award pending appeal; and

k. Denying a petition for assistance in taking evidence.

Rule 19.27. Form. - The petition shall be accompanied by a certified true copy of the questioned
judgment, order or resolution of the Regional Trial Court, copies of all pleadings and documents
relevant and pertinent thereto, and a sworn certification of non-forum shopping as provided in
the Rules of Court.

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Upon the filing of the petition and unless otherwise prescribed by the Court of Appeals, the
petitioner shall pay to the clerk of court of the Court of Appeals docketing fees and other lawful
fees of P3,500.00 and deposit the sum of P500.00 for costs. Exemption from payment of docket
and other lawful fees and the deposit for costs may be granted by the Court of Appeals upon a
verified motion setting forth valid grounds therefor. If the Court of Appeals denies the motion,
the petitioner shall pay the docketing and other lawful fees and deposit for costs within fifteen
days from the notice of the denial.

Rule 19.28. When to file petition. - The petition must be filed with the Court of Appeals within
fifteen (15) days from notice of the judgment, order or resolution sought to be annulled or set
aside. No extension of time to file the petition shall be allowed.

Rule 19.29. Arbitral tribunal a nominal party in the petition. - The arbitral tribunal shall only be a
nominal party in the petition for certiorari. As nominal party, the arbitral tribunal shall not be
required to submit any pleadings or written submissions to the court. The arbitral tribunal or an
arbitrator may, however, submit such pleadings or written submissions if the same serves the
interest of justice.

In petitions relating to the recognition and enforcement of a foreign arbitral award, the arbitral
tribunal shall not be included even as a nominal party. However, the tribunal may be notified of
the proceedings and furnished with court processes.

Rule 19.30. Court to dismiss petition. - The court shall dismiss the petition if it fails to comply
with Rules 19.27 and 19.28 above, or upon consideration of the ground alleged and the legal
briefs submitted by the parties, the petition does not appear to be prima facie meritorious.

Rule 19.31. Order to comment. - If the petition is sufficient in form and substance to justify such
process, the Court of Appeals shall immediately issue an order requiring the respondent or
respondents to comment on the petition within a non-extendible period of fifteen (15) days from
receipt of a copy thereof. Such order shall be served on the respondents in such manner as the
court may direct, together with a copy of the petition and any annexes thereto.

Rule 19.32. Arbitration may continue despite petition for certiorari. - A petition for certiorari to the
court from the action of the appointing authority or the arbitral tribunal allowed under this Rule
shall not prevent the arbitral tribunal from continuing the proceedings and rendering its award.

Should the arbitral tribunal continue with the proceedings, the arbitral proceedings and any
award rendered therein will be subject to the final outcome of the pending petition for certiorari.

Rule 19.33. Prohibition against injunctions. - The Court of Appeals shall not, during the
pendency of the proceedings before it, prohibit or enjoin the commencement of arbitration, the
constitution of the arbitral tribunal, or the continuation of arbitration.

Rule 19.34. Proceedings after comment is filed. - After the comment is filed, or the time for the
filing thereof has expired, the court shall render judgment granting the relief prayed for or to
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which the petitioner is entitled, or denying the same, within a non-extendible period of fifteen
(15) days.

Rule 19.35. Service and enforcement of order or judgment. - A certified copy of the judgment
rendered in accordance with the last preceding section shall be served upon the Regional Trial
Court concerned in such manner as the Court of Appeals may direct, and disobedience thereto
shall be punished as contempt.

E. APPEAL BY CERTIORARI TO THE SUPREME COURT

Rule 19.36. Review discretionary. - A review by the Supreme Court is not a matter of right, but
of sound judicial discretion, which will be granted only for serious and compelling reasons
resulting in grave prejudice to the aggrieved party. The following, while neither controlling nor
fully measuring the court's discretion, indicate the serious and compelling, and necessarily,
restrictive nature of the grounds that will warrant the exercise of the Supreme Court's
discretionary powers, when the Court of Appeals:

a. Failed to apply the applicable standard or test for judicial review prescribed in these
Special ADR Rules in arriving at its decision resulting in substantial prejudice to the
aggrieved party;

b. Erred in upholding a final order or decision despite the lack of jurisdiction of the court
that rendered such final order or decision;

c. Failed to apply any provision, principle, policy or rule contained in these Special ADR
Rules resulting in substantial prejudice to the aggrieved party; and

d. Committed an error so egregious and harmful to a party as to amount to an
undeniable excess of jurisdiction.

The mere fact that the petitioner disagrees with the Court of Appeals' determination of questions
of fact, of law or both questions of fact and law, shall not warrant the exercise of the Supreme
Court's discretionary power. The error imputed to the Court of Appeals must be grounded upon
any of the above prescribed grounds for review or be closely analogous thereto.

A mere general allegation that the Court of Appeals has committed serious and substantial error
or that it has acted with grave abuse of discretion resulting in substantial prejudice to the
petitioner without indicating with specificity the nature of such error or abuse of discretion and
the serious prejudice suffered by the petitioner on account thereof, shall constitute sufficient
ground for the Supreme Court to dismiss outright the petition.

Rule 19.37. Filing of petition with Supreme Court. - A party desiring to appeal by certiorari from
a judgment or final order or resolution of the Court of Appeals issued pursuant to these Special
ADR Rules may file with the Supreme Court a verified petition for review on certiorari. The
petition shall raise only questions of law, which must be distinctly set forth.

Rule 19.38. Time for filing; extension. - The petition shall be filed within fifteen (15) days from
notice of the judgment or final order or resolution appealed from, or of the denial of the
petitioner's motion for new trial or reconsideration filed in due time after notice of the judgment.
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On motion duly filed and served, with full payment of the docket and other lawful fees and the
deposit for costs before the expiration of the reglementary period, the Supreme Court may for
justifiable reasons grant an extension of thirty (30) days only within which to file the petition.

Rule 19.39. Docket and other lawful fees; proof of service of petition. - Unless he has
theretofore done so or unless the Supreme Court orders otherwise, the petitioner shall pay
docket and other lawful fees to the clerk of court of the Supreme Court of P3,500.00 and deposit
the amount of P500.00 for costs at the time of the filing of the petition. Proof of service of a copy
thereof on the lower court concerned and on the adverse party shall be submitted together with
the petition.

Rule 19.40. Contents of petition. - The petition shall be filed in eighteen (18) copies, with the
original copy intended for the court being indicated as such by the petitioner, and shall (a) state
the full name of the appealing party as the petitioner and the adverse party as respondent,
without impleading the lower courts or judges thereof either as petitioners or respondents; (b)
indicate the material dates showing when notice of the judgment or final order or resolution
subject thereof was received, when a motion for new trial or reconsideration, if any, was filed
and when notice of the denial thereof was received; (c) set forth concisely a statement of the
matters involved, and the reasons or arguments relied on for the allowance of the petition; (d)
be accompanied by a clearly legible duplicate original, or a certified true copy of the judgment or
final order or resolution certified by the clerk of court of the court a quo and the requisite number
of plain copies thereof, and such material portions of the record as would support the petition;
and (e) contain a sworn certification against forum shopping.

Rule 19.41. Dismissal or denial of petition. - The failure of the petitioner to comply with any of
the foregoing requirements regarding the payment of the docket and other lawful fees, deposit
for costs, proof of service of the petition, and the contents of and the documents which should
accompany the petition shall be sufficient ground for the dismissal thereof.

The Supreme Court may on its own initiative deny the petition on the ground that the appeal is
without merit, or is prosecuted manifestly for delay, or that the questions raised therein are too
insubstantial to require consideration.

Rule 19.42. Due course; elevation of records. - If the petition is given due course, the Supreme
Court may require the elevation of the complete record of the case or specified parts thereof
within fifteen (15) days from notice.



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PART VII
FINAL PROVISIONS


RULE 20: FILING AND DEPOSIT FEES

Rule 20.1. Filing fee in petitions or counter-petitions to confirm or enforce, vacate or set aside
arbitral award or for the enforcement of a mediated settlement agreement. - The filing fee for
filing a petition to confirm or enforce, vacate or set aside an arbitral award in a domestic
arbitration or in an international commercial arbitration, or enforce a mediated settlement
agreement shall be as follows:

PhP 10,000.00 - if the award does not exceed PhP 1,000,000.00

PhP 20,000.00 - if the award does not exceed PhP 20,000,000.00

PhP 30,000.00 - if the award does not exceed PhP 50,000,000.00

PhP 40,000.00 - if the award does not exceed PhP 100,000,000.00

PhP 50,000.00 - if the award exceeds PhP 100,000,000.00

The minimal filing fee payable in "all other actions not involving property" shall be paid by the
petitioner seeking to enforce foreign arbitral awards under the New York Convention in the
Philippines.

Rule 20.2. Filing fee for action to enforce as a counter-petition. - A petition to enforce an arbitral
award in a domestic arbitration or in an international commercial arbitration submitted as a
petition to enforce and/or recognize an award in opposition to a timely petition to vacate or set
aside the arbitral award shall require the payment of the filing fees prescribed in Rule 20.1
above.

Rule 20.3. Deposit fee for mediated settlement agreements. - Any party to a mediated
settlement agreement who deposits it with the clerk of court shall pay a deposit fee of P500.00.

Rule 20.4. Filing fee for other proceedings. - The filing fee for the filing of any other proceedings,
including applications for interim relief, as authorized under these Special Rules not covered
under any of the foregoing provisions, shall be P10,000.00.


RULE 21: COSTS

Rule 21.1. Costs. - The costs of the ADR proceedings shall be borne by the parties equally
unless otherwise agreed upon or directed by the arbitrator or arbitral tribunal.

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Rule 21.2. On the dismissal of a petition against a ruling of the arbitral tribunal on a preliminary
question upholding its jurisdiction. - If the Regional Trial Court dismisses the petition against the
ruling of the arbitral tribunal on a preliminary question upholding its jurisdiction, it shall also
order the petitioner to pay the respondent all reasonable costs and expenses incurred in
opposing the petition. "Costs" shall include reasonable attorney's fees. The court shall award
costs upon application of the respondent after the petition is denied and the court finds, based
on proof submitted by respondent, that the amount of costs incurred is reasonable.

Rule 21.3. On recognition and enforcement of a foreign arbitral award. - At the time the case is
submitted to the court for decision, the party praying for recognition and enforcement of a
foreign arbitral award shall submit a statement under oath confirming the costs he has incurred
only in the proceedings in the Philippines for such recognition and enforcement or setting-aside.

The costs shall include attorney's fees the party has paid or is committed to pay to his counsel
of record.

The prevailing party shall be entitled to an award of costs which shall include the reasonable
attorney's fees of the prevailing party against the unsuccessful party. The court shal l determine
the reasonableness of the claim for attorney's fees.

Rule 21.4. Costs. - At the time the case is submitted to the court for decision, the party praying
for confirmation or vacation of an arbitral award shall submit a statement under oath confi rming
the costs he has incurred only in the proceedings for confirmation or vacation of an arbitral
award. The costs shall include the attorney's fees the party has paid or is committed to pay to
his counsel of record.

The prevailing party shall be entitled to an award of costs with respect to the proceedings before
the court, which shall include the reasonable attorney's fees of the prevailing party against the
unsuccessful party. The court shall determine the reasonableness of the claim for attorney's
fees.

Rule 21.5. Bill of Costs. - Unless otherwise agreed upon by the parties in writing, at the time the
case is submitted to the court for decision, the party praying for recognition and enforcement or
for setting aside an arbitral award shall submit a statement under oath confirming the costs he
has incurred only in the proceedings for such recognition and enforcement or setting-aside. The
costs shall include attorney's fees the party has paid or is committed to pay to his counsel of
record.

The prevailing party shall be entitled to an award of costs, which shall include reasonable
attorney's fees of the prevailing party against the unsuccessful party. The court shall determine
the reasonableness of the claim for attorney's fees.

Rule 21.6. Government's exemption from payment of fees. - The Republic of the Philippines, its
agencies and instrumentalities are exempt from paying legal fees provided in these Special
ADR Rules. Local governments and government controlled corporation with or with or without
independent charters are not exempt from paying such fees.


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RULE 22: APPLICABILITY OF THE RULES OF COURT

Rule 22.1. Applicability of Rules of Court. - The provisions of the Rules of Court that are
applicable to the proceedings enumerated in Rule 1.1 of these Special ADR Rules have either
been included and incorporated in these Special ADR Rules or specifically referred to herein.
In connection with the above proceedings, the Rules of Evidence shall be liberally construed to
achieve the objectives of the Special ADR Rules.


RULE 23: SEPARABILITY
Rule 23.1. Separability Clause. - If, for any reason, any part of the Special ADR Rules shall be
held unconstitutional or invalid, other Rules or provisions hereof which are not affected thereby,
shall continue to be in full force and effect.


RULE 24: TRANSITORY PROVISIONS

Rule 24.1. Transitory Provision. - Considering its procedural character, the Special ADR Rules
shall be applicable to all pending arbitration, mediation or other ADR forms covered by the ADR
Act, unless the parties agree otherwise. The Special ADR Rules, however, may not prejudice or
impair vested rights in accordance with law.


RULE 25: ONLINE DISPUTE RESOLUTION

Rule 25.1. Applicability of the Special ADR Rules to Online Dispute Resolution. - Whenever
applicable and appropriate, the Special ADR Rules shall govern the procedure for matters
brought before the court involving Online Dispute Resolution.

Rule 25.2. Scope of Online Dispute Resolution. - Online Dispute Resolution shall refer to all
electronic forms of ADR including the use of the internet and other web or computed based
technologies for facilitating ADR.


RULE 26: EFFECTIVITY

Rule 26.1. Effectivity. - The Special ADR Rules shall take effect fifteen (15) days after its
complete publication in two (2) newspapers of general circulation.




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RULE A: GUIDELINES FOR THE RESOLUTION OF ISSUES RELATED TO ARBITRATION
OF LOANS SECURED BY COLLATERAL


Rule A.1. Applicability of an arbitration agreement in a contract of loan applies to the accessory
contract securing the loan. - An arbitration agreement in a contract of loan extends to and
covers the accessory contract securing the loan such as a pledge or a mortgage executed by
the borrower in favor of the lender under that contract of loan.

Rule A.2. Foreclosure of pledge or extra-judicial foreclosure of mortgage not precluded by
arbitration. - The commencement of the arbitral proceeding under the contract of loan containing
an arbitration agreement shall not preclude the lender from availing himself of the right to obtain
satisfaction of the loan under the accessory contract by foreclosure of the thing pledged or by
extra-judicial foreclosure of the collateral under the real estate mortgage in accordance with Act
No. 3135.

The lender may likewise institute foreclosure proceedings against the collateral securing the
loan prior to the commencement of the arbitral proceeding.

By agreeing to refer any dispute under the contract of loan to arbitration, the lender who is
secured by an accessory contract of real estate mortgage shall be deemed to have waived his
right to obtain satisfaction of the loan by judicial foreclosure.

Rule A.3. Remedy of the borrower against an action taken by the lender against the collateral
before the constitution of the arbitral tribunal. - The borrower providing security for the payment
of his loan who is aggrieved by the action taken by the lender against the collateral securing the
loan may, if such action against the collateral is taken before the arbitral tribunal is constituted,
apply with the appropriate court for interim relief against any such action of the lender. Such
interim relief may be obtained only in a special proceeding for that purpose, against the action
taken by the lender against the collateral, pending the constitution of the arbitral tribunal. Any
determination made by the court in that special proceeding pertaining to the merits of the
controversy, including the right of the lender to proceed against the collateral, shall be only
provisional in nature.

After the arbitral tribunal is constituted, the court shall stay its proceedings and defer to the
jurisdiction of the arbitral tribunal over the entire controversy including any question regarding
the right of the lender to proceed against the collateral.

Rule A.4. Remedy of borrower against action taken by the lender against the collateral after the
arbitral tribunal has been constituted. - After the arbitral tribunal is constituted, the borrower
providing security for the payment of his loan who is aggrieved by the action taken by the lender
against the collateral securing the loan may apply to the arbitral tribunal for relief, including a
claim for damages, against such action of the lender. An application to the court may also be
made by the borrower against any action taken by the lender against the collateral securing the
loan but only if the arbitral tribunal cannot act effectively to prevent an irreparable injury to the
rights of such borrower during the pendency of the arbitral proceeding.

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An arbitration agreement in a contract of loan precludes the borrower therein providing security
for the loan from filing and/or proceeding with any action in court to prevent the lender from
foreclosing the pledge or extra-judicially foreclosing the mortgage. If any such action is filed in
court, the lender shall have the right provided in the Special ADR Rules to have such action
stayed on account of the arbitration agreement.

Rule A.5. Relief that may be granted by the arbitral tribunal. - The arbitral tribunal, in aid of the
arbitral proceeding before it, may upon submission of adequate security, suspend or enjoin the
lender from proceeding against the collateral securing the loan pending final determination by
the arbitral tribunal of the dispute brought to it for decision under such contract of loan.
The arbitral tribunal shall have the authority to resolve the issue of the validity of the foreclosure
of the thing pledged or of the extrajudicial foreclosure of the collateral under the real estate
mortgage if the same has not yet been foreclosed or confirm the validity of such foreclosure if
made before the rendition of the arbitral award and had not been enjoined.

Rule A.6. Arbitration involving a third-party provider of security. - An arbitration agreement
contained in a contract of loan between the lender and the borrower extends to and covers an
accessory contract securing the loan, such as a pledge, mortgage, guaranty or suretyship,
executed by a person other than the borrower only if such third-party securing the loan has
agreed in the accessory contract, either directly or by reference, to be bound by such arbitration
agreement.

Unless otherwise expressly agreed upon by the third-party securing the loan, his agreement to
be bound by the arbitration agreement in the contract of loan shall pertain to disputes arising
from or in connection with the relationship between the lender and the borrower as well as the
relationship between the lender and such third-party including the right of the lender to proceed
against the collateral securing the loan, but shall exclude disputes pertaining to the relationship
exclusively between the borrower and the provider of security such as that involving a claim by
the provider of security for indemnification against the borrower.

In this multi-party arbitration among the lender, the borrower and the third party securing the
loan, the parties may agree to submit to arbitration before a sole arbitrator or a panel of three
arbitrators to be appointed either by an Appointing Authority designated by the parties in the
arbitration agreement or by a default Appointing Authority under the law.

In default of an agreement on the manner of appointing arbitrators or of constituting the arbitral
tribunal in such multi-party arbitration, the dispute shall be resolved by a panel of three
arbitrators to be designated by the Appointing Authority under the law. But even in default of an
agreement on the manner of appointing an arbitrator or constituting an arbitral tribunal in a
multi-party arbitration, if the borrower and the third party securing the loan agree to designate a
common arbitrator, arbitration shall be decided by a panel of three arbitrators: one to be
designated by the lender; the other to be designated jointly by the borrower and the provider of
security who have agreed to designate the same arbitrator; and a third arbitrator who shall serve
as the chairperson of the arbitral panel to be designated by the two party-designated arbitrators.






71

REPUBLIC ACT 8552
AN ACT ESTABLISHING THE RULES AND POLICIES ON THE DOMESTIC ADOPTION OF
FILIPINO CHILDREN AND FOR OTHER PURPOSES




Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled::

ARTICLE I
GENERAL PROVISIONS

Section 1. Short Title. This Act shall be known as the "Domestic Adoption Act of 1998."

Section 2. Declaration of Policies.

(a) It is hereby declared the policy of the State to ensure that every child remains under
the care and custody of his/her parent(s) and be provided with love, care, understanding
and security towards the full and harmonious development of his/her personality. Only
when such efforts prove insufficient and no appropriate placement or adoption within the
child's extended family is available shall adoption by an unrelated person be considered.

(b) In all matters relating to the care, custody and adoption of a child, his/her interest
shall be the paramount consideration in accordance with the tenets set forth in the
United Nations (UN) Convention on the Rights of the Child; UN Declaration on Social
and Legal Principles Relating to the Protection and Welfare of Children with Special
Reference to Foster Placement and Adoption, Nationally and Internationally; and the
Hague Convention on the Protection of Children and Cooperation in Respect of
Intercountry Adoption. Toward this end, the State shall provide alternative protection and
assistance through foster care or adoption for every child who is neglected, orphaned, or
abandoned.

(c) It shall also be a State policy to:

(i) Safeguard the biological parent(s) from making hurried decisions to relinquish
his/her parental authority over his/her child;

(ii) Prevent the child from unnecessary separation from his/her biological
parent(s);

(iii) Protect adoptive parent(s) from attempts to disturb his/her parental authority
and custody over his/her adopted child.

Any voluntary or involuntary termination of parental authority shall be
administratively or judicially declared so as to establish the status of the child as
"legally available for adoption" and his/her custody transferred to the Department
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of Social Welfare and Development or to any duly licensed and accredited child-
placing or child-caring agency, which entity shall be authorized to take steps for
the permanent placement of the child;

(iv) Conduct public information and educational campaigns to promote a positive
environment for adoption;

(v) Ensure that sufficient capacity exists within government and private sector
agencies to handle adoption inquiries, process domestic adoption applications,
and offer adoption-related services including, but not limited to, parent
preparation and post-adoption education and counseling; and

(vi) Encourage domestic adoption so as to preserve the child's identity and
culture in his/her native land, and only when this is not available shall
intercountry adoption be considered as a last resort.

Section 3. Definition of Terms. For purposes of this Act, the following terms shall be defined
as:

(a) "Child" is a person below eighteen (18) years of age.

(b) "A child legally available for adoption" refers to a child who has been voluntarily or
involuntarily committed to the Department or to a duly licensed and accredited child-
placing or child-caring agency, freed of the parental authority of his/her biological
parent(s) or guardian or adopter(s) in case of rescission of adoption.

(c) "Voluntarily committed child" is one whose parent(s) knowingly and willingly
relinquishes parental authority to the Department.

(d) "Involuntarily committed child" is one whose parent(s), known or unknown, has been
permanently and judicially deprived of parental authority due to abandonment;
substantial, continuous, or repeated neglect; abuse; or incompetence to discharge
parental responsibilities.

(e) "Abandoned child" refers to one who has no proper parental care or guardianship or
whose parent(s) has deserted him/her for a period of at least six (6) continuous months
and has been judicially declared as such.

(f) "Supervised trial custody" is a period of time within which a social worker oversees
the adjustment and emotional readiness of both adopter(s) and adoptee in stabilizing
their filial relationship.

(g) "Department" refers to the Department of Social Welfare and Development.

(h) "Child-placing agency" is a duly licensed and accredited agency by the Department
to provide comprehensive child welfare services including, but not limited to, receiving
applications for adoption, evaluating the prospective adoptive parents, and preparing the
adoption home study.

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(i) "Child-caring agency" is a duly licensed and accredited agency by the Department
that provides twenty four (24)-hour residential care services for abandoned, orphaned,
neglected, or voluntarily committed children.

(j) "Simulation of birth" is the tampering of the civil registry making it appear in the birth
records that a certain child was born to a person who is not his/her biological mother,
causing such child to lose his/her true identity and status.


ARTICLE II
PRE-ADOPTION SERVICES

Section 4. Counseling Service. The Department shall provide the services of licensed social
workers to the following:

(a) Biological Parent(s) Counseling shall be provided to the parent(s) before and after
the birth of his/her child. No binding commitment to an adoption plan shall be permitted
before the birth of his/her child. A period of six (6) months shall be allowed for the
biological parent(s) to reconsider any decision to relinquish his/her child for adoption
before the decision becomes irrevocable. Counseling and rehabilitation services shall
also be offered to the biological parent(s) after he/she has relinquished his/her child for
adoption.

Steps shall be taken by the Department to ensure that no hurried decisions are made
and all alternatives for the child's future and the implications of each alternative have
been provided.

(b) Prospective Adoptive Parent(s) Counseling sessions, adoption fora and seminars,
among others, shall be provided to prospective adoptive parent(s) to resolve possible
adoption issues and to prepare him/her for effective parenting.

(c) Prospective Adoptee Counseling sessions shall be provided to ensure that he/she
understands the nature and effects of adoption and is able to express his/her views on
adoption in accordance with his/her age and level of maturity.

Section 5. Location of Unknown Parent(s). It shall be the duty of the Department or the child-
placing or child-caring agency which has custody of the child to exert all efforts to locate his/her
unknown biological parent(s). If such efforts fail, the child shall be registered as a foundling and
subsequently be the subject of legal proceedings where he/she shall be declared abandoned.

Section 6. Support Services. The Department shall develop a pre-adoption program which
shall include, among others, the above mentioned services.

ARTICLE III
ELIGIBILITY

Section 7. Who May Adopt. The following may adopt:
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(a) Any Filipino citizen of legal age, in possession of full civil capacity and legal ri ghts, of
good moral character, has not been convicted of any crime involving moral turpitude,
emotionally and psychologically capable of caring for children, at least sixteen (16) years
older than the adoptee, and who is in a position to support and care f or his/her children
in keeping with the means of the family. The requirement of sixteen (16) year difference
between the age of the adopter and adoptee may be waived when the adopter is the
biological parent of the adoptee, or is the spouse of the adoptee' s parent;

(b) Any alien possessing the same qualifications as above stated for Filipino
nationals: Provided, That his/her country has diplomatic relations with the Republic of
the Philippines, that he/she has been living in the Philippines for at least three (3)
continuous years prior to the filing of the application for adoption and maintains such
residence until the adoption decree is entered, that he/she has been certified by his/her
diplomatic or consular office or any appropriate government agency that he/she has the
legal capacity to adopt in his/her country, and that his/her government allows the
adoptee to enter his/her country as his/her adopted son/daughter: Provided,
Further, That the requirements on residency and certification of the alien's qualification
to adopt in his/her country may be waived for the following:

(i) a former Filipino citizen who seeks to adopt a relative within the fourth (4th)
degree of consanguinity or affinity; or

(ii) one who seeks to adopt the legitimate son/daughter of his/her Filipino spouse;
or

(iii) one who is married to a Filipino citizen and seeks to adopt jointly with his/her
spouse a relative within the fourth (4th) degree of consanguinity or affinity of the
Filipino spouse; or

(c) The guardian with respect to the ward after the termination of the guardianship and
clearance of his/her financial accountabilities.
Husband and wife shall jointly adopt, except in the following cases:

(i) if one spouse seeks to adopt the legitimate son/daughter of the other; or

(ii) if one spouse seeks to adopt his/her own illegitimate son/daughter: Provided,
However, that the other spouse has signified his/her consent thereto; or

(iii) if the spouses are legally separated from each other.

In case husband and wife jointly adopt, or one spouse adopts the illegitimate son/daughter of
the other, joint parental authority shall be exercised by the spouses.

Section 8. Who May Be Adopted. The following may be adopted:

(a) Any person below eighteen (18) years of age who has been administratively or
judicially declared available for adoption;

(b) The legitimate son/daughter of one spouse by the other spouse;

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(c) An illegitimate son/daughter by a qualified adopter to improve his/her status to that of
legitimacy;

(d) A person of legal age if, prior to the adoption, said person has been consistently
considered and treated by the adopter(s) as his/her own child since minority;

(e) A child whose adoption has been previously rescinded; or

(f) A child whose biological or adoptive parent(s) has died: Provided, That no
proceedings shall be initiated within six (6) months from the time of death of said
parent(s).

Section 9. Whose Consent is Necessary to the Adoption. After being properly counseled and
informed of his/her right to give or withhold his/her approval of the adoption, the written consent
of the following to the adoption is hereby required:

(a) The adoptee, if ten (10) years of age or over;

(b) The biological parent(s) of the child, if known, or the legal guardian, or the proper
government instrumentality which has legal custody of the child;

(c) The legitimate and adopted sons/daughters, ten (10) years of age or over, of the
adopter(s) and adoptee, if any;

(d) The illegitimate sons/daughters, ten (10) years of age or over, of the adopter if living
with said adopter and the latter's spouse, if any; and

(e) The spouse, if any, of the person adopting or to be adopted.


ARTICLE IV
PROCEDURE

Section 10. Hurried Decisions. In all proceedings for adoption, the court shall require proof
that the biological parent(s) has been properly counseled to prevent him/her from making
hurried decisions caused by strain or anxiety to give up the child, and to sustain that all
measures to strengthen the family have been exhausted and that any prolonged stay of the
child in his/her own home will be inimical to his/her welfare and interest.

Section 11. Case Study. No petition for adoption shall be set for hearing unless a licensed
social worker of the Department, the social service office of the local government unit, or any
child-placing or child-caring agency has made a case study of the adoptee, his/her biological
parent(s), as well as the adopter(s), and has submitted the report and recommendations on the
matter to the court hearing such petition.

At the time of preparation of the adoptee's case study, the concerned social worker shall confirm
with the Civil Registry the real identity and registered name of the adoptee. If the birth of the
adoptee was not registered with the Civil Registry, it shall be the responsibility of the concerned
social worker to ensure that the adoptee is registered.
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The case study on the adoptee shall establish that he/she is legally available for adoption and
that the documents to support this fact are valid and authentic. Further, the case study of the
adopter(s) shall ascertain his/her genuine intentions and that the adoption is in the best interest
of the child.

The Department shall intervene on behalf of the adoptee if it finds, after the conduct of the case
studies, that the petition should be denied. The case studies and other relevant documents and
records pertaining to the adoptee and the adoption shall be preserved by the Department.

Section 12. Supervised Trial Custody. No petition for adoption shall be finally granted until the
adopter(s) has been given by the court a supervised trial custody period for at least six (6)
months within which the parties are expected to adjust psychologically and emotionally to each
other and establish a bonding relationship. During said period, temporary parental authority
shall be vested in the adopter(s).

The court may motu proprio or upon motion of any party reduce the trial period if it finds the
same to be in the best interest of the adoptee, stating the reasons for the reduction of the
period. However, for alien adopter(s), he/she must complete the six (6)-month trial custody
except for those enumerated in Sec. 7 (b) (i) (ii) (iii).

If the child is below seven (7) years of age and is placed with the prospective adopter(s) through
a pre-adoption placement authority issued by the Department, the prospective adopter(s) shall
enjoy all the benefits to which biological parent(s) is entitled from the date the adoptee is placed
with the prospective adopter(s).

Section 13. Decree of Adoption. If, after the publication of the order of hearing has been
complied with, and no opposition has been interposed to the petition, and after consideration of
the case studies, the qualifications of the adopter(s), trial custody report and the evidence
submitted, the court is convinced that the petitioners are qualified to adopt, and that the
adoption would redound to the best interest of the adoptee, a decree of adoption shall be
entered which shall be effective as of the date the original petition was filed. This provision shall
also apply in case the petitioner(s) dies before the issuance of the decree of adoption to protect
the interest of the adoptee. The decree shall state the name by which the child is to be known.

Section 14. Civil Registry Record. An amended certificate of birth shall be issued by the Civil
Registry, as required by the Rules of Court, attesting to the fact that the adoptee is the child of
the adopter(s) by being registered with his/her surname. The original certificate of birth shall be
stamped "cancelled" with the annotation of the issuance of an amended birth certificate in its
place and shall be sealed in the civil registry records. The new birth certificate to be issued to
the adoptee shall not bear any notation that it is an amended issue.

Section 15. Confidential Nature of Proceedings and Records. All hearings in adoption cases
shall be confidential and shall not be open to the public. All records, books, and papers relating
to the adoption cases in the files of the court, the Department, or any other agency or institution
participating in the adoption proceedings shall be kept strictly confidential.

If the court finds that the disclosure of the information to a third person is necessary for
purposes connected with or arising out of the adoption and will be for the best interest of the
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adoptee, the court may merit the necessary information to be released, restricting the purposes
for which it may be used.

ARTICLE V
EFFECTS OF ADOPTION

Section 16. Parental Authority. Except in cases where the biological parent is the spouse of
the adopter, all legal ties between the biological parent(s) and the adoptee shall be severed and
the same shall then be vested on the adopter(s).

Section 17. Legitimacy. The adoptee shall be considered the legitimate son/daughter of the
adopter(s) for all intents and purposes and as such is entitled to all the rights and obligations
provided by law to legitimate sons/daughters born to them without discrimination of any kind. To
this end, the adoptee is entitled to love, guidance, and support in keeping with the means of the
family.

Section 18. Succession. In legal and intestate succession, the adopter(s) and the adoptee
shall have reciprocal rights of succession without distinction from legitimate filiation. However, if
the adoptee and his/her biological parent(s) had left a will, the law on testamentary succession
shall govern.

ARTICLE VI
RESCISSION OF ADOPTION

Section 19. Grounds for Rescission of Adoption. Upon petition of the adoptee, with the
assistance of the Department if a minor or if over eighteen (18) years of age but is
incapacitated, as guardian/counsel, the adoption may be rescinded on any of the following
grounds committed by the adopter(s): (a) repeated physical and verbal maltreatment by the
adopter(s) despite having undergone counseling; (b) attempt on the life of the adoptee; (c)
sexual assault or violence; or (d) abandonment and failure to comply with parental obligations.

Adoption, being in the best interest of the child, shall not be subject to rescission by the
adopter(s). However, the adopter(s) may disinherit the adoptee for causes provided in Article
919 of the Civil Code.

Section 20. Effects of Rescission. If the petition is granted, the parental authority of the
adoptee's biological parent(s), if known, or the legal custody of the Department shall be restored
if the adoptee is still a minor or incapacitated. The reciprocal rights and obligations of the
adopter(s) and the adoptee to each other shall be extinguished.

The court shall order the Civil Registrar to cancel the amended certificate of birth of the adoptee
and restore his/her original birth certificate.

Succession rights shall revert to its status prior to adoption, but only as of the date of judgment
of judicial rescission. Vested rights acquired prior to judicial rescission shall be respected.

