CDA Quasi-Judicial Procedure Rules

Legal basis; policy and purposes

The CDA promulgates these Rules pursuant to Section 3 of Republic Act No. 6939 and powers vested in it by existing laws.
The Rules are to be liberally construed to promote the growth and viability of cooperatives.
Liberal construction must preserve harmony and instill the cooperative way of life within and among cooperatives.
Liberal construction must achieve a just and expeditious resolution of every action brought before the CDA.
The Rules set procedures to govern petitions and complaints filed with the CDA in its quasi-judicial capacity (Rule 1, Sections 2 and 3).

Core definitions and covered entities

“Authority” refers to the Cooperative Development Authority and its Extension Offices.
“Code” refers to Republic Act No. 6938, otherwise known as the Cooperative Code of the Philippines.
“Cooperative Laws” refers to the Code, Republic Act No. 6939, the Rules and Regulation Implementing the Cooperative Code, and other CDA issuances.
“Cooperatives” refers to duly registered primary, secondary and tertiary cooperatives.
“Hearing Officers” refers to the Legal Officers and other qualified employees of the Authority authorized to conduct hearings and investigations of cases and/or complaints brought before the Authority (Rule 1, Section 4).
These Rules apply to all petitions and/or complaints brought before the CDA (Rule 1, Section 2).

CDA jurisdiction; powers; referrals

The CDA may exercise powers provided under Republic Act No. 6939 and other powers expressly stated in the Code (Rule 2, Section 1).
When performing statutory functions, the CDA and its Hearing Officers have inherent power to:
- Preserve and enforce order during hearings;
- Enforce order in all proceedings before the CDA or its officers;
- Compel compliance with CDA orders and processes;
- Compel attendance of persons to testify and compel production of documents relevant to petitions or complaints pending before the CDA; and
- Administer or cause administration of oaths in petitions or complaints pending before the CDA (Rule 2, Section 2).
The CDA has exclusive jurisdiction over petitions and cases including:
- Approval of amendments to articles of cooperation and/or by-laws;
- Division, merger, or consolidation of cooperatives;
- Exercise of members’ rights, including the conduct of a financial audit;
- Holding of regular or special general assembly meetings and/or elections of directors, officers, or committee members;
- Removal of a director, officer, or committee member;
- Voluntary dissolution of a cooperative;
- Suspension, revocation, or cancellation of a certificate of registration for grounds stated in Articles 68 and 69 of the Code;
- Liquidation of a cooperative;
- Petitions to compel filing of annual reports and audited financial statements; and
- Disputes concerning internal affairs of cooperatives, including members’ rights and privileges, meeting rules and procedures, election and qualifications of officers/directors/committee members, and allocation and distribution of surpluses and other matters—subject to Article 121 of the Code and the applicable provisions of the cooperative by-laws (Rule 2, Section 3).
Petitions for voluntary dissolution, suspension/revocation/cancellation of registration, and liquidation are governed by the Manual on Dissolution, Liquidation and Cancellation of Cooperatives.
Complaints that call for reliefs that other government agencies can fully act/grant or that fall within their exclusive jurisdiction must be referred to the appropriate agency (Rule 2, Section 4).

