AER PRESE

SECEIVED

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House BillNo.__ 5584
t Re ive PA “DOY™ SALVADOR C. LEACHON,

EXPLANATORY NOTE

This bill seeks to further expand the jurisdiction of the first level courts nationwide, ie., the
‘Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts, and Municipal Circuit
Trial Courts by amending Batas Pambansa Big. 129." otherwise known as the “Judiciary Reorganization
‘Act of 1980," as amended? The intent of this bill is to help de-ciog the dockets of the second level
courts, or the Regional Trials Courts and increase the number of cases that can be covered by the
‘simpler procedures and quicker resolution mandated by the Revised Rules on Summary Procedure and
Revised Rules on Small Claims Cases.

Hereunder are examples of fair market values of different land types and their comesponding
‘assessment levels in some cities within and outside Metro Manila conducted through the study of the
Office of the Court Administrator. As can be gleaned from the same, the assessed values of nearty 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 evel courts outside
Metro Manila

Table 1. Fair Market Value and Assessment Levels of Land

Location ‘Ordinance beottype | gueutinee | Mee
Residential | P3,000 ~ 25,000 S%.
‘Quezon Cty ea ‘Commercial | P15,000 — P40,000 14%.
Cakes) Industrial | 12,000 - P18,000 14%
Nota |-—Residentiat 1,200 — P7,000 20%.
Peat coy | siSitebn | Summa ira
santa Rosa ci, | No. zinz0r7 | Reston 8
patee eal) Industrial 38%
iE
wopecty, | Ne. 200v008 | Reson {psi} ies
(Sookie any Industrial 1,400 35%
Prowcet | no.zoir-2e | —Sesteial |" Pi70—Pe 00 s
oe ee) Industrial P250 ~ P1,350 25%

* Judiciary Reorganization Act of 1980
? Republic Act (R.A.) No. 7691 (An Act Expanding the Jurisdiction of the Metropolitan Trial Courts,
Municipal Triai Courts, and Municipal Circuit Trial Courts, Amending for the Purpose Batas Big. 129, otherwise
known as the ‘Judiciary Reorganization Act of 1980")
3 Value per square meter


Reskdenial | ~P120=P16,000 m3
General santos | No. 2013.0059 | —Cormercal_—[_po00 = Pat ooo a
industrial P00 — 20,000 20%

Based on the median of the base unit values and sample property sizes provided hereunder,
the assessed values obtained are as follows (See Table 2)

61,500
168,875,

__ Residential 200 sqm P17,640_
Commercial ‘600 sqm | ___P3,250 | _P300,000___|
Industrial 4,500 sqm 3,250 P975,000,

Below is a table summarizing the different rules applicable in the first level courts and the cases
covered by each:

Table 3. Summary of Rules in the First Level Courts and Civil Cases Covered

‘Revised Rules on Revised Rules on
bo casaienaad ‘Summary ‘Small Claims Cases
‘Over P200,000
E M Up to 200,000 | Money claims from contracts of
Damages | “Eee roma) | Damages | (Metro Manila) | lease, loan, services, sale or
rising trom Metre Menke) | arising from mortgage nol exceeding
‘quasi-delicts ‘to P300,000 quasidelicts | Up to P100,000 400,000 (Metro Manila) and
od t (Outside) 300,000 (Outside)
(Qutsise)
‘Not exceeding
Actions for (doen tions ‘Claims: leh peri dar
‘probate and ynila) arising contracts n¢
partition of | [ “Not exceeding ee ace ‘exceeding P400,000 (Metro
estate 300,000, Manta) and 300,000 (Outside)
7s —| Wak exsouh
ns ing
invohing | _Ps0.000 | _Feveule Entry

100% of the Median Base Unit Value. For lands beyond the standard depth as defined in the
respective ordinances (beyond X no. of meters fronting asphalt or concrete streets or roads), a reduced
‘percentage of the base uni value is applied.

5 Assessment Value = Fair Market Value (Base Unit Value x Property Size) x Assessment Level


Tile, interest, or | (Metro Manila) ‘award involving money (Sec. 417,
possession of | ~Not exceeding R.A. 7160) not exceeding
‘eal property 20,000 ‘400,000 (Metro Manila) and

ome 300,000 (Outside)s

Up to P200,000
actions in | atu anecnay | Actions in | (Metro Manda)
sarraty ane [SG] sire and
imartime martine
| iuisdction | F100.000UP | junsdicton | 400,000
l (Outside) oe

‘According to the statistical reports of the Court Management Office, Office of the Court
Administrator, 47,442 civil cases were filed with the first level court 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 Revised Rules on Summary Procedure, 66% by the Revised Rules on Small
Claims Cases, and 19% by the regular rules.