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All the foregoing effects of rescission of adoption shall be without prejudice to the penalties
imposable under the Penal Code if the criminal acts are properly proven.

ARTICLE VII
VIOLATIONS AND PENALTIES

Section 21. Violations and Penalties.

(a) The penalty of imprisonment ranging from six (6) years and one (1) day to twelve
(12) years and/or a fine not less than Fifty thousand pesos (P50,000.00), but not more
than Two hundred thousand pesos (P200,000.00) at the discretion of the court shall be
imposed on any person who shall commit any of the following acts:

(i) obtaining consent for an adoption through coercion, undue influence, fraud,
improper material inducement, or other similar acts;

(ii) non-compliance with the procedures and safeguards provided by the law for
adoption; or

(iii) subjecting or exposing the child to be adopted to danger, abuse, or
exploitation.

(b) Any person who shall cause the fictitious registration of the birth of a child under the
name(s) of a person(s) who is not his/her biological parent(s) shall be guilty of simulation
of birth, and shall be punished by prision mayor in its medium period and a fine not
exceeding Fifty thousand pesos (P50,000.00).

Any physician or nurse or hospital personnel who, in violation of his/her oath of office, shall
cooperate in the execution of the abovementioned crime shall suffer the penalties herein
prescribed and also the penalty of permanent disqualification.

Any person who shall violate established regulations relating to the confidentiality and integrity
of records, documents, and communications of adoption applications, cases, and processes
shall suffer the penalty of imprisonment ranging from one (1) year and one (1) day to two (2)
years, and/or a fine of not less than Five thousand pesos (P5,000.00) but not more than Ten
thousand pesos (P10,000.00), at the discretion of the court.

A penalty lower by two (2) degrees than that prescribed for the consummated offense under this
Article shall be imposed upon the principals of the attempt to commit any of the acts herein
enumerated. Acts punishable under this Article, when committed by a syndicate or where it
involves two (2) or more children shall be considered as an offense constituting child trafficking
and shall merit the penalty of reclusion perpetua.

Acts punishable under this Article are deemed committed by a syndicate if carried out by a
group of three (3) or more persons conspiring and/or confederating with one another in carrying
out any of the unlawful acts defined under this Article. Penalties as are herein provided, shall be
in addition to any other penalties which may be imposed for the same acts punishable under
other laws, ordinances, executive orders, and proclamations.

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When the offender is an alien, he/she shall be deported immediately after service of sentence
and perpetually excluded from entry to the country.

Any government official, employee or functionary who shall be found guilty of violating any of
the provisions of this Act, or who shall conspire with private individuals shall, in addition to the
above-prescribed penalties, be penalized in accordance with existing civil service laws, rules
and regulations: Provided, That upon the filing of a case, either administrative or criminal, said
government official, employee, or functionary concerned shall automatically suffer suspension
until the resolution of the case.

Section 22. Rectification of Simulated Births. A person who has, prior to the effectivity of this
Act, simulated the birth of a child shall not be punished for such act: Provided, That the
simulation of birth was made for the best interest of the child and that he/she has been
consistently considered and treated by that person as his/her own son/daughter: Provided,
further, That the application for correction of the birth registration and petition for adoption shall
be filed within five (5) years from the effectivity of this Act and completed thereafter: Provided,
finally, That such person complies with the procedure as specified in Article IV of this Act and
other requirements as determined by the Department.

ARTICLE VIII
FINAL PROVISIONS

Section 23. Adoption Resource and Referral Office. There shall be established an Adoption
Resources and Referral Office under the Department with the following functions: (a) monitor
the existence, number, and flow of children legally available for adoption and prospective
adopter(s) so as to facilitate their matching; (b) maintain a nationwide information and
educational campaign on domestic adoption; (c) keep records of adoption proceedings; (d)
generate resources to help child-caring and child-placing agencies and foster homes maintain
viability; and (e) do policy research in collaboration with the Intercountry Adoption Board and
other concerned agencies. The office shall be manned by adoption experts from the public and
private sectors.

Section 24. Implementing Rules and Regulations. Within six (6) months from the promulgation
of this Act, the Department, with the Council for the Welfare of Children, the Office of Civil
Registry General, the Department of Justice, Office of the Solicitor General, and two (2) private
individuals representing child-placing and child-caring agencies shall formulate the necessary
guidelines to make the provisions of this Act operative.

Section 25. Appropriations. Such sum as may be necessary for the implementation of the
provisions of this Act shall be included in the General Appropriations Act of the year following its
enactment into law and thereafter.

Section 26. Repealing Clause. Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule, or regulation contrary to, or inconsistent with the
provisions of this Act is hereby repealed, modified, or amended accordingly.

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Section 27. Separability Clause. If any provision of this Act is held invalid or unconstitutional,
the other provisions not affected thereby shall remain valid and subsisting.


Section 28. Effectivity Clause. This Act shall take effect fifteen (15) days following its complete
publication in any newspaper of general circulation or in the Official Gazette.

Approved: February 25, 1998

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REPUBLIC ACT 8043
"AN ACT ESTABLISHING THE RULES TO GOVERN INTER-COUNTRY ADOPTION OF
FILIPINO CHILDREN, AND FOR OTHER PURPOSES"




Section 1. Short Title. This Act shall be known as the "Inter-Country Adoption Act of 1995."

Section 2. Declaration of Policy. It is hereby declared the policy of the State to provide every
neglected and abandoned child with a family that will provide such child with love and care as
well as opportunities for growth and development. Towards this end, efforts shall be exerted to
place the child with an adoptive family in the Philippines. However, recognizing that inter-
country adoption may be considered as allowing aliens not presently allowed by law to adopt
Filipino children if such children cannot be adopted by qualified Filipino citizens or aliens, the
State shall take measures to ensure that inter-country adoptions are allowed when the same
shall prove beneficial to the child's best interests, and shall serve and protect his/her
fundamental rights.

Sec. 3. Definition of Terms. As used in this Act. the term:

(a) Inter-country adoption refers to the socio-legal process of adopting a Filipino child by
a foreigner or a Filipino citizen permanently residing abroad where the petition is filed,
the supervised trial custody is undertaken, and the decree of adoption is issued outside
the Philippines.

(b) Child means a person below fifteen (15) years of age unless sooner emancipated by
law.

(c) Department refers to the Department of Social Welfare and Development of the
Republic of the Philippines.

(d) Secretary refers to the Secretary of the Department of Social Welfare and
Development.

(e) Authorized and accredited agency refers to the State welfare agency or a licensed
adoption agency in the country of the adopting parents which provide comprehensive
social services and which is duly recognized by the Department.

(f) Legally-free child means a child who has been voluntarily or involuntarily committed to
the Department, in accordance with the Child and Youth Welfare Code.

(g) Matching refers to the judicious pairing of the adoptive child and the applicant to
promote a mutually satisfying parent-child relationship.

(h) Board refers to the Inter-country Adoption Board.
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ARTICLE II
THE INTER-COUNTRY ADOPTION BOARD

Sec. 4. The Inter-Country Adoption Board. There is hereby created the Inter-Country
Adoption Board, hereinafter referred to as the Board to act as the central authority in matters
relating to inter-country adoption. It shall act as the policy-making body for purposes of carrying
out the provisions of this Act, in consultation and coordination with the Department, the different
child-care and placement agencies, adoptive agencies, as well as non-governmental
organizations engaged in child-care and placement activities. As such, it shall:

(a) Protect the Filipino child from abuse, exploitation, trafficking and/or sale or any other
practice in connection with adoption which is harmful, detrimental, or prejudicial to the
child;

(b) Collect, maintain, and preserve confidential information about the child and the
adoptive parents;

(c) Monitor, follow up, and facilitate completion of adoption of the child through
authorized and accredited agency;

(d) Prevent improper financial or other gain in connection with an adoption and deter
improper practices contrary to this Act;

(e) Promote the development of adoption services including post-legal adoption;

(f) License and accredit child-caring/placement agencies and collaborate with them in
the placement of Filipino children;

(g) Accredit and authorize foreign adoption agency in the placement of Filipino children
in their own country; and

(h) Cancel the license to operate and blacklist the child-caring and placement agency or
adoptive agency involved from the accreditation list of the Board upon a finding of
violation of any provision under this Act.

Sec. 5. Composition of the Board. The Board shall be composed of the Secretary of the
Department as ex officio Chairman, and six (6) other members to be appointed by the President
for a nonrenewable term of six (6) years: Provided, That there shall be appointed one (1)
psychiatrist or psychologist, two (2) lawyers who shall have at least the qualifications of a
regional trial court judge, one (1) registered social worker and two (2) representatives from non-
governmental organizations engaged in child-caring and placement activities. The members of
the Board shall receive a per diem allowance of One thousand five hundred pesos (P1,500) for
each meeting attended by them: Provided, further, That no compensation shall be paid for more
than four (4) meetings a month.

Sec. 6. Powers and Functions of the Board. The Board shall have the following powers and
functions:

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(a) to prescribe rules and regulations as it may deem reasonably necessary to carry out
the provisions of this Act, after consultation and upon favorable recommendation of the
different agencies concerned with the child-caring, placement, and adoption;

(b) to set the guidelines for the convening of an Inter-country Adoption Placement
Committee which shall be under the direct supervision of the Board;

(c) to set the guidelines for the manner by which selection/matching of prospective
adoptive parents and adoptive child can be made;

(d) to determine a reasonable schedule of fees and charges to be exacted in connection
with the application for adoption;

(e) to determine the form and contents of the application for inter-country adoption;

(f) to formulate and develop policies, programs and services that will protect the Filipino
child from abuse, exploitation, trafficking and adoption practices that are harmful,
detrimental and prejudicial to the best interests of the child;

(g) to institute systems and procedures to prevent improper financial gain in connection
with adoption and deter improper practices which are contrary to this Act;

(h) to promote the development of adoption services, including post-legal adoption
services,

(i) to accredit and authorize foreign private adoption agencies which have demonstrated
professionalism, competence and have consistently pursued non-profit objectives to
engage in the placement of Filipino children in their own country: Provided, That such
foreign private agencies are duly authorized and accredited by their own government to
conduct inter-country adoption: Provided, however, That the total number of authorized
and accredited foreign private adoption agencies shall not exceed one hundred (100) a
year;

(j) to take appropriate measures to ensure confidentiality of the records of the child, the
natural parents and the adoptive parents at all times;

(k) to prepare, review or modify, and thereafter, recommend to the Department of
Foreign Affairs, Memoranda of Agreement respecting inter-country adoption consistent
with the implementation of this Act and its stated goals, entered into, between and
among foreign governments, international organizations and recognized international
non-governmental organizations;

(l) to assist other concerned agencies and the courts in the implementation of this Act,
particularly as regards coordination with foreign persons, agencies and other entities
involved in the process of adoption and the physical transfer of the child; and

(m) to perform such other functions on matters relating to inter-country adoption as may
be determined by the President.


ARTICLE III
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PROCEDURE

Sec. 7. Inter-Country Adoption as the Last Resort. The Board shall ensure that all
possibilities for adoption of the child under the Family Code have been exhausted and that inter-
country adoption is in the best interest of the child. Towards this end, the Board shall set up the
guidelines to ensure that steps will be taken to place the child in the Philippines before the child
is placed for inter-country adoption: Provided, however, That the maximum number that may be
allowed for foreign adoption shall not exceed six hundred (600) a year for the first five (5) years.

Sec. 8. Who May be Adopted. Only a legally free child may be the subject of inter-country
adoption. In order that such child may be considered for placement, the following documents
must be submitted to the Board:

(a)Child study;

(b)Birth certificate/foundling certificate;

(c)Deed of voluntary commitment/decree of abandonment/death certificate of parents;

(d)Medical evaluation /history;

(e)Psychological evaluation, as necessary; and

(f)Recent photo of the child.

Sec. 9. Who May Adopt. An alien or a Filipino citizen permanently residing abroad may file
an application for inter-country adoption of a Filipino child if he/she:

(a) is at least twenty-seven (27) years of age and at least sixteen (16) years older than
the child to be adopted, at the time of application unless the adopter is the parent by
nature of the child to be adopted or the spouse of such parent:

(b) if married, his/her spouse must jointly file for the adoption;

(c) has the capacity to act and assume all rights and responsibilities of parental authority
under his national laws, and has undergone the appropriate counseling from an
accredited counselor in his/her country;

(d) has not been convicted of a crime involving moral turpitude;

(e) is eligible to adopt under his/her national law;

(f) is in a position to provide the proper care and support and to give the necessary
moral values and example to all his children, including the child to be adopted;

(g) agrees to uphold the basic rights of the child as embodied under Philippine laws, the
U.N. Convention on the Rights of the Child, and to abide by the rules and regulations
issued to implement the provisions of this Act;

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(h) comes from a country with whom the Philippines has diplomatic relations and whose
government maintains a similarly authorized and accredited agency and that adoption is
allowed under his/her national laws; and

(i) possesses all the qualifications and none of the disqualifications provided herein and
in other applicable Philippine laws.

Sec. 10. Where to File Application. An application to adopt a Filipino child shall be filed either
with the Philippine Regional Trial Court having jurisdiction over the child, or with the Board,
through an intermediate agency, whether governmental or an authorized and accredited
agency, in the country of the prospective adoptive parents, which application shall be in
accordance with the requirements as set forth in the implementing rules and regulations to be
promulgated by the Board.

The application shall be supported by the following documents written and officially translated in
English.

(a) Birth certificate of applicant(s);

(b) Marriage contract, if married, and divorce decree, if applicable;

(c) Written consent of their biological or adoptive children above ten (10) years of age, in
the form of sworn statement;

(d) Physical, medical and psychological evaluation by a duly licensed physician and
psychologist;

(e) Income tax returns or any document showing the financial capability of the
applicant(s);

(f) Police clearance of applicant(s);

(g) Character reference from the local church/minister, the applicant' s employer and a
member of the immediate community who have known the applicant(s) for at least five
(5) years; and

(h) Recent postcard-size pictures of the applicant(s) and his immediate family;

The Rules of Court shall apply in case of adoption by judicial proceedings.

Sec. 11. Family Selection/Matching. No child shall be matched to a foreign adoptive family
unless it is satisfactorily shown that the child cannot be adopted locally. The clearance, as
issued by the Board, with the copy of the minutes of the meetings, shall form part of the records
of the child to be adopted. When the Board is ready to transmit the Placement Authority to the
authorized and accredited inter-country adoption agency and all the travel documents of the
child are ready, the adoptive parents, or any one of them, shall personally fetch the child in the
Philippines.

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Sec. 12. Pre-adoptive Placement Costs. The applicant(s) shall bear the following costs
incidental to the placement of the child;

(a) The cost of bringing the child from the Philippines to the residence of the applicant(s)
abroad, including all travel expenses within the Philippines and abroad; and

(b) The cost of passport, visa, medical examination and psychological evaluation
required, and other related expenses.

Sec. 13. Fees, Charges and Assessments. Fees, charges, and assessments collected by the
Board in the exercise of its functions shall be used solely to process applications for inter-
country adoption and to support the activities of the Board.

Sec. 14. Supervision of Trial Custody. The governmental agency or the authorized and
accredited agency in the country of the adoptive parents which filed the application for inter-
country adoption shall be responsible for the trial custody and the care of the child. It shall also
provide family counseling and other related services. The trial custody shall be for a period of
six (6) months from the time of placement. Only after the lapse of the period of trial custody shall
a decree of adoption be issued in the said country a copy of which shall be sent to the Board to
form part of the records of the child.

During the trial custody, the adopting parent(s) shall submit to the governmental agency or the
authorized and accredited agency, which shall in turn transmit a copy to the Board, a progress
report of the child's adjustment. The progress report shall be taken into consideration in deciding
whether or not to issue the decree of adoption.

The Department of Foreign Affairs shall set up a system by which Filipino children sent abroad
for trial custody are monitored and checked as reported by the authorized and accredited inter-
country adoption agency as well as the repatriation to the Philippines of a Filipino child whose
adoption has not been approved.

Sec. 15. Executive Agreements. The Department of Foreign Affairs, upon representation of
the Board, shall cause the preparation of Executive Agreements with countries of the foreign
adoption agencies to ensure the legitimate concurrence of said countries in upholding the
safeguards provided by this Act.

ARTICLE IV
PENALTIES

Sec. 16. Penalties.

(a) Any person who shall knowingly participate in the conduct or carrying out of an illegal
adoption, in violation of the provisions of this Act, shall be punished with a penalty of
imprisonment ranging from six (6) years and one (1) day to twelve (12) years and/or a
fine of not less than Fifty thousand pesos (P50,000), but not more than Two hundred
thousand pesos (P200.000), at the discretion of the court. For purposes of this Act, an
adoption is illegal if it is effected in any manner contrary to the provisions of this Act or
established State policies, its implementing rules and regulations, executive agreements,
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and other laws pertaining to adoption. Illegality may be presumed from the following
acts:

(1)consent for an adoption was acquired through, or attended by coercion, fraud,
improper material inducement;

(2)there is no authority from the Board to effect adoption;

(3)the procedures and safeguards placed under the law for adoption were not
complied with; and

(4)the child to be adopted is subjected to, or exposed to danger, abuse and
exploitation.

(b)Any person who shall violate established regulations relating to the confidentiality and
integrity of records, documents and communications of adoption applications, cases and
processes shall suffer the penalty of imprisonment ranging from one (1) year and one (1)
day to two (2) years, and/or a fine of not less than Five thousand pesos (P5,000), but not
more than Ten thousand pesos (P10,000), at the discretion of the court.


A penalty lower by two (2) degrees than that prescribed for the consummated felony
under this Article shall be imposed upon the principals of the attempt to commit any of
the acts herein enumerated.

Acts punishable under this Article, when committed by a syndicate or where it involves
two or more children shall be considered as an offense constituting child trafficking and
shall merit the penalty of reclusion perpetua.

Acts punishable under this Article are deemed committed by a syndicate if carried out by
a group of three (3) or more persons conspiring and/or confederating with one another in
carrying out any of the unlawful acts defined under this Article.Penalties as are herein
provided shall be in addition to any other penalties which may be imposed for the same
acts punishable under other laws, ordinances, executive orders, and proclamations.

Sec. 17. Public Officers as Offenders. Any government official, employee or functionary who
shall be found guilty of violating any of the provisions of this Act, or who shall conspire with
private individuals shall, in addition to the above-prescribed penalties, be penalized in
accordance with existing civil service laws, rules and regulations: Provided, That upon the filing
of a case, either administrative or criminal, said government official, employee or functionary
concerned shall automatically suffer suspension until the resolution of the case.

ARTICLE V
FINAL PROVISIONS

Sec. 18. Implementing Rules and Regulations. The Inter-country Adoption Board, in
coordination with the Council for the Welfare of Children, the Department of Foreign Affairs, and
the Department of Justice, after due consultation with agencies involved in child-care and
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placement, shall promulgate the necessary rules and regulations to implement the provisions of
this Act within six (6) months after its effectivity.

Sec. 19. Appropriations. The amount of Five million pesos (P5,000,000) is hereby
appropriated from the proceeds of the Lotto for the initial operations of the Board and
subsequently the appropriations of the same shall be included in the General Appropriations Act
for the year following its enactment.

Sec. 20. Separability Clause. If any provision, or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected, shall remain
valid and subsisting.

Sec. 21. Repealing Clause. Any law, decree, executive order, administrative order or rules
and regulations contrary to, or inconsistent with the provisions of this Act are hereby repealed,
modified or amended accordingly.

Sec. 22. Effectivity Clause. This Act shall take effect fifteen (15) days after its publication in
two (2) newspapers of general circulation.


Approved: June 7, 1995

89

A.M. No. 02-6-02-SC
RULE ON ADOPTION



A. Domestic Adoption

Section 1. Applicability of the Rule. This Rule covers the domestic adoption of Filipino
children.

Sec. 2. Objectives.

(a) The best interests of the child shall be the paramount consideration in all matters
relating to his care, custody and adoption, in accordance with Philippine laws, the United
Nations (UN) Convention on the Rights of the Child, UN Declaration on Social and Legal
Principles Relating to the Protection and Welfare of Children with Special Reference to
Foster Placement and Adoption, Nationally and Internationally, and the Hague
Convention on the Protection of Children and Cooperation in Respect of Inter-country
Adoption.

(b) The State shall provide alternative protection and assistance through foster care or
adoption for every child who is a foundling, neglected, orphaned, or abandoned. To this
end, the State shall:

(i) ensure that every child remains under the care and custody of his parents and
is provided with love, care, understanding and security for the full and
harmonious development of his personality. Only when such efforts prove
insufficient and no appropriate placement or adoption within the child's extended
family is available shall adoption by an unrelated person be considered.

(ii) safeguard the biological parents from making hasty decisions in relinquishing
their parental authority over their child;

(iii) prevent the child from unnecessary separation from his biological parents;

(iv) conduct public information and educational campaigns to promote a positive
environment for adoption;

(v) ensure that government and private sector agencies have the capacity to
handle adoption inquiries, process domestic adoption applications and offer
adoption-related services including, but not limited to, parent preparation and
post-adoption education and counseling;

(vi) encourage domestic adoption so as to preserve the child's identity and
culture in his native land, and only when this is not available shall inter-country
adoption be considered as a last resort; and

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(vii) protect adoptive parents from attempts to disturb their parental authority and
custody over their adopted child.

Any voluntary or involuntary termination of parental authority shall be administratively or
judicially declared so as to establish the status of the child as "legally available for
adoption and his custody transferred to the Department of Social Welfare and
Development or to any duly licensed and accredited child-placing or child-caring agency,
which entity shall be authorized to take steps for the permanent placement of the child.

Sec. 3. Definition of Terms. For purposes of this Rule:

(a) "Child is a person below eighteen (18) years of age at the time of the filing of the
petition for adoption.

(b) "A child legally available for adoption refers to a child who has been voluntarily or
involuntarily committed to the Department or to a duly licensed and accredited child-
placing or child-caring agency, freed of the parental authority of his biological parents, or
in case of rescission of adoption, his guardian or adopter(s).

(c) "Voluntarily committed child is one whose parents knowingly and willingly relinquish
parental authority over him in favor of the Department.

(d) "nvoluntarily committed child is one whose parents, known or unknown, have been
permanently and judicially deprived of parental authority over him due to abandonment;
substantial, continuous or repeated neglect and abuse; or incompetence to discharge
parental responsibilities.

(e) "Foundling refers to a deserted or abandoned infant or child whose parents,
guardian or relatives are unknown; or a child committed to an orphanage or charitable or
similar institution with unknown facts of birth and parentage and registered in the Civil
Register as a "foundling.

(f) "Abandoned child refers to one who has no proper parental care or guardianship or
whose parents have deserted him for a period of at least six (6) continuous months and
has been judicially declared as such.

(g) "Dependent child refers to one who is without a parent, guardian or custodian or one
whose parents, guardian or other custodian for good cause desires to be relieved of his
care and custody and is dependent upon the public for support.

(h) "Neglected child is one whose basic needs have been deliberately not attended to or
inadequately attended to, physically or emotionally, by his parents or guardian.

(i) "Physical neglect occurs when the child is malnourished, ill-clad and without proper
shelter.

(j) "Emotional neglect exists when a child is raped, seduced, maltreated, exploited,
overworked or made to work under conditions not conducive to good health or made to
beg in the streets or public places, or placed in moral danger, or exposed to drugs,
alcohol, gambling, prostitution and other vices.

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(k) "Child-placement agency refers to an agency duly licensed and accredited by the
Department to provide comprehensive child welfare services including, but not limited to,
receiving applications for adoption, evaluating the prospective adoptive parents and
preparing the adoption home study report.

(l) "Child-caring agency refers to an agency duly licensed and accredited by the
Department that provides 24-hour residential care services for abandoned, orphaned,
neglected or voluntarily committed children.

(m) "Department refers to the Department of Social Welfare and Development.

(n) "Deed of Voluntary Commitment refers to the written and notarized instrument
relinquishing parental authority and committing the child to the care and custody of the
Department executed by the child's biological parents or in their absence, mental
incapacity or death, by the child's legal guardian, to be witnessed by an authorized
representative of the Department after counseling and other services have been made
available to encourage the biological parents to keep the child.

(o) "Child Study Report refers to a study made by the court social worker of the child's
legal status, placement history, psychological, social, spiritual, medical, ethno-cultural
background and that of his biological family needed in determining the most appropriate
placement for him.

(p) "Home Study Report refers to a study made by the court social worker of the
motivation and capacity of the prospective adoptive parents to provide a home that
meets the needs of a child.

(q) "Supervised trial custody refers to the period of time during which a social worker
oversees the adjustment and emotional readiness of both adopters and adoptee in
stabilizing their filial relationship.

(r) "Licensed Social Worker refers to one who possesses a degree in bachelor of
science in social work as a minimum educational requirement and who has passed the
government licensure examination for social workers as required by Republic Act No.
4373.

(s) "Simulation of birth is the tampering of the civil registry to make it appear in the birth
records that a certain child was born to a person who is not his biological mother, thus
causing such child to lose his true identity and status.

(t) "Biological Parents refer to the child's mother and father by nature.

(u) "Pre-Adoption Services refer to psycho-social services provided by professionally-
trained social workers of the Department, the social services units of local governments,
private and government health facilities, Family Courts, licensed and accredited child-
caring and child-placement agencies and other individuals or entities involved in
adoption as authorized by the Department.

(v) "Residence means a person's actual stay in the Philippines for three (3) continuous
years immediately prior to the filing of a petition for adoption and which is maintained
until the adoption decree is entered. Temporary absences for professional, business,
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health, or emergency reasons not exceeding sixty (60) days in one (1) year does not
break the continuity requirement.

(w) "Alien refers to any person, not a Filipino citizen, who enters and remains in the
Philippines and is in possession of a valid passport or travel documents and visa.

SEC. 4. Who may adopt. The following may adopt:

(1) Any Filipino citizen of legal age, in possession of full civil capacity and legal rights, of
good moral character, has not been convicted of any crime involving moral turpitude;
who is emotionally and psychologically capable of caring for children, at least sixteen
(16) years older than the adoptee, and who is in a position to support and care for his
children in keeping with the means of the family. The requirement of a 16-year difference
between the age of the adopter and adoptee may be waived when the adopter is the
biological parent of the adoptee or is the spouse of the adoptee's parent;

(2) Any alien possessing the same qualifications as above-stated for Filipino nationals:
Provided, That his country has diplomatic relations with the Republic of the Philippines,
that he has been living in the Philippines for at least three (3) continuous years prior to
the filing of the petition for adoption and maintains such residence until the adoption
decree is entered, that he has been certified by his diplomatic or consular office or any
appropriate government agency to have the legal capacity to adopt in his country, and
that his government allows the adoptee to enter his country as his adopted child.
Provided, further, That the requirements on residency and certification of the alien's
qualification to adopt in his country may be waived for the following:

(i) a former Filipino citizen who seeks to adopt a relative within the fourth (4th)
degree of consanguinity or affinity; or

(ii) one who seeks to adopt the legitimate child of his Filipino spouse; or

(iii) one who is married to a Filipino citizen and seeks to adopt jointly with his
spouse a relative within the fourth (4th) degree of consanguinity or affinity of the
Filipino spouse.

(3) The guardian with respect to the ward after the termination of the guardianship and
clearance of his financial accountabilities.

Husband and wife shall jointly adopt, except in the following cases:

(i) if one spouse seeks to adopt the legitimate child of one spouse by the other
spouse; or

(ii) if one spouse seeks to adopt his own illegitimate child: Provided, however,
That the other spouse has signified his consent thereto; or

(iii) if the spouses are legally separated from each other.

In case husband and wife jointly adopt or one spouse adopts the illegitimate child of the
other, joint parental authority shall be exercised by the spouses.

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SEC. 5. Who may be adopted. The following may be adopted:

(1) Any person below eighteen (18) years of age who has been voluntarily committed to
the Department under Articles 154, 155 and 156 of P.D. No. 603 or judicially declared
available for adoption;

(2) The legitimate child of one spouse, by the other spouse;

(3) An illegitimate child, by a qualified adopter to raise the status of the former to that of
legitimacy;

(4) A person of legal age regardless of civil status, if, prior to the adoption, said person
has been consistently considered and treated by the adopters as their own child since
minority;

(5) A child whose adoption has been previously rescinded; or

(6) A child whose biological or adoptive parents have died: Provided, That no
proceedings shall be initiated within six (6) months from the time of death of said
parents.

(7) A child not otherwise disqualified by law or these rules.

Sec. 6. Venue. The petition for adoption shall be filed with the Family Court of the province or
city where the prospective adoptive parents reside.

Sec. 7. Contents of the Petition. The petition shall be verified and specifically state at the
heading of the initiatory pleading whether the petition contains an application for change of
name, rectification of simulated birth, voluntary or involuntary commitment of children, or
declaration of child as abandoned, dependent or neglected.

1) If the adopter is a Filipino citizen, the petition shall allege the following:

(a) The jurisdictional facts;

(b) That the petitioner is of legal age, in possession of full civil capacity and legal
rights; is of good moral character; has not been convicted of any crime involving
moral turpitude; is emotionally and psychologically capable of caring for children;
is at least sixteen (16) years older than the adoptee, unless the adopter is the
biological parent of the adoptee or is the spouse of the adoptee's parent; and is
in a position to support and care for his children in keeping with the means of the
family and has undergone pre-adoption services as required by Section 4 of
Republic Act No. 8552.

2) If the adopter is an alien, the petition shall allege the following:

(a) The jurisdictional facts;

(b) Sub-paragraph 1(b) above;

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(c) (c) That his country has diplomatic relations with the Republic of the
Philippines;

(d) That he has been certified by his diplomatic or consular office or any
appropriate government agency to have the legal capacity to adopt in his country
and his government allows the adoptee to enter his country as his adopted child
and reside there permanently as an adopted child; and

(e) That he has been living in the Philippines for at least three (3) continuous
years prior to the filing of the petition and he maintains such residence until the
adoption decree is entered.

The requirements of certification of the alien's qualification to adopt in his country
and of residency may be waived if the alien:

(i) is a former Filipino citizen who seeks to adopt a relative within the
fourth degree of consanguinity or affinity; or

(ii) seeks to adopt the legitimate child of his Filipino spouse; or

(iii) is married to a Filipino citizen and seeks to adopt jointly with his
spouse a relative within the fourth degree of consanguinity or affinity of
the Filipino spouse.

3) If the adopter is the legal guardian of the adoptee, the petition shall allege that
guardianship had been terminated and the guardian had cleared his financial
accountabilities.

4) If the adopter is married, the spouse shall be a co-petitioner for joint adoption except
if:

(a) one spouse seeks to adopt the legitimate child of the other, or

(b) if one spouse seeks to adopt his own illegitimate child and the other spouse
signified written consent thereto, or

(c) if the spouses are legally separated from each other.

5) If the adoptee is a foundling, the petition shall allege the entries which should appear
in his birth certificate, such as name of child, date of birth, place of birth, if known; sex,
name and citizenship of adoptive mother and father, and the date and place of their
marriage.

6) If the petition prays for a change of name, it shall also state the cause or reason for
the change of name.

In all petitions, it shall be alleged:

(a) The first name, surname or names, age and residence of the adoptee as
shown by his record of birth, baptismal or foundling certificate and school
records.

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(b) That the adoptee is not disqualified by law to be adopted.

(c) The probable value and character of the estate of the adoptee.

(d) The first name, surname or names by which the adoptee is to be known and
registered in the Civil Registry.

A certification of non-forum shopping shall be included pursuant to Section 5, Rule 7 of
the 1997 Rules of Civil Procedure.

Sec. 8. Rectification of Simulated Birth. In case the petition also seeks rectification of a
simulated of birth, it shall allege that:

(a) Petitioner is applying for rectification of a simulated birth;

(b) The simulation of birth was made prior to the date of effectivity of Republic Act No.
8552 and the application for rectification of the birth registration and the petition for
adoption were filed within five years from said date;

(c) The petitioner made the simulation of birth for the best interests of the adoptee; and

(d) The adoptee has been consistently considered and treated by petitioner as his own
child.

Sec. 9. Adoption of a foundling, an abandoned, dependent or neglected child. In case the
adoptee is a foundling, an abandoned, dependent or neglected child, the petition shall allege:

(a) The facts showing that the child is a foundling, abandoned, dependent or neglected;

(b) The names of the parents, if known, and their residence. If the child has no known or
living parents, then the name and residence of the guardian, if any;

(c) The name of the duly licensed child-placement agency or individual under whose
care the child is in custody; and

(d) That the Department, child-placement or child-caring agency is authorized to give its
consent.

Sec. 10. Change of name. In case the petition also prays for change of name, the title or
caption must contain:

(a) The registered name of the child;

(b) Aliases or other names by which the child has been known; and

(c) The full name by which the child is to be known.

Sec. 11. Annexes to the Petition. The following documents shall be attached to the petition:

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A. Birth, baptismal or foundling certificate, as the case may be, and school records
showing the name, age and residence of the adoptee;

B. Affidavit of consent of the following:

1. The adoptee, if ten (10) years of age or over;

2. The biological parents of the child, if known, or the legal guardian, or the child-
placement agency, child-caring agency, or the proper government instrumentality
which has legal custody of the child;

3. The legitimate and adopted children of the adopter and of the adoptee, if any,
who are ten (10) years of age or over;

4. The illegitimate children of the adopter living with him who are ten (10) years of
age or over; and

5. The spouse, if any, of the adopter or adoptee.

C. Child study report on the adoptee and his biological parents;

D. If the petitioner is an alien, certification by his diplomatic or consular office or any
appropriate government agency that he has the legal capacity to adopt in his country
and that his government allows the adoptee to enter his country as his own adopted
child unless exempted under Section 4(2);

E. Home study report on the adopters. If the adopter is an alien or residing abroad but
qualified to adopt, the home study report by a foreign adoption agency duly accredited
by the Inter-Country Adoption Board; and

F. Decree of annulment, nullity or legal separation of the adopter as well as that of the
biological parents of the adoptee, if any.

