‘Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Eighteenth Congress
First Regular Session

HOUSE BILL NO. __5867

Introduced by Representative Jericho Jonas B. Nograles

EXPLANATORY NOTE

This bill seeks to amend further Batas Pambansa Blg. (BP) 129, as
amended by Republic Act (RA) No. 7691, by increasing the jurisdiction in civil
cases of the Regional Trial Courts (RTCs) and first level courts nationwide which
are the Metropolitan Trial Courts (MeTCs), the Municipal Trial Courts (MTCs)
and the Municipal Circuit Trial Courts (MCTCs).

Section 33 of BP Blg. 129, which took effect on 14, August 1981,
established among others, the jurisdiction in civil cases of the MeTCs, MTCs and
MCTCs. It provides the jurisdictional amount of Twenty Thousand Pesos
(P20,000.00) in civil actions and probate proceedings.

Subsequently, Section 3 of RA 7691, which took effect on April 15, 1994,
expanded the jurisdiction of the first level courts by increasing its jurisdictional
threshold in civil actions and probate proceedings from Twenty thousand pesos
(P20,000.00) to One hundred thousand pesos (P100,000.00), and in the case of
courts in Metro Manila, to Two hundred thousand pesos (P200,000.00), and
added a third category of civil cases involving title to, possession of, or interest
in real property.

Section 5 of RA 7691, automatically adjusted the jurisdictional amount
under Paragraph (1) of Section 33 of the same Act to Two hundred thousand
pesos (P200,000,00) after five (5) years from its effectivity, or on March 20, 1999s
and to Three hundred thousand pesos (P300,000.00) five years thereafter, or on
February 22, 2004. In the case of Metro Manila, the jurisdictional amount was
adjusted to Four hundred thousand pesos (P400,000.00) after five (5) years



from the effectivity of RA 7691, or March 20, 1999. Thereafter, no other
amendments to the jurisdictional amounts of the first level courts have been
introduced despite inflation and the constant increase in real property value.

It must be noted that while not explicitly stated in BP 129, first level courts
also have jurisdiction over admiralty and maritime actions where the demand or
claim does not exceed Three hundred thousand pesos (P300,000.00), or in Metro
Manila, where such demand or claim does not exceed Four hundred thousand
pesos (P400,000.00), as can be inferred from Section 19 thereof:

“Section 19. Jurisdiction in Civil Cases. — Regional Trial
Courts shall exercise exclusive original jurisdiction:

XxX

(3) In all actions in admiralty and maritime jurisdiction
where the demand or claim exceeds Three hundred thousand pesos
(P300,000.00), or in Metro Manila, where such demand or claim
exceeds Four hundred thousand pesos (P400,000.00).””

In civil actions, which involve title to, possession of, or any interest in real
property, the assessed value of the real property, which determines the jurisdiction
of courts in civil cases, is based on its fair market value multiplied by the
assessment level fixed by ordinances of the sangguniang panlalawigan,
sangguniang panglungsod, or sangguniang bayan, as the case may be. The Local
Government Code requires the provincial, city or municipal assessor to undertake
a general revision of property assessments every three (3) years. Since 1994, the
fair market value of real property has risen considerably. As a result, nearly all
civil cases involving title to, possession of, or any interest in real property are filed
with the second level courts, or the Regional Trial Courts.

The assessed values of nearly all sample properties fall under the
jurisdiction of the Regional Trial Courts. The exceptions fall slightly short of the

jurisdictional threshold of Twenty thousand pesos (P20,000.00) for first level
courts outside Metro Manila.

In the first level courts, there are three (3) main categories of procedural
rules applicable in civil cases: (1) the regular rules under the 1997 Rules of Civil
Procedure; (2) the 1991 Revised Rules on Summary Procedure; and (3) the
Revised Rules of Procedure for Small Claims Cases.

Based on statistical reports of the Court Management Office, Office of the
Court Administrator, 47,442 civil cases were filed with first level courts in 2018,
14% of which are covered by the Revised Rules on Summary Procedure, 66% are


covered by the Revised Rules on Small Claims Cases, while 20% are covered by
the regular rules. By year end, only 21,169 cases were left pending, with 15%
covered by the Rules on Summary Procedure, 66% by the Revised Rules on Small
Claims Cases and 19% by the regular rules. (See Table 4).