Table 3. First Level Courts Case Flow, Clearance, and Disposition for 2018

Pending
as of Clearance | Disposition
Category | December | mflow | Outflow | December | Rate Rate
207 2018
Summary
Pra 6.207 6.533 e741 5,750 103% sm |
pean 5,754 31,283 30,153, 6.487 96% 81%
Regular za | ogae | esa | eos2 | oom i
Te yogs2 | aaa | a5 087 RC

‘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.

Table 4. Second Level Courts Case Flow and Pending Cases for 2018

Pending as of Pending as of
|__ December 2017 errind BEI on conn AP ELS: aS
i 117,765 68,457 65,363 108,484 1

‘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.

In the light of the above considerations, it is respectfully proposed that the jurisdictional
threshold of the first level courts under Sec. 33 (1) and (3), B.P. 129, as amended by R.A 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 (400,000.00)


for civil actions which which involve title to, or 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 (6) years by One Hundred Thousand
Pesos (P100,000.00), similar to Sec. 5, R.A. 7691. In accordance with the Local Government Code
which 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. However, unlike the aforementioned provision, no other
‘amendments to the jurisdictional amounts of the first level courts have been introduced since 22
February 2004, in spite of inflation and the constant increase in real property value.

To insure the orderly and speedy administration of justice and effectively de-ciog the dockets
of the second level courts, there is an urgent need to further expand the jurisdiction of the first level
courts nationwide by amending Batas Pambansa Big. 129, as amended.

In view of the foregoing, the approval of this bill is eammestly sought.

. R.A. 7160, otherwise known as the Local Govemment Code of 1991.


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bil No.__5584

Introduced by Representative PAULINO “DOY" SALVADOR C. LEACHON

ANACT
FURTHER EXPANDING THE JURISDICTION OF THE METROPOLITAN TRIAL COURTS,
MUNICIPAL TRIAL COURTS IN CITIES,’ MUNICIPAL TRIAL COURTS, AND MUNICIPAL

CIRCUIT TRIAL COURTS, AMENDING FOR THE PURPOSE BATAS PAMBANSA BLG. 129,

OTHERWISE KNOWN AS THE “JUDICIARY REORGANIZATION ACT OF 1980,” AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Section 19 of Batas Pambansa Big. 129, otherwise known as the “Judiciary Reorganization
Act of 1980," As Amended, is hereby amended to read as follows:

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

XXX

(2) In all civil actions which involve the title to, or possession of, real property, or any
interest therein, where the assessed value exceeds Four Hundred Thousand
Pesos (P400,000.00), except 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 in Cities, Municipal Trial Courts, and Municipal
Circuit Trial Courts;

(3) In all actions in admiralty and maritime jurisdiction where the demand or claims
exceed Two Million Pesos (P2,000,000.00);

(4) In all matters of probate, both testate and intestate, where the gross value of the
estate exoeeds Two Million Pesos (P2,000,000.00);

XxX

(8) Inall 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 Two Million Pesos (P2,000,000.00).”

Section 2. Section 33 of the same law is hereby amended to read as follows:

7 The Municipal Trial Courts in Cities are not included in the enumeration of first level courts in B.P. 120,
‘as amended by R.A. 7691


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BRERER

“Section 33. Jurisdiction of the Metropolitan Trial Courts, Municipal Trial Courts in Cities,
Municipal Trial Courts, and Municipal Circuit Trial Courts in Civil Cases. ~ Metropolitan
‘Trial Courts, Municipal Trial Courts in Cities, 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 property, estate, or amount of the demands does not exceed Two
Million Pesos (P2,000,000.00), exclusive of interest, damages of whatever kind,
attomey's fees, litigation expenses, and costs, the amount of which must be
specifically alleged: Provided, That interest, damages of whatever kind, attormey'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
actions between the same or different parties, embodied in the same complaint,
the amount of the demand shall be the totality of the ciaims in all the causes of
action, irrespective of whether the causes of actions 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
does not exceed Four Hundred Thousand Pesos (P400,000.00) exclusive of
interest, damage of whatever kind, attomey'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).

Section 3. Five (5) years from the effectivity of this Act and every five (5) years thereafter, the
jurisdictional amounts mentioned in Sec. 19 (2), (3), (4) and (8), and Sec. 33 (1), (3) and (4) of Batas
Pambansa Big. 129, as amended by this Act, shall be increased by One Hundred Thousand Pesos
(P100,000.00).

‘Section 4. All laws, decrees, orders, rules and regulations or part thereof inconsistent with this Act are
hereby amended or modified accordingly.

‘Section 6. The provisions 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 in Cities, Municipal Trial Courts, and Municipal Circuit Trial Courts by the
provisions of this Act may be transferred from the Regional Trial Courts to the former. 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 in Cities, Municipal Trial Courts, and
‘Municipal Circuit Trial Courts.

‘Section 6. This Act shall take effect fifteen (15) days following its publication in the Official Gazette or
in two (2) national newspapers of general circulation.

Approved,