Case Summary (A.M. No. 09-6-9-SC)
Petitioner’s Request and Factual Background
Mr. Prioreschi wrote to the Chief Justice seeking confirmation that the Good Shepherd Foundation, which serves indigent and underprivileged persons, may be accorded the fee-exemption privilege granted to indigent litigants. He noted a prior endorsement for a nominal payment and raised concerns that existing rules (OCA Circular No. 42-2005 and Rule 141) appear to reserve the privilege to individual indigents only. He explained the Foundation’s long-standing charitable work and asked whether the courts could extend indigent status to the Foundation.
Legal Issue Presented
Whether a foundation or other juridical person that provides services to indigent persons may be granted the exemption from payment of legal and filing fees that the Rules of Court and the Constitution afford to indigent litigants (natural persons).
Governing Constitutional Provision
The Supreme Court relied on Section 11, Article III of the 1987 Constitution: “Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person by reason of poverty.” The Court treated this constitutional guarantee as the substantive basis for fee-exemption rules, noting the provision’s specific protection for the poor as distinct from general equal protection concerns.
Implementing Rules of Court
The Court considered the Rules of Court implementing the constitutional right, specifically: (a) Sec. 21, Rule 3, Rules of Civil Procedure (definition and procedure for authorizing an indigent party to litigate without payment of docket and related fees, subject to ex parte application and possible later contestation), and (b) Sec. 19, Rule 141, Rules of Court (as revised), which prescribes the eligibility criteria for indigent litigants—gross income thresholds and limits on ownership of real property—procedural requirements for affidavits and supporting documentation, and the consequences for falsity in such affidavits.
Legal Character of the Good Shepherd Foundation
The Court emphasized that the Good Shepherd Foundation, Inc. is a corporation, i.e., a juridical person with a legal personality separate and distinct from its members. Under the Civil Code provisions cited by the Court, juridical persons include corporations and other entities to which the law grants legal personality, and such entities possess the power to acquire property, incur obligations and bring or defend actions in their corporate name.
Application of Law to the Facts; Core Holding
The Court held that the fee-exemption privilege for indigent litigants cannot be extended to the Good Shepherd Foundation because the pertinent Rules of Court and the constitutional free-access clause are premised on the poverty of a “person” in the sense of a natural person. The implementing provisions (Sec. 21, Rule 3 and Sec. 19, Rule 141) clearly contemplate natural persons as indigent litigants. Because a juridical person does not personally suffer poverty in the way an individual does, the Foundation is not entitled to the exemption.
Additional Reasons and Policy Considerations
The Court articulated additional concerns supporting its conclusion: exten
...continue readingCase Syllabus (A.M. No. 09-6-9-SC)
Case Citation and Procedural Caption
- 613 Phil. 26 EN BANC [A.M. No. 09-6-9-SC, August 19, 2009].
- Title: RE: QUERY OF MR. ROGER C. PRIORESCHI RE EXEMPTION FROM LEGAL AND FILING FEES OF THE GOOD SHEPHERD FOUNDATION, INC.
- Disposition: Resolution by Justice Bersamin denying the request; opinion concurred in by the justices listed; participation and leave of certain justices noted.
Source of the Query and Factual Background
- Query letter dated May 22, 2009 from Mr. Roger C. Prioreschi, administrator of the Good Shepherd Foundation, Inc., addressed to the Chief Justice.
- Contents of the letter as presented:
- Expression of gratitude for an earlier indorsement to pay a nominal fee of Php 5,000.00 with the balance to be collected upon successful collection action of ten million pesos, which allowed access to the justice system previously denied by an up-front excessive court fee.
- Reference to the Hon. Court Administrator Jose Perez, who pointed out the need to comply with OCA Circular No. 42-2005 and Rule 141 that reserve the exemption “privilege” to indigent persons.
- Assertion that the law is detailed with requirements that leave little room for interpretation and that it deals mainly with “individual indigent” and does not include Foundations or Associations that work with and for the most indigent persons.
- Summary of the Good Shepherd Foundation, Inc.’s corporate purpose since 1985: outreach to the poorest among the poor, newly born and abandoned babies, children without maternal care, old people who cannot afford common prescriptions, broken families restored to normal life — generally working for the most disadvantaged Filipinos whom government or society cannot reach or have rejected/abandoned.
- Request whether the courts can grant the Foundation the same option granted to indigent people.
- Statement that two Executive Judges approached by the Foundation fear accusations of favoritism or other attack if they approve something not clearly and specifically stated in the law or approved by the Chief Justice.
- Closing courtesy inviting the Chief Justice to visit the orphanage “Home of Love” and the Spiritual Retreat Center in Antipolo City.
Legal Issue Presented
- Whether a foundation such as the Good Shepherd Foundation, Inc., a juridical person working for indigent and underprivileged persons, may be granted the same exemption from payment of legal and filing fees that the Rules of Court and the Constitution provide for indigent litigants (natural persons).
Governing Constitutional Provision
- Section 11, Article III, 1987 Constitution (the free access clause) as quoted in the resolution:
- “Sec. 11. Free access to the courts and quasi judicial bodies and adequate legal assistance shall not be denied to any person by reason of poverty.”
- Observations in the resolution regarding the constitutional provision:
- The free access clause secures the specific protection of the poor and was intentionally given constitutional stature separate from the equal protection clause, as reflected in the cited commentary and historical record. [1]
Relevant Rules of Court and Texts Cited
- Sec. 21, Rule 3, Rules of Court (1997 Rules of Civil Procedure) — “Indigent party” provision as quoted:
- A party may be authorized to litigate his action, claim or defense as an indigent if the court, upon an ex parte application and hearing, is satisfied that the party is one who has no money or property sufficient and available for food, shelter and basic necessities for himself and his family.
- Such authority includes exemption from payment of docket and other lawful fees, and transcripts of stenographic notes ordered to be furnished him.
- The amount of fees exempted shall be a lien on any judgment rendered in favor of the indigent unless otherwise provided.
- Any adverse party may contest the grant at any time