Sec. 12. Order of Hearing. If the petition and attachments are sufficient in form and substance,
the court shall issue an order which shall contain the following:

(1) the registered name of the adoptee in the birth certificate and the names by which
the adoptee has been known which shall be stated in the caption;

(2) the purpose of the petition;

(3) the complete name which the adoptee will use if the petition is granted;

(4) the date and place of hearing which shall be set within six (6) months from the date
of the issuance of the order and shall direct that a copy thereof be published before the
date of hearing at least once a week for three successive weeks in a newspaper of
general circulation in the province or city where the court is situated; Provided, that in
case of application for change of name, the date set for hearing shall not be within four
(4) months after the last publication of the notice nor within thirty (30) days prior to an
election.

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The newspaper shall be selected by raffle under the supervision of the Executive Judge.

(5) a directive to the social worker of the court, the social service office of the local
government unit or any child-placing or child-caring agency, or the Department to
prepare and submit child and home study reports before the hearing if such reports had
not been attached to the petition due to unavailability at the time of the filing of the latter;
and

(6) a directive to the social worker of the court to conduct counseling sessions with the
biological parents on the matter of adoption of the adoptee and submit her report before
the date of hearing.

At the discretion of the court, copies of the order of hearing shall also be furnished the Office of
the Solicitor General through the provincial or city prosecutor, the Department and the biological
parents of the adoptee, if known.

If a change in the name of the adoptee is prayed for in the petition, notice to the Solicitor
General shall be mandatory.

Sec. 13. Child and Home Study Reports. In preparing the child study report on the adoptee,
the concerned social worker shall verify with the Civil Registry the real identity and registered
name of the adoptee. If the birth of the adoptee was not registered with the Civil Registry, it shall
be the responsibility of the social worker to register the adoptee and secure a certificate of
foundling or late registration, as the case may be.

The social worker shall establish that the child is legally available for adoption and the
documents in support thereof are valid and authentic, that the adopter has sincere intentions
and that the adoption shall inure to the best interests of the child.

In case the adopter is an alien, the home study report must show the legal capacity to adopt and
that his government allows the adoptee to enter his country as his adopted child in the absence
of the certification required under Section 7(b) of Republic Act No. 8552.

If after the conduct of the case studies, the social worker finds that there are grounds to deny
the petition, he shall make the proper recommendation to the court, furnishing a copy thereof to
the petitioner.

Sec. 14. Hearing. Upon satisfactory proof that the order of hearing has been published and
jurisdictional requirements have been complied with, the court shall proceed to hear the petition.
The petitioner and the adoptee must personally appear and the former must testify before the
presiding judge of the court on the date set for hearing.

The court shall verify from the social worker and determine whether the biological parent has
been properly counseled against making hasty decisions caused by strain or anxiety to give up
the child; ensure that all measures to strengthen the family have been exhausted; and ascertain
if any prolonged stay of the child in his own home will be inimical to his welfare and interest.

Sec. 15. Supervised Trial Custody. Before issuance of the decree of adoption, the court shall
give the adopter trial custody of the adoptee for a period of at least six (6) months within which
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the parties are expected to adjust psychologically and emotionally to each other and establish a
bonding relationship. The trial custody shall be monitored by the social worker of the court, the
Department, or the social service of the local government unit, or the child-placement or child-
caring agency which submitted and prepared the case studies. During said period, temporary
parental authority shall be vested in the adopter.

The court may, motu proprio or upon motion of any party, reduce the period or exempt the
parties if it finds that the same shall be for the best interests of the adoptee, stating the reasons
therefor.

An alien adopter however must complete the 6-month trial custody except the following:

a) a former Filipino citizen who seeks to adopt a relative within the fourth (4th) degree of
consanguinity or affinity; or

b) one who seeks to adopt the legitimate child of his Filipino spouse; or

c) one who is married to a Filipino citizen and seeks to adopt jointly with his or her
spouse the latter's relative within the fourth (4th) degree of consanguinity or affinity.

If the child is below seven (7) years of age and is placed with the prospective adopter through a
pre-adoption placement authority issued by the Department, the court shall order that the
prospective adopter shall enjoy all the benefits to which the biological parent is entitled from the
date the adoptee is placed with him.

The social worker shall submit to the court a report on the result of the trial custody within two
weeks after its termination.

Sec. 16. Decree of Adoption. If the supervised trial custody is satisfactory to the parties and
the court is convinced from the trial custody report and the evidence adduced that the adoption
shall redound to the best interests of the adoptee, a decree of adoption shall be issued which
shall take effect as of the date the original petition was filed even if the petitioners die before its
issuance.

The decree shall:

A. State the name by which the child is to be known and registered;

B. Order:

1) the Clerk of Court to issue to the adopter a certificate of finality upon expiration
of the 15-day reglementary period within which to appeal;

2) the adopter to submit a certified true copy of the decree of adoption and the
certificate of finality to the Civil Registrar where the child was originally registered
within thirty (30) days from receipt of the certificate of finality. In case of change
of name, the decree shall be submitted to the Civil Registrar where the court
issuing the same is situated.

3) the Civil Registrar of the place where the adoptee was registered:

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a. to annotate on the adoptee's original certificate of birth the decree of
adoption within thirty (30) days from receipt of the certificate of finality;

b. to issue a certificate of birth which shall not bear any notation that it is a
new or amended certificate and which shall show, among others, the
following: registry number, date of registration, name of child, sex, date of
birth, place of birth, name and citizenship of adoptive mother and father,
and the date and place of their marriage, when applicable;

c. to seal the original certificate of birth in the civil registry records which
can be opened only upon order of the court which issued the decree of
adoption; and

d. to submit to the court issuing the decree of adoption proof of
compliance with all the foregoing within thirty days from receipt of the
decree.

If the adoptee is a foundling, the court shall order the Civil Registrar where the foundling was
registered, to annotate the decree of adoption on the foundling certificate and a new birth
certificate shall be ordered prepared by the Civil Registrar in accordance with the decree.

Sec. 17. Book of Adoptions. The Clerk of Court shall keep a book of adoptions showing the
date of issuance of the decree in each case, compliance by the Civil Registrar with Section
16(B)(3) and all incidents arising after the issuance of the decree.

Sec. 18. Confidential Nature of Proceedings and Records. All hearings in adoption cases,
after compliance with the jurisdictional requirements shall be confidential and shall not be open
to the public. All records, books and papers relating to the adoption cases in the files of the
court, the Department, or any other agency or institution participating in the adoption
proceedings shall be kept strictly confidential.

If the court finds that the disclosure of the information to a third person is necessary for security
reasons or for purposes connected with or arising out of the adoption and will be for the best
interests of the adoptee, the court may, upon proper motion, order the necessary information to
be released, restricting the purposes for which it may be used.

Sec. 19. Rescission of Adoption of the Adoptee. The petition shall be verified and filed by the
adoptee who is over eighteen (18) years of age, or with the assistance of the Department, if he
is a minor, or if he is over eighteen (18) years of age but is incapacitated, by his guardian or
counsel.

The adoption may be rescinded based on any of the following grounds committed by the
adopter:

1) repeated physical and verbal maltreatment by the adopter despite having undergone
counseling;

2) attempt on the life of the adoptee;

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3) sexual assault or violence; or

4) abandonment or failure to comply with parental obligations.

Adoption, being in the best interests of the child, shall not be subject to rescission by the
adopter. However, the adopter may disinherit the adoptee for causes provided in Article 919 of
the Civil Code.

Sec. 20. Venue. The petition shall be filed with the Family Court of the city or province where
the adoptee resides.

Sec. 21. Time within which to file petition. The adoptee, if incapacitated, must file the petition
for rescission or revocation of adoption within five (5) years after he reaches the age of majority,
or if he was incompetent at the time of the adoption, within five (5) years after recovery from
such incompetency.

Sec. 22. Order to Answer. The court shall issue an order requiring the adverse party to
answer the petition within fifteen (15) days from receipt of a copy thereof. The order and copy of
the petition shall be served on the adverse party in such manner as the court may direct.

Sec. 23. Judgment. If the court finds that the allegations of the petition are true, it shall render
judgment ordering the rescission of adoption, with or without costs, as justice requires.

The court shall order that the parental authority of the biological parent of the adoptee, if known,
or the legal custody of the Department shall be restored if the adoptee is still a minor or
incapacitated and declare that the reciprocal rights and obligations of the adopter and the
adoptee to each other shall be extinguished.

The court shall further declare that successional rights shall revert to its status prior to adoption,
as of the date of judgment of judicial rescission. Vested rights acquired prior to judicial
rescission shall be respected.

It shall also order the adoptee to use the name stated in his original birth or foundling certificate.

The court shall further order the Civil Registrar where the adoption decree was registered to
cancel the new birth certificate of the adoptee and reinstate his original birth or foundling
certificate.

Sec. 24. Service of Judgment. A certified true copy of the judgment together with a certificate
of finality issued by the Branch Clerk of the Court which rendered the decision in accordance
with the preceding Section shall be served by the petitioner upon the Civil Registrar concerned
within thirty (30) days from receipt of the certificate of finality. The Civil Registrar shall forthwith
enter the rescission decree in the register and submit proof of compliance to the court issuing
the decree and the Clerk of Court within thirty (30) days from receipt of the decree.

The Clerk of Court shall enter the compliance in accordance with Section 17 hereof.

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SEC. 25. Repeal. - This supersedes Rule 99 on Adoption and Rule 100 of the Rules of Court.



B. Inter-Country Adoption

Sec. 26. Applicability. The following sections apply to inter-country adoption of Filipino children
by foreign nationals and Filipino citizens permanently residing abroad.

Sec. 27. Objectives. The State shall:

a) consider inter-country adoption as an alternative means of child care, if the child
cannot be placed in a foster or an adoptive family or cannot, in any suitable manner, be
cared for in the Philippines;

b) ensure that the child subject of inter-country adoption enjoys the same protection
accorded to children in domestic adoption; and

c) take all measures to ensure that the placement arising therefrom does not result in
improper financial gain for those involved.

Sec. 28. Where to File Petition. A verified petition to adopt a Filipino child may be filed by a
foreign national or Filipino citizen permanently residing abroad with the Family Court having
jurisdiction over the place where the child resides or may be found.

It may be filed directly with the Inter-Country Adoption Board.

Sec. 29. Who may be adopted. Only a child legally available for domestic adoption may be the
subject of inter-country adoption.

Sec. 30. Contents of Petition. The petitioner must allege:

a) his age and the age of the child to be adopted, showing that he is at least twenty-
seven (27) years of age and at least sixteen (16) years older than the child to be
adopted at the time of application, unless the petitioner is the parent by nature of the
child to be adopted or the spouse of such parent, in which case the age difference does
not apply;

b) if married, the name of the spouse who must be joined as co-petitioner except when
the adoptee is a legitimate child of his spouse;

c) that he has the capacity to act and assume all rights and responsibilities of parental
authority under his national laws, and has undergone the appropriate counseling from an
accredited counselor in his country;

d) that he has not been convicted of a crime involving moral turpitude;

e) that he is eligible to adopt under his national law;
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f) that he can provide the proper care and support and instill the necessary moral values
and example to all his children, including the child to be adopted;

g) that he agrees to uphold the basic rights of the child, as embodied under Philippine
laws and the U. N. Convention on the Rights of the Child, and to abide by the rules and
regulations issued to implement the provisions of Republic Act No. 8043;

h) that he comes from a country with which the Philippines has diplomatic relations and
whose government maintains a similarly authorized and accredited agency and that
adoption of a Filipino child is allowed under his national laws; and

i) that he possesses all the qualifications and none of the disqualifications provided in
this Rule, in Republic Act No. 8043 and in all other applicable Philippine laws.

Sec. 31. Annexes. - The petition for adoption shall contain the following annexes written and
officially translated in English:

a) Birth certificate of petitioner;

b) Marriage contract, if married, and, if applicable, the divorce decree, or judgment
dissolving the marriage;

c) Sworn statement of consent of petitioner's biological or adopted children above ten
(10) years of age;

d) Physical, medical and psychological evaluation of the petitioner certified by a duly
licensed physician and psychologist;

e) Income tax returns or any authentic document showing the current financial capability
of the petitioner;

f) Police clearance of petitioner issued within six (6) months before the filing of the
petitioner;

g) Character reference from the local church/minister, the petitioner's employer and a
member of the immediate community who have known the petitioner for at least five (5)
years;

h) Full body postcard-size pictures of the petitioner and his immediate family taken at
least six (6) months before the filing of the petition.

Sec. 32. Duty of Court. The court, after finding that the petition is sufficient in form and
substance and a proper case for inter-country adoption, shall immediately transmit the petition
to the Inter-Country Adoption Board for appropriate action.

SEC. 33. Effectivity. - This Rule shall take effect on August 22, 2002 following its publication in a
newspaper of general circulation.

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A.M. No. 03-04-04-SC
RULE ON CUSTODY OF MINORS AND WRIT OF HABEAS CORPUS
IN RELATION TO CUSTODY OF MINORS




SECTION 1. Applicability. - This rule shall apply to petitions for custody of minors and writs of
habeas corpus in relation thereto.

The Rules of Court shall apply suppletorily.

Section 2. Petition for custody of minors; who may file.- A verified petition for the rightful custody
of a minor may be filed by any person claiming such right. The party against whom it may be
filed shall be designated as the respondent.

Section 3. Where to file petition. - The petition for custody of minors shall be filed with the
Family Court of the province or city where the petitioner resides or where the minor may be
found.

Section 4. Contents of petition. - The verified petition shall allege the following:

(a) The personal circumstances of the petitioner and of the respondent;

(b) The name, age and present whereabouts of the minor and his or her relationship to
the petitioner and the respondent;

(c) The material operative facts constituting deprivation of custody; and

(d) Such other matters which are relevant to the custody of the minor.

The verified petition shall be accompanied by a certificate against forum shopping, which
the petitioner must sign personally.

Section 5. Summons; personal service on respondent. - If the court is satisfied that the petition
is sufficient in form and substance, it shall direct the clerk of court to issue summons, which
shall be served together with a copy of the petition personally on the respondent.

Section 6. Motion to Dismiss. - A motion to dismiss the petition is not allowed except on the
ground of lack of jurisdiction over the subject matter or over the parties. Any other ground that
might warrant the dismissal of the petition may be raised as an affirmative defense in the
answer.

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Section 7. Verified Answer. - The respondent shall file an answer to the petition, personally
verified by him, within five days after service of summons and a copy of the petition.

Section 8. Case study; duty of social worker. - Upon the filing of the verified answer or the
expiration of the period to file it, the court may order a social worker to make a case study of the
minor and the parties and to submit a report and recommendation to the court at least three
days before the scheduled pre-trial.

Section 9. Notice of mandatory pre-trial. - Within fifteen days after the filing of the answer or the
expiration of the period to file answer, the court shall issue an order: (1) fixing a date for the pre-
trial conference; (2) directing the parties to file and serve their respective pre-trial briefs in such
manner as shall ensure receipt thereof by the adverse party at least three days before the date
of pre-trial; and (3) requiring the respondent to present the minor before the court.
The notice of its order shall be served separately on both the parties and their respective
counsels. The pre-trial is mandatory.

Section 10. Contents of pre-trial brief. - The pre-trial brief shall contain the following:

(a) A statement of the willingness of the parties to enter into agreements that may be
allowed by law, indicating its terms;

(b) A concise statement of their respective claims together with the applicable laws and
authorities;

(c) Admitted facts and proposed stipulations of facts;

(d) The disputed factual and legal issues;

(e) All the evidence to be presented, briefly stating or describing its nature and purpose;

(f) The number and names of the witnesses and their respective affidavits which shall
serve as the affiant's testimony on direct examination; and

(g) Such other matters as the court may require to be included in the pre-trial brief.

Failure to file the pre-trial brief or to comply with its required contents shall have the same effect
as failure to appear at the pre-trial.

Section 11. Effect of failure to appear at the pre-trial.-

(a) If the petitioner fails to appear personally at the pre-trial, the case shall be dismissed,
unless his counsel or a duly authorized representative appears in court and proves a
valid excuse for the non-appearance of the petitioner.

(b) If the respondent has filed his answer but fails to appear at the pre-trial, the petitioner
shall be allowed to present his evidence ex parte. The court shall then render judgment
on the basis of the pleadings and the evidence thus presented.

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Section 12. What may be done at pre-trial. - At the pre-trial, the parties may agree on the
custody of the minor. If the parties fail to agree, the court may refer the matter to a mediator who
shall have five days to effect an agreement between the parties. If the issue is not settled
through mediation, the court shall proceed with the pre-trial conference, on which occasion it
shall consider such other matters as may aid in the prompt disposition of the petition.

Section 13. Provisional order awarding custody. - After an answer has been filed or after
expiration of the period to file it, the court may issue a provisional order awarding custody of the
minor. As far as practicable, the following order of preference shall be observed in the award of
custody:

(a) Both parents jointly;

(b) Either parent, taking into account all relevant considerations, especially the choice of
the minor over seven years of age and of sufficient discernment, unless the parent
chosen is unfit;

(c) The grandparent, or if there are several grandparents, the grandparent chosen by the
minor over seven years of age and of sufficient discernment, unless the grandparent
chosen is unfit or disqualified;

(d) The eldest brother or sister over twenty-one years of age, unless he or she is unfit or
disqualified;

(e) The actual custodian of the minor over twenty-one years of age, unless the former is
unfit or disqualified; or

(f) Any other person or institution the court may deem suitable to provide proper care
and guidance for the minor.

Section 14. Factors to consider in determining custody. - In awarding custody, the court shall
consider the best interests of the minor and shall give paramount consideration to his material
and moral welfare. The best interests of the minor refer to the totality of the circumstances and
conditions as are most congenial to the survival, protection, and feelings of security of the minor
encouraging to his physical, psychological and emotional development. It also means the least
detrimental available alternative for safeguarding the growth and development of the minor.

The court shall also consider the following:

(a) Any extrajudicial agreement which the parties may have bound themselves to comply
with respecting the rights of the minor to maintain direct contact with the non custodial
parent on a regular basis, except when there is an existing threat or danger of physical,
mental, sexual or emotional violence which endangers the safety and best interests of
the minor;

(b) The desire and ability of one parent to foster an open and loving relationship between
the minor and the other parent;

(c) The health, safety and welfare of the minor;

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(d) Any history of child or spousal abuse by the person seeking custody or who has had
any filial relationship with the minor, including anyone courting the parent;

(e) The nature and frequency of contact with both parents;

(f) Habitual use of alcohol, dangerous drugs or regulated substances;

(g) Marital misconduct;

(h) The most suitable physical, emotional, spiritual, psychological and educational
environment for the holistic development and growth of the minor; and

(i) The preference of the minor over seven years of age and of sufficient discernment,
unless the parent chosen is unfit.

Section 15. Temporary visitation rights. - The court shall provide in its order awarding
provisional custody appropriate visitation rights to the non-custodial parent or parents, unless
the court finds said parent or parents unfit or disqualified.

The temporary custodian shall give the court and non custodial parent or parents at least five
days' notice of any plan to change the residence of the minor or take him out of his residence for
more than three days provided it does not prejudice the visitation rights of the non-custodial
parent or parents.

Section 16. Hold Departure Order. - The minor child subject of the petition shall not be brought
out of the country without prior order from the court while the petition is pending.

The court, motu proprio or upon application under oath, may issue ex parte a hold departure
order, addressed to the Bureau of Immigration and Deportation, directing it not to allow the
departure of the minor from the Philippines without the permission of the court.

The Family Court issuing the hold departure order shall furnish the Department of Foreign
Affairs and the Bureau of Immigration and Deportation of the Department of Justice a copy of
the hold departure order within twenty-four hours from its issuance and through the fastest
available means of transmittal.

The hold departure order shall contain the following information:


(a) The complete name (including the middle name), the date and place of birth, the
nationality and the place of last residence of the person against whom a hold departure
order has been issued or whose departure from the country has been enjoined;

(b) The complete title and docket number of the case in which the hold departure order
was issued;

(c) The specific nature of the case;

(d) The date of the hold departure order; and

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(e) A recent photograph, if available, of the party against whom a hold departure order
has been issued or whose departure from the country has been enjoined.

The court may recall the hold departure order motu proprio, or upon verified motion of any of the
parties after summary hearing, subject to such terms and conditions as may be necessary for
the best interests of the minor.

Section 17. Protection Order. - The court may issue a Protection Order requiring any person:

(a) To stay away from the home, school, business, or place of employment of the minor,
other parent or any other party, or from any other specific place designated by the court;

(b) To cease and desist from harassing, intimidating, or threatening such minor or the
other parent or any person to whom custody of the minor is awarded;

(c) To refrain from acts of commission or omission that create an unreasonable risk to
the health, safety, or welfare of the minor;

(d) To permit a parent, or a party entitled to visitation by a court order or a separation
agreement, to visit the minor at stated periods;

(e) To permit a designated party to enter the residence during a specified period of time
in order to take personal belongings not contested in a proceeding pending with the
Family Court; and

(f) To comply with such other orders as are necessary for the protection of the minor.

Section 18. Judgment. - After trial, the court shall render judgment awarding the custody of the
minor to the proper party considering the best interests of the minor.

If it appears that both parties are unfit to have the care and custody of the minor, the court may
designate either the paternal or maternal grandparent of the minor, or his oldest brother or
sister, or any reputable person to take charge of such minor, or commit him to any suitable
home for children.

In its judgment, the court may order either or both parents to give an amount necessary for the
support, maintenance and education of the minor, irrespective of who may be its custodian. In
determining the amount of support, the court may consider the following factors: (1) the financial
resources of the custodial and non-custodial parent and those of the minor; (2) the physical and
emotional health, special needs, and aptitude of the minor; (3) the standard of living the minor
has been accustomed to; and (4) the non-monetary contributions that the parents would make
toward the care and well-being of the minor.

The court may also issue any order that is just and reasonable permitting the parent who is
deprived of the care and custody of the minor to visit or have temporary custody.

Section 19. Appeal. - No appeal from the decision shall be allowed unless the appellant has
filed a motion for reconsideration or new trial within fifteen days from notice of judgment.

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An aggrieved party may appeal from the decision by filing a Notice of Appeal within fifteen days
from notice of the denial of the motion for reconsideration or new trial and serving a copy thereof
on the adverse parties.

Section 20. Petition for writ of habeas corpus. - A verified petition for a writ of habeas corpus
involving custody of minors shall be filed with the Family Court. The writ shall be enforceable
within its judicial region to which the Family Court belongs.

However, the petition may be filed with the regular court in the absence of the presiding judge of
the Family Court, provided, however, that the regular court shall refer the case to the Family
Court as soon as its presiding judge returns to duty.

The petition may also be filed with the appropriate regular courts in places where there are no
Family Courts.

The writ issued by the Family Court or the regular court shall be enforceable in the judicial
region where they belong.

The petition may likewise be filed with the Supreme Court, Court of Appeals, or with any of its
members and, if so granted, the writ shall be enforceable anywhere in the Philippines. The writ
may be made returnable to a Family Court or to any regular court within the region where the
petitioner resides or where the minor may be found for hearing and decision on the merits.

Upon return of the writ, the court shall decide the issue on custody of minors. The appellate
court, or the member thereof, issuing the writ shall be furnished a copy of the decision.

Section 21. Confidentiality of proceedings. - The hearings on custody of minors may, at the
discretion of the court, be closed to the public and the records of the case shall not be released
to non-parties without its approval.

Section 22. Effectivity. - This Rule shall take effect on May 15, 2003 following its publication in a
newspaper of general circulation not later than April 30, 2003.




109

REPUBLIC ACT NO. 9048

AN ACT AUTHORIZING THE CITY OR MUNICIPAL CIVIL REGISTRAR OR THE CONSUL
GENERAL TO CORRECT A CLERICAL OR TYPOGRAPHICAL ERROR IN AN ENTRY
AND/OR CHANGE OF FIRST NAME OR NICKNAME IN THE CIVIL REGISTER WITHOUT
NEED OF A JUDICIAL ORDER, AMENDING FOR THIS PURPOSE ARTICLES 376 AND 412
OF THE CIVIL CODE OF THE PHILIPPINES.




Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Authority to Correct Clerical or Typographical Error and Change of First Name or
Nickname - No entry in a civil register shall be changed or corrected without a judicial order,
except for clerical or typographical errors and change of first name or nickname which can be
corrected or changed by the concerned city or municipal civil registrar or consul general in
accordance with the provisions of this Act and its implementing rules and regulations.

SECTION 2. Definition of Terms - As used in this Act, the following terms shall mean:

1. "City or Municipal civil registrar" refers to the head of the local civil registry office of the
city or municipality, as the case may be, who is appointed as such by the city or
municipal mayor in accordance with the provisions of existing laws.

2. "Petitioner" refers to a natural person filing the petition and who has direct and personal
interest in the correction of a clerical or typographical error in an entry or change of first
name or nickname in the civil register.

3. "Clerical or typographical error" refers to a mistake committed in the performance of
clerical work in writing, copying, transcribing or typing an entry in the civil register that is
harmless and innocuous, such as misspelled name or misspelled place of birth or the
like, which is visible to the eyes or obvious to the understanding, and can be corrected or
changed only by reference to other existing record or records: Provided, however, That
no correction must involve the change of nationality, age, status or sex of the petitioner.

4. "Civil Register" refers to the various registry books and related certificates and
documents kept in the archives of the local civil registry offices, Philippine Consulates
and of the Office of the Civil Registrar General.

5. "Civil registrar general" refers to the Administrator of the National Statistics Office which
is the agency mandated to carry out and administer the provision of laws on civil
registration.

6. "First name" refers to a name or nickname given to a person which may consist of one
or more names in addition to the middle and last names.

110

SECTION 3. Who May File the Petition and Where. - Any person having direct and personal
interest in the correction of a clerical or typographical error in an entry and/or change of first
name or nickname in the civil register may file, in person, a verified petition with the local civil
registry office of the city or municipality where the record being sought to be corrected or
changed is kept.

In case the petitioner has already migrated to another place in the country and it would
not be practical for such party, in terms of transportation expenses, time and effort to appear in
person before the local civil registrar keeping the documents to be corrected or changed, the
petition may be filed, in person, with the local civil registrar of the place where the interested
party is presently residing or domiciled. The two (2) local civil registrars concerned will then
communicate to facilitate the processing of the petition.

Citizens of the Philippines who are presently residing or domiciled in foreign countries
may file their petition, in person, with the nearest Philippine Consulates.

The petitions filed with the city or municipal civil registrar or the consul general shall be
processed in accordance with this Act and its implementing rules and regulations.

All petitions for the clerical or typographical errors and/or change of first names or
nicknames may be availed of only once.

SECTION 4. Grounds for Change of First Name or Nickname. - The petition for change of first
name or nickname may be allowed in any of the following cases:

1. The petitioner finds the first name or nickname to be ridiculous, tainted with dishonor or
extremely difficult to write or pronounce.

2. The new first name or nickname has been habitually and continuously used by the
petitioner and he has been publicly known by that by that first name or nickname in the
community: or

3. The change will avoid confusion.

SECTION 5. Form and Contents of the Petition. - The petition shall be in the form of an
affidavit, subscribed and sworn to before any person authorized by the law to administer oaths.
The affidavit shall set forth facts necessary to establish the merits of the petition and shall show
affirmatively that the petitioner is competent to testify to the matters stated. The petitioner shall
state the particular erroneous entry or entries, which are sought to be corrected and/or the
change sought to be made.

The petition shall be supported with the following documents:

1. A certified true machine copy of the certificate or of the page of the registry book
containing the entry or entries sought to be corrected or changed.

2. At least two (2) public or private documents showing the correct entry or entries upon
which the correction or change shall be based; and

111

3. Other documents which the petitioner or the city or municipal civil registrar or the consul
general may consider relevant and necessary for the approval of the petition.

In case of change of first name or nickname, the petition shall likewise be supported with
the documents mentioned in the immediately preceding paragraph. In addition, the petition shall
be published at least once a week for two (2) consecutive weeks in a newspaper of general
circulation. Furthermore, the petitioner shall submit a certification from the appropriate law
enforcement agencies that he has no pending case or no criminal record.

The petition and its supporting papers shall be filed in three (3) copies to be distributed as
follows: first copy to the concerned city or municipal civil registrar, or the consul general; second
copy to the Office of the Civil Registrar General; and third copy to the petitioner.

SECTION 6. Duties of the City or Municipal Civil Registrar or the Consul General. - The city or
municipal civil registrar or the consul general to whom the petition is presented shall examine
the petition and its supporting documents. He shall post the petition in a conspicuous place
provided for that purpose for ten (10) consecutive days after he finds the petition and its
supporting documents sufficient in form and substance.

The city or municipal civil registrar or the consul general shall act on the petition and shall
render a decision not later than five (5) working days after the completion of the posting and/or
publication requirement. He shall transmit a copy of his decision together with the records of the
proceedings to the Office of the Civil Registrar General within five (5) working days from the
date of the decision.

SECTION 7. Duties and Powers of the Civil Registrar General. - The civil registrar general
shall, within ten (10) working days from receipt of the decision granting a petition, exercise the
power to impugn such decision by way of an objection based on the following grounds:

1. The error is not clerical or typographical;

2. The correction of an entry or entries in the civil register is substantial or controversial as
it affects the civil status of a person; or

3. The basis used in changing the first name or nickname of a person does not fall under
SECTION 4.
The civil registrar general shall immediately notify the city or municipal civil registrar or the
consul general of the action taken on the decision. Upon receipt of the notice thereof, the city or
municipal civil registrar or the consul general shall notify the petitioner of such action.

The petitioner may seek reconsideration with the civil registrar general or file the
appropriate petition with the proper court.

If the civil registrar general fails to exercise his power to impugn the decision of the city or
municipal civil registrar or of the consul general within the period prescribed herein, such
decision shall become final and executory.

Where the petition is denied by the city or municipal civil registrar or the consul general,
the petitioner may either appeal the decision to the civil registrar general or file the appropriate
petition with the proper court.
112


SECTION 8. Payment of Fees. - The city or municipal civil registrar or the consul general shall
be authorized to collect reasonable fees as a condition for accepting the petition. An indigent
petitioner shall be exempt from the payment of the said fee.

SECTION 9. Penalty Clause. - A person who violates any of the provisions of this Act shall,
upon conviction, be penalized by imprisonment of not less than six (6) years but not more than
twelve (12) years, or a fine of not less than Ten thousand pesos (P10,000.00) but not more than
One Hundred Thousand pesos (P100,000.00), or both, at the discretion of the court.

In addition, if the offender is a government official or employee he shall suffer the
penalties provided under civil service laws, rules and regulations.

SECTION 10. Implementing Rules and Regulations. - The civil registrar general shall, in
consultation with the Department of Justice, the Department of Foreign Affairs, the Office of the
Supreme Court Administrator, the University of the Philippines Law Center and the Philippine
Association of Civil Registrars, issue the necessary rules and regulations for the effective
implementation of this Act not later than three (3) months from the effectivity of this law.

SECTION 11. Retroactivity Clause. - This Act shall have retroactive effect insofar as it does not
prejudice or impair vested or acquired rights in accordance with the Civil Code and other laws.

SECTION 12. Separability Clause. - If any portion or provision of this Act is declared void or
unconstitutional, the remaining portions or provisions thereof shall not be affected by such
declaration.

SECTION 13. Repealing Clause. - All laws, decrees, orders, rules and regulations, other
issuances, or parts thereof inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SECTION 14. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) national newspapers of general circulation.


113

A.M. No. 12-8-8-SC
JUDICIAL AFFIDAVIT RULE




Whereas, case congestion and delays plague most courts in cities, given the huge volume of
cases filed each year and the slow and cumbersome adversarial syste1n that the judiciary has
in place;

Whereas, about 40% of criminal cases are dismissed annually owing to the fact that
complainants simply give up con1ing to court after repeated postponements;

Whereas, few foreign businessmen make long-term investments in the Philippines because its
courts are unable to provide ample and speedy protection to their investments, keeping its
people poor;

Whereas, in order to reduce the time needed for completing the testimonies of witnesses in
cases under litigation, on February 21, 2012 the Supreme Court approved for piloting by trial
courts in Quezon City the compulsory use of judicial affidavits in place of the direct testimonies
of witnesses;

Whereas, it is reported that such piloting has quickly resulted in reducing by about two-thirds the
time used for presenting the testimonies of witnesses, thus speeding up the hearing and
adjudication of cases;

Whereas, the Supreme Court Committee on the Revision of the Rules of Court, headed by
Senior Associate Justice Antonio T. Carpio, and the Sub-Committee on the Revision of the
Rules on Civil Procedure, headed by Associate Justice Roberto A. Abad, have recommended
for adoption a Judicial Affidavit Rule that will replicate nationwide the success of the Quezon
City experience in the use of judicial affidavits; and

Whereas, the Supreme Court En Banc finds merit in the recommendation;

NOW, THEREFORE, the Supreme Court En Banc hereby issues and promulgates the following:

Section 1. Scope.