Table 4. First Level Courts Case Flow, Clearance and Disposition for 2018

Pending Pending

as of asof | Clearance | Disposition
Category | December | Inflow | Outflow | December| Rate Rate

2017 2018

Summary | 6,207 6,533 6,741 5,750 103% 53%
Procedure

Small 5,754 31,263 | 30,153 6,467 96% 81%
Claims

Regular 7,871 9,646 8,563 8,952 89% 49%
Rules

Total 19,832 | 47,442 | 45.457 | 21,169

Compare this to the inflow of civil cases in the second level courts, which
was 68,457 for 2018, with 108,484 cases left pending at the end of the year despite
an outflow of 65,363 cases. (See Table 5).

Table 5. Second Level Courts Case Flow and Pending Cases for 2018

Pending as of Inflow Outflow Pending as of
December 2017 December 2018
117,785 68,457 65,363 108,484

The above data show that first level courts have a high outflow of cases,
which is more or less at par with their inflow, and a low number of cases pending
at the end of the year, especially for those covered by the Revised Rules on Small
Claims. The second level courts, however, have a high number of pending cases
at the end of the year despite the close numbers of their case inflow and outflow.

To help de-clog the dockets of the second level courts and increase the
number of cases that can be covered by the simpler procedures and quicker
resolution mandated by the Revised Rules on Small Claims and Revised Rules
on Summary Procedure, it is respectfully proposed that the jurisdictional
threshold of the first level courts under Section 33 (1) and (3), Batas Pambansa
Blg. 129, as amended by RA 7691, be increased to Two million pesos
(P2,000,000.00) for civil actions, probate proceedings (testate and intestate), and
admiralty and maritime actions, and Four hundred thousand pesos (P400,000.00)
for civil actions which involve title to, possession of, real property, or any interest


therein, whether in or outside Metro Manila. It is also recommended that an
additional provision be included providing for the regular increase of both these
jurisdictional amounts every five (5) years by One hundred thousand pesos
(P100,000.00), similar to Sec. 5, RA 7691.

Consequently, Section 19, Batas Pambansa Blg. 129, as amended, which
provides for the jurisdiction of Regional Trial Courts in civil cases, particularly
paragraphs 2, 3, 4 and 8, would likewise need to be amended to reflect such
increases.

Increasing the jurisdictional threshold of the first level courts and
consequently, the number of cases filed before them, will likewise complement
the recent increase in the salary grades of first level court judges outside Metro
Manila.

Hence, the immediate approval of this bill is earnestly sought.

, |
JERIGHO JONAS y NOGRALES,


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Republic of the Philippines
House of Representatives
Quezon Gity, Metro Mails

Eighteenth Congress
First Regular Session

HOUSE BILL No, _ 5867

Introduced by Representative Jericho Jonas B. Nograles

AN ACT
FURTHER EXPANDING THE JURISDICTION OF THE REGIONAL TRIAL
COURTS, METROPOLITAN TRIAL COURTS, MUNICIPAL TRIAL
COURTS, AND MUNICIPAL CIRCUIT TRIAL COURTS, AMENDING FOR
THE PURPOSE BATAS PAMBANSA BLG. 129, AS AMENDED, OTHERWISE
KNOWN AS THE “JUDICIARY REORGANIZATION ACT OF 1980”

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

SECTION 1. Section 19 of Batas Pambansa Blg. 129, as amended, is hereby
further amended to read as follows:
“Sec. 19. Jurisdiction in civil cases. Regional Trial
Courts shall exercise exclusive original jurisdiction:
(1) xxx;
(2) In all’ civil ections which involve the’ title to, or
possession of, real property, or any interest therein, where the +

assessed value of the property involved exceeds [Twenty



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(59,090.09}} FOUR HUNDRED THOUSAND PESOS

