Key Definitions
- Actionable document: Document on which the action or defense is based.
- Affidavit: Sworn written declaration of facts.
- Arbiter: Officer authorized to hear and resolve disputes; includes Regional Arbiters (regional jurisdiction) and LSG Arbiters (assist or replace Regional Arbiters).
- Counterclaim: Respondent's claim against complainant to offset original claim.
- Crossclaim: Claim by a respondent against another respondent arising from the same transaction.
- Election Contest: Disputes pertaining to homeowners association elections and related matters.
- Good cause: Sufficient reason justifying an order or action by the Arbiter.
- Legal Services Group (LSG): HLURB's legal arm responsible for legal opinions, mediation, and certain case resolutions.
- Pleadings: Formal written legal documents including Complaint, Answer, Motion, Position Papers.
- Parties: Complainant (initiates action) and Respondent (against whom action is filed).
- Verification: Written oath affirming truth of allegations.
Construction and Applicability
- Rules are liberally construed to achieve objectives.
- Applies to proceedings under jurisdiction of Arbiters, except regulatory orders appealable directly to Board.
- 2011 HLURB Rules and Rules of Court apply suppletorily unless inconsistent.
Jurisdiction of Regional Arbiters
- General jurisdiction: Disputes under laws implemented by HLURB unless vested elsewhere.
- Specific jurisdiction includes:
- Real estate developments: claims by buyers against developers, suits related to registrations, permits, disputes over common areas, easements within subdivisions.
- Homeowners associations: disputes involving registration, intra- and inter-association issues, disputes with homeowners and the State.
Powers of Arbiters
- Hear and decide HLURB-cognizable cases.
- Issue cease and desist orders or preliminary injunctions.
- Punish for contempt.
- Issue subpoenas, summon witnesses, conduct searches and seizures for case disposition.
- Impose fines or penalties for violations.
- Suspend or revoke certificates of registration or licenses for grounds such as fraud, misrepresentation, defiance of lawful orders.
- Exercise powers incidental or necessary to objectives.
Inhibition of Arbiter
- Mandatory inhibition: when Arbiter or close relatives are interested or related to parties/counsel.
- Discretionary inhibition for justifiable grounds.
- Procedures require written motions for inhibition; arbiter decides within 5 days.
- Inhibiting Arbiter leads to reassignment or referral to LSG if no arbiter available.
Cases Referred to Legal Services Group
- LSG handles cases if no arbiter available or arbiter inhibited.
- Monitoring and Adjudication Division head manages case processing but only LSG Arbiter issues decisions and orders.
- Case must be resolved within 60 days of assignment to LSG Arbiter.
- After resolution, case records return to originating Regional Field Office for service of judgment.
Commencement of Actions
- Action starts with filing a verified Complaint and required documents.
- Special power of attorney required if complainant is outside Philippines.
- Documentary attachments include certified documents and affidavits based on direct knowledge.
- For homeowners associations, mediation certification or election protest resolution must be attached if applicable.
- Venue may be chosen from Regional Offices based on residence of complainant, business location of respondent, or project location.
- Filing fees must be paid or complaint dismissed; indigent status requires proof.
Summons and Answer
- Arbiter issues summons and notice of mandatory conference with copies of complaint and answer form.
- Respondent has 10 days non-extendible period to file verified answer with supporting documents.
- Other motions not entertained; failure to answer leads to judgment based on complainant's evidence.
Counterclaims and Crossclaims
- Compulsory counterclaim: must be filed with answer if claim arises from same transaction and is within jurisdiction.
- Permissive counterclaim: optional, must pay fees.
- Crossclaim: respondent vs. co-respondent under similar conditions; must be attached to answer.
Mandatory Conference and Position Papers
- Two-date mandatory conference: first date to simplify issues and conduct mediation; second date for submission of position papers.
- Appearance mandatory by natural persons; juridical persons must send authorized officer.
- No postponements allowed; failure to appear may cause dismissal or judgment in favor of opposing party.
- Settlement agreements must be written and are immediately final and executory.
- Position papers substitute for trial; must contain facts, issues, grounds, arguments, and reliefs.
- Failure to file position papers results in resolution based on available evidence.
Draft Decision and Clarificatory Proceedings
- Position papers must include proposed draft decision covering proceedings, facts, issues, arguments, and dispositive portion.
- Arbiter may order ocular inspection or clarificatory hearings for technical clarifications.
- Such proceedings must conclude within 20 days.
Judgment
- Case is deemed submitted for resolution after position papers are received or after clarificatory proceedings.
- Arbiter must decide within 60 days; delay must be reported.
- Decision includes case statement, facts, issues, arguments, conclusions with citations, and dispositive portion limited to requested reliefs.
- Decision promulgated within 3 days and parties notified within 3 days thereafter.
Imposition of Fines and Penalties
- Penalties classified into divisible (with min and max), qualified (only min or max, or qualified terms), and indivisible (fixed amount).
- Factors considered include aggravating, mitigating, alternative, and ineffectual circumstances.
- Examples of aggravating: fraud, repeated violations, submission of falsified documents, victim vulnerability.
- Mitigating factors include absence of fraud, first offense, timely rectification, lack of experience.
- Penalties computed per violation or per unit in case of licensed transactions.
- Reinterpretation of laws applies prospectively if detrimental, retroactively if beneficial unless order is final.
Miscellaneous Provisions
- Consignation payments require deposit in a bank account in the name of the other party with proof to Arbiter.
- Appeals from local zoning boards handled by Regional Field Office and transmitted to Board of Commissioners within 15 days.
- Separability clause allows unaffected provisions to remain valid if any are struck down.
- Repeals inconsistent previous rules and applies to new and pending cases not yet at mandatory conference stage upon effectivity.
- Takes effect 15 days after publication.