(a) This Rule shall apply to all actions, proceedings, and incidents requiring the
reception of evidence before:

(1) The Metropolitan Trial Courts, the Municipal Trial Courts in Cities, the
Municipal Trial Courts, the Municipal Circuit Trial Courts, and the Shari' a Circuit
Courts but shall not apply to small claims cases under A.M. 08-8-7-SC;

(2) The Regional Trial Courts and the Shari'a District Courts;

(3) The Sandiganbayan, the Court of Tax Appeals, the Court of Appeals, and the
Shari'a Appellate Courts;

(4) The investigating officers and bodies authorized by the Supreme Court to
receive evidence, including the Integrated Bar of the Philippine (IBP); and
114


(5) The special courts and quasi-judicial bodies, whose rules of procedure are
subject to disapproval of the Supreme Court, insofar as their existing rules of
procedure contravene the provisions of this Rule.
2


(b) For the purpose of brevity, the above courts, quasi-judicial bodies, or investigating
officers shall be uniformly referred to here as the "court."

Section 2. Submission of Judicial Affidavits and Exhibits in lieu of direct testimonies.

(a) The parties shall file with the court and serve on the adverse party, personally or by
licensed courier service, not later than five days before pre-trial or preliminary
conference or the scheduled hearing with respect to motions and incidents, the
following:

(1) The judicial affidavits of their witnesses, which shall take the place of such
witnesses' direct testimonies; and

(2) The parties' docun1entary or object evidence, if any, which shall be attached
to the judicial affidavits and marked as Exhibits A, B, C, and so on in the case of
the complainant or the plaintiff, and as Exhibits 1, 2, 3, and so on in the case of
the respondent or the defendant.

(b) Should a party or a witness desire to keep the original document or object evidence
in his possession, he may, after the same has been identified, marked as exhibit, and
authenticated, warrant in his judicial affidavit that the copy or reproduction attached to
such affidavit is a faithful copy or reproduction of that original. In addition, the party or
witness shall bring the original document or object evidence for comparison during the
preliminary conference with the attached copy, reproduction, or pictures, failing which
the latter shall not be admitted.

This is without prejudice to the introduction of secondary evidence in place of the original when
allowed by existing rules.

Section 3. Contents of judicial Affidavit. A judicial affidavit shall be prepared in the language
known to the witness and, if not in English or Filipino, accompanied by a translation in English or
Filipino, and shall contain the following:

(a) The name, age, residence or business address, and occupation of the witness;

(b) The name and address of the lawyer who conducts or supervises the examination of
the witness and the place where the examination is being held;

(c) A statement that the witness is answering the questions asked of him, fully conscious
that he does so under oath, and that he may face criminal liability for false testimony or
perjury;


2
By virtue of the Supreme Court's authority under Section 5 (5), Article VIII, of the 1987
Constitution to disapprove rules of procedure of special courts and quasi-judicial bodies.
115

(d) Questions asked of the witness and his corresponding answers, consecutively
numbered, that:

(1) Show the circumstances under which the witness acquired the facts upon
which he testifies;

(2) Elicit from him those facts which are relevant to the issues that the case
presents; and

(3) Identify the attached documentary and object evidence and establish their
authenticity in accordance with the Rules of Court;

(e) The signature of the witness over his printed name; and

(f) A jurat with the signature of the notary public who administers the oath or an officer
who is authorized by law to administer the same.

Section 4. Sworn attestation of the lawyer.

(a) The judicial affidavit shall contain a sworn attestation at the end, executed by the
lawyer who conducted or supervised the examination of the witness, to the effect that:

(1) He faithfully recorded or caused to be recorded the questions he asked and
the corresponding answers that the witness gave; and

(2) Neither he nor any other person then present or assisting him coached the
witness regarding the latter's answers.

(b) A false attestation shall subject the lawyer mentioned to disciplinary action, including
disbarment.

Section 5. Subpoena. If the government employee or official, or the requested witness, who is
neither the witness of the adverse party nor a hostile witness, unjustifiably declines to execute a
judicial affidavit or refuses without just cause to make the relevant books, documents, or other
things under his control available for copying, authentication, and eventual production in court,
the requesting party may avail himself of the issuance of a subpoena ad testificandum or duces
tecum under Rule 21 of the Rules of Court. The rules governing the issuance of a subpoena to
the witness in this case shall be the same as when taking his deposition except that the taking
of a judicial affidavit shal1 be understood to be ex parte.

Section 6. Offer of and objections to testimony in judicial affidavit. - The party presenting the
judicial affidavit of his witness in place of direct testimony shall state the purpose of such
testimony at the start of the presentation of the witness. The adverse party may move to
disqualify the witness or to strike out his affidavit or any of the answers found in it on ground of
inadmissibility. The court shall promptly rule on the motion and, if granted, shall cause the
marking of any excluded answer by placing it in brackets under the initials of an authorized court
personnel, without prejudice to a tender of excluded evidence under Section 40 of Rule 132 of
the Rules of Court.

116

Section 7. Examination of the witness on his judicial affidavit. - The adverse party shall have the
right to cross-examine the witness on his judicial affidavit and on the exhibits attached to the
same. The party who presents the witness may also examine him as on re-direct. In every case,
the court shall take active part in examining the witness to determine his credibility as well as
the truth of his testimony and to elicit the answers that it needs for resolving the issues.

Section 8. Oral offer of and objections to exhibits.

(a) Upon the termination of the testimony of his last witness, a party shall immediately
make an oral offer of evidence of his documentary or object exhibits, piece by piece, in
their chronological order, stating the purpose or purposes for which he offers the
particular exhibit.

(b) After each piece of exhibit is offered, the adverse party shall state the legal ground
for his objection, if any, to its admission, and the court shall immediately make its ruling
respecting that exhibit.

(c) Since the documentary or object exhibits form part of the judicial affidavits that
describe and authenticate them, it is sufficient that such exhibits are simply cited by their
markings during the offers, the objections, and the rulings, dispensing with the
description of each exhibit.

Section 9. Application of rule to criminal actions.

(a) This rule shall apply to all criminal actions:

(1) Where the maximum of the imposable penalty does not exceed six years;

(2) Where the accused agrees to the use of judicial affidavits, irrespective of the
penalty involved; or

(3) With respect to the civil aspect of the actions, whatever the penalties involved
are.

(b) The prosecution shall submit the judicial affidavits of its witnesses not later than five
days before the pre-trial, serving copies if the same upon the accused. The complainant
or public prosecutor shall attach to the affidavits such documentary or object evidence
as he may have, marking them as Exhibits A, B, C, and so on. No further judicial
affidavit, documentary, or object evidence shall be admitted at the trial.

(c) If the accused desires to be heard on his defense after receipt of the judicial affidavits
of the prosecution, he shall have the option to submit his judicial affidavit as well as
those of his witnesses to the court within ten days from receipt of such affidavits and
serve a copy of each on the public and private prosecutor, including his documentary
and object evidence previously marked as Exhibits 1, 2, 3, and so on. These affidavits
shall serve as direct testimonies of the accused and his witnesses when they appear
before the court to testify.

Section 10. Effect of non-compliance with the judicial Affidavit Rule.
117


(a) A party who fails to submit the required judicial affidavits and exhibits on time shall be
deemed to have waived their submission. The court may, however, allow only once the
late submission of the same provided, the delay is for a valid reason, would not unduly
prejudice the opposing party, and the defaulting party pays a fine of not less
than P 1,000.00 nor more than P5,000.00 at the discretion of the court.

(b) The court shall not consider the affidavit of any witness who fails to appear at the
scheduled hearing of the case as required. Counsel who fails to appear without valid
cause despite notice shall be deemed to have waived his client's right to confront by
cross-examination the witnesses there present.

(c) The court shall not admit as evidence judicial affidavits that do not conform to the
content requirements of Section 3 and the attestation requirement of Section 4 above.
The court may, however, allow only once the subsequent submission of the compliant
replacement affidavits before the hearing or trial provided the delay is for a valid reason
and would not unduly prejudice the opposing party and provided further, that public or
private counsel responsible for their preparation and submission pays a fine of not less
than P1,000.00 nor more than P 5,000.00, at the discretion of the court.

Section 11. Repeal or modification of inconsistent rules. - The provisions of the Rules of Court
and the rules of procedure governing investigating officers and bodies authorized by the
Supreme Court to receive evidence are repealed or modified insofar as these are inconsistent
with the provisions of this Rule.

The rules of procedure governing quasi-judicial bodies inconsistent herewith are hereby
disapproved.

Section 12. Effectivity. - This rule shall take effect on January 1, 2013 following its publication in
two newspapers of general circulation not later than September 15, 2012. It shall also apply to
existing cases.

Manila, September 4, 2012.




118

A.M. No. 11-9-4-SC
EFFICIENT USE OF PAPER RULE




Whereas, to produce 500 reams of paper, twenty trees are cut and 100,000 liters of water are
used, water that is no longer reusable because it is laden with chemicals and is just released to
the environment to poison our rivers and seas;

Whereas, there is a need to cut the judicial system's use excessive quantities of costly paper,
save our forests, avoid landslides, and mitigate the worsening effects of climate change that the
world is experiencing;

Whereas, the judiciary can play a big part in saving our trees, conserving precious water and
helping mother earth;

NOW, THEREFORE, the Supreme Court En Banc hereby issues and promulgates the following:

Sec. 1. Title of the Rule- This rule shall be known and cited as the Efficient Use of Paper Rule.

Sec. 2. Applicability. This rule shall apply to all courts and quasi-judicial bodies under the
administrative supervision of the Supreme Court.

Sec. 3. Format and Style.

a. All pleadings, motions and similar papers intended for the court and quasi-judicial body's
consideration and action (court-bound papers) shall written in single space with one-and-
a half space between paragraphs, using an easily readable font style of the party's
choice, of 14-size font, and on a 13 inch by 8.5- inch white bond paper; and

b. All decisions, resolutions and orders issued by courts and quasi-judicial bodies under the
administrative supervision of the Supreme Court shall comply with these requirements.
Similarly covered are the reports submitted to the courts and transcripts of stenographic
notes.

Sec. 4. Margins and Prints . The parties shall maintain the following margins on all court-
bound papers: a left hand margin of 1.5 inches from the edge; an upper margin of 1.2 inches
from the edge; a right hand margin of 1.0 inch from the edge; and a lower margin of 1.0 inch
from the edge. Every page must be consecutively numbered.

Sec. 5. Copies to be filed. Unless otherwise directed by the court, the number of court- bound
papers that a party is required or desires to file shall be as follows:

a. In the Supreme Court, one original (properly marked) and four copies, unless the case
is referred to the Court En Banc, in which event, the parties shall file ten additional
119

copies. For the En Banc, the parties need to submit only two sets of annexes, one
attached to the original and an extra copy. For the Division, the parties need to submit
also two sets of annexes, one attached to the original and an extra copy. All members of
the Court shall share the extra copies of annexes in the interest of economy of paper.
Parties to cases before the Supreme Court are further required, on voluntary basis for
the first six months following the effectivity of this Rule and compulsorily afterwards
unless the period is extended, to submit, simultaneously with their court-bound papers,
soft copies of the same and their annexes (the latter in PDF format) either by email to
the Court's e-mail address or by compact disc (CD). This requirement is in preparation
for the eventual establishment of an e-filing paperless system in the judiciary.

b. In the Court of Appeals and the Sandiganbayan, one original (properly marked) and
two copies with their annexes;

c. In the Court of Tax Appeals, one original (properly marked) and two copies with
annexes. On appeal to the En Banc, one Original (properly marked) and eight copies
with annexes; and

d. In other courts, one original (properly marked) with the stated annexes attached to it.

Sec. 6. Annexes Served on Adverse Party. A party required by the rules to serve a copy of his
court-bound on the adverse party need not enclose copies of those annexes that based on the
record of the court such party already has in his possession. In the event a party requests a set
of the annexes actually filed with the court, the part who filed the paper shall comply with the
request within five days from receipt.

Sec. 7. Date of Effectivity. This rule shall take effect on January 1, 2013 after publication in
two newspapers of general circulation in the Philippines.

Manila, November 13, 2012.

120

A.M. No. 09-6-8-SC
RULES OF PROCEDURE FOR ENVIRONMENTAL CASES


PART I

RULE 1
GENERAL PROVISIONS

Section 1. Title. These Rules shall be known as "The Rules of Procedure for Environmental
Cases."

Section 2. Scope. These Rules shall govern the procedure in civil, criminal and special civil
actions before the Regional Trial Courts, Metropolitan Trial Courts, Municipal Trial Courts in
Cities, Municipal Trial Courts and Municipal Circuit Trial Courts involving enforcement or
violations of environmental and other related laws, rules and regulations such as but not limited
to the following:
-
(a) Act No. 3572, Prohibition Against Cutting of Tindalo, Akli, and Molave Trees;

(b) P.D. No. 705, Revised Forestry Code;

(c) P.D. No. 856, Sanitation Code;

(d) P.D. No. 979, Marine Pollution Decree;

(e) P.D. No. 1067, Water Code;

(f) P.D. No. 1151, Philippine Environmental Policy of 1977;

(g) P.D. No. 1433, Plant Quarantine Law of 1978;

(h) P.D. No. 1586, Establishing an Environmental Impact Statement System Including
Other Environmental Management Related Measures and for Other Purposes;

(i) R.A. No. 3571, Prohibition Against the Cutting, Destroying or Injuring of Planted or
Growing Trees, Flowering Plants and Shrubs or Plants of Scenic Value along Public
Roads, in Plazas, Parks, School Premises or in any Other Public Ground;

(j) R.A. No. 4850, Laguna Lake Development Authority Act;

(k) R.A. No. 6969, Toxic Substances and Hazardous Waste Act;

(l) R.A. No. 7076, People's Small-Scale Mining Act;

(m) R.A. No. 7586, National Integrated Protected Areas System Act including all laws,
decrees, orders, proclamations and issuances establishing protected areas;

121

(n) R.A. No. 7611, Strategic Environmental Plan for Palawan Act;

(o) R.A. No. 7942, Philippine Mining Act;

(p) R.A. No. 8371, Indigenous Peoples Rights Act;

(q) R.A. No. 8550, Philippine Fisheries Code;

(r) R.A. No. 8749, Clean Air Act;

(s) R.A. No. 9003, Ecological Solid Waste Management Act;

(t) R.A. No. 9072, National Caves and Cave Resource Management Act;

(u) R.A. No. 9147, Wildlife Conservation and Protection Act;

(v) R.A. No. 9175, Chainsaw Act;

(w) R.A. No. 9275, Clean Water Act;

(x) R.A. No. 9483, Oil Spill Compensation Act of 2007; and

(y) Provisions in C.A. No. 141, The Public Land Act; R.A. No. 6657, Comprehensive
Agrarian Reform Law of 1988; R.A. No. 7160, Local Government Code of 1991; R.A. No.
7161, Tax Laws Incorporated in the Revised Forestry Code and Other Environmental
Laws (Amending the NIRC); R.A. No. 7308, Seed Industry Development Act of 1992;
R.A. No. 7900, High-Value Crops Development

Rules of Procedure for Environmental Cases Act; R.A. No. 8048, Coconut Preservation Act;
R.A. No. 8435, Agriculture and Fisheries Modernization Act of 1997; R.A. No. 9522, The
Philippine Archipelagic Baselines Law; R.A. No. 9593, Renewable Energy Act of 2008; R.A. No.
9637, Philippine Biofuels Act; and other existing laws that relate to the conservation,
development, preservation, protection and utilization of the environment and natural resources.

Section 3. Objectives. - The objectives of these Rules are:

(a) To protect and advance the constitutional right of the people to a balanced and
healthful ecology;

(b) To provide a simplified, speedy and inexpensive procedure for the enforcement of
environmental rights and duties recognized under the Constitution, existing laws, rules
and regulations, and international agreements;

(c) To introduce and adopt innovations and best practices ensuring the effective
enforcement of remedies and redress for violation of environmental laws; and

(d) To enable the courts to monitor and exact compliance with orders and judgments in
environmental cases.

Section 4. Definition of Terms.
122


(a) By-product or derivatives means any part taken or substance extracted from wildlife,
in raw or in processed form including stuffed animals and herbarium
specimens. 1avvphi1

(b) Consent decree refers to a judicially-approved settlement between concerned parties
based on public interest and public policy to protect and preserve the environment.

(c) Continuing mandamus is a writ issued by a court in an environmental case directing
any agency or instrumentality of the government or officer thereof to perform an act or
series of acts decreed by final judgment which shall remain effective until judgment is
fully satisfied.

(d) Environmental protection order (EPO) refers to an order issued by the court directing
or enjoining any person or government agency to perform or desist from performing an
act in order to protect, preserve or rehabilitate the environment.

(e) Mineral refers to all naturally occurring inorganic substance in solid, gas, liquid, or
any intermediate state excluding energy materials such as coal, petroleum, natural gas,
radioactive materials and geothermal energy.

(f) Precautionary principle states that when human activities may lead to threats of
serious and irreversible damage to the environment that is scientifically plausible but
uncertain, actions shall be taken to avoid or diminish that threat.

(g) Strategic lawsuit against public participation (SLAPP) refers to an action whether
civil, criminal or administrative, brought against any person, institution or any
government agency or local government unit or its officials and employees, with the
intent to harass, vex, exert undue pressure or stifle any legal recourse that such person,
institution or government agency has taken or may take in the enforcement of
environmental laws, protection of the environment or assertion of environmental rights.

(h) Wildlife means wild forms and varieties of flora and fauna, in all developmental
stages including those which are in captivity or are being bred or propagated.



PART II
CIVIL PROCEDURE


RULE 2
PLEADINGS AND PARTIES

Section 1. Pleadings and motions allowed. The pleadings and motions that may be filed are
complaint, answer which may include compulsory counterclaim and cross-claim, motion for
intervention, motion for discovery and motion for reconsideration of the judgment.
Motion for postponement, motion for new trial and petition for relief from judgment shall be
allowed in highly meritorious cases or to prevent a manifest miscarriage of justice.

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Section 2. Prohibited pleadings or motions. The following pleadings or motions shall not be
allowed:

(a) Motion to dismiss the complaint;

(b) Motion for a bill of particulars;

(c) Motion for extension of time to file pleadings, except to file answer, the extension not
to exceed fifteen (15) days;

(d) Motion to declare the defendant in default;

(e) Reply and rejoinder; and

(f) Third party complaint.

Section 3. Verified complaint. The verified complaint shall contain the names of the parties,
their addresses, the cause of action and the reliefs prayed for.

The plaintiff shall attach to the verified complaint all evidence proving or supporting the cause of
action consisting of the affidavits of witnesses, documentary evidence and if possible, object
evidence. The affidavits shall be in question and answer form and shall comply with the rules of
admissibility of evidence.

The complaint shall state that it is an environmental case and the law involved. The complaint
shall also include a certification against forum shopping. If the complaint is not an environmental
complaint, the presiding judge shall refer it to the executive judge for re-raffle.

Section 4. Who may file. Any real party in interest, including the government and juridical
entities authorized by law, may file a civil action involving the enforcement or violation of any
environmental law.

Section 5. Citizen suit. Any Filipino citizen in representation of others, including minors or
generations yet unborn, may file an action to enforce rights or obligations under environmental
laws. Upon the filing of a citizen suit, the court shall issue an order which shall contain a brief
description of the cause of action and the reliefs prayed for, requiring all interested parties to
manifest their interest to intervene in the case within fifteen (15) days from notice thereof. The
plaintiff may publish the order once in a newspaper of a general circulation in the Philippines or
furnish all affected barangays copies of said order.

Citizen suits filed under R.A. No. 8749 and R.A. No. 9003 shall be governed by their respective
provisions.

Section 6. Service of the complaint on the government or its agencies. - Upon the filing of the
complaint, the plaintiff is required to furnish the government or the appropriate agency, although
not a party, a copy of the complaint. Proof of service upon the government or the appropriate
agency shall be attached to the complaint.

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Section 7. Assignment by raffle. - If there is only one (1) designated branch in a multiple-sala
court, the executive judge shall immediately refer the case to said branch. If there are two (2) or
more designated branches, the executive judge shall conduct a special raffle on the day the
complaint is filed.

Section 8. Issuance of Temporary Environmental Protection Order (TEPO). - If it appears from
the verified complaint with a prayer for the issuance of an Environmental Protection Order
(EPO) that the matter is of extreme urgency and the applicant will suffer grave injustice and
irreparable injury, the executive judge of the multiple-sala court before raffle or the presiding
judge of a single-sala court as the case may be, may issue ex parte a TEPO effective for only
seventy-two (72) hours from date of the receipt of the TEPO by the party or person enjoined.
Within said period, the court where the case is assigned, shall conduct a summary hearing to
determine whether the TEPO may be extended until the termination of the case.

The court where the case is assigned, shall periodically monitor the existence of acts that are
the subject matter of the TEPO even if issued by the executive judge, and may lift the same at
any time as circumstances may warrant.

The applicant shall be exempted from the posting of a bond for the issuance of a TEPO.

Section 9. Action on motion for dissolution of TEPO. - The grounds for motion to dissolve a
TEPO shall be supported by affidavits of the party or person enjoined which the applicant may
oppose, also by affidavits.

The TEPO may be dissolved if it appears after hearing that its issuance or continuance would
cause irreparable damage to the party or person enjoined while the applicant may be fully
compensated for such damages as he may suffer and subject to the posting of a sufficient bond
by the party or person enjoined.

Section 10. Prohibition against temporary restraining order (TRO) and preliminary injunction. -
Except the Supreme Court, no court can issue a TRO or writ of preliminary injunction against
lawful actions of government agencies that enforce environmental laws or prevent violations
thereof.

Section 11. Report on TEPO, EPO, TRO or preliminary injunction. - The judge shall report any
action taken on a TEPO, EPO, TRO or a preliminary injunction, including its modification and
dissolution, to the Supreme Court, through the Office of the Court Administrator, within ten (10)
days from the action taken.

Section 12. Payment of filing and other legal fees. - The payment of filing and other legal fees
by the plaintiff shall be deferred until after judgment unless the plaintiff is allowed to litigate as
an indigent. It shall constitute a first lien on the judgment award.

For a citizen suit, the court shall defer the payment of filing and other legal fees that shall serve
as first lien on the judgment award.

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Section 13. Service of summons, orders and other court processes. - The summons, orders and
other court processes may be served by the sheriff, his deputy or other proper court officer or
for justifiable reasons, by the counsel or representative of the plaintiff or any suitable person
authorized or deputized by the court issuing the summons.

Any private person who is authorized or deputized by the court to serve summons, orders and
other court processes shall for that purpose be considered an officer of the court.

The summons shall be served on the defendant, together with a copy of an order informing all
parties that they have fifteen (15) days from the filing of an answer, within which to avail of
interrogatories to parties under Rule 25 of the Rules of Court and request for admission by
adverse party under Rule 26, or at their discretion, make use of depositions under Rule 23 or
other measures under Rules 27 and 28.

Should personal and substituted service fail, summons by publication shall be allowed. In the
case of juridical entities, summons by publication shall be done by indicating the names of the
officers or their duly authorized representatives.

Section 14. Verified answer. - Within fifteen (15) days from receipt of summons, the defendant
shall file a verified answer to the complaint and serve a copy thereof on the plaintiff. The
defendant shall attach affidavits of witnesses, reports, studies of experts and all evidence in
support of the defense.

Affirmative and special defenses not pleaded shall be deemed waived, except lack of
jurisdiction.

Cross-claims and compulsory counterclaims not asserted shall be considered barred. The
answer to counterclaims or cross-claims shall be filed and served within ten (10) days from
service of the answer in which they are pleaded.

Section 15. Effect of failure to answer. - Should the defendant fail to answer the complaint within
the period provided, the court shall declare defendant in default and upon motion of the plaintiff,
shall receive evidence ex parte and render judgment based thereon and the reliefs prayed for.


RULE 3
PRE-TRIAL

Section 1. Notice of pre-trial. - Within two (2) days from the filing of the answer to the
counterclaim or cross-claim, if any, the branch clerk of court shall issue a notice of the pre-trial
to be held not later than one (1) month from the filing of the last pleading.

The court shall schedule the pre-trial and set as many pre-trial conferences as may be
necessary within a period of two (2) months counted from the date of the first pre-trial
conference.

Section 2. Pre-trial brief. - At least three (3) days before the pretrial, the parties shall submit pre-
trial briefs containing the following:

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(a) A statement of their willingness to enter into an amicable settlement indicating the
desired terms thereof or to submit the case to any of the alternative modes of dispute
resolution;

(b) A summary of admitted facts and proposed stipulation of facts;

(c) The legal and factual issues to be tried or resolved. For each factual issue, the
parties shall state all evidence to support their positions thereon. For each legal issue,
parties shall state the applicable law and jurisprudence supporting their respective
positions thereon;

(d) The documents or exhibits to be presented, including depositions, answers to
interrogatories and answers to written request for admission by adverse party, stating
the purpose thereof;


(e) A manifestation of their having availed of discovery procedures or their intention to
avail themselves of referral to a commissioner or panel of experts;

(f) The number and names of the witnesses and the substance of their affidavits;

(g) Clarificatory questions from the parties; and

(h) List of cases arising out of the same facts pending before other courts or
administrative agencies. Failure to comply with the required contents of a pre-trial brief
may be a ground for contempt.

Failure to file the pre-trial brief shall have the same effect as failure to appear at the pre-trial.

Section 3. Referral to mediation. - At the start of the pre-trial conference, the court shall inquire
from the parties if they have settled the dispute; otherwise, the court shall immediately refer the
parties or their counsel, if authorized by their clients, to the Philippine Mediation Center (PMC)
unit for purposes of mediation. If not available, the court shall refer the case to the clerk of court
or legal researcher for mediation.

Mediation must be conducted within a non-extendible period of thirty (30) days from receipt of
notice of referral to mediation.

The mediation report must be submitted within ten (10) days from the expiration of the 30-day
period.

Section 4. Preliminary conference. - If mediation fails, the court will schedule the continuance of
the pre-trial. Before the scheduled date of continuance, the court may refer the case to the
branch clerk of court for a preliminary conference for the following purposes:

(a) To assist the parties in reaching a settlement;

(b) To mark the documents or exhibits to be presented by the parties and copies thereof
to be attached to the records after comparison with the originals;

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(c) To ascertain from the parties the undisputed facts and admissions on the
genuineness and due execution of the documents marked as exhibits;

(d) To require the parties to submit the depositions taken under Rule 23 of the Rules of
Court, the answers to written interrogatories under Rule 25, and the answers to request
for admissions by the adverse party under Rule 26;

(e) To require the production of documents or things requested by a party under Rule 27
and the results of the physical and mental examination of persons under Rule 28;

(f) To consider such other matters as may aid in its prompt disposition;

(g) To record the proceedings in the "Minutes of Preliminary Conference" to be signed
by both parties or their counsels;

(h) To mark the affidavits of witnesses which shall be in question and answer form and
shall constitute the direct examination of the witnesses; and

(i) To attach the minutes together with the marked exhibits before the pre-trial proper.

The parties or their counsel must submit to the branch clerk of court the names, addresses and
contact numbers of the affiants.

During the preliminary conference, the branch clerk of court shall also require the parties to
submit the depositions taken under Rule 23 of the Rules of Court, the answers to written
interrogatories under Rule 25 and the answers to request for admissions by the adverse party
under Rule 26. The branch clerk of court may also require the production of documents or
things requested by a party under Rule 27 and the results of the physical and mental
examination of persons under Rule 28.

Section 5. Pre-trial conference; consent decree. - The judge shall put the parties and their
counsels under oath, and they shall remain under oath in all pre-trial conferences.

The judge shall exert best efforts to persuade the parties to arrive at a settlement of the dispute.

The judge may issue a consent decree approving the agreement between the parties in
accordance with law, morals, public order and public policy to protect the right of the people to a
balanced and healthful ecology.

Evidence not presented during the pre-trial, except newly-discovered evidence, shall be
deemed waived.

Section 6. Failure to settle. - If there is no full settlement, the judge shall:

(a) Adopt the minutes of the preliminary conference as part of the pre-trial proceedings
and confirm the markings of exhibits or substituted photocopies and admissions on the
genuineness and due execution of documents;

(b) Determine if there are cases arising out of the same facts pending before other
courts and order its consolidation if warranted;
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(c) Determine if the pleadings are in order and if not, order the amendments if
necessary;

(d) Determine if interlocutory issues are involved and resolve the same;

(e) Consider the adding or dropping of parties;

(f) Scrutinize every single allegation of the complaint, answer and other pleadings and
attachments thereto, and the contents of documents and all other evidence identified
and pre-marked during pre-trial in determining further admissions;

(g) Obtain admissions based on the affidavits of witnesses and evidence attached to the
pleadings or submitted during pre-trial;

(h) Define and simplify the factual and legal issues arising from the pleadings and
evidence. Uncontroverted issues and frivolous claims or defenses should be eliminated;

(i) Discuss the propriety of rendering a summary judgment or a judgment based on the
pleadings, evidence and admissions made during pre-trial;

(j) Observe the Most Important Witness Rule in limiting the number of witnesses,
determining the facts to be proved by each witness and fixing the approximate number
of hours per witness;

(k) Encourage referral of the case to a trial by commissioner under Rule 32 of the Rules
of Court or to a mediator or arbitrator under any of the alternative modes of dispute
resolution governed by the Special Rules of Court on Alternative Dispute Resolution;

(l) Determine the necessity of engaging the services of a qualified expert as a friend of
the court (amicus curiae); and

(m) Ask parties to agree on the specific trial dates for continuous trial, comply with the
one-day examination of witness rule, adhere to the case flow chart determined by the
court which shall contain the different stages of the proceedings up to the promulgation
of the decision and use the time frame for each stage in setting the trial dates.

Section 7. Effect of failure to appear at pre-trial. - The court shall not dismiss the complaint,
except upon repeated and unjustified failure of the plaintiff to appear. The dismissal shall be
without prejudice, and the court may proceed with the counterclaim.

If the defendant fails to appear at the pre-trial, the court shall receive evidence ex parte.

Section 8. Minutes of pre-trial. - The minutes of each pre-trial conference shall contain matters
taken up therein, more particularly admissions of facts and exhibits, and shall be signed by the
parties and their counsel.

Section 9. Pre-trial order. - Within ten (10) days after the termination of the pre-trial, the court
shall issue a pre-trial order setting forth the actions taken during the pre-trial conference, the
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facts stipulated, the admissions made, the evidence marked, the number of witnesses to be
presented and the schedule of trial. Said order shall bind the parties, limit the trial to matters not
disposed of and control the course of action during the trial.

Section 10. Efforts to settle. - The court shall endeavor to make the parties agree to
compromise or settle in accordance with law at any stage of the proceedings before rendition of
judgment.


RULE 4
TRIAL

Section 1. Continuous trial. - The judge shall conduct continuous trial which shall not exceed
two (2) months from the date of the issuance of the pre-trial order.

Before the expiration of the two-month period, the judge may ask the Supreme Court for the
extension of the trial period for justifiable cause.

Section 2. Affidavits in lieu of direct examination. - In lieu of direct examination, affidavits
marked during the pre-trial shall be presented as direct examination of affiants subject to cross-
examination by the adverse party.

Section 3. One-day examination of witness rule. - The court shall strictly adhere to the rule that
a witness has to be fully examined in one (1) day, subject to the court's discretion of extending
the examination for justifiable reason. After the presentation of the last witness, only oral offer of
evidence shall be allowed, and the opposing party shall immediately interpose his objections.

The judge shall forthwith rule on the offer of evidence in open court.

Section 4. Submission of case for decision; filing of memoranda. - After the last party has rested
its case, the court shall issue an order submitting the case for decision.

The court may require the parties to submit their respective memoranda, if possible in electronic
form, within a non-extendible period of thirty (30) days from the date the case is submitted for
decision.

The court shall have a period of sixty (60) days to decide the case from the date the case is
submitted for decision.

Section 5. Period to try and decide. - The court shall have a period of one (1) year from the filing
of the complaint to try and decide the case. Before the expiration of the one-year period, the
court may petition the Supreme Court for the extension of the period for justifiable cause.

The court shall prioritize the adjudication of environmental cases.


RULE 5
JUDGMENT AND EXECUTION
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Section 1. Reliefs in a citizen suit. - If warranted, the court may grant to the plaintiff proper
reliefs which shall include the protection, preservation or rehabilitation of the environment and
the payment of attorney's fees, costs of suit and other litigation expenses. t may also require
the violator to submit a program of rehabilitation or restoration of the environment, the costs of
which shall be borne by the violator, or to contribute to a special trust fund for that purpose
subject to the control of the court.

Section 2. Judgment not stayed by appeal. - Any judgment directing the performance of acts for
the protection, preservation or rehabilitation of the environment shall be executory pending
appeal unless restrained by the appellate court.

Section 3. Permanent EPO; writ of continuing mandamus. - In the judgment, the court may
convert the TEPO to a permanent EPO or issue a writ of continuing mandamus directing the
performance of acts which shall be effective until the judgment is fully satisfied.

The court may, by itself or through the appropriate government agency, monitor the execution of
the judgment and require the party concerned to submit written reports on a quarterly basis or
sooner as may be necessary, detailing the progress of the execution and satisfaction of the
judgment. The other party may, at its option, submit its comments or observations on the
execution of the judgment.

Section 4. Monitoring of compliance with judgment and orders of the court by a commissioner. -
The court may motu proprio, or upon motion of the prevailing party, order that the enforcement
of the judgment or order be referred to a commissioner to be appointed by the court. The
commissioner shall file with the court written progress reports on a quarterly basis or more
frequently when necessary.

Section 5. Return of writ of execution. - The process of execution shall terminate upon a
sufficient showing that the decision or order has been implemented to the satisfaction of the
court in accordance with Section 14, Rule 39 of the Rules of Court.