Disqualification, venue, parties; commencement

No Administrator or Hearing Officer may take part if the Administrator/Hearing Officer, spouse, or child is related to a party, or counsel (if any), within the fourth civil degree of consanguinity or affinity, or if the Administrator/Hearing Officer has publicly expressed prejudgment shown by clear and convincing proof (Rule 3, Section 1(a)).
No Administrator or Hearing Officer may take part if formerly a member of the cooperative involved in the case, or its federation or union (Rule 3, Section 1(b)).
An Administrator or Hearing Officer may inhibit himself for just or valid reasons in the exercise of discretion (Rule 3, Section 1(c)).
If a Hearing Officer is disqualified or inhibits himself, the CDA shall appoint another Hearing Officer upon recommendation of the Director of the Legal and Registration Department (Rule 3, Section 2).
All complaints and petitions must be filed before the CDA Regional Office that has jurisdiction over the cooperative (Rule 4).
A party may be any member of a duly registered cooperative or their federations or unions (Rule 5, Section 1).
All actions must be prosecuted and defended in the name of the real parties in interest (Rule 5, Section 2).
The party requesting relief is designated as the Petitioner or Complainant; the party complained of is designated as the Respondent (Rule 5, Section 3).
A proceeding may be initiated by any natural person or cooperative by filing a verified complaint containing:
- Personal circumstances of the petitioner/complainant and respondent;
- Jurisdictional facts; and
- A concise statement of ultimate facts constituting the causes of action and the relief sought (Rule 6, Section 1(a)).
The complaint must show the dispute underwent the grievance mechanisms in the cooperative by-laws or in the federation/union rules to which the cooperative belongs, except when the dispute is between a primary and a secondary or tertiary cooperative (Rule 6, Section 1(b)).
Any complaint not containing the required elements under Rule 6, Section 1 must be dismissed (Rule 6, Section 2).
When the CDA is authorized to initiate proceedings, it issues an order for hearing stating the purpose for the hearing and a concise statement of the facts giving rise thereto; copies must be served on persons or cooperatives having interest or who may be affected (Rule 6, Section 3).

Pleadings, fees, service, hearings

Pleadings may be handwritten or typewritten on bond paper and must be in English or Filipino (Rule 7, Section 1).
Every complaint, motion, or other pleading must be filed in at least two (2) copies; if there are more than one respondent, additional signed copies must be filed equal to the number of additional respondents (Rule 7, Section 1).
Pleadings must be filed with the Legal Officer of the CDA Regional Office or the Legal Division of the CDA Central Office with jurisdiction, personally or by registered mail.
If filed by registered mail, the date of mailing is considered the date of filing, and the envelope must be attached to the case records (Rule 7, Section 2).
Complaints and answers must be verified by affidavit stating the affiant read the pleading and the allegations are true and correct of the affiant’s own knowledge and belief (Rule 7, Section 3).
The complainant/petitioner (principal party) must certify under oath in the complaint or initiatory pleading or in a sworn certification annexed and filed simultaneously that:
- No action or claim involving the same issues has been commenced or filed in any court, tribunal, or agency;
- If another action/claim is pending, a complete statement of its status is stated; and
- If the party later learns another or similar action/claim is pending, the party must report to the CDA within five (5) days from learning of it (Rule 7, Section 4).
Failure to comply with the certification and undertaking requirements causes dismissal of the petition without prejudice, and the defect cannot be cured by mere amendment of the initiatory pleading (Rule 7, Section 4).
Submitting a false certification or non-compliance constitutes indirect contempt of court, without prejudice to corresponding administrative and criminal actions (Rule 7, Section 4).
Willful and deliberate forum shopping is ground for summary dismissal with prejudice and constitutes direct contempt, and also causes administrative sanctions (Rule 7, Section 4).
Docket fees must be paid for a complaint or petition to be deemed filed, in accordance with the CDA’s Revised Schedule of Fees (Rule 7, Section 5).
Upon filing, the Legal Office/Legal Division must docket the case and assign a consecutive number bearing the year, prefixed by the office designation:
- CO (Legal Division, Central Office), DAG (Dagupan Extension Office), TUG (Tuguegarao Extension Office), BAD (Baguio Extension Office), SFR (San Fernando (Pampanga) Extension Office), NCR (Manila Extension Office), CAL (Calamba Extension Office), NAG (Naga Extension Office), ILO (Iloilo Extension Office), CBU (Cebu Extension Office), TAC (Tacloban Extension Office), CDO (Cagayan De Oro Extension Office), PAG (Pagadian Extension Office), DVO (Davao Extension Office), KID (Kidapawan