Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

5339

House Bill No.

Introduced by Representative Jose Luis Angel N. Campos, Jr.

EXPLANATORY NOTE

This bill seeks to establish commercial courts in every province or city throughout
the country which will exercise original and exclusive jurisdiction over all intra-corporate
cases and other cases enumerated under Section 5 of Presidential Decree No. 902-A, also
known as the Securities and Exchange Commission Reorganization Act, as amended;
cases involving insolvency and liquidations under the Financial Rehabilitation and
Insolvency Act of 2010 (FRIA); and cases emanating from administrative proceedings as
well as dissolutions and liquidation of partnerships under Articles 1830 and 1831 of the
New Civil Code.

In developing and transition economies, policymakers have increasingly
recognized the important role played by judiciaries in creating an institutional
environment conducive to robust private sector activity. It was this recognition that
prompted the Supreme Court of the Philippines, with the support of local business
groups, international investors and the donor community, to designate certain regional
trial courts as commercial courts dedicated to consider and resolve commercial cases.

Today, Regional Trial Courts (RTCs) designated as commercial courts are
overburdened with multifarious and voluminous number of cases. Aside from the
commercial and financial cases, the presently designated commercial courts continue to
hear other non-commercial cases. The designated courts still continue to perform the
functions of a regular RTC even after they have been designated as special commercial
courts.

The RTCs should be relieved of commercial-related cases which should be vested
in proposed commercial courts. This will certainly lead to a speedier resolution of
commercial cases and help lessen the backlog in the regular courts. Furthermore, judges
specifically dealing with, among others, intra-corporate cases, intellectual property cases,
cases involving admiralty and maritime laws, will become experts in such field of law and
will develop to the fullest capacity their legal and factual analysis of such cases.

Thus, approval of this bill is strongly recommended.

ty JOSE ANGEL



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, 9339

Introduced by Representative Jose Luis Angel N. Campos, Jr.

AN ACT
ESTABLISHING COMMERCIAL COURTS, DEFINING THEIR JURISDICTIONS
AND APPROPRIATING FUNDS THEREFOR.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the “Commercial Courts Act.”

SECTION 2. Declaration of Policy. - The State recognizes the vital role of the
judiciary in creating an institutional environment conducive to robust private sector
commercial activity. Toward this end, the State shall protect the rights of parties in
commercial transactions and in the interest of a speedy and efficient administration of
justice, by providing courts dedicated to resolving commercial cases.

SECTION 3. Commercial Court. - There shall be established, under the supervision
of the Supreme Court, a commercial court in every province or city in the country.

As used in this Act, commercial court refers to a court that handles exclusively
commercial law related cases.

The Supreme Court shall determine the number of commercial courts that may be
established in each province or city, taking into account the number of inhabitants of the
locality, the number of pending commercial related cases, and such other factors as may be
considered necessary for such establishment. The Supreme Court shall likewise delineate
the territorial jurisdiction of the commercial courts.

SECTION 4. Qualifications of a Commercial Court Judge. - Each commercial court
shall be presided by a judge who is a natural-born citizen of the Philippines, at least thirty-
five (35) years of age, and for at least ten (10) years, has been engaged in the practice of law
in the Philippines or has held a public office in the Philippines requiring admission to the
practice of law as an indispensable requisite. The judge must likewise have the experience,
aptitude and demonstrated ability in dealing with commercial related cases. The
commercial court judge shall enjoy the same privileges and receive the same salary as that
of the Regional Trial Court (RTC).

SECTION 5. Training of Commercial Court Judges. - The presiding judge, as well as
the court personnel of the commercial courts, shall undergo training and continuing,
education program on commercial laws, procedure and other related disciplines.


SECTION 6. Jurisdiction. - The commercial courts shall have exclusive original
jurisdiction to hear and decide the following cases:

a) __Intra-corporate cases and other cases enumerated under Section 5 of
Presidential Decree No. 902-A, as amended, that were formerly cognizable by the Securities
and Exchange Commission;

b) _ Intellectual property cases:

1) Alllcivil actions for violations of intellectual property rights provided
for in Republic Act No. 8293 or the Intellectual Property Code, as amended;

2) All criminal actions for violations of intellectual property rights
provided for in the Intellectual Property Code, as amended;

3) Applications for ex parte issuance of a writ of search and seizure in civil
actions for infringements of intellectual property rights; and

4) Applications for the issuance of search warrants involving violations
of the Intellectual Property Code.

©) Cases involving admiralty and maritime laws;
d) Petitions for dissolution involving partnerships under Articles 1830 and 1831
of the Civil Code, including liquidation emanating therefrom;

e) Financial rehabilitation cases:

1) Petition for rehabilitation of corporations, partnerships and sole
proprietorships, filed pursuant to Republic Act No. 10142, otherwise known as the
“Financial Rehabilitation and Insolvency Act (FRIA);” and

2) Liquidation of insolvent juridical and individual debtors and
suspension of payments of insolvent debtors pursuant to the FRIA;

f) Liquidation cases:

1) Those emanating from administrative proceedings and from
expiration of corporate term; and

2) Court-assisted liquidation under special laws;

g) _ Investment frauds:
1) Pre-need plans or insurance scams;
2) Pyramiding scams, Ponzi schemes;
3) Other forms of investment scams; and
h) Cases involving embezzlement of corporate funds or assets committed by a
corporation or by an individual acting on behalf of a corporation or other business entity.

SECTION 7. Court of Record. - The commercial court shall be a court of record and
shall have a clerk of court and such subordinate employees as may be necessary, who shall
be appointed in the same manner and shall receive the same compensation as those similar
officials and employees of the RTC.

SECTION 8. Proceedings and Enforcement of Decisions. - All proceedings and final
orders of the commercial courts shall be governed by the pertinent provisions of the Revised
Rules of Court consistent with the provisions of this Act.


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SECTION 9. Period for Termination of Case. - As far as practicable, the trial of cases
before the commercial court once commenced shall be continuous and shall be terminated
within three (3) months from the filing of the cases and the judgment shall be rendered
within thirty (30) days from the date the case was submitted for decision.

SECTION 10. Appeal. - Decisions and orders of the commercial court shall be
appealed in the same manner and be subject to the same conditions as appeals from the
RTC.

SECTION 11. Transfer of Cases. - Upon organization of commercial courts, the
Supreme Court shall cause all cases or proceedings, which properly fall within the
jurisdiction of the commercial court and pending before other courts designated as
commercial courts by the Supreme Court, to be transferred thereto.

SECTION 12. Transitory Provision. - The existing special rules and procedures
applicable to commercial related cases shall, as far as they are not in conflict with the
provisions of this Act, continue to be applied.

SECTION 13. Appropriations. - The amount necessary for the implementation of
this Act shall be charged to the appropriations of the Supreme Court. Thereafter, the
amount necessary for the continuous implementation of this Act shall be included in the
annual General Appropriations Act.

SECTION 14. Implementing Rules and Regulations. - Within ninety (90) days from
the effectivity of this Act, the Supreme Court shall formulate the necessary rules and
regulations for the effective implementation of this Act.

SECTION 15. Repealing Clause. - All laws, executive orders, decrees, issuances,
circulars, rules and regulations inconsistent with the provisions of this Act are hereby
repealed, amended or modified accordingly.

SECTION 16. Separability Clause. If any part, section or provision of this Act is
declared invalid or unconstitutional, the other parts or provisions hereof which are not
affected thereby shall remain to be in full force and effect.

SECTION 17. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation

Approved,