RULE 6
STRATEGIC LAWSUIT AGAINST PUBLIC PARTICIPATION

Section 1. Strategic lawsuit against public participation (SLAPP). - A legal action filed to harass,
vex, exert undue pressure or stifle any legal recourse that any person, institution or the
government has taken or may take in the enforcement of environmental laws, protection of the
environment or assertion of environmental rights shall be treated as a SLAPP and shall be
governed by these Rules.

Section 2. SLAPP as a defense; how alleged. - In a SLAPP filed against a person involved in
the enforcement of environmental laws, protection of the environment, or assertion of
environmental rights, the defendant may file an answer interposing as a defense that the case is
a SLAPP and shall be supported by documents, affidavits, papers and other evidence; and, by
way of counterclaim, pray for damages, attorney's fees and costs of suit.
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The court shall direct the plaintiff or adverse party to file an opposition showing the suit is not a
SLAPP, attaching evidence in support thereof, within a non-extendible period of five (5) days
from receipt of notice that an answer has been filed.

The defense of a SLAPP shall be set for hearing by the court after issuance of the order to file
an opposition within fifteen (15) days from filing of the comment or the lapse of the period.

Section 3. Summary hearing. - The hearing on the defense of a SLAPP shall be summary in
nature. The parties must submit all available evidence in support of their respective positions.

The party seeking the dismissal of the case must prove by substantial evidence that his act for
the enforcement of environmental law is a legitimate action for the protection, preservation and
rehabilitation of the environment. The party filing the action assailed as a SLAPP shall prove by
preponderance of evidence that the action is not a SLAPP and is a valid claim.

Section 4. Resolution of the defense of a SLAPP. - The affirmative defense of a SLAPP shall be
resolved within thirty (30) days after the summary hearing. If the court dismisses the action, the
court may award damages, attorney's fees and costs of suit under a counterclaim if such has
been filed. The dismissal shall be with prejudice.

If the court rejects the defense of a SLAPP, the evidence adduced during the summary hearing
shall be treated as evidence of the parties on the merits of the case. The action shall proceed in
accordance with the Rules of Court.



PART III
SPECIAL CIVIL ACTIONS


RULE 7
WRIT OF KALIKASAN

Section 1. Nature of the writ. - The writ is a remedy available to a natural or juridical person,
entity authorized by law, people's organization, non-governmental organization, or any public
interest group accredited by or registered with any government agency, on behalf of persons
whose constitutional right to a balanced and healthful ecology is violated, or threatened with
violation by an unlawful act or omission of a public official or employee, or private individual or
entity, involving environmental damage of such magnitude as to prejudice the life, heal th or
property of inhabitants in two or more cities or provinces.

Section 2. Contents of the petition. - The verified petition shall contain the following:

(a) The personal circumstances of the petitioner;

(b) The name and personal circumstances of the respondent or if the name and personal
circumstances are unknown and uncertain, the respondent may be described by an
assumed appellation;

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(c) The environmental law, rule or regulation violated or threatened to be violated, the
act or omission complained of, and the environmental damage of such magnitude as to
prejudice the life, health or property of inhabitants in two or more cities or provinces.

(d) All relevant and material evidence consisting of the affidavits of witnesses,
documentary evidence, scientific or other expert studies, and if possible, object
evidence;

(e) The certification of petitioner under oath that: (1) petitioner has not commenced any
action or filed any claim involving the same issues in any court, tribunal or quasi -judicial
agency, and no such other action or claim is pending therein; (2) if there is such other
pending action or claim, a complete statement of its present status; (3) if petitioner
should learn that the same or similar action or claim has been filed or is pending,
petitioner shall report to the court that fact within five (5) days therefrom; and

(f) The reliefs prayed for which may include a prayer for the issuance of a TEPO.

Section 3. Where to file. - The petition shall be filed with the Supreme Court or with any of the
stations of the Court of Appeals.

Section 4. No docket fees. - The petitioner shall be exempt from the payment of docket
fees.

Section 5. Issuance of the writ. - Within three (3) days from the date of filing of the petition, if the
petition is sufficient in form and substance, the court shall give an order: (a) issuing the writ; and
(b) requiring the respondent to file a verified return as provided in Section 8 of this Rule. The
clerk of court shall forthwith issue the writ under the seal of the court including the issuance of a
cease and desist order and other temporary reliefs effective until further order.

Section 6. How the writ is served. - The writ shall be served upon the respondent by a court
officer or any person deputized by the court, who shall retain a copy on which to make a return
of service. In case the writ cannot be served personally, the rule on substituted service shall
apply.

Section 7. Penalty for refusing to issue or serve the writ. - A clerk of court who unduly delays or
refuses to issue the writ after its allowance or a court officer or deputized person who unduly
delays or refuses to serve the same shall be punished by the court for contempt without
prejudice to other civil, criminal or administrative actions.

Section 8. Return of respondent; contents. - Within a non-extendible period of ten (10) days
after service of the writ, the respondent shall file a verified return which shall contain all
defenses to show that respondent did not violate or threaten to violate, or allow the violation of
any environmental law, rule or regulation or commit any act resulting to environmental damage
of such magnitude as to prejudice the life, health or property of inhabitants in two or more cities
or provinces.

All defenses not raised in the return shall be deemed waived.
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The return shall include affidavits of witnesses, documentary evidence, scientific or other expert
studies, and if possible, object evidence, in support of the defense of the respondent.

A general denial of allegations in the petition shall be considered as an admission thereof.

Section 9. Prohibited pleadings and motions. - The following pleadings and motions are
prohibited:

(a) Motion to dismiss;

(b) Motion for extension of time to file return;

(c) Motion for postponement;

(d) Motion for a bill of particulars;

(e) Counterclaim or cross-claim;

(f) Third-party complaint;

(g) Reply; and

(h) Motion to declare respondent in default.

Section 10. Effect of failure to file return. - In case the respondent fails to file a return, the court
shall proceed to hear the petition ex parte.

Section 11. Hearing. - Upon receipt of the return of the respondent, the court may call a
preliminary conference to simplify the issues, determine the possibility of obtaining stipulations
or admissions from the parties, and set the petition for hearing.

The hearing including the preliminary conference shall not extend beyond sixty (60) days and
shall be given the same priority as petitions for the writs of habeas corpus, amparo and habeas
data.

Section 12. Discovery Measures. - A party may file a verified motion for the following reliefs:

(a) Ocular Inspection; order The motion must show that an ocular inspection order is
necessary to establish the magnitude of the violation or the threat as to prejudice the life,
health or property of inhabitants in two or more cities or provinces. It shall state in detail
the place or places to be inspected. It shall be supported by affidavits of witnesses
having personal knowledge of the violation or threatened violation of environmental law.

After hearing, the court may order any person in possession or control of a designated
land or other property to permit entry for the purpose of inspecting or photographing the
property or any relevant object or operation thereon.

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The order shall specify the person or persons authorized to make the inspection and the
date, time, place and manner of making the inspection and may prescribe other
conditions to protect the constitutional rights of all parties.

(b) Production or inspection of documents or things; order The motion must show that
a production order is necessary to establish the magnitude of the violation or the threat
as to prejudice the life, health or property of inhabitants in two or more cities or
provinces.

After hearing, the court may order any person in possession, custody or control of any
designated documents, papers, books, accounts, letters, photographs, objects or
tangible things, or objects in digitized or electronic form, which constitute or contain
evidence relevant to the petition or the return, to produce and permit their inspection,
copying or photographing by or on behalf of the movant.

The production order shall specify the person or persons authorized to make the production and
the date, time, place and manner of making the inspection or production and may prescribe
other conditions to protect the constitutional rights of all parties.

Section 13. Contempt. - The court may after hearing punish the respondent who refuses or
unduly delays the filing of a return, or who makes a false return, or any person who disobeys or
resists a lawful process or order of the court for indirect contempt under Rule 71 of the Rules of
Court.

Section 14. Submission of case for decision; filing of memoranda. - After hearing, the court shall
issue an order submitting the case for decision. The court may require the filing of memoranda
and if possible, in its electronic form, within a non-extendible period of thirty (30) days from the
date the petition is submitted for decision.

Section 15. Judgment. - Within sixty (60) days from the time the petition is submitted for
decision, the court shall render judgment granting or denying the privilege of the writ of
kalikasan.

The reliefs that may be granted under the writ are the following:

(a) Directing respondent to permanently cease and desist from committing acts or
neglecting the performance of a duty in violation of environmental laws resulting in
environmental destruction or damage;

(b) Directing the respondent public official, government agency, private person or entity
to protect, preserve, rehabilitate or restore the environment;

(c) Directing the respondent public official, government agency, private person or entity
to monitor strict compliance with the decision and orders of the court;

(d) Directing the respondent public official, government agency, or private person or
entity to make periodic reports on the execution of the final judgment; and

(e) Such other reliefs which relate to the right of the people to a balanced and healthful
ecology or to the protection, preservation, rehabilitation or restoration of the
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environment, except the award of damages to individual petitioners.

Section 16. Appeal. - Within fifteen (15) days from the date of notice of the adverse judgment or
denial of motion for reconsideration, any party may appeal to the Supreme Court under Rule 45
of the Rules of Court. The appeal may raise questions of fact.

Section 17. Institution of separate actions. - The filing of a petition for the issuance of the writ of
kalikasan shall not preclude the filing of separate civil, criminal or administrative actions.


RULE 8
WRIT OF CONTINUING MANDAMUS


Section 1. Petition for continuing mandamus. - When any agency or instrumentality of the
government or officer thereof unlawfully neglects the performance of an act which the law
specifically enjoins as a duty resulting from an office, trust or station in connection with the
enforcement or violation of an environmental law rule or regulation or a right therein, or
unlawfully excludes another from the use or enjoyment of such right and there is no other plain,
speedy and adequate remedy in the ordinary course of law, the person aggrieved thereby may
file a verified petition in the proper court, alleging the facts with certainty, attaching thereto
supporting evidence, specifying that the petition concerns an environmental law, rule or
regulation, and praying that judgment be rendered commanding the respondent to do an act or
series of acts until the judgment is fully satisfied, and to pay damages sustained by the
petitioner by reason of the malicious neglect to perform the duties of the respondent, under the
law, rules or regulations. The petition shall also contain a sworn certification of non-forum
shopping.

Section 2. Where to file the petition. - The petition shall be filed with the Regional Trial Court
exercising jurisdiction over the territory where the actionable neglect or omission occurred or
with the Court of Appeals or the Supreme Court.

Section 3. No docket fees. - The petitioner shall be exempt from the payment of docket fees.

Section 4. Order to comment. - If the petition is sufficient in form and substance, the court shall
issue the writ and require the respondent to comment on the petition within ten (10) days from
receipt of a copy thereof. Such order shall be served on the respondents in such manner as the
court may direct, together with a copy of the petition and any annexes thereto.

Section 5. Expediting proceedings; TEPO. - The court in which the petition is filed may issue
such orders to expedite the proceedings, and it may also grant a TEPO for the preservation of
the rights of the parties pending such proceedings.

Section 6. Proceedings after comment is filed. - After the comment is filed or the time for the
filing thereof has expired, the court may hear the case which shall be summary in nature or
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require the parties to submit memoranda. The petition shall be resolved without delay within
sixty (60) days from the date of the submission of the petition for resolution.

Section 7. Judgment. - If warranted, the court shall grant the privilege of the writ of continuing
mandamus requiring respondent to perform an act or series of acts until the judgment is fully
satisfied and to grant such other reliefs as may be warranted resulting from the wrongful or
illegal acts of the respondent. The court shall require the respondent to submit periodic reports
detailing the progress and execution of the judgment, and the court may, by itself or through a
commissioner or the appropriate government agency, evaluate and monitor compliance. The
petitioner may submit its comments or observations on the execution of the judgment.

Section 8. Return of the writ. - The periodic reports submitted by the respondent detailing
compliance with the judgment shall be contained in partial returns of the writ.

Upon full satisfaction of the judgment, a final return of the writ shall be made to the court by the
respondent. If the court finds that the judgment has been fully implemented, the satisfaction of
judgment shall be entered in the court docket.



PART IV
CRIMINAL PROCEDURE


RULE 9
PROSECUTION OF OFFENSES

Section 1. Who may file. - Any offended party, peace officer or any public officer charged with
the enforcement of an environmental law may file a complaint before the proper officer in
accordance with the Rules of Court.

Section 2. Filing of the information. - An information, charging a person with a violation of an
environmental law and subscribed by the prosecutor, shall be filed with the court.

Section 3. Special prosecutor. - In criminal cases, where there is no private offended party, a
counsel whose services are offered by any person or organization may be allowed by the court
as special prosecutor, with the consent of and subject to the control and supervision of the
public prosecutor.


RULE 10
PROSECUTION OF CIVIL ACTIONS

Section 1. Institution of criminal and civil actions. - When a criminal action is instituted, the civil
action for the recovery of civil liability arising from the offense charged, shall be deemed
instituted with the criminal action unless the complainant waives the civil action, reserves the
right to institute it separately or institutes the civil action prior to the criminal action.

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Unless the civil action has been instituted prior to the criminal action, the reservation of the right
to institute separately the civil action shall be made during arraignment.
In case civil liability is imposed or damages are awarded, the filing and other legal fees shall be
imposed on said award in accordance with Rule 141 of the Rules of Court, and the fees shall
constitute a first lien on the judgment award. The damages awarded in cases where there is no
private offended party, less the filing fees, shall accrue to the funds of the agency charged with
the implementation of the environmental law violated. The award shall be used for the
restoration and rehabilitation of the environment adversely affected.


RULE 11
ARREST

Section 1. Arrest without warrant; when lawful. - A peace officer or an individual deputized by
the proper government agency may, without a warrant, arrest a person:

(a) When, in his presence, the person to be arrested has committed, is actually
committing or is attempting to commit an offense; or

(b) When an offense has just been committed, and he has probable cause to believe
based on personal knowledge of facts or circumstances that the person to be arrested
has committed it. Individuals deputized by the proper government agency who are
enforcing environmental laws shall enjoy the presumption of regularity under Section
3(m), Rule 131 of the Rules of Court when effecting arrests for violations of
environmental laws.

Section 2. Warrant of arrest. - All warrants of arrest issued by the court shall be accompanied by
a certified true copy of the information filed with the issuing court.



RULE 12
CUSTODY AND DISPOSITION OF SEIZED ITEMS, EQUIPMENT,
PARAPHERNALIA, CONVEYANCES AND INSTRUMENTS


Section 1. Custody and disposition of seized items. - The custody and disposition of seized
items shall be in accordance with the applicable laws or rules promulgated by the concerned
government agency.

Section 2. Procedure. - In the absence of applicable laws or rules promulgated by the
concerned government agency, the following procedure shall be observed:

(a) The apprehending officer having initial custody and control of the seized items,
equipment, paraphernalia, conveyances and instruments shall physically inventory and
whenever practicable, photograph the same in the presence of the person from whom
such items were seized.

(b) Thereafter, the apprehending officer shall submit to the issuing court the return of the
search warrant within five (5) days from date of seizure or in case of warrantless arrest,
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submit within five (5) days from date of seizure, the inventory report, compliance report,
photographs, representative samples and other pertinent documents to the public
prosecutor for appropriate action.

(c) Upon motion by any interested party, the court may direct the auction sale of seized
items, equipment, paraphernalia, tools or instruments of the crime. The court shall, after
hearing, fix the minimum bid price based on the recommendation of the concerned
government agency. The sheriff shall conduct the auction.

(d) The auction sale shall be with notice to the accused, the person from whom the items
were seized, or the owner thereof and the concerned government agency.

(e) The notice of auction shall be posted in three conspicuous places in the city or
municipality where the items, equipment, paraphernalia, tools or instruments of the crime
were seized.

(f) The proceeds shall be held in trust and deposited with the government depository
bank for disposition according to the judgment.


RULE 13
PROVISIONAL REMEDIES

Section 1. Attachment in environmental cases. - The provisional remedy of attachment under
Rule 127 of the Rules of Court may be availed of in environmental cases.

Section 2. Environmental Protection Order (EPO); Temporary Environmental Protection Order
(TEPO) in criminal cases. - The procedure for and issuance of EPO and TEPO shall be
governed by Rule 2 of these Rules.


RULE 14
BAIL

Section 1. Bail, where filed. - Bail in the amount fixed may be filed with the court where the case
is pending, or in the absence or unavailability of the judge thereof, with any regional trial judge,
metropolitan trial judge, municipal trial judge or municipal circuit trial judge in the province, city
or municipality. If the accused is arrested in a province, city or municipality other than where the
case is pending, bail may also be filed with any Regional Trial Court of said place, or if no judge
thereof is available, with any metropolitan trial judge, municipal trial judge or municipal circuit
trial judge therein. If the court grants bail, the court may issue a hold-departure order in
appropriate cases.

Section 2. Duties of the court. - Before granting the application for bail, the judge must read the
information in a language known to and understood by the accused and require the accused to
sign a written undertaking, as follows:

(a) To appear before the court that issued the warrant of arrest for arraignment purposes
on the date scheduled, and if the accused fails to appear without justification on the date
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of arraignment, accused waives the reading of the information and authorizes the court
to enter a plea of not guilty on behalf of the accused and to set the case for trial;

(b) To appear whenever required by the court where the case is pending; and

(c) To waive the right of the accused to be present at the trial, and upon failure of the
accused to appear without justification and despite due notice, the trial may proceed in
absentia.


RULE 15
ARRAIGNMENT AND PLEA

Section 1. Arraignment. - The court shall set the arraignment of the accused within fifteen (15)
days from the time it acquires jurisdiction over the accused, with notice to the public prosecutor
and offended party or concerned government agency that it will entertain plea-bargaining on the
date of the arraignment.

Section 2. Plea-bargaining. - On the scheduled date of arraignment, the court shall consider
plea-bargaining arrangements. Where the prosecution and offended party or concerned
government agency agree to the plea offered by the accused, the court shall:

(a) Issue an order which contains the plea-bargaining arrived at;

(b) Proceed to receive evidence on the civil aspect of the case, if any; and

(c) Render and promulgate judgment of conviction, including the civil liability for
damages.


RULE 16
PRE-TRIAL

Section 1. Setting of pre-trial conference. - After the arraignment, the court shall set the pre-trial
conference within thirty (30) days. It may refer the case to the branch clerk of court, if warranted,
for a preliminary conference to be set at least three (3) days prior to the pre-trial.

Section 2. Preliminary conference. - The preliminary conference shall be for the following
purposes:

(a) To assist the parties in reaching a settlement of the civil aspect of the case;

(b) To mark the documents to be presented as exhibits;

(c) To attach copies thereof to the records after comparison with the originals;

(d) To ascertain from the parties the undisputed facts and admissions on the
genuineness and due execution of documents marked as exhibits;

(e) To consider such other matters as may aid in the prompt disposition of the case;
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(f) To record the proceedings during the preliminary conference in the Minutes of
Preliminary Conference to be signed by the parties and counsel;

(g) To mark the affidavits of witnesses which shall be in question and answer form and
shall constitute the direct examination of the witnesses; and

(h) To attach the Minutes and marked exhibits to the case record before the pre-trial
proper. The parties or their counsel must submit to the branch clerk of court the names,
addresses and contact numbers of the affiants.

Section 3. Pre-trial duty of the judge. - During the pre-trial, the court shall:

(a) Place the parties and their counsels under oath;

(b) Adopt the minutes of the preliminary conference as part of the pre-trial proceedings,
confirm markings of exhibits or substituted photocopies and admissions on the
genuineness and due execution of documents, and list object and testimonial evidence;

(c) Scrutinize the information and the statements in the affidavits and other documents
which form part of the record of the preliminary investigation together with other
documents identified and marked as exhibits to determine further admissions of facts as
to:

i. The court's territorial jurisdiction relative to the offense(s) charged;

ii. Qualification of expert witnesses; and

iii. Amount of damages;

(d) Define factual and legal issues;

(e) Ask parties to agree on the specific trial dates and adhere to the flow chart
determined by the court which shall contain the time frames for the different stages of
the proceeding up to promulgation of decision;

(f) Require the parties to submit to the branch clerk of court the names, addresses and
contact numbers of witnesses that need to be summoned by subpoena; and

(g) Consider modification of order of trial if the accused admits the charge but interposes
a lawful defense.

Section 4. Manner of questioning. - All questions or statements must be directed to the court.

Section 5. Agreements or admissions. - All agreements or admissions made or entered during
the pre-trial conference shall be reduced in writing and signed by the accused and counsel;
otherwise, they cannot be used against the accused. The agreements covering the matters
referred to in Section 1, Rule 118 of the Rules of Court shall be approved by the court.

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Section 6. Record of proceedings. - All proceedings during the pre-trial shall be recorded, the
transcripts prepared and the minutes signed by the parties or their counsels.

Section 7. Pre-trial order. - The court shall issue a pre-trial order within ten (10) days after the
termination of the pre-trial, setting forth the actions taken during the pre-trial conference, the
facts stipulated, the admissions made, evidence marked, the number of witnesses to be
presented and the schedule of trial. The order shall bind the parties and control the course of
action during the trial.


RULE 17
TRIAL

Section 1. Continuous trial. - The court shall endeavor to conduct continuous trial which shall
not exceed three (3) months from the date of the issuance of the pre-trial order.

Section 2. Affidavit in lieu of direct examination. - Affidavit in lieu of direct examination shall be
used, subject to cross-examination and the right to object to inadmissible portions of the
affidavit.

Section 3. Submission of memoranda. - The court may require the parties to submit their
respective memoranda and if possible, in electronic form, within a non-extendible period of thirty
(30) days from the date the case is submitted for decision.

With or without any memoranda filed, the court shall have a period of sixty (60) days to decide
the case counted from the last day of the 30-day period to file the memoranda.

Section 4. Disposition period. - The court shall dispose the case within a period of ten (10)
months from the date of arraignment.

Section 5. Pro bono lawyers. - If the accused cannot afford the services of counsel or there is no
available public attorney, the court shall require the Integrated Bar of the Philippines to provide
pro bono lawyers for the accused.


RULE 18
SUBSIDIARY LIABILITY

Section 1. Subsidiary liability. - In case of conviction of the accused and subsidiary liability is
allowed by law, the court may, by motion of the person entitled to recover under judgment,
enforce such subsidiary liability against a person or corporation subsidiary liable under Article
102 and Article 103 of the Revised Penal Code.


RULE 19
STRATEGIC LAWSUIT AGAINST PUBLIC PARTICIPATION IN CRIMINAL CASES

Section 1. Motion to dismiss. - Upon the filing of an information in court and before arraignment,
the accused may file a motion to dismiss on the ground that the criminal action is a SLAPP.
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Section 2. Summary hearing. - The hearing on the defense of a SLAPP shall be summary in
nature. The parties must submit all the available evidence in support of their respective
positions. The party seeking the dismissal of the case must prove by substantial evidence that
his acts for the enforcement of environmental law is a legitimate action for the protection,
preservation and rehabilitation of the environment. The party filing the action assailed as a
SLAPP shall prove by preponderance of evidence that the action is not a SLAPP.

Section 3. Resolution. - The court shall grant the motion if the accused establishes in the
summary hearing that the criminal case has been filed with intent to harass, vex, exert undue
pressure or stifle any legal recourse that any person, institution or the government has taken or
may take in the enforcement of environmental laws, protection of the environment or assertion
of environmental rights.

If the court denies the motion, the court shall immediately proceed with the arraignment of the
accused.



PART V
EVIDENCE


RULE 20
PRECAUTIONARY PRINCIPLE

Section 1. Applicability. - When there is a lack of full scientific certainty in establishing a causal
link between human activity and environmental effect, the court shall apply the precautionary
principle in resolving the case before it.

The constitutional right of the people to a balanced and healthful ecology shall be given the
benefit of the doubt.

Section 2. Standards for application. - In applying the precautionary principle, the following
factors, among others, may be considered: (1) threats to human life or health; (2) inequity to
present or future generations; or (3) prejudice to the environment without legal consideration of
the environmental rights of those affected.


RULE 21
DOCUMENTARY EVIDENCE

Section 1. Photographic, video and similar evidence. - Photographs, videos and similar
evidence of events, acts, transactions of wildlife, wildlife by-products or derivatives, forest
products or mineral resources subject of a case shall be admissible when authenticated by the
person who took the same, by some other person present when said evidence was taken, or by
any other person competent to testify on the accuracy thereof.

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Section 2. Entries in official records. - Entries in official records made in the performance of his
duty by a public officer of the Philippines, or by a person in performance of a duty specially
enjoined by law, are prima facie evidence of the facts therein stated.


RULE 22
FINAL PROVISIONS

Section 1. Effectivity. - These Rules shall take effect within fifteen (15) days following publication
once in a newspaper of general circulation.

Section 2. Application of the Rules of Court. - The Rules of Court shall apply in a suppletory
manner, except as otherwise provided herein.


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A.M. NO. 03-02-05-SC

RE: PROPOSED RULE ON GUARDIANSHIP OF MINORS

R E S O L U T I O N

Acting on the letter of the Chairman of the Committee on Revision of the Rules of Court
submitting for this Court's consideration and approval the Proposed Rule on Guardianship of
Minors, the Court Resolved to APPROVE the same.

The Rule shall take effect on May 1, 2003 following its publication in a newspaper of general
circulation not later than April 15, 2003.

April 1, 2003.

Davide, Jr. C.J., Bellosillo, Puno, Vitug, Mendoza, Panganiban, Quisumbing, Ynares-Santiago,
Sandoval-Gutierrez, Carpio, Austria-Martinez, Corona, Carpio-Moralez,Callejo Sr., Azcuna, JJ.,
concur


RULE ON GUARDIANSHIP OF MINORS


Section 1. Applicability of the Rule. This Rule shall apply to petitions for guardianship over the
person or property, or both, of a minor.

The father and the mother shall jointly exercise legal guardianship over the person and property
of their unemancipated common child without the necessity of a court appointment. In such
case, this Rule shall be suppletory to the provisions of the Family Code on guardianship.

Sec. 2. Who may petition for appointment of guardian. On grounds authorized by law, any
relative or other person on behalf of a minor, or the minor himself if fourteen years of age or
over, may petition the Family Court for the appointment of a general guardian over the person or
property, or both, of such minor. The petition may also be filed by the Secretary of Social
Welfare and Development and by the Secretary of Health in the case of an insane minor who
needs to be hospitalized.

Sec. 3. Where to file petition. A petition for guardianship over the person or property, or both,
of a minor may be filed in the Family Court of the province or city where the minor actually
resides. If he resides in a foreign country, the petition shall be flied with the Family Court of the
province or city where his property or any part thereof is situated.

Sec. 4. Grounds of petition. - The grounds for the appointment of a guardian over the person or
property, or both, of a minor are the following:

(a) death, continued absence, or incapacity of his parents;

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(b) suspension, deprivation or termination of parental authority;

(c) remarriage of his surviving parent, if the latter Is found unsuitable to exercise parental
authority; or

(d) when the best interests of the minor so require.

Sec. 5. Qualifications of guardians. In appointing a guardian, the court shall consider the
guardian's:

(a) moral character;

(b) physical, mental and psychological condition;

(c) financial status;

(d) relationship of trust with the minor;

(e) availability to exercise the powers and duties of a guardian for the full period of the
guardianship;

(f) lack of conflict of interest with the minor; and

(g) ability to manage the property of the minor.

Sec. 6. Who may be appointed guardian of the person or property, or both, of a minor. In
default of parents or a court-appointed guardian, the court may appoint a guardian of the person
or property, or both, of a minor, observing as far as practicable, the following order of
preference:

(a) the surviving grandparent and In case several grandparents survive, the court shall
select any of them taking Into account all relevant considerations;

(b) the oldest brother or sister of the minor over twenty-one years of age, unless unfit or
disqualified;

(c) the actual custodian of the minor over twenty-one years of age, unless unfit or
disqualified; and

(d) any other person, who in the sound discretion of the court, would serve the best
interests of the minor.
Sec. 7. Contents of petition. A petition for the appointment of a general guardian must allege
the following:

(a) The jurisdictional facts;

(b) The name, age and residence of the prospective ward;

(c) The ground rendering the appointment necessary or convenient;

146

(d) The death of the parents of the minor or the termination, deprivation or suspension of
their parental authority;

(e) The remarriage of the minor's surviving parent;

(f) The names, ages, and residences of relatives within the 4th civil degree of the minor,
and of persons having him in their care and custody;

(g) The probable value, character and location of the property of the minor; and

(h) The name, age and residence of the person for whom letters of guardianship are
prayed.

The petition shall be verified and accompanied by a certification against forum shopping.

However, no defect in the petition or verification shall render void the issuance of letters of
guardianship.

Sec. 8. Time and notice of hearing. When a petition for the appointment of a general guardian
is filed, the court shall fix a time and place for its hearing, and shall cause reasonable notice to
be given to the persons mentioned in the petition, including the minor if he is fourteen years of
age or over, and may direct other general or special notice to be given.

Sec. 9. Case study report. The court shall order a social worker to conduct a case study of the
minor and all the prospective guardians and submit his report and recommendation to the court
for its guidance before the scheduled hearing. The social worker may intervene on behalf of the
minor if he finds that the petition for guardianship should be denied.

Sec. 10. Opposition to petition. Any interested person may contest the petition by filing a
written opposition based on such grounds as the majority of the minor or the unsuitability of the
person for whom letters are prayed, and pray that the petition be denied, or that letters of
guardianship issue to himself, or to any suitable person named in the opposition.

Sec. 11. Hearing and order for letters to issue. At the hearing of the petition, it must be shown
that the requirement of notice has been complied with. The prospective ward shall be presented
to the court. The court shall hear the evidence of the parties in support of their respective
allegations. If warranted, the court shall appoint a suitable guardian of the person or propert y, or
both, of the minor.

At the discretion of the court, the hearing on guardianship may be closed to the public and the
records of the case shall not be released without its approval.

Sec. 12. When and how a guardian of the property for non-resident minor is appointed; notice.
When the minor resides outside the Philippines but has property in the Philippines, any relative
or friend of such minor, or any one interested in his property, in expectancy or otherwise, may
petition the Family Court for the appointment of a guardian over the property.

147

Notice of hearing of the petition shall be given to the minor by publication or any other means as
the court may deem proper. The court may dispense with the presence of the non-resident
minor.

If after hearing the court is satisfied that such non-resident is a minor and a guardian is
necessary or convenient, it may appoint a guardian over his property.

Sec. 13. Service of final and executory judgment or order. The final and executory judgment
or order shall be served upon the Local Civil Registrar of the municipality or city where the minor
resides and the Register of Deeds of the place where his property or part thereof is situated
shall annotate the same in the corresponding title, and report to the court his compliance within
fifteen days from receipt of the order.

Sec. 14. Bond of guardian; amount; conditions. - Before he enters upon the execution of his
trust, or letters of guardianship issue, an appointed guardian may be required to post a bond in
such sum as the court shall determine and conditioned as follows:

(a) To make and return to the court, within three months after the issuance of his
letters of guardianship, a true and complete Inventory of all the property, real and
personal, of his ward which shall come to his possession or knowledge or to the
possession or knowledge of any other person in his behalf;

(b) To faithfully execute the duties of his trust, to manage and dispose of the property
according to this rule for the best interests of the ward, and to provide for his proper
care, custody and education;

(c) To render a true and Just account of all the property of the ward in his hands, and
of all proceeds or interest derived therefrom, and of the management and dispositi on of
the same, at the time designated by this rule and such other times as the court directs;
and at the expiration of his trust, to settle his accounts with the court and deliver and pay
over all the property, effects, and monies remaining in his hands, or due from him on
such settlement, to the person lawfully entitled thereto; and

(d) To perform all orders of the court and such other duties as may be required by law.

Sec. 15. Where to file the bond; action thereon. The bond posted by a guardian shall be filed
in the Family Court and, In case of breach of any of its conditions, the guardian may be
prosecuted in the same proceeding for the benefit of the ward or of any other person legally
interested in the property.

Whenever necessary, the court may require the guardian to post a new bond and may
discharge from further liability the sureties on the old bond after due notice to interested
persons, if no injury may result therefrom to those interested in the property.

Sec. 16. Bond of parents as guardians of property of minor. If the market value of the property
or the annual Income of the child exceeds P50,000.00, the parent concerned shall furnish a
bond In such amount as the court may determine, but in no case less than ten per centurn of
the value of such property or annual income, to guarantee the performance of the obligations
prescribed for general guardians.
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A verified petition for approval of the bond shall be flied in the Family Court of the place where
the child resides or, if the child resides in a foreign country, in the Family Court of the place
where the property or any part thereof is situated.

The petition shall be docketed as a summary special proceeding In which all incidents and
issues regarding the performance of the obligations of a general guardian shall be heard and
resolved.

Sec. 17. General duties of guardian. A guardian shall have the care and custody of the person
of his ward and the management of his property, or only the management of his property. The
guardian of the property of a nonresident minor shall have the management of all his property
within the Philippines.

A guardian shall perform the following duties:

(a) To pay the just debts of the ward out of the personal property and the income of the
real property of the ward, If the same is sufficient; otherwise, out of the real property of
the ward upon obtaining an order for its sale or encumbrance;

(b) To settle all accounts of his ward, and demand, sue for, receive all debts due him, or
may, with the approval of the court, compound for the same and give discharges to the
debtor on receiving a fair and just dividend of the property and effects; and to appear for
and represent the ward in all actions and special proceedings, unless another person is
appointed for that purpose;

(c) To manage the property of the ward frugally and without waste, and apply the income
and profits thereon, insofar as may be necessary, to the comfortable and suitable
maintenance of the ward; and if such income and profits be insufficient for that purpose,
to sell or encumber the real or personal property, upon being authorized by the court to
do so;

(d) To consent to a partition of real or personal property owned by the ward jointly or in
common with others upon authority granted by the court after hearing, notice to relatives
of the ward, and a careful investigation as to the necessity and propriety of the proposed
action;

(e) To submit to the court a verified inventory of the property of his ward within three
months after his appointment, and annually thereafter, the rendition of which may be
required upon the application of an interested person;

(f) To report to the court any property of the ward not included in the inventory which is
discovered, or succeeded to, or acquired by the ward within three months after such
discovery, succession, or acquisition; and

(g) To render to the court for its approval an accounting of the property one year from his
appointment, and every year thereafter or as often as may be required.

