Title
Supreme Court
Re: Prioreschi
Case
A.M. No. 09-6-9-SC
Decision Date
Aug 19, 2009
Non-profit Good Shepherd Foundation sought exemption from legal fees as indigent litigants; Supreme Court ruled exemptions apply only to natural persons, not juridical entities.

Case Summary (A.M. No. 09-6-9-SC)

Petitioner’s Request and Procedural Background

By letter dated May 22, 2009, Mr. Prioreschi requested that the Good Shepherd Foundation be allowed to pay only a nominal fee of ₱5,000 and defer the balance until collection of a ₱10 million claim. The Court Administrator, citing OCA Circular No. 42-2005 and Rule 141 of the Rules of Court, advised that fee exemptions were limited to indigent persons. Two executive judges declined to grant relief for fear of favoritism without explicit legal authority.

Constitutional Basis for Fee Exemption

The Court anchored its analysis on Section 11, Article III of the 1987 Constitution, which guarantees that “free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person by reason of poverty.” This free-access clause was specifically retained in the Constitution to afford the poor a distinct protection beyond the Equal Protection Clause.

Statutory Implementation under the Rules of Court

To implement free access, the Supreme Court promulgated:
• Section 21, Rule 3, which authorizes an indigent party to litigate without preliminary payment of docket and other lawful fees upon ex parte application and hearing.
• Section 19, Rule 141, which defines an “indigent litigant” by income and property thresholds and prescribes affidavits as proof. Both provisions create a lien on any favorable judgment to secure unpaid fees.

Status of the Good Shepherd Foundation, Inc. as a Juridical Person

Under Articles 44 and 46 of the Civil Code, the Foundation is a juridical person separate and distinct from its members. It possesses powers to acquire property and to sue or be sued in its corporate name. As a corporation, it cannot satisfy the Constitution’s premise that exemption applies solely to impoverished persons.

Court’s Analysis and Interpretation

The plain language of the Rules of Court limits indigent-litigant status to natural persons who suffer poverty. A juridical person cannot literally experience the deprivation contemplated by the free-access clause. Extending the exemption to entities would con

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