(400,000.00) except actions for forcible entry into and
unlawful detainer of lands or buildings, original jurisdiction
over which is conferred upon the Metropolitan Trial Courts,
Municipal Trial Courts, and Municipal Circuit Trial Courts;
(3) In all actions in admiralty and maritime jurisdiction
where the demand or claim exceeds [One-hundred-thousand

TWO MILLION PESOS (P2,000,000.00);

(4) In all matters of probate, both testate and intestate,

where the gross value of the estate exceeds [One—hundred

peses——(206,006.00)] TWO MILLION PESOS
(P2,000,000.00);
(5) xxx;

(6) xxx;


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(7) xxx;
(8) In all other cases in which the demand, exclusive of interest,
damages of whatever kind, attomey's fees, litigation expenses, and

costs or the value of the property in controversy exceeds [One-hundred

90)] TWO MILLION

PESOS (P2,000,000.00).

At the beginning of the year 2025, and every five (5) years thereafter, the
jurisdictional amounts mentioned in Paragraphs (2), (3), (4), and (8) of this section
shall be increased by One hundred thousand pesos (P100,000.00).

SEC. 2. Section 33 of Batas Pambansa Blg. 129, as amended, is hereby further
amended to read as follows:

Sec, 33. Jurisdiction of Metropolitan Trial Courts,
Municipal Trial Courts and Municipal Circuit Trial Courts in
civil cases. Metropolitan Trial Courts, Municipal Trial Courts,
and Municipal Circuit Trial Courts shall exercise:

(1) Exclusive original jurisdiction over civil actions and
probate proceedings, testate and intestate, including the grant of

provisional remedies in proper cases, where the value of the


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personal property, estate, or amount of the demand does not

exceed [One—hundred thousand-peses(P100,000.00)-oF,i

£2.00,000.00)} TWO MILLION PESOS (P2,000,000.00)

exclusive of interest damages of whatever kind, attorney's fees,
litigation expenses, and costs, the amount of which must be
specifically alleged: Provided, That interest, damages of
whatever kind, attorney’s fees, litigation expenses and costs
shall be included in the determination of the filing fees:
Provided, further, That where there are several claims or causes
of action between the same or different parties, embodied in the
same complaint, the amount of the demand shall be the totality
of the claims in all the causes of action, irrespective of whether
the causes of action arose out of the same or different
transactions;

XXX

(3) Exclusive original jurisdiction in all civil actions
which involve title to, or possession of, real property, or any

interest therein where the assessed value of the property [or


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interest-therein] does not exceed [Fwenty—thousand—peses

€P50,000.00}} FOUR HUNDRED THOUSAND PESOS
(400,000.00) exclusive of interest, damages of whatever kind,
attorney's fees, litigation expenses and costs: Provided, That in
cases of land not declared for taxation purposes, the value of
such property shall be determined by the assessed value of the
adjacent lots.

(4) EXCLUSIVE ORIGINAL JURISDICTION IN
ADMIRALTY AND MARITIME ACTIONS WHERE
THE DEMAND OR CLAIM DOES NOT EXCEED TWO
MILLION PESOS (P2,000,000.00).

At the beginning of the year 2025, and every five (5) years thereafter, the
jurisdictional amounts mentioned in Paragraphs (1), (3) and (4) of this section shall be
increased by One hundred thousand pesos (P100,000.00).

SEC. 3. The provision of this Act shall apply to all civil cases that have not yet
reached the pre-trial stage. However, by agreement of all the parties, civil cases
cognizable by the Metropolitan Trial Courts, Municipal Trial Courts and Municipal

Circuit Trial Courts, by the provisions of this Act may be transferred from the Regional

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Trial Courts to the latter. The Supreme Court shall define the administrative procedure
for the transfer of cases, affected by the redefinition of jurisdiction to the Metropolitan
Trial Courts, Municipal Trial Courts and Municipal Circuit Trial Courts.

SEC. 4. All other laws, decrees, orders, proclamations, rules and regulations,
or parts thereof, which are inconsistent with this Act are hereby repealed, amended, or
modified accordingly.

SEC. 5. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,