Sec. 18. Power and duty of the court The court may:

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(a) Request the assistance of one or more commissioners in the appraisal of the
property of the ward reported in the initial and subsequent inventories;

(b) Authorize reimbursement to the guardian, other than a parent, of reasonable
expenses incurred in the execution of his trust, and allow payment of compensation for
his services as the court may deem just, not exceeding ten per centum of the net income
of the ward, if any; otherwise, in such amount the court determines to be a reasonable
compensation for his services; and

(c) Upon complaint of the guardian or ward, or of any person having actual or
prospective interest in the property at the ward, require any person suspected of having
embezzled, concealed, or disposed of any money, goods or interest, or a written
instrument belonging to the ward or his property to appear for examination concerning
any thereof and issue such orders as would secure the property against such
embezzlement, concealment or conveyance.

Sec. 19. Petition to sell or encumber property. - When the income of a property under
guardianship is insufficient to maintain and educate the ward, or when it is for his benefit that his
personal or real property or any part thereof be sold, mortgaged or otherwise encumbered, and
the proceeds invested in safe and productive security, or in the improvement or security of other
real property, the guardian may file a verified petition setting forth such facts, and praying that
an order issue authorizing the sale or encumbrance of the property.

Sec. 20. Order to show cause. If the sale or encumbrance is necessary or would be beneficial
to the ward, the court shall order his next of kin and all person/s interested in the property to
appear at a reasonable time and place therein specified and show cause why the petition
should not be granted.

Sec. 21. Hearing on return of order; costs. At the time and place designated in the order to
show cause, the court shall hear the allegations and evidence of the petitioner and next of kin,
and other persons interested, together with their witnesses, and grant or deny the petition as the
best interests of the ward may require.

Sec. 22. Contents of order for sale or encumbrance and its duration; bond. If, after full
examination, it is necessary, or would be beneficial to the ward, to sell or encumber the
property, or some portion of it, the court shall order such sale or encumbrance the proceeds of
which shall be expended for the maintenance or the education of the ward, or invested as the
circumstances may require. The order shall specify the grounds for the sale or encumbrance
and may direct that the property ordered sold be disposed of at public sale, subject to such
conditions as to the time and manner of payment, and security where a part of the payment is
deferred. The original bond of the guardian shall stand as security for the proper appropriation
of the proceeds of the sale or encumbrance, but the court may, if deemed expedient, require an
additional bond as a condition for the sale or encumbrance. The authority to sell or encumber
shall not extend beyond one year, unless renewed by the court.

Sec. 23. Court may order investment of proceeds and direct management of property. The
court may authorize and require the guardian to invest the proceeds of sales or encumbrances,
and any other money of his ward in his hands, in real or personal property, for the best interests
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of the ward, and may make such other orders for the management, investment, and disposition
of the property and effects, as circumstances may warrant.

Sec. 24. Grounds for removal or resignation of guardian. When a guardian becomes insane or
otherwise incapable of discharging his trust or is found thereafter to be unsuitable, or has
wasted or mismanaged the property of the ward, or has failed to render an account or make a
return for thirty days after it is due, the court may, upon reasonable notice to the guardian,
remove him as such and require him to surrender the property of the ward to the person found
to be lawfully entitled thereto.

The court may allow the guardian to resign for justifiable causes.

Upon the removal or resignation of the guardian, the court shall appoint a new one.

No motion for removal or resignation shall be granted unless the guardian has submitted the
proper accounting of the property of the ward and the court has approved the same.

Sec. 25. Ground for termination of guardianship. The court motu proprio or upon verified
motion of any person allowed to file a petition for guardianship may terminate the guardianship
on the ground that the ward has come of age or has died. The guardian shall notify the court of
such fact within ten days of its occurrence.

Sec. 26. Service of final and executory judgment or order. The final and executory judgment
or order shall be served upon the Local Civil Registrar of the municipality or city where the minor
resides and the Register of Deeds of the province or city where his property or any part thereof
is situated. Both the Local Civil Registrar and' the Register of Deeds shall enter the final and
executory judgment or order in the appropriate books in their offices.

Sec. 27. Effect of the rule. This Rule amends Rules 92 to 97 inclusive of the Rules of Court on
guardianship of minors. Guardianship of incompetents who are not minors shall continue to be
under the jurisdiction of the regular courts and governed by the Rules of Court.

Sec. 28. Effectivity. - This Rule shall take effect on May 1, 2003 following its publication in a
newspaper of general circulation not later than April 15, 2003.

151

AM. No. 11-3-6-SC
AMENDMENT OF SECTION 12, RULE 14 OF THE RULES OF COURT ON SERVICE UPON
FOREIGN PRIVATE JURIDICAL ENTITY


Section 12, Rule 14 of the Rules of Court is hereby amended to read as follows:

"SEC. 12. Service upon foreign private juridical entity. When the defendant is a foreign
private juridical entity which has transacted business in the Philippines, service may be made on
its resident agent designated in accordance with law for that purpose, or, i f there be no such
agent, on the government official designated by law to that effect, or on any of its officers or
agents within the Philippines.

If the foreign private juridical entity is not registered in the Philippines or has no resident agent,
service may, with leave of court, be effected out of the Philippines through any of the following
means:

a) By personal service coursed through the appropriate court in the foreign country with
the assistance of the Department of Foreign Affairs;

b) By publication once in a newspaper of general circulation in the country where the
defendant may be found and by serving a copy of the summons and the court order by-
registered mail at the last known address of the defendant;

c) By facsimile or any recognized electronic means that could generate proof of service;
or

d) By such other means as the court may in its discretion direct."

This rule shall take effect fifteen (15) days after publication in a newspaper of general circulation
in the Philippines.

March 15, 2011

152

ACT NO. 3135

AN ACT TO REGULATE THE SALE OF PROPERTY UNDER SPECIAL POWERS INSERTED
IN OR ANNEXED TO REAL-ESTATE MORTGAGES


Section 1. When a sale is made under a special power inserted in or attached to any real-estate
mortgage hereafter made as security for the payment of money or the fulfillment of any other
obligation, the provisions of the following election shall govern as to the manner in which the
sale and redemption shall be effected, whether or not provision for the same is made in the
power.

Sec. 2. Said sale cannot be made legally outside of the province in which the property sold is
situated; and in case the place within said province in which the sale is to be made is subject to
stipulation, such sale shall be made in said place or in the municipal building of the municipality
in which the property or part thereof is situated.

Sec. 3. Notice shall be given by posting notices of the sale for not less than twenty days in at
least three public places of the municipality or city where the property is situated, and if such
property is worth more than four hundred pesos, such notice shall also be published once a
week for at least three consecutive weeks in a newspaper of general circulation in the
municipality or city.

Sec. 4. The sale shall be made at public auction, between the hours or nine in the morning and
four in the afternoon; and shall be under the direction of the sheriff of the province, the justice or
auxiliary justice of the peace of the municipality in which such sale has to be made, or a notary
public of said municipality, who shall be entitled to collect a fee of five pesos each day of actual
work performed, in addition to his expenses.

Sec. 5. At any sale, the creditor, trustee, or other persons authorized to act for the creditor, may
participate in the bidding and purchase under the same conditions as any other bidder, unless
the contrary has been expressly provided in the mortgage or trust deed under which the sale is
made.

Sec. 6. In all cases in which an extrajudicial sale is made under the special power hereinbefore
referred to, the debtor, his successors in interest or any judicial creditor or judgment creditor of
said debtor, or any person having a lien on the property subsequent to the mortgage or deed of
trust under which the property is sold, may redeem the same at any time within the term of one
year from and after the date of the sale; and such redemption shall be governed by the
provisions of sections four hundred and sixty-four to four hundred and sixty-six, inclusive, of the
Code of Civil Procedure, in so far as these are not inconsistent with the provisions of this Act.

Sec. 7. In any sale made under the provisions of this Act, the purchaser may petition the Court
of First Instance of the province or place where the property or any part thereof is situated, to
give him possession thereof during the redemption period, furnishing bond in an amount
equivalent to the use of the property for a period of twelve months, to indemnify the debtor in
153

case it be shown that the sale was made without violating the mortgage or without complying
with the requirements of this Act. Such petition shall be made under oath and filed in form of an
ex parte motion in the registration or cadastral proceedings if the property is registered, or in
special proceedings in the case of property registered under the Mortgage Law or under section
one hundred and ninety-four of the Administrative Code, or of any other real property
encumbered with a mortgage duly registered in the office of any register of deeds in accordance
with any existing law, and in each case the clerk of the court shall, upon the filing of such
petition, collect the fees specified in paragraph eleven of section one hundred and fourteen of
Act Numbered Four hundred and ninety-six, as amended by Act Numbered Twenty-eight
hundred and sixty-six, and the court shall, upon approval of the bond, order that a writ of
possession issue, addressed to the sheriff of the province in which the property is situated, who
shall execute said order immediately.

Sec. 8. The debtor may, in the proceedings in which possession was requested, but not later
than thirty days after the purchaser was given possession, petition that the sale be set aside
and the writ of possession cancelled, specifying the damages suffered by him, because the
mortgage was not violated or the sale was not made in accordance with the provisions hereof,
and the court shall take cognizance of this petition in accordance with the summary procedure
provided for in section one hundred and twelve of Act Numbered Four hundred and ninety-six;
and if it finds the complaint of the debtor justified, it shall dispose in his favor of all or part of the
bond furnished by the person who obtained possession. Either of the parties may appeal from
the order of the judge in accordance with section fourteen of Act Numbered Four hundred and
ninety-six; but the order of possession shall continue in effect during the pendency of the
appeal.

Sec. 9. When the property is redeemed after the purchaser has been given possession, the
redeemer shall be entitled to deduct from the price of redemption any rentals that said
purchaser may have collected in case the property or any part thereof was rented; if the
purchaser occupied the property as his own dwelling, it being town property, or used it gainfully,
it being rural property, the redeemer may deduct from the price the interest of one per centum
per month provided for in section four hundred and sixty-five of the Code of Civil Procedure.

Sec. 10. This Act shall take effect on its approval.
Approved: March 6, 1924


154

ACT NO. 3326
AN ACT TO ESTABLISH PERIODS OF PRESCRIPTION FOR VIOLATIONS PENALIZED BY
SPECIAL ACTS AND MUNICIPAL ORDINANCES AND TO PROVIDE WHEN
PRESCRIPTION SHALL BEGIN TO RUN


Section 1. Violations penalized by special acts shall, unless otherwise provided in such acts,
prescribe in accordance with the following rules: (a) after a year for offenses punished only by a
fine or by imprisonment for not more than one month, or both; (b) after four years for those
punished by imprisonment for more than one month, but less than two years; (c) after eight
years for those punished by imprisonment for two years or more, but less than six years; and (d)
after twelve years for any other offense punished by imprisonment for six years or more, except
the crime of treason, which shall prescribe after twenty years. Violations penalized by municipal
ordinances shall prescribe after two months.

Sec. 2. Prescription shall begin to run from the day of the commission of the violation of the law,
and if the same be not known at the time, from the discovery thereof and the institution of
judicial proceeding for its investigation and punishment.

The prescription shall be interrupted when proceedings are instituted against the guilty person,
and shall begin to run again if the proceedings are dismissed for reasons not constituting
jeopardy.

Sec. 3. For the purposes of this Act, special acts shall be acts defining and penalizing violations
of the law not included in the Penal Code.

Sec. 4. This Act shall take effect on its approval.

155

ACT NO. 1508

AN ACT PROVIDING FOR THE MORTGAGING OF PERSONAL PROPERTY AND FOR THE
REGISTRATION OF THE MORTGAGES SO EXECUTED


Section 1. The short title of this Act shall be "The Chattel Mortgage Law."

Sec. 2. All personal property shall be subject to mortgage, agreeably to the provisions of this
Act, and a mortgage executed in pursuance thereof shall be termed chattel mortgage.

Sec. 3. Chattel mortgage defined. A chattel mortgage is a conditional sale of personal
property as security for the payment of a debt, or the performance of some other obligation
specified therein, the condition being that the sale shall be void upon the seller paying to the
purchaser a sum of money or doing some other act named. If the condition is performed
according to its terms the mortgage and sale immediately become void, and the mortgagee is
thereby divested of his title.

Sec. 4. Validity. A chattel mortgage shall not be valid against any person except the
mortgagor, his executors or administrators, unless the possession of the property is delivered to
and retained by the mortgagee or unless the mortgage is recorded in the office of the register of
deeds of the province in which the mortgagor resides at the time of making the same, or, if he
resides without the Philippine Islands, in the province in which the property is situated: Provided,
however, That if the property is situated in a different province from that in which the mortgagor
resides, the mortgage shall be recorded in the office of the register of deeds of both the
province in which the mortgagor resides and that in which the property is situated, and for the
purposes of this Act the city of Manila shall be deemed to be a province.

Sec. 5. Form. A chattel mortgage shall be deemed to be sufficient when made substantially
in accordance with the following form, and shall be signed by the person or persons executing
the same, in the presence of two witnesses, who shall sign the mortgage as witnesses to the
execution thereof, and each mortgagor and mortgagee, or, in the absence of the mortgagee, his
agent or attorney, shall make and subscribe an affidavit in substance as hereinafter set forth,
which affidavit, signed by the parties to the mortgage as above stated, and the certificate of the
oath signed by the authority administering the same, shall be appended to such mortgage and
recorded therewith.

FORM OF CHATTEL MORTGAGE AND AFFIDAVIT.

"This mortgage made this ____ day of ______19____ by _______________, a resident of the
municipality of ______________, Province of ____________, Philippine Islands mortgagor, to
____________, a resident of the municipality of ___________, Province of ______________,
Philippine Islands, mortgagee, witnesseth:

156

"That the said mortgagor hereby conveys and mortgages to the said mortgagee all of the
following-described personal property situated in the municipality of ______________, Province
of ____________ and now in the possession of said mortgagor, to wit:

(Here insert specific description of the property mortgaged.)

"This mortgage is given as security for the payment to the said ______, mortgagee, of
promissory notes for the sum of ____________ pesos, with (or without, as the case may be)
interest thereon at the rate of ___________ per centum per annum, according to the terms of
__________, certain promissory notes, dated _________, and in the words and figures
following (here insert copy of the note or notes secured).

"(If the mortgage is given for the performance of some other obligation aside from the payment
of promissory notes, describe correctly but concisely the obligation to be performed.)

"The conditions of this obligation are such that if the mortgagor, his heirs, executors, or
administrators shall well and truly perform the full obligation (or obligations) above stated
according to the terms thereof, then this obligation shall be null and void.

"Executed at the municipality of _________, in the Province of ________, this _____ day of
19_____

____________________
(Signature of mortgagor.)

"In the presence of

"_________________
"_________________
(Two witnesses sign here.)

FORM OF OATH.
"We severally swear that the foregoing mortgage is made for the purpose of securing the
obligation specified in the conditions thereof, and for no other purpose, and that the same is a
just and valid obligation, and one not entered into for the purpose of fraud."

FORM OF CERTIFICATE OF OATH.
"At ___________, in the Province of _________, personally appeared ____________, the
parties who signed the foregoing affidavit and made oath to the truth thereof before me.

"_____________________________"
(Notary public, justice of the peace
3
, or other officer, as the case may be.)

Sec. 6. Corporations. When a corporation is a party to such mortgage the affidavit required
may be made and subscribed by a director, trustee, cashier, treasurer, or manager thereof, or
by a person authorized on the part of such corporation to make or to receive such mortgage.
When a partnership is a party to the mortgage the affidavit may be made and subscribed by one
member thereof.


3
Now Municipal judge.
157

Sec. 7. Descriptions of property. The description of the mortgaged property shall be such as
to enable the parties to the mortgage, or any other person, after reasonable inquiry and
investigation, to identify the same.

If the property mortgaged be large cattle," as defined by section one of Act Numbered Eleven
and forty-seven
4
, and the amendments thereof, the description of said property in the mortgage
shall contain the brands, class, sex, age, knots of radiated hair commonly known as remolinos,
or cowlicks, and other marks of ownership as described and set forth in the certificate of
ownership of said animal or animals, together with the number and place of issue of such
certificates of ownership.

If growing crops be mortgaged the mortgage may contain an agreement stipulating that the
mortgagor binds himself properly to tend, care for and protect the crop while growing, and
faithfully and without delay to harvest the same, and that in default of the performance of such
duties the mortgage may enter upon the premises, take all the necessary measures for the
protection of said crop, and retain possession thereof and sell the same, and from the proceeds
of such sale pay all expenses incurred in caring for, harvesting, and selling the crop and the
amount of the indebtedness or obligation secured by the mortgage, and the surplus thereof, if
any shall be paid to the mortgagor or those entitled to the same.

A chattel mortgage shall be deemed to cover only the property described therein and not like or
substituted property thereafter acquired by the mortgagor and placed in the same depository as
the property originally mortgaged, anything in the mortgage to the contrary notwithstanding.

Sec. 8. Failure of mortgagee to discharge the mortgage. If the mortgagee, assign,
administrator, executor, or either of them, after performance of the condition before or after the
breach thereof, or after tender of the performance of the condition, at or after the time fixed for
the performance, does not within ten days after being requested thereto by any person entitled
to redeem, discharge the mortgage in the manner provided by law, the person entitled to
redeem may recover of the person whose duty it is to discharge the same twenty pesos for his
neglect and all damages occasioned thereby in an action in any court having jurisdiction of the
subject-matter thereof.

Sec. 9-12. (inclusive)
5


Sec. 13. When the condition of a chattel mortgage is broken, a mortgagor or person holding a
subsequent mortgage, or a subsequent attaching creditor may redeem the same by paying or
delivering to the mortgagee the amount due on such mortgage and the reasonable costs and
expenses incurred by such breach of condition before the sale thereof. An attaching creditor
who so redeems shall be subrogated to the rights of the mortgagee and entitled to foreclose the
mortgage in the same manner that the mortgagee could foreclose it by the terms of this Act.

Sec. 14. Sale of property at public auction; Officer's return; Fees; Disposition of proceeds.
The mortgagee, his executor, administrator, or assign, may, after thirty days from the time of
condition broken, cause the mortgaged property, or any part thereof, to be sold at public auction
by a public officer at a public place in the municipality where the mortgagor resides, or where

4
Now section 511 of the Administrative Code.
5
Repealed by Act 3815, Article 367 approved December 8, 1930.
158

the property is situated, provided at least ten days' notice of the time, place, and purpose of
such sale has been posted at two or more public places in such municipality, and the
mortgagee, his executor, administrator, or assign, shall notify the mortgagor or person holding
under him and the persons holding subsequent mortgages of the time and place of sale, either
by notice in writing directed to him or left at his abode, if within the municipality, or sent by mail if
he does not reside in such municipality, at least ten days previous to the sale.

The officer making the sale shall, within thirty days thereafter, make in writing a return of his
doings and file the same in the office of the register of deeds where the mortgage is recorded,
and the register of deeds shall record the same. The fees of the officer for selling the property
shall be the same as in the case of sale on execution as provided in Act Numbered One
hundred and ninety
6
, and the amendments thereto, and the fees of the register of deeds for
registering the officer's return shall be taxed as a part of the costs of sale, which the officer shall
pay to the register of deeds. The return shall particularly describe the articles sold, and state the
amount received for each article, and shall operate as a discharge of the lien thereon created by
the mortgage. The proceeds of such sale shall be applied to the payment, first, of the costs and
expenses of keeping and sale, and then to the payment of the demand or obligation secured by
such mortgage, and the residue shall be paid to persons holding subsequent mortgages in their
order, and the balance, after paying the mortgages, shall be paid to the mortgagor or person
holding under him on demand.

If the sale includes any "large cattle," a certificate of transfer as required by section sixteen of
Act Numbered Eleven hundred and forty-seven
7
shall be issued by the treasurer of the
municipality where the sale was held to the purchaser thereof.

Sec. 15.
8


6
Now Rule 141, section 7 of the Rules of Court.
7
Now Section 523 of the Administrative Code.
8
Superseded by section 198 of the Administrative Code. The following is the present text of section 198 as
amended by RA 2711, approved June 18, 1960.

"SECTION 198. Registration of chattel mortgages and fees collectible in connection therewith. v Every register of
deeds shall keep a primary entry book and a registration book for the chattel mortgages; shall certify on each
mortgage filed for record, as well as on its duplicate, the date, hour, and minute when the same was by him
received; and shall record in such books any chattel mortgage, assignment, or discharge thereof, and any other
instruments relating to a recorded mortgage, and all such instruments shall be presented to him in duplicate, the
original to be filed and the duplicate to be returned to the person concerned.

"The recording of a mortgage shall be effected by making an entry, which shall be given a correlative number,
setting forth the names of the mortgagee, and the mortgagor, the sum or obligation guaranteed, date of the
instrument, name of the notary before whom it was sworn to or acknowledged, and a note that the property
mortgaged, as well as the terms and conditions of the mortgage, is mentioned in detail in the instrument filed,
giving the proper file number thereof. The recording of other instruments relating to a recorded mortgage shall be
effected by way of annotations on the space provided therefor in the registration book, after the same shall have
been entered in the primary entry book.

"The register of deeds shall also certify the officer's return of sale upon any mortgage, making reference upon the
record of such officer's return to the volume and page of the record of the mortgage, and a reference of such
return on the record of the mortgage itself, and give a certified copy thereof, when requested, upon payment of
the lawful fees for such copy; and certify upon each mortgage officer's return of sale or discharge of mortgage; and
upon any other instrument relating to such a recorded mortgage, both on the original and on the duplicate, the
date, hour, and minute when the same is received for record and record such certificate with the return itself and
keep an alphabetical index of mortgagors and mortgagees, which record and index shall be open to public
inspection.
159



"Duly certified copies of such records and of filed instruments shall be receivable as evidence in any court.

"The register of deeds shall collect the following fees for services rendered by him under this section:

"(a) For entry or presentation of any document in the primary entry book, one peso. Supporting papers presented
together with the principal document need not be charged any entry or presentation fee unless the party in
interest desires that they be likewise entered.

"(b) For filing and recording each chattel mortgage, including the necessary certificates and affidavits, the fees
established in the following schedule shall be collected:

"1. When the amount of the mortgage does not exceed six thousand pesos, three pesos and fifty centavos for the
first five hundred pesos or fractional part thereof, and one peso and fifty centavos for each additional five hundred
pesos or fractional part thereof.

"2. When the amount of the mortgage is more than six thousand pesos but does not exceed thirty thousand
pesos, twenty-four pesos for the initial amount not exceeding eight thousand pesos, and four pesos for each
additional two thousand pesos or fractional part thereof.

"3. When the amount of the mortgage is more than thirty thousand pesos but does not exceed one hundred
thousand pesos, seventy-five pesos for the initial amount not exceeding thirty-five thousand pesos, and seven
pesos for each additional five thousand pesos or fractional part thereof.

"4. When the amount of the mortgage is more than one hundred thousand pesos but does not exceed five
hundred thousand pesos, one hundred and seventy-six pesos for the initial amount not exceeding one hundred ten
thousand pesos, and ten pesos for each additional ten thousand pesos or fractional part thereof.

"5. When the amount of the mortgage is more than five hundred thousand pesos, five hundred eighty-one pesos
for the initial amount not exceeding five hundred twenty thousand pesos, and fifteen pesos for each additional
twenty thousand pesos or fractional part thereof: Provided, however, That registration of the mortgage in the
province where the property is situated shall be sufficient registration: And provided, further, That if the mortgage
is to be registered in more than one city or province, the register of deeds of the city or province where the
instrument is first presented for registration shall collect the full amount of the fees due in accordance with the
schedule prescribed above, and the register of deeds of the other city or province where the same instrument is
also to be registered shall collect only a sum equivalent to twenty per centum of the amount of fees due and paid
in the first city or province, but in no case shall the fees payable in any registry be less than the minimum fixed in
said schedule.

"(c) For recording each instrument of sale, conveyance, or transfer of the property which is subject of a recorded
mortgage, or of the assignment of mortgage credit, the fees established in the preceding schedule shall be
collected on the basis of ten per centum of the amount of the mortgage or unpaid balance thereof: Provided, That
the latter is stated in the instrument.

"(d) For recording each notice of attachment, including the necessary index and annotations, four pesos.

"(e) For recording each release of mortgage, including the necessary index and references, the fees established in
the schedule under paragraph (b) above shall be collected on the basis of five per centum of the amount of the
mortgage.

"(f) For recording each release of attachment, including the proper annotations, two pesos.

"(g) For recording each sheriff's return of sale, including the index and references, three pesos.

"(h) For recording a power of attorney, appointment of judicial guardian, administrator, or trustee, or any other
instrument in which a person is given power to act in behalf of another in connection with a mortgage, three
pesos.

"(i) For recording each instrument or order relating to a recorded mortgage, including the necessary index and
references, for which no specific fee is provided above, two pesos.
160


Sec. 16. This Act shall take effect on August first, nineteen hundred and six.

Enacted, July 2, 1906.





"(j) For certified copies of records, such fees as are allowed by law for copies kept by the register of deeds.

"(k) For issuing a certificate relative to, or showing the existence or non-existence of, an entry in the registration
book, or a document on file, for each such certificate containing not more than two hundred words, three pesos; if
it exceeds that number, an additional fee of fifty centavos shall be collected for every one hundred words or
fractional part thereof, in excess of the first two hundred words."
161

THE 2011 NLRC RULES OF PROCEDURE


Pursuant to the provisions of Article 218 of Presidential Decree No. 442, as amended, otherwise
known as the Labor Code of the Philippines, the following Revised Rules of Procedure
governing arbitration proceedings before the Labor Arbiters and the Commission are hereby
adopted and promulgated:

RULE I
TITLE AND CONSTRUCTION

SECTION 1. TITLE OF THE RULES. - These Rules shall be known as the "2011 NLRC Rules
of Procedure. (1a)

SECTION 2. CONSTRUCTION. - These Rules shall be liberally construed to carry out the
objectives of the Constitution, the Labor Code of the Philippines and other relevant legislations,
and to assist the parties in obtaining just, expeditious and inexpensive resolution and settlement
of labor disputes.

SECTION 3. SUPPLETORY APPLICATION OF THE RULES OF COURT. - In the absence of
any applicable provision in these Rules, and in order to effectuate the objectives of the Labor
Code, the pertinent provisions of the Rules of Court of the Philippines may, in the interest of
expeditious dispensation of labor justice and whenever practicable and convenient, be applied
by analogy or in a suppletory character and effect.

RULE II
DEFINITION OF TERMS

SECTION 1. DEFINITIONS. - The terms and phrases defined in Article 212 of the Labor Code,
as amended, shall be given the same meanings when used herein. As used herein, "Regional
Arbitration Branch" shall mean any of the regional arbitration branches or sub- regional
branches of the Commission.

RULE III
PLEADINGS, NOTICES AND APPEARANCES

SECTION 1. COMPLAINT. - a) A complaint or petition is a pleading alleging the cause or
causes of action of the complainant or petitioner. The names and addresses of all complainants
or petitioners and respondents must be stated in the complaint or petition. It shall be signed
under oath by the complainant or petitioner, with a declaration of non- forum shopping.

b) A party having more than one cause of action against the other party, arising out of the same
relationship, shall include all of them in one complaint or petition. (1a)

162

SECTION 2. CAPTION AND TITLE. - In all cases filed with the Commission or with any of its
Regional Arbitration Branches, the party initiating the action shall be called the "Complainant" or
"Petitioner", and the opposing party the "Respondent".

The full names of all the real parties in interest, whether natural or juridical persons or entities
authorized by law, shall be stated in the caption of the complaint or petition, as well as in the
decisions, resolutions or orders of the Labor Arbiter or the Commission.

SECTION 3. FILING AND SERVICE OF PLEADINGS. - All pleadings in connection with a case
shall be filed with the appropriate docketing unit of the Regional Arbitration Branch or the
Commission, as the case may be.

The party filing a pleading shall serve the opposing parties with a copy and its supporting
documents. No pleading shall be considered without proof of service to the opposing parties
except if filed simultaneously during a schedule set before the Labor Arbiter. (5a)

SECTION 4. SERVICE OF NOTICES, RESOLUTIONS, ORDERS AND DECISIONS. - a)
Notices and copies of resolutions or orders, shall be served personally upon the parties by the
bailiff or duly authorized public officer within three (3) days from his/her receipt thereof or by
registered mail or by private courier;

b) In case of decisions and final awards, copies thereof shall be served on both parties and their
counsel or representative by registered mail or by private courier; Provided that, in cases where
a party to a case or his/her counsel on record personally seeks service of the decision upon
inquiry thereon, service to said party shall be deemed effected as herein provided. Where
parties are numerous, service shall be made on counsel and upon such number of
complainants, as may be practicable and shall be considered substantial compliance with Article
224 (a) of the Labor Code, as amended.

For purposes of appeal, the period shall be counted from receipt of such decisions, resol utions,
or orders by the counsel or representative of record.

c) The bailiff or officer serving the notice, order, or resolution shall submit his/her return within
two (2) days from date of service thereof, stating legibly in his/her return his/her name, the
names of the persons served and the date of receipt, which return shall be immediately
attached and shall form part of the records of the case. In case of service by registered mail or
by private courier, the name of the addressee and the date of receipt of the notice, order or
resolution shall be written in the return card or in the proof of service issued by the private
courier. If no service was effected, the reason thereof shall be so stated. (6a)

SECTION 5. PROOF AND COMPLETENESS OF SERVICE. - The return is prima facie proof of
the facts indicated therein. Service by registered mail or by private courier is complete upon
receipt by the addressee or his/her agent. If the addressee fails to claim his/her mail from the
post office within five (5) days from the date of first notice of the postmaster, service shall take
effect after such time. (7a)

SECTION 6. APPEARANCES. - a) A lawyer appearing for a party is presumed to be properly
authorized for that purpose. In every case, he/she shall indicate in his/her pleadings and
163

motions his/her Attorney's Roll Number, as well as his/her PTR and BP numbers for the current
year and MCLE compliance.

b) A non- lawyer may appear in any of the proceedings before the Labor Arbiter or Commission
only under the following conditions:

(1) he/she represents himself/herself as party to the case;

(2) he/she represents a legitimate labor organization, as defined under Article 212 and
242 of the Labor Code, as amended, which is a party to the case: Provided, that he/she
presents to the Commission or Labor Arbiter during the mandatory conference or initial
hearing: (i) a certification from the Bureau of Labor Relations (BLR) or Regional Office of
the Department of Labor and Employment attesting that the organization he/she
represents is duly registered and listed in the roster of legitimate labor organizations; (ii)
a verified certification issued by the secretary and attested to by the president of the said
organization stating that he/she is authorized to represent the said organization in the
said case; and (iii) a copy of the resolution of the board of directors of the said
organization granting him such authority;

(3)he/she represents a member or members of a legitimate labor organization that is
existing within the employer's establishment, who are parties to the case: Provided, that
he/she presents: (i) a verified certification attesting that he/she is authorized by such
member or members to represent them in the case; and (ii) a verified certification issued
by the secretary and attested to by the president of the said organization stating that the
person or persons he/she is representing are members of their organization which is
existing in the employer's establishment;

(4) he/she is a duly- accredited member of any legal aid office recognized by the
Department of Justice or Integrated Bar of the Philippines: Provided, that he/she (i)
presents proof of his/her accreditation; and (ii) represents a party to the case;

(5) he/she is the owner or president of a corporation or establishment which is a party to
the case: Provided, that he/she presents: (i) a verified certification attesting that he/she
is authorized to represent said corporation or establishment; and (ii) a copy of the
resolution of the board of directors of said corporation, or other similar resolution or
instrument issued by said establishment, granting him/her such authority.

c) Appearances of a non- lawyer in contravention of this section shall not be recognized in any
proceedings before the Labor Arbiter or the Commission.

d) Appearances may be made orally or in writing. In both cases, the complete name and office
address of counsel or authorized representative shall be made of record and the adverse party
or his counsel or authorized representative properly notified.

e) In case of change of address, the counsel or representative shall file a notice of such change,
copy furnished the adverse party and counsel or representative, if any.

f) Any change or withdrawal of counsel or authorized representative shall be made in
accordance with the Rules of Court. (8a)

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SECTION 7. AUTHORITY TO BIND PARTY. - Counsel or other authorized representatives of
parties shall have authority to bind their clients in all matters of procedure; but they cannot,
without a special power of attorney or express consent, enter into a compromise agreement with
the opposing party in full or partial discharge of a client's claim. (9a)

RULE IV
VENUE, ASSIGNMENT AND DISPOSITION OF CASES AT THE REGIONAL ARBITRATION
BRANCH

SECTION 1. VENUE. - a) All cases which Labor Arbiters have authority to hear and decide may
be filed in the Regional Arbitration Branch having jurisdiction over the workplace of the
complainant or petitioner.

For purposes of venue, the workplace shall be understood as the place or locality where the
employee is regularly assigned at the time the cause of action arose. It shall include the place
where the employee is supposed to report back after a temporary detail, assignment, or travel.
In case of field employees, as well as ambulant or itinerant workers, their workplace is where
they are regularly assigned, or where they are supposed to regularly receive their salaries and
wages or work instructions from, and report the results of their assignment to, their employers.

b) Where two (2) or more Regional Arbitration Branches have jurisdiction over the workplace of
the complainant or petitioner, the Branch that first acquired jurisdiction over the case shall
exclude the others.

c) When venue is not objected to before the filling of position papers such issue shall be
deemed waived.

d) The venue of an action may be changed or transferred to a different Regional Arbitration
Branch other than where the complaint was filed by written agreement of the parties or when the
Commission or Labor Arbiter before whom the case is pending so orders, upon motion by the
proper party in meritorious cases.

e) Cases involving overseas Filipino workers may be filed before the Regional Arbitration
Branch having jurisdiction over the place where the complainant resides or where the principal
office of any of the respondents is situated, at the option of the complainant.

SECTION 2. RAFFLE AND ASSIGNMENT OF CASES. - a) All complaints and petitions filed
with the docket unit of the Regional Arbitration Branch shall be immediately raffled and assigned
to a Labor Arbiter from receipt thereof.

b) The Executive Labor Arbiter shall be responsible for the immediate raffle and assignment of
all complaints and petitions filed with his/her Regional Arbitration Branch, and the immediate
forwarding of all subsequent pleadings and motions.

c) All pleadings and motions subsequent to the filing of the complaint shall be forwarded to the
Labor Arbiter before whom the case is pending within twenty- four (24) hours from receipt
thereof.

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SECTION 3. CONSOLIDATION OF CASES AND COMPLAINTS. - Where there are two or
more cases or complaints pending before different Labor Arbiters in the same Regional
Arbitration Branch involving the same employer and common principal causes of action, or the
same parties with different causes of action, the subsequent cases or complaints shall be
consolidated with the first to avoid unnecessary costs or delay. Such consolidated cases or
complaints shall be disposed of by the Labor Arbiter to whom the first case was assigned.

In case of objection to the consolidation, the same shall be resolved by the Executive Labor
Arbiter. An order resolving a motion or objection to consolidation shall be inappealable.

SECTION 4. DISPOSITION OF CASES. - Subject to the provisions of Article 263 (g) of the
Labor Code, as amended, when a case is assigned to a Labor Arbiter, the entire case and any
or all incidents thereto shall be considered assigned to him/her; and the same shall be disposed
of in the same proceedings to avoid multiplicity of suits or proceedings.

When the Secretary of Labor and Employment has assumed jurisdiction over a strike or lockout
or certified the same to the Commission, the parties to such dispute shall immediately inform the
Secretary or the Commission, as the case may be, of all cases directly related to the dispute
between them pending before any Regional Arbitration Branch, and the Labor Arbiters handling
the same of such assumption or certification. The Labor Arbiter concerned shall forward within
two (2) days from notice the entire records of the case to the Commission or to the Secretary of
Labor, as the case may be, for proper disposition.

RULE V
PROCEEDINGS BEFORE LABOR ARBITERS

SECTION 1. JURISDICTION OF LABOR ARBITERS. - Labor Arbiters shall have original and
exclusive jurisdiction to hear and decide the following cases involving all workers, whether
agricultural or non- agricultural:

a) Unfair labor practice cases;

b) Termination disputes;

c) If accompanied with a claim for reinstatement, those cases that workers may file
involving wages, rates of pay, hours of work and other terms and conditions of
employment;

d) Claims for actual, moral, exemplary and other forms of damages arising from
employer- employee relations;

e) Cases arising from any violation of Article 264 of the Labor Code, as amended,
including questions involving the legality of strikes and lockouts;

f)Except claims for employees compensation not included in the next succeeding
paragraph, social security, medicare, and maternity benefits, all other claims arising from
employer- employee relations, including those of persons in domestic or household
service, involving an amount exceeding Five Thousand Pesos (P5,000.00), whether or
not accompanied with a claim for reinstatement;
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g) Wage distortion disputes in unorganized establishments not voluntarily settled by the
parties pursuant to Republic Act No. 6727;

h) Enforcement of compromise agreements when there is non- compliance by any of the
parties pursuant to Article 227 of the Labor Code, as amended;

i) Money claims arising out of employer- employee relationship or by virtue of any law or
contract, involving Filipino workers for overseas deployment, including claims for actual,
moral, exemplary and other forms of damages as provided by Section 10 of RA 8042, as
amended by RA 10022; and

j) Other cases as may be provided by law.

Cases arising from the interpretation or implementation of collective bargaining agreements and
those arising from the interpretation or enforcement of company personnel policies shall be
disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary
arbitration, as may be provided in said agreements. (1a)

SECTION 2. NATURE OF PROCEEDINGS. - The proceedings before the Labor Arbiter shall be
non- litigious in nature. Subject to the requirements of due process, the technicalities of law and
procedure and the rules obtaining in the courts of law shall not strictly apply thereto. The Labor
Arbiter may avail himself/herself of all reasonable means to ascertain the facts of the
controversy speedily, including ocular inspection and examination of well- informed persons.

SECTION 3. ISSUANCE OF SUMMONS. - Within two (2) days from receipt of a complaint or
amended complaint, the Labor Arbiter shall issue the required summons, attaching thereto a
copy of the complaint or amended complaint and its annexes, if any. The summons shall specify
the date, time and place of the mandatory conciliation and mediation conference in two (2)
settings. (3a, RIII)

SECTION 4. SERVICE OF SUMMONS. Summons shall be served personally upon the
parties by the bailiff or a duly authorized public officer within three (3) days from his/her receipt
thereof, or by registered mail, or by private courier authorized by the Commission; Provided that
in special circumstances, service of summons may be effected in accordance with the pertinent
provisions of the Rules of Court.

The bailiff or officer serving the summons shall submit his/her return within two

(2) days from date of service thereof, stating legibly in his/her return his/her name, the names of
the persons served and the date of receipt, which return shall be immediately attached to the
records and shall be part thereof. If no service was effected, the reason thereof shall be stated
in the return.

In case of service by registered mail or by private courier, the names of the addressees and the
dates of receipt of the summons shall be written in the return card or in the proof of service
issued by the private courier. If no service was effected, the reason thereof shall be so stated.
(n)

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SECTION 5. PROHIBITED PLEADINGS AND MOTIONS. - The following pleadings and
motions shall not be allowed and acted upon nor elevated to the Commission:

a) Motion to dismiss the complaint except on the ground of lack of jurisdiction over the
subject matter, improper venue, res judicata, prescription and forum shopping;

b) Motion for a bill of particulars;

c) Motion for new trial;

d) Petition for Relief from Judgment

e) Motion to declare respondent in default;

f) Motion for reconsideration of any decision or any order of the Labor Arbiter;

g) Appeal from any interlocutory order of the Labor Arbiter, such as but not limited to, an
order:

(1) denying a motion to dismiss;

(2) denying a motion to inhibit;

(3) denying a motion for issuance of writ of execution; or

(4) denying a motion to quash writ of execution.

h) Appeal from the issuance of a certificate of finality of decision by the Labor Arbiter;

i) Appeal from orders issued by the Labor Arbiter in the course of execution proceedings.

j) Such other pleadings, motions and petitions of similar nature intended to circumvent
above provisions. (5a, RIII)

SECTION 6. MOTION TO DISMISS. - Before the date set for the mandatory conciliation and
mediation conference, the respondent may file a motion to dismiss on grounds provided under
Section 5, paragraph (a) hereof. Such motion shall be immediately resolved by the Labor Arbiter
through a written order. An order denying the motion to dismiss, or suspending its resolution
until the final determination of the case, is not appealable. (6a)

SECTION 7. EFFECT OF FAILURE TO FILE. - No motion to dismiss shall be allowed or
entertained after the lapse of the period provided in Section 6 hereof. (n)

SECTION 8. MANDATORY CONCILIATION AND MEDIATION CONFERENCE.

a) The mandatory conciliation and mediation conference shall be called for the purpose of (1)
amicably settling the case upon a fair compromise; (2) determining the real parties in interest;
(3) determining the necessity of amending the complaint and including all causes of action; (4)
defining and simplifying the issues in the case; (5) entering into admissions or stipulations of
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facts; and (6) threshing out all other preliminary matters. The Labor Arbiter shall personally
preside over and take full control of the proceedings and may be assisted by the Labor
Arbitration Associate in the conduct thereof.

b) Conciliation and mediation efforts shall be exerted by the Labor Arbiters all throughout the
mandatory conferences. Any agreement entered into by the parties whether in partial or full
settlement of the dispute shall be reduced into writing and signed by the parties and their
counsel or the parties' authorized representatives, if any.

c) In any case, the compromise agreement shall be approved by the Labor Arbiter, if after
explaining to the parties, particularly to the complainants, the terms, conditions and
consequences thereof, he/she is satisfied that they understand the agreement, that the same
was entered into freely and voluntarily by them, and that it is not contrary to law, morals, and
public policy.

d) A compromise agreement duly entered into in accordance with this Section shall be final and
binding upon the parties and shall have the force and effect of a judgment rendered by the
Labor Arbiter.

e) The mandatory conciliation and mediation conference shall, except for justifiable grounds, be
terminated within thirty (30) calendar days from the date of the first conference.

f) No motion for postponement shall be entertained except on meritorious grounds and when
filed at least three (3) days before the scheduled hearing. (3a)

SECTION 9. EFFECT OF FAILURE OF SETTLEMENT. If the parties fail to agree on an
amicable settlement, either in whole or in part, during the mandatory conciliation and mediation
conference, the Labor Arbiter shall proceed to the other purposes of the said conference as
enumerated in Section 8(a) hereof. (4a)

SECTION 10. NON- APPEARANCE OF PARTIES. - The non- appearance of the complainant
or petitioner during the two (2) settings for mandatory conciliation and mediation conference
scheduled in the summons, despite due notice thereof, shall be a ground for the dismissal of the
case without prejudice.

In case of non- appearance by the respondent during the first scheduled conference, the
second conference as scheduled in the summons shall proceed. If the respondent still fails to
appear at the second conference despite being duly served with summons, he/she shall be
considered to have waived his/her right to file position paper. The Labor Arbiter shall
immediately terminate the mandatory conciliation and mediation conference and direct the
complainant or petitioner to file a verified position paper and submit evidence in support of
his/her causes of action and thereupon render his/her decision on the basis of the evidence on
record. (5a)

SECTION 11. SUBMISSION OF POSITION PAPER AND REPLY. - a) Subject to Sections 9
and 10 of this Rule, the Labor Arbiter shall direct the parties to submit simultaneously their
verified position papers with supporting documents and affidavits, if any, on a date set by
him/her within ten (10) calendar days from the date of termination of the mandatory conciliation
and mediation conference.
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b) No amendment of the complaint or petition shall be allowed after the filing of position papers,
unless with leave of the Labor Arbiter.

c) The position papers of the parties shall cover only those claims and causes of action stated in
the complaint or amended complaint, accompanied by all supporting documents, including the
affidavits of witnesses, which shall take the place of their direct testimony, excluding those that
may have been amicably settled.

d) Within ten (10) days from receipt of the position paper of the adverse party, a reply may be
filed on a date agreed upon and during a schedule set before the Labor Arbiter. The reply shall
not allege and/or prove facts and any cause or causes of action not referred to or included in the
original or amended complaint or petition or raised in the position paper. (7a)

SECTION 12. DETERMINATION OF NECESSITY OF HEARING OR CLARIFICATORY
CONFERENCE. - Immediately after the submission by the parties of their position paper or
reply, as the case may be, the Labor Arbiter shall, motu proprio, determine whether there is a
need for a hearing or clarificatory conference. At this stage, he/she may, at his/her discretion
and for the purpose of making such determination, ask clarificatory questions to further elicit
facts or information, including but not limited to the subpoena of relevant documentary evidence,
if any, from any party or witness. (8a)

SECTION 13. ROLE OF THE LABOR ARBITER IN HEARING AND CLARIFICATORY
CONFERENCE. - a) The Labor Arbiter shall take full control and personally conduct the hearing
or clarificatory conference and may ask questions for the purpose of clarifying points of law or
facts involved in the case. The Labor Arbiter may allow the presentation of testimonial evidence
with right of cross- examination by the opposing party and shall limit the presentation of
evidence to matters relevant to the issue before him/her and necessary for a just and speedy
disposition of the case.

b) The Labor Arbiter shall make a written summary of the proceedings, including the substance
of the evidence presented, in consultation with the parties. The written summary shall be signed
by the parties and shall form part of the records. (9a)

SECTION 14. NON- APPEARANCE OF PARTIES, AND POSTPONEMENT OF HEARINGS
AND CLARIFICATORY CONFERENCES.

a) The parties and their counsels appearing before the Labor Arbiter shall be prepared for
continuous hearing or clarificatory conference. No postponement or continuance shall be
allowed by the Labor Arbiter, except upon meritorious grounds and subject to the requirement of
expeditious disposition of cases. The hearing or clarificatory conference shall be terminated
within thirty (30) calendar days from the date of the initial clarificatory conference.

b) In case of non- appearance of any of the parties during the hearing or clarificatory conference
despite due notice, proceedings shall be conducted ex- parte. Thereafter, the case shall be
deemed submitted for decision.

c) Paragraph (a) of this Section notwithstanding, in cases involving overseas Filipino workers,
the aggregate period for conducting the mandatory conciliation and mediation conference,
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including hearing on the merits or clarificatory conference, shall not exceed sixty (60) days,
which shall be reckoned from the date of acquisition of jurisdiction by the Labor Arbiter over the
person of the respondents. (10a)

SECTION 15. SUBMISSION OF THE CASE FOR DECISION. - Upon the submission by the
parties of their position papers or replies, or the lapse of the period to submit the same, the case
shall be deemed submitted for decision unless the Labor Arbiter calls for a hearing or
clarificatory conference in accordance with Section 12 and 14(a) of this Rule, in which case,
notice of hearing or clarificatory conference shall be immediately sent to the parties. Upon
termination of the said hearing or conference, the case is deemed submitted for decision. (11a)

SECTION 16. INHIBITION. - A Labor Arbiter may voluntarily inhibit himself/herself from the
resolution of a case and shall so state in writing the legal justifications therefor. Upon motion of
a party, either on the ground of relationship within the fourth civil degree of consanguinity or
affinity with the adverse party or counsel, or on question of partiality or other justifiable grounds,
the Labor Arbiter may inhibit himself/herself from further hearing and deciding the case. Such
motion shall be resolved within five (5) days from the filing thereof. An order denying or grant ing
a motion for inhibition is inappealable. (12a)

SECTION 17. PERIOD TO DECIDE CASE. - The Labor Arbiter shall render his/her decision
within thirty (30) calendar days, without extension, after the submission of the case by the
parties for decision, even in the absence of stenographic notes; Provided however, that cases
involving overseas Filipino workers shall be decided within ninety (90) calendar days after the
filing of the complaint. (13a)

SECTION 18. CONTENTS OF DECISIONS. - The decisions and orders of the Labor Arbiter
shall be clear and concise and shall include a brief statement of the: a) facts of the case; b)
issues involved; c) applicable laws or rules; d) conclusions and the reasons therefor; and e)
specific remedy or relief granted. In cases involving monetary awards, the decisions or orders of
the Labor Arbiter shall contain the amount awarded.

In case the decision of the Labor Arbiter includes an order of reinstatement, it shall likewise
contain: a) a statement that the reinstatement aspect is immediately executory; and b) a
directive for the employer to submit a report of compliance within ten (10) calendar days from
receipt of the said decision. (14a)

SECTION 19. FINALITY OF THE DECISION OR ORDER AND ISSUANCE OF CERTIFICATE
OF FINALITY.

(a) Finality of the Decision or Order of the Labor Arbiter. - If no appeal is filed with the
Commission within the time provided under Article 223 of the Labor Code, as amended, and
Section 1, Rule VI of these Rules, the decision or order of the Labor Arbiter shall become final
and executory after ten (10) calendar days from receipt thereof by the counsel or authorized
representative or the parties if not assisted by counsel or representative.

(b) Certificate of Finality. - Upon expiration of the period provided in paragraph (a) of this
Section, the Labor Arbiter shall issue a certificate of finality.

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In the absence of return cards, certifications from the post office or courier or other proofs of
service to the parties, the Labor Arbiter may issue a certificate of finality after sixty (60) calendar
days from date of mailing. (n)

SECTION 20. REVIVAL AND RE- OPENING OR RE- FILING OF DISMISSED CASE and
LIFTING OF WAIVER. - A party may file a motion to revive or re- open a case dismissed without
prejudice, within ten (10) calendar days from receipt of notice of the order dismissing the same;
otherwise, the only remedy shall be to re- file the case. A party declared to have waived his/her
right to file position paper may, at any time after notice thereof and before the case is submitted
for decision, file a motion under oath to set aside the order of waiver upon proper showing that
his/her failure to appear was due to justifiable and meritorious grounds. (16a)

RULE VI
APPEALS

SECTION 1. PERIODS OF APPEAL. - Decisions, awards, or orders of the Labor Arbiter shall
be final and executory unless appealed to the Commission by any or both parties within ten (10)
calendar days from receipt thereof; and in case of decisions or resolutions of the Regional
Director of the Department of Labor and Employment pursuant to Article 129 of the Labor Code,
within five (5) calendar days from receipt thereof. If the 10th or 5th day, as the case may be,
falls on a Saturday, Sunday or holiday, the last day to perfect the appeal shal l be the first
working day following such Saturday, Sunday or holiday.

No motion or request for extension of the period within which to perfect an appeal shall be
allowed. (1a)

SECTION 2. GROUNDS. - The appeal may be entertained only on any of the following grounds:

a) If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter or
Regional Director;

b) If the decision, award or order was secured through fraud or coercion, including graft and
corruption;

c) If made purely on questions of law; and/or

d) If serious errors in the findings of facts are raised which, if not corrected, would cause grave
or irreparable damage or injury to the appellant. (2a)

SECTION 3. WHERE FILED. - The appeal shall be filed with the Regional Arbitration Branch or
Regional Office where the case was heard and decided.

SECTION 4. REQUISITES FOR PERFECTION OF APPEAL. - a) The appeal shall be:

(1) filed within the reglementary period provided in Section 1 of this Rule;

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(2) verified by the appellant himself/herself in accordance with Section 4, Rule 7 of the Rules of
Court, as amended;

(3) in the form of a memorandum of appeal which shall state the grounds relied upon and the
arguments in support thereof, the relief prayed for, and with a statement of the date the
appellant received the appealed decision, award or order;

(4) in three (3) legibly typewritten or printed copies; and

(5) accompanied by: i) proof of payment of the required appeal fee and legal research fee; ii)
posting of a cash or surety bond as provided in Section 6 of this Rule; and iii) proof of service
upon the other parties.

b) A mere notice of appeal without complying with the other requisites aforestated shall not stop
the running of the period for perfecting an appeal.

c) The appellee may file with the Regional Arbitration Branch or Regional Office where the
appeal was filed, his/her answer or reply to appellant's memorandum of appeal, not later than
ten (10) calendar days from receipt thereof. Failure on the part of the appellee who was properly
furnished with a copy of the appeal to file his/her answer or reply within the said period may be
construed as a waiver on his/her part to file the same.

d) Subject to the provisions of Article 218 of the Labor Code, once the appeal is perfected in
accordance with these Rules, the Commission shall limit itself to reviewing and deciding only
the specific issues that were elevated on appeal. (4a)

SECTION 5. APPEAL FEE. - The appellant shall pay the prevailing appeal fee and legal
research fee to the Regional Arbitration Branch or Regional Office of origin, and the official
receipt of such payment shall form part of the records of the case. (5a)

SECTION 6. BOND. - In case the decision of the Labor Arbiter or the Regional Director involves
a monetary award, an appeal by the employer may be perfected only upon the posting of a
bond, which shall either be in the form of cash deposit or surety bond equivalent in amount to
the monetary award, exclusive of damages and attorney's fees.

In case of surety bond, the same shall be issued by a reputable bonding company duly
accredited by the Commission or the Supreme Court, and shall be accompanied by original or
certified true copies of the following:

a) a joint declaration under oath by the employer, his/her counsel, and the bonding company,
attesting that the bond posted is genuine, and shall be in effect until final disposition of the case.

b) an indemnity agreement between the employer- appellant and bonding company;

c) proof of security deposit or collateral securing the bond: provided, that a check shall not be
considered as an acceptable security;

d) a certificate of authority from the Insurance Commission;

e) certificate of registration from the Securities and Exchange Commission;
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f) certificate of accreditation and authority from the Supreme Court; and

g) notarized board resolution or secretary's certificate from the bonding company showing its
authorized signatories and their specimen signatures.

The Commission through the Chairman may on justifiable grounds blacklist a bonding company,
notwithstanding its accreditation by the Supreme Court.

A cash or surety bond shall be valid and effective from the date of deposit or posting, until the
case is finally decided, resolved or terminated, or the award satisfied. This condition shall be
deemed incorporated in the terms and conditions of the surety bond, and shall be binding on the
appellants and the bonding company.

The appellant shall furnish the appellee with a certified true copy of the said surety bond with all
the above- mentioned supporting documents. The appellee shall verify the regularity and
genuineness thereof and immediately report any irregularity to the Commission.

Upon verification by the Commission that the bond is irregular or not genuine, the Commission
shall cause the immediate dismissal of the appeal, and censure the responsible parties and
their counsels, or subject them to reasonable fine or penalty, and the bonding company may be
blacklisted.

No motion to reduce bond shall be entertained except on meritorious grounds, and only upon
the posting of a bond in a reasonable amount in relation to the monetary award.

The mere filing of a motion to reduce bond without complying with the requisites in the
preceding paragraphs shall not stop the running of the period to perfect an appeal. (6a)

SECTION 7. RECORDS OF CASE ON APPEAL. - The records of a case shall have a
corresponding index of its contents which shall include the following: a) the original copy of the
complaint; b) other pleadings and motions; c) minutes of the proceedings, notices, transcripts of
stenographic notes, if any; d) decisions, orders, and resolutions as well as proof of service
thereof, if available; e) the computation of the award; f) memorandum of appeal and the reply or
answer thereto, if any, and proof of service, if available; g) official receipt of the appeal fee; and
h) the appeal bond, if any.

The records shall be chronologically arranged and paged prominently.

SECTION 8. TRANSMITTAL OF RECORDS OF CASE ON APPEAL. - Within forty- eight (48)
hours after the filing of the appeal, the records of the case shall be transmitted by the Regional
Arbitration Branch or office of origin to the Commission.

SECTION 9. FILING OF APPEAL; EFFECT. - Without prejudice to immediate reinstatement
pending appeal under Section 6 of Rule XI, once an appeal is filed, the Labor Arbiter loses
jurisdiction over the case. All pleadings and motions pertaining to the appealed case shall
thereafter be addressed to and filed with the Commission. (9a)

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SECTION 10. FRIVOLOUS OR DILATORY APPEALS. - No appeal from an interlocutory order
shall be entertained. To discourage frivolous or dilatory appeals, including those taken from
interlocutory orders, the Commission after hearing may censure or cite in contempt the erring
parties and their counsels, or subject them to reasonable fine or penalty. (10a)

SECTION 11. APPEALS FROM DECISION OF OTHER AGENCIES. - The Rules provided
herein governing appeals from the decisions or orders of Labor Arbiters shall apply to appeals
to the Commission from decisions or orders of the other offices or agencies appealable to the
Commission according to law.

RULE VII
PROCEEDINGS BEFORE THE COMMISSION

SECTION 1. JURISDICTION OF THE COMMISSION. - The Commission shall exercise
exclusive, original, and appellate jurisdiction in accordance with law.

SECTION 2. COMPOSITION AND INTERNAL FUNCTIONS OF THE COMMISSION EN BANC
AND ITS DIVISIONS. - a) Composition. - Unless otherwise provided by law, the Commission
shall be composed of the Chairman and of twenty three (23) Commissioners.

b) Commission En Banc. The Commission shall sit en banc only for purposes of promulgating
rules and regulations governing the hearing and disposition of cases before its Divisions and
Regional Arbitration Branches, and for the formulation of policies affecting its administration and
operations. It may, on temporary or emergency basis, allow cases within the jurisdiction of any
Division to be heard by any other Division whose docket allows the additional workload and
such transfer will not expose litigants to unnecessary additional expense.

c) Divisions. - Unless otherwise provided by law, the Commission shall exercise its adjudicatory
and all other powers, functions and duties through its eight (8) Divisions. Each Division shall
consist of one member from the public sector who shall act as the Presiding Commissioner and
one member each from the workers and employers sectors, respectively.

Of the eight (8) Divisions, the First, Second, Third, Fourth, Fifth and Sixth Divisions shall have
exclusive territorial jurisdiction over appealed cases coming from Luzon; the Seventh Division,
appealed cases from the Visayas Region; and the Eighth Division, appealed cases from
Mindanao including those from the Autonomous Region for Muslim Mindanao.

d) Headquarters. - As provided by law, the Commission and its First, Second, Third, Fourth,
Fifth and Sixth Divisions for Luzon shall have their main offices in the National Capital Region,
and the Seventh and Eighth Divisions for Visayas and Mindanao, in the cities of Cebu and
Cagayan de Oro, respectively. (2a)

SECTION 3. THE CHAIRMAN. - The Chairman shall preside over all sessions of the
Commission en banc. He/she is the Presiding Commissioner of the First Division. In case of the
effective absence or incapacity of the Chairman, the Presiding Commissioner of the Second
Division shall be the Acting Chairman.

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The Chairman, aided by the Executive Clerk of the Commission, shall have administrative
supervision over the Commission and its Regional Arbitration Branches and all its personnel
including the Executive Labor Arbiters and Labor Arbiters.

SECTION 4. COMMISSION EN BANC SESSION, QUORUM AND VOTE. - a) Commission En
Banc. - The Chairman shall call the Commission to an en banc session at least twice a year,
preferably on the first week of June and the first week of December, to deliberate and decide on
any matter before it. However, a majority of all the members of the Commission may call a
special en banc session to discuss and decide on urgent and vital matters which need
immediate action.

b) Quorum. - The presence of a majority of all the members of the Commission shall be
necessary to constitute a quorum. The vote or concurrence of the majority of the members
constituting a quorum shall be the decision or resolution of the Commission en banc.

c) Division. - The presence of at least two (2) Commissioners of a Division shall constitute a
quorum. The concurrence of two (2) Commissioners of a Division shall be necessary for the
pronouncement of a judgment or resolution.

Whenever the required membership in a Division is not complete and/or the concurrence of two
(2) Commissioners cannot be obtained to arrive at a judgment or resolution, the Chairman shall
designate such number of additional Commissioners belonging to the same sector from the
other Divisions as may be necessary. In the event that all the members of a division inhibit
themselves from resolving a case, the Chairman may create a Special Division or assign the
case to any of the other Divisions.

d) Role of Chairman in the Division. - The Chairman of the Commission may convene and
preside over the session of any Division to consider any case pending before it and participate
in its deliberations, if in his/her judgment, his/her presence therein will best serve the interests of
labor justice. He/she shall not however, participate in the voting by the Division, except when
he/she is acting as Presiding Commissioner of the Division in the absence of the regular
Presiding Commissioner. (4a)

SECTION 5. CONSULTATION. - The conclusions of a Division on any case or matter submitted
to it for decision shall be reached in consultation before the case is assigned to a member for
the writing of the opinion. It shall be mandatory for the Division to meet for the purpose of the
consultation ordained herein.

A certification to this effect signed by the Presiding Commissioner of the Division shall be issued
and a copy thereof attached to the record of the case and served upon the parties.

SECTION 6. DISSENTING OPINION. - Should any member of a Division indicate his/her
intention to write a dissenting opinion, he/she may file the same within the period prescribed for
deciding or resolving the appeal; otherwise, such written dissenting opinion shall not be
considered part of the records of the case.

SECTION 7. INHIBITION. - No motion to inhibit the entire Division of the Commission shall be
entertained. However, any Commissioner may inhibit himself/herself from the consideration and
resolution of any case or matter before the Division and shall so state in writing the legal or
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justifiable grounds therefor. In the event that a member inhibits himself/herself, the case shall be
raffled by the Executive Clerk or Deputy Executive Clerk to either of the two (2) remaining
Commissioners. In case two (2) Commissioners in a Division inhibit themselves in a case or
matter before it, the Chairman shall, as far as practicable, appoint two (2) Commissioners from
other Divisions representing the sector of the Commissioners who inhibited themselves.

SECTION 8. ABSTENTION. - In the event of an abstention, and the concurrence of two (2)
Commissioners to arrive at a judgment or resolution cannot be obtained, Section 4 (c), second
paragraph, of this Rule shall apply.

SECTION 9. CONSOLIDATION OF CASES. - Appealed and injunction cases involving the
same parties, issues, or related questions of fact or law shall be consolidated before the
Commissioner to whom the case with the lowest case number is assigned. Notice of the
consolidation shall be given by the Executive Clerk or Deputy Executive Clerk to the other
members of the concerned Divisions.

SECTION 10. TECHNICAL RULES NOT BINDING. - The rules of procedure and evidence
prevailing in courts of law and equity shall not be controlling and the Commission shall use
every and all reasonable means to ascertain the facts in each case speedily and objectively,
without regard to technicalities of law or procedure, all in the interest of due process.

In any proceeding before the Commission, the parties may be represented by legal counsel but
it shall be the duty of the Chairman, any Presiding Commissioner or Commissioner to exercise
complete control of the proceedings at all stages.

SECTION 11. CONCILIATION AND MEDIATION. - In the exercise of its exclusive, original and
appellate jurisdiction, the Commission may exert all efforts towards the amicable settlement of a
labor dispute.

The settlement of cases on appeal, to be valid and binding between the parties, shall be
approved by the Commission. (11a)

SECTION 12. ROLE OF THE LABOR ARBITER ASSIGNED TO THE COMMISSION. - In the
resolution of cases on appeal, and those mentioned in Rules VIII and X, the Commission, in the
exigency of the service, shall be assisted by a Labor Arbiter who may be directed to study,
review, hear and receive evidence, and submit reports thereon. (12a)

SECTION 13. FORM OF DECISION, RESOLUTION AND ORDER. - The decision, resolution
and order of the Commission shall state clearly and distinctly the findings of facts, issues, and
conclusions of law on which it is based, and the relief granted, if any. If the decision, resolution
or order involves monetary awards, the same shall contain the specific amount awarded as of
the date the decision is rendered.

SECTION 14. FINALITY OF DECISION OF THE COMMISSION AND ENTRY OF JUDGMENT.
- a) Finality of the Decisions, Resolutions or Orders of the Commission. - Except as provided in
Section 9 of Rule X, the decisions, resolutions or orders of the Commission shall become final
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and executory after ten (10) calendar days from receipt thereof by the counsel or authorized
representative or the parties if not assisted by counsel or representative.

b) Entry of Judgment. - Upon the expiration of the ten (10) calendar day period provided in
paragraph (a) of this Section, the decision, resolution, or order shall be entered in a book of
entries of judgment.

In the absence of return cards, certifications from the post office or the courier or other proofs of
service to the parties, the Executive Clerk or Deputy Executive Clerk shall consider the decision,
resolution or order as final and executory after sixty (60) calendar days from date of mailing.
(14a)

SECTION 15. MOTIONS FOR RECONSIDERATION. - Motion for reconsideration of any
decision, resolution or order of the Commission shall not be entertained except when based on
palpable or patent errors; provided that the motion is filed within ten (10) calendar days from
receipt of decision, resolution or order, with proof of service that a copy of the same has been
furnished, within the reglementary period, the adverse party; and provided further, that only one
such motion from the same party shall be entertained. (15a)

RULE VIII
CERTIFIED CASES

SECTION 1. POLICY. - It is the declared policy of certification of labor disputes for compulsory
arbitration to ensure and maintain industrial peace based on social justice and national interest
by having a full, complete and immediate settlement or adjudication of all labor disputes
between the parties, as well as issues that are relevant to or incidents of the certified issues.

SECTION 2. CERTIFIED LABOR DISPUTES. - Certified labor disputes are cases certified to
the Commission for compulsory arbitration under Article 263 (g) of the Labor Code.

SECTION 3. EFFECTS OF CERTIFICATION. - a) Upon certification, the intended or impending
strike or lockout is automatically enjoined, notwithstanding the filing of any motion for
reconsideration of the certification order nor the non- resolution of any such motion which may
have been duly submitted to the Office of the Secretary of Labor and Employment. If a work
stoppage has already taken place at the time of the certification, all striking or locked out
employees shall immediately return to work and the employer shall immediately resume
operations and readmit all workers under the same terms and conditions prevailing before the
strike or lockout.

b) All cases between the same parties, except where the certification order specifies otherwise
the issues submitted for arbitration which are already filed or may be filed, and are relevant to or
are proper incidents of the certified case, shall be considered subsumed or absorbed by the
certified case, and shall be decided by the appropriate Division of the Commission.

Subject to the second paragraph of Section 4 of Rule IV, the parties to a certified case, under
pain of contempt, shall inform their counsels and the Division concerned of all cases pending
with the Regional Arbitration Branches and the Voluntary Arbitrators relative or incident to the
certified case before it.
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c) Whenever a certified labor dispute involves a business entity with several workplaces located
in different regions, the Division having territorial jurisdiction over the principal office of the
company shall acquire jurisdiction to decide such labor dispute; unless the certification order
provides otherwise.

SECTION 4. EFFECTS OF DEFIANCE. - Non- compliance with the certification order of the
Secretary of Labor and Employment shall be considered as an illegal act committed in the
course of the strike or lockout, and shall authorize the Commission to enforce the same under
pain of immediate disciplinary action, including dismissal or loss of employment status or
payment by the locking- out employer of backwages, damages and/or other affirmative relief,
even criminal prosecution against the liable parties.

The Commission may also seek the assistance of law enforcement agencies to ensure
compliance and enforcement of its orders and resolutions.

SECTION 5. PROCEDURE IN CERTIFIED CASES. - a) When there is no need to conduct a
clarificatory hearing, the Commission shall resolve all certified cases within thirty (30) calendar
days from receipt by the assigned Commissioner of the complete records, which shall include
the position papers of the parties and the order of the Secretary of Labor and Employment
denying the motion for reconsideration of the certification order, if any.

b) Where a clarificatory hearing is needed, the Commission shall, within five (5) calendar days
from receipt of the records, issue a notice to be served on the parties through the fastest means
available, requiring them to appear and submit additional evidence, if any. All certified cases
shall be resolved by the Commission within sixty (60) calendar days from receipt of the
complete records by the assigned Commissioner.

c) No motion for extension or postponement shall be entertained. (5a)

SECTION 6. EXECUTION OF JUDGMENT IN CERTIFIED CASE. - Upon issuance of the entry
of judgment, the Commission, motu proprio or upon motion by the proper party, may cause the
execution of the judgment in the certified case.

RULE IX
CONTEMPT

SECTION 1. DIRECT CONTEMPT. - The Chairman or any Commissioner or Labor Arbiter may
summarily adjudge guilty of direct contempt any person committing any act of misbehavior in
the presence of or so near the Chairman or any Commissioner or Labor Arbiter as to obstruct or
interrupt the proceedings before the same, including disrespect toward said officials, offensive
acts toward others, or refusal to be sworn or to answer as a witness or to subscribe to an
affidavit or deposition when lawfully required to do so. If the offense is committed against the
Commission or any member thereof, the same shall be punished by a fine not exceeding Five
Hundred Pesos (P500.00) or imprisonment not exceeding five (5) days, or both; and, if the
offense is committed against any Labor Arbiter, the same shall be punished by a fine not
exceeding One Hundred Pesos (P100.00) or imprisonment not exceeding one (1) day, or both.

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Any person adjudged guilty of direct contempt by a Labor Arbiter may, within a period of five (5)
calendar days from notice of the judgment, appeal the same to the Commission and the
execution of said judgment shall be suspended pending resolution of the appeal upon the filing
by said person of a bond on condition that he will abide by and perform the judgment should the
appeal be decided against him/her. A judgment of the Commission on direct contempt shall be
immediately executory and inappealable.

SECTION 2. INDIRECT CONTEMPT. The Commission or any Labor Arbiter pursuant to
Article 218 (d) of the Labor Code may cite any person for indirect contempt and impose the
appropriate penalty under any of the following grounds:

a) Misbehavior of any officer or employee in the performance of his/her official duties or in
his/her official transaction;

b) Disobedience of, or resistance to, a lawful writ, order or decision;

c) Any abuse of, or any unlawful interference with the processes or proceedings not constituting
direct contempt;

d) Any improper conduct tending, directly or indirectly, to impede, obstruct or degrade the
administration of justice;

e) Assuming to be an attorney or a representative of party without authority;

f) Failure to obey a subpoena duly served; or

g) Other grounds analogous to the foregoing.

A. Where charge to be filed. - Where the charge for indirect contempt has been committed
against the Commission or against an Officer appointed by it, the charge may be filed with the
Commission. Where such contempt has been committed against the Labor Arbiter, the charge
may be filed with the Regional Arbitration Branch subject to appeal to the Commission in the
same manner as provided in Section 1 of this Rule.

B. How proceedings commenced.

Proceedings for indirect contempt may be initiated motu proprio by the Commission or any
Labor Arbiter by an order or any other formal charge requiring the respondent to show cause
why he/she should not be punished for contempt.

In all other cases, a charge for indirect contempt shall be commenced by a verified petition with
supporting particulars and certified true copies of documents or papers involved therein, and
upon full compliance with the requirements for filing initiatory pleadings in the Commission. If
the contempt charge arose out of or is related to a principal action pending in the Commission
or Regional Arbitration Branch, the petition for contempt shall allege that fact but said petition
shall be consolidated, heard, and decided separately, unless the Commission or Labor Arbiter in
its/his/her discretion, orders the consolidation of the contempt charge and the principal action for
joint hearing and decision.

C. Hearing. - Upon the date set for hearing, the Commission or Labor Arbiter shall proceed to
investigate the charge and consider such comment, answer, defense or testimony as the
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respondent may make or offer. Failure to attend the scheduled hearing and to gi ve a
satisfactory explanation in writing to the Commission or Labor Arbiter will result in the waiver of
the respondent to be present during the hearing.

D. Punishment for indirect contempt. - If the respondent is adjudged guilty of indirect contempt
committed against the Commission or any member thereof, he/she may be punished by a fine
of One Thousand (P1,000.00) Pesos per day for every act of indirect contempt; and, if the
offense is committed against any Labor Arbiter, the same may be punished by a fine of Five
Hundred (P500.00) Pesos per day for every act of indirect contempt. Each day of defiance of, or
disobedience to, or non- enforcement of a final order, resolution, decision, ruling, injunction, or
processes, shall constitute an indirect contempt of the Commission. If the contempt consists of
the violation of an injunction or omission to do an act which is within the power of the
respondent to perform, the respondent shall, in addition, be made liable for damages as a
consequence thereof. The damages shall be measured by the extent of the loss or injury
sustained by the aggrieved party by reason of the acts or omissions of which the contempt is
being prosecuted, and the costs of the proceedings, including payment of interest on damages.

E. A writ of execution may be issued to enforce the decision imposing such fine and/or
consequent damages as punishment for indirect contempt. (2a)

RULE X
INJUNCTION

SECTION 1. INJUNCTION IN ORDINARY LABOR DISPUTES. - A preliminary injunction or
restraining order may be granted by the Commission through its Divisions pursuant to the
provisions of paragraph (e) of Article 218 of the Labor Code, as amended, when it is established
on the basis of the sworn allegations in the petition that the acts complained of involving or
arising from any labor dispute before the Commission, which, if not restrained or performed
forthwith, may cause grave or irreparable damage to any party or render ineffectual any
decision in favor of such party.

A certification of non- forum shopping shall accompany the petition for injunction.

The writ of preliminary injunction or temporary restraining order shall become effective only
upon posting of the required cash bond in the amount to be determined by the Commission to
answer for any damage that may be suffered by the party enjoined, if it is finally determined that
the petitioner is not entitled thereto.

SECTION 2. INJUNCTION IN STRIKES OR LOCKOUTS. - A preliminary or permanent
injunction may be granted by the Commission only after hearing the testimony of witnesses and
with opportunity for cross- examination in support of the allegations of the complaint or petition
made under oath, and testimony by way of opposition thereto, if offered, and only after a finding
of fact by the Commission:

a) That prohibited or unlawful acts have been threatened and will be committed and will be
continued unless restrained, but no injunction or temporary restraining order shall be issued on
account of any threat, prohibited or unlawful act, except against the person or persons,
association or organization making the threat or committing the prohibited or unlawful act or
actually authorizing or ratifying the same after actual knowledge thereof.
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b) That substantial and irreparable injury to petitioner's property will follow;

c) That as to each item of relief to be granted, greater injury will be inflicted upon the petitioner
by the denial of relief than will be inflicted upon respondents by the granting of relief;

d) That petitioner has no adequate remedy at law; and

e) That the public officers charged with the duty to protect petitioner's property are unable or
unwilling to furnish adequate protection.

SECTION 3. HEARING; NOTICE THEREOF. - Hearings shall be held after due and personal
notice thereof has been served, in such manner as the Commission shall direct, to all known
persons against whom relief is sought, and also to the Chief Executive and other public officials
of the province or city within which the unlawful acts have been threatened or committed
charged with the duty to protect petitioner's property.

SECTION 4. RECEPTION OF EVIDENCE; DELEGATION. - The reception of evidence for the
application of a writ of injunction may be delegated by the Commission to any of its Labor
Arbiters who shall conduct such hearings in such places as he/she may determine to be
accessible to the parties and their witnesses, and shall thereafter submit his/her report and
recommendation to the Commission within fifteen (15) days from such delegation.

SECTION 5. OCULAR INSPECTION. - The Chairman, any Commissioner, Labor Arbiter or their
duly authorized representatives, may, at any time during working hours, conduct an ocular
inspection on any establishment, building, ship or vessel, place or premises, including any work,
material, implement, machinery, appliance or any object therein, and ask any employee,
laborer, or any person, as the case may be, for any information or data concerning any matter
or question relative to the object of the petition.

The ocular inspection reports shall be submitted to the appropriate Division within twenty- four
(24) hours from the conduct thereof.

SECTION 6. TEMPORARY RESTRAINING ORDER; REQUISITES. - If the petitioner shall also
allege that, unless a temporary restraining order shall be issued without notice, a substantial
and irreparable injury to petitioner's property will be unavoidable, such a temporary restraining
order may be issued upon testimony under oath, or by affidavits of the petitioner's witnesses,
sufficient, if sustained, to justify the Commission in the issuance thereof.

SECTION 7. CASH BOND. - No temporary restraining order or writ of preliminary injunction
shall be issued except on the condition that petitioner shall first file an undertaking to answer for
the damages and post a cash bond in the amount of Fifty Thousand Pesos (P50,000.00), or
such higher amount as may be determined by the Commission, to recompense those enjoined
for any loss, expense or damage caused by the improvident or erroneous issuance of such
order or injunction, including all reasonable costs, together with a reasonable attorney's fee, and
expense of defense against the order or against the granting of any injunctive relief sought in
the same proceeding and subsequently denied by the Commission.

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SECTION 8. EFFECTIVITY OF TEMPORARY RESTRAINING ORDER. - A temporary
restraining order shall be effective for no longer than twenty (20) days reckoned from the
posting of the cash bond required under the preceding section. During the said period, the
parties shall be required to present evidence to substantiate their respective positions in the
main petition.

SECTION 9. EFFECTS OF DEFIANCE. - The order or resolution enjoining the performance of
illegal acts shall be immediately executory in accordance with the terms thereof. In case of non-
compliance, the Commission shall impose such sanctions, and shall issue such orders, as may
be necessary to implement the said order or resolution, including the enlistment of law
enforcement agencies having jurisdiction over the area for the purpose of enforcing the same.

SECTION 10. ORDINARY REMEDY IN LAW OR IN EQUITY. - Nothing in this Rule shall
deprive any party having a claim or cause of action under or upon such undertaking from
electing to pursue his/her ordinary remedy by suit at law or in equity.


RULE XI
EXECUTION PROCEEDINGS

SECTION 1. EXECUTION UPON FINALITY OF DECISION OR ORDER. - a) A writ of execution
may be issued motu proprio or on motion, upon a decision or order that has become final and
executory.

b) If an appeal has been duly perfected and finally resolved by the Commission, a motion for
execution may be filed before the Labor Arbiter, when the latter has possession of the case
records or upon submission of certified true copies of the decisions or final order/s sought to be
enforced including notice of decision or order and the entry of judgment, copy furnished the
adverse party.

c) Except that, as provided for in Section 18 of Rule V in relation to Section 9 of this Rule, and in
those cases where partial execution is allowed by law, the Labor Arbiter shall retain duplicate
original copies of the decision to be implemented and proof of service thereof for the purpose of
immediate enforcement. (1a)

SECTION 2. EXECUTION BY MOTION OR BY INDEPENDENT ACTION. Pursuant to Art.
224 of the Labor Code, a decision or order may be executed on motion within five (5) years from
the date it becomes final and executory. After the lapse of such period, the judgment shall
become dormant, and may only be enforced by an independent action before the Regional
Arbitration Branch of origin and within a period of ten (10) years from date of its finality. (8a)

SECTION 3. EFFECT OF PERFECTION OF APPEAL ON EXECUTION. - The perfection of an
appeal shall stay the execution of the decision of the Labor Arbiter except execution for
reinstatement pending appeal. (9a)

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SECTION 4. EFFECT OF PETITION FOR CERTIORARI ON EXECUTION. - A petition for
certiorari with the Court of Appeals or the Supreme Court shall not stay the execution of the
assailed decision unless a restraining order is issued by said courts. (10a)

SECTION 5. PRE- EXECUTION CONFERENCE. - Within two (2) working days from receipt of a
motion for the issuance of a writ of execution which shall be accompanied by a computation of a
judgment award, if necessary, the Commission or the Labor Arbiter may schedule a pre-
execution conference to thresh out matters relevant to execution including the final computation
of monetary award. The pre- execution conference shall not exceed fifteen (15) calendar days
from the initial schedule, unless the parties agreed to an extension.

Any order issued by the Labor Arbiter in the pre- execution conference is not appealable,
subject to the remedies available under Rule XII. (2a)

SECTION 6. ISSUANCE, CONTENTS AND EFFECTIVITY OF A WRIT OF EXECUTION. - The
writ of execution shall issue in the name of the Republic of the Philippines signed by the
Commission or Labor Arbiter ordering the Sheriff to execute the decision, order, or award of the
Commission or Labor Arbiter, and must contain the complete name of the party, whether natural
or juridical, against whom the writ of execution was issued, the dispositive portion thereof, the
amount, if any, to be demanded, and all legal fees to be collected f rom the losing party or any
other person required by law to obey the same.

A writ of execution shall be effective for a period of five (5) years from issuance thereof. In case
of partial satisfaction of judgment during the lifetime of the writ, the Labor Arbiter shall motu
proprio issue an updated writ reflecting the amount collected and the remaining balance. (3a)

SECTION 7. ENFORCEMENT OF WRIT OF EXECUTION. - In executing a decision, resolution
or order, the Sheriff, or other authorized officer acting as Sheriff of the Commission, shall serve
the writ within three (3) days from receipt of the same, subject to the requirements of Sections
12 and 13 of this Rule and shall be guided strictly by these Rules and by the Manual on
Execution of Judgment, which shall form part of these Rules. In the absence of applicable rules,
the Rules of Court, as amended, shall be applied in a suppletory manner. (7a)

SECTION 8. MANNER OF EXECUTION OF MONETARY JUDGMENT. - a) Immediate payment
on demand. - The Sheriff shall enforce a monetary judgment by demanding the immediate
payment of the full amount stated in the writ of execution and all legal fees from the losing party
or any other person required by law to obey the same.

b) In the event of failure or refusal of the losing party to pay the judgment award, the Sheriff
shall immediately proceed against the cash deposit or surety bond posted by the losing party, if
any;

c) If the bonding company refuses to pay or the bank holding the cash deposit of the losing
party refuses to release the garnished amount despite the order or pertinent processes issued
by the Labor Arbiter or the Commission, the president or the responsible officers or authorized
representatives of the said bonding company or the bank who resisted or caused the non-
compliance shall be either cited for contempt, or held liable for resistance and disobedience to a
person in authority or the agents of such person as provided under the pertinent provision of the
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Revised Penal Code. This rule shall likewise apply to any person or party who unlawfully resists
or refuses to comply with the break open order issued by the Labor Arbiter or the Commission.

For this purpose, the Labor Arbiter or the Commission may issue an order directing the sheriff to
request the assistance of law enforcement agencies to ensure compliance with the writ of
execution, orders or processes.

A bonding company cited for contempt, or for an offense defined and punishable under the
pertinent provision of the Revised Penal Code shall be barred from transacting business with
the Commission.

d) Should the cash deposit or surety bond be insufficient, or in case the surety bond cannot be
proceeded against for any reason, the Sheriff shall, within five (5) days from demand, execute
the monetary judgment by garnishing bank deposits, credits, receivables, and other personal
property not capable of manual delivery, if the same is not enough, proceed to levy the personal
property of the losing party, and if still insufficient, against the real property not exempt from
execution, sufficient to cover the judgment award, which may be disposed of for value at a
public auction to the highest bidder.

e) Proceeds of execution shall be deposited with the Cashier of the concerned Division or
Regional Arbitration Branch, or with an authorized depositary bank. Where payment is made in
the form of a check, the same shall be payable to the Commission.

f) For monetary judgment on cases involving overseas Filipino workers, the manner of execution
shall be in accordance with Republic Act No. 10022. (5a)

SECTION 9. EXECUTION OF REINSTATEMENT PENDING APPEAL. - In case the decision
includes an order of reinstatement, and the employer disobeys the directive under the second
paragraph of Section 18 of Rule V or refuses to reinstate the dismissed employee, the Labor
Arbiter shall immediately issue writ of execution, even pending appeal, directing the employer to
immediately reinstate the dismissed employee either physically or in the payroll, and to pay the
accrued salaries as a consequence of such non- reinstatement in the amount specified in the
decision.

The Sheriff shall serve the writ of execution upon the employer or any other person required by
law to obey the same. If he/she disobeys the writ, such employer or person may be cited for
contempt in accordance with Rule IX. (6a)

SECTION 10. RESOLUTION OF MOTION TO QUASH. A motion to quash shall be resolved
by the Labor Arbiter within ten (10) working days from submission of said motion for resolution.
The mere filing of a motion to quash shall not stay execution proceedings. (11a)

SECTION 11. THIRD PARTY CLAIM. a) If the property levied is claimed by any person other
than the losing party, such person may file a third party claim not later than five (5) days from
the last day of posting or publication of the notice of execution sale, otherwise the claim shall be
forever barred. Such third party claim must comply with the following requirements:

(1) An affidavit stating title to property or right to the possession thereof with supporting
evidence;
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(2) Posting of a bond equivalent to the amount of the claim or judgment award,
whichever is lower; and

(3) Payment of prevailing filing fee.

b) Where filed - The third party claim shall be filed with the Commission or Labor Arbiter where
the execution proceeding is pending, with proof of service of copies thereof to the Sheriff and
the prevailing party.

c) Effect of Filing. - The filing of a third party claim that has complied with the requirements set
forth under paragraph (a) of this Section shall automatically suspend the proceedings with
respect to the execution of the properties subject of the third party claim.

Upon approval of the bond, the Labor Arbiter shall issue an order releasing the levied property
or a part thereof subject of the claim unless the prevailing party posts a counter bond in an
amount not less than the value of the levied property.

The Labor Arbiter may require the posting of additional bond upon showing by the other party
that the bond is insufficient.

d) Proceedings. The propriety of the third party claim shall be resolved within ten (10) working
days from submission of the claim for resolution. The decision of the Labor Arbiter is not
appealable but may be elevated to the Commission and resolved in accordance with Rule XII
hereof. Pending resolution thereof, execution shall proceed against all other properties not
subject of the third party claim. (12a)

SECTON 12. SHERFF'S RETURN AND REPORT. The writ of execution shall be returned to
the Commission or Labor Arbiter immediately after the full satisfaction of the judgment award. In
case of partial or non- satisfaction of the judgment, the sheriff enforcing the writ shall submit a
report updating the Commission or Labor Arbiter who issued the writ of execution on the status
of the enforcement thereof, not later than thirty (30) days from receipt of such writ and every
thirty (30) days thereafter during the lifetime of the writ unless fully satisfied. A copy of the report
shall be furnished the Chairman and the Executive Labor Arbiter.

Failure on the part of the Sheriff to submit the report or return required under Section 12 of this
Rule within the stated period shall subject him/her to administrative fine under Rule XIV of this
Rule, or suspension for fifteen (15) days without pay, or both. (13a, 14a)

SECTION 13. DESIGNATION OF SPECIAL SHERIFFS. - The Chairman of the Commission
may designate special Sheriffs and take any measure, under existing laws, to ensure
compliance with the decisions, resolutions or orders of the Commission and those of Labor
Arbiters. (15a)

SECTION 14. EFFECT OF REVERSAL OF EXECUTED JUDGMENT. Where the executed
judgment is totally or partially reversed or annulled by the Court of Appeals or the Supreme
Court, the Labor Arbiter shall, on motion, issue such orders of restitution of the executed award,
except wages paid during reinstatement pending appeal.

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RULE XII
EXTRAORDINARY REMEDIES (n)

SECTION 1. VERIFIED PETITION. A party aggrieved by any order or resolution of the Labor
Arbiter including those issued during execution proceedings may file a verified petition to annul
or modify such order or resolution. The petition may be accompanied by an application for the
issuance of a temporary restraining order and/or writ of preliminary or permanent injunction to
enjoin the Labor Arbiter, or any person acting under his/her authority, to desist from enforcing
said resolution or order.

SECTION 2. GROUNDS. - The petition filed under this Rule may be entertained only on any of
the following grounds:

a) If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter.

b) If serious errors in the findings of facts are raised which, if not corrected, would cause grave
or irreparable damage or injury to the petitioner.

c) If a party by fraud, accident, mistake or excusable negligence has been prevented from
taking an appeal;

d) If made purely on questions of law; or

e) If the order or resolution will cause injustice if not rectified.

SECTION 3. WHEN AND WHERE FILED. Not later than ten (10) calendar days from receipt
of the order or resolution of the Labor Arbiter, the aggrieved party may file a petition with the
Commission furnishing a copy thereof to the adverse party.

SECTION 4. REQUISITES OF THE PETITION. The petition filed under this Rule shall:

a) be accompanied by a clear original or certified true copy of the order or resolution assailed,
together with clear copies of documents relevant or related to the said order or resolution for the
proper understanding of the issue/s involved;

b) contain the arbitral docket number and appeal docket number, if any;

c) state the material date showing the timeliness of the petition;

d) be verified by the petitioner himself/herself in accordance with Section 4, Rule 7 of the Rules
of Court, as amended;

e) be in the form of a memorandum which shall state the ground/s relied upon, the argument/s
in support thereof and the reliefs prayed for;

f) be in three (3) legibly written or printed copies; and

g) be accompanied by:

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i) certificate of non- forum shopping;

ii) proof of service upon the other party/ies and the Labor Arbiter who issued the order or
resolution being assailed or questioned; and

iii) proof of payment of the required fees.

SECTION 5. THE PUBLIC AND PRIVATE RESPONDENTS IMPLEADED IN THE PETITION. -
The Labor Arbiter shall be jointly impleaded with the private respondent as a public respondent
in a nominal capacity. As used in this Rule, the private respondent refers to the party interested
in sustaining the order or resolution of the Labor Arbiter. It shall be the duty of the private
respondent to appear and defend, both in his/her behalf and that of the public respondent, and
the cost awarded in such proceedings in favor of the petitioner shall be against the private
respondent only. The public respondent shall not appear or file an answer or comment to the
petition or any pleading therein.

SECTION 6. SERVICE AND FILING OF PLEADINGS. The party filing the pleadings shall
serve the other party with copies thereof in accordance with Rule 13 of the Rules of Court
furnishing the Labor Arbiter with a copy.

If the last day to serve and file a pleading falls on a Saturday, Sunday or holiday, the pleading
shall be served and filed on the first working day immediately following such Saturday, Sunday
or Holiday.

SECTION 7. ANSWER TO THE PETITION. Within ten(10) calendar days from the receipt of
the petition, the private respondent shall file his/her answer therein stating the ground/s why the
petition should be denied. Failure on the part of the private respondent, to file his/her answer
within the said period may be construed as a waiver to file the same.

SECTION 8. OPPOSITION TO THE INJUNCTIVE RELIEF; WHEN FILED. In case the
petitioner also prays for an injunctive relief, the private respondent may file his/her verified
opposition or comment to the application for injunctive relief not later than five (5) calendar days
from receipt of a copy of the petition.

SECTION 9. EFFECT OF FILING OF PETITION. Upon filing of the petition, the proceedings
before the Labor Arbiter shall continue unless restrained. In case of execution, the proceedings
in accordance with Rule XI of these Rules shall not be suspended, but no money collected or
credit garnished may be released or properties levied upon be sold by public auction within
fifteen (15) calendar days from the filing of the petition. If no temporary restraining order or writ
of preliminary injunction is issued within the said period, the money collected or credit garnished
shall be released and/or the properties levied upon sold by public auction and the proceeds of
the sale applied, to satisfy the judgment.

In case of execution proceedings, the Labor Arbiter shall immediately inform in writing the
Commission or the Division where the petition is pending of the satisfaction of the judgment,
and, if circumstances warrant, the Commission shall dismiss the petition for being moot.

The records of the case shall not be elevated to the Commission unless otherwise ordered.
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SECTION 10. VERIFIED APPLICATION, ISSUANCE OF TEMPORARY RESTRAINING
ORDER OR PRELIMINARY INJUNCTION; BOND: Upon the filing of a verified application for
injunctive relief, together with supporting affidavits and documents, the Commission may issue a
writ of a preliminary injunction based on any of the applicable grounds provided for in Section 3,
Rule 58 of the Rules of Court for the preservation of the rights of the parties pending resolution
of the petition. The writ of preliminary injunction shall be effective for a non- extendible period of
sixty (60) calendar days from service on the private respondent.

If it shall appear from facts shown by the verified application and affidavits that great and
irreparable damage and/or injury would result to the petitioner before the petition can be
resolved, the Commission may issue a temporary restraining order ex- parte effective for a non-
extendible period of twenty (20) calendar days from service on the private respondent.

In the issuance of a temporary restraining order or writ of preliminary injunction, the Commission
shall require the posting of a cash bond in the amount of Fifty Thousand Pesos (P50,000.00), or
such higher amount as may be determined by the Commission, to recompense those enjoined
for any loss, expense or damage caused by the improvident or erroneous issuance of such
order or injunction, including all reasonable costs.

An additional cash bond may be required by the Commission in the issuance of a writ of
preliminary injunction.

SECTION 11. EFFECTIVITY OF TEMPORARY RESTRAINING ORDER OR WRIT OF
PRELIMINARY INJUNCTION.

The temporary restraining order or writ of preliminary injunction shall become effective only
upon posting of the required cash bond.

In the event that the application for a writ of preliminary injunction is denied or not resolved
within the said period, the temporary restraining order is deemed automatically vacated.

The application for a temporary restraining order or a writ of preliminary injunction may be
denied, or if granted, may be dissolved, on any grounds provided for in Section 6, Rule 58 of the
Rules of Court.

SECTION 12. EFFECT OF INJUNCTION. The issuance of a temporary restraining order or a
writ of preliminary injunction, unless otherwise declared by the Commission, shall not suspend
the proceedings before the Labor Arbiter or stay the implementation of the writ of execution but
shall only restrain or enjoin such particular act/s as therein decreed to be restrained or enjoined.

SECTION 13. RESOLUTION OF PETITION. If the Commission finds that the allegations of
the petition are true, it shall:

a) render judgment for the relief prayed for or to which the petitioner is entitled, and/or

b) grant a final injunction perpetually enjoining the Labor Arbiter or any person acting under
his/her authority from the commission of the act/s or confirming the preliminary injunction.

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However, the Commission may dismiss the petition if it finds the same to be patently without
merit, prosecuted manifestly for delay, or that the questions raised therein are too unsubstantial
to require consideration.

SECTION 14. RECOVERY FROM THE INJUNCTION BOND. The amount of damages that
may be recovered by the private respondent from the injunction bond of the petitioner shall be
ascertained and awarded in the decision/order/resolution finally disposing of the issue on the
application for injunction.

SECTION 15. NO APPEAL FROM THE ORDER OR RESOLUTION OF THE LABOR ARBITER
ARISING FROM EXECUTION PROCEEDINGS OR OTHER INCIDENTS. Except by way of a
petition filed in accordance with this Rule, no appeal from the order or resolution issued by the
Labor Arbiter during the execution proceedings or in relation to incidents other than a decision
or disposition of the case on the merits, shall be allowed or acted upon by the Commission.

RULE XIII
COMMISSION SEAL AND RECORDS, AND POWERS AND DUTIES OF COMMISSION
OFFICIALS

SECTION 1. SEAL OF THE COMMISSION. - The seal of the National Labor Relations
Commission shall be of standard size, circular, with the inscription, running from left to right on
the upper outside edge, the words "NATONAL LABOR RELATONS COMMSSON, and the
lower outside edge, the words "REPUBLC OF THE PHLPPNES, with a design at the center
containing the coat of arms of the Department of Labor and Employment.

SECTION 2. THE EXECUTIVE CLERK. - The Executive Clerk shall assist the Commission
when sitting en banc and when acting through the First Division, and shall perform such similar
or equivalent functions and duties as are discharged by the Clerk of Court of the Court of
Appeals.

SECTION 3. DEPUTY EXECUTIVE CLERKS. - The Deputy Executive Clerks of the other
Divisions shall assist the Commission when acting through its Division, and shall perform similar
functions and duties as discharged by the Deputy Clerks of Court of the Court of Appeals, and
as enumerated herein as functions of the Executive Clerk relative to their respective Divisions.
(3a)

SECTION 4. DUTIES AND FUNCTIONS OF THE EXECUTIVE CLERK AND DEPUTY
EXECUTIVE CLERKS. - a) Custody of Seal and Books. He/she shall keep in his/her care and
custody the Seal of the Commission, together with all the books necessary for the recording of
the proceedings of the Commission, including the records, files and exhibits;

b) Filing of Pleadings. He/she shall receive and file all cases and pleadings and documents
indicating thereon the date and time filed. All pleadings shall be filed in three (3) legibly
typewritten copies in legal size;

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c) Raffle and Assignment of Cases. He/she shall assign appealed cases for study or report
strictly by raffle or as directed by the Chairman. In this connection, the raffle of cases for study
or report must be attended by the duly designated representative of the Members of the
appropriate Division;

d) Service of Processes, Orders and Decisions. He/she shall serve parties and counsel
processes, notices of hearings, copies of decisions, resolutions or orders issued by the
Commission by registered mail, by courier or by personal service and immediately attach the
returns or proofs of delivery thereof to the records;

e) Commission Calendar and Minutes Book. He/she shall prepare the Commission or Division
calendars of sessions, attend such sessions personally and immediately prepare the minutes
thereof. For this purpose, he/she shall keep a minutes book;

f) General Docket. - The Executive Clerk shall keep a general docket for the Commission, each
page of which shall be numbered and prepared for receiving all the entries in a single page, and
shall enter therein all original and appealed cases before it, numbered consecutively in the order
in which they were received and, under the heading of each case, the date and hour of each
pleading filed, of each order, decision or resolution entered, and of each other step or action
taken in the case; so that, by reference to any single page, the history of the case may be
known;

g) Promulgation and Promulgation Book. He/she shall promulgate decisions and final
resolutions on the same date the same is filed with his/her office and indicate the date and time
of promulgation and attest the same by his/her signature on the first page thereof. He/she shall
immediately furnish the Chairman with a copy of such decision, resolution, or order with a
summary of the nature thereof and the issue involved therein. He/she shall keep a promulgation
book which indicates the date and time of promulgation, the case number, title of the case, the
ponente, the nature of the decision or final resolution and the action taken by the Commission
by quoting the dispositive portion thereof. Notices of said decisions, resolutions or orders shall
be sent in sealed envelopes to parties and their counsel within forty- eight (48) hours from
promulgation;

h) Entry of Judgment. - He shall keep a book of entries of judgment, decisions, resolutions and
orders containing in chronological order the entries of all final decisions, resolutions and orders
of the Commission;

i) Disposition and Remand of Records. - Upon entry of judgment, he/she shall immediately
remand the records of the case to the Regional Arbitration Branch of origin, Regional Director or
his/her duly authorized officer, as the case may be. The Records Unit shall immediately post
said records without delay within two (2) working days;

j) Monthly Accomplishment Reports. He/she shall submit a monthly accomplishment report of
the Commission or Division not later than the 7th day of the following month;

k) Other Functions. He/she shall perform other functions as directed by the Chairman or the
Commission en banc. (4a)

SECTION 5. BOARD SECRETARIES. - The Board Secretaries of the Commission shall assist
the Executive Clerk or Deputy Executive Clerks in the performance of their duties and functions
relative to the Commission or their respective Divisions.
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SECTION 6. ISSUANCE OF CERTIFIED COPIES. - Unless otherwise restricted by Section 8
hereof, the Executive Clerk, Deputy Executive Clerks, and the authorized officers of the
Regional Arbitration Branches shall prepare, for any person asking for the same, a certified
copy, under the Seal of the Commission, of any paper, record, decision, resolution, order or
entry by and in his/her office, proper to be certified, after payment of the standard fees to the
Commission duly receipted for; Provided, that a pauper litigant, as defined by law, shall be
exempted from paying any fee for certified copies of any document, including transcripts of
stenographic notes.

SECTION 7. POWER TO ADMINISTER OATH. - The Chairman, Members of the Commission,
the Executive Clerk, the Deputy Executive Clerks, the Executive Labor Arbiters, the Labor
Arbiters, and other persons designated or commissioned by the Chairman of the Commission,
shall have the power to administer oath on all matters or proceedings related to the
performance of their duties.

SECTION 8. ACCESS TO COMMISSION RECORDS. - All official records of the Commission
shall be open to the public during regular office hours, except those kept by it in the nature of
confidential reports, records or communications which cannot be divulged without violating
private rights or prejudicing the public interest. Minutes of hearings or sessions may not be
divulged until after promulgation of the decision or resolution.

RULE XIV
ADMINISTRATIVE SANCTIONS

Section 1. IMPOSITION OF FINES. The Commission and Labor Arbiters, by authority of the
Chairman, may after hearing, impose administrative fines which shall not be less than Five
Hundred Pesos (P500.00) nor more than Ten Thousand Pesos (P10,000.00) to ensure
compliance with decisions, orders or awards.

The imposition thereof may be enforced through issuance of a writ of execution. (n)

RULE XV
EFFECTIVITY

SECTION 1. EFFECTIVITY. - These Rules shall take effect fifteen (15) days after publication in
two (2) newspapers of general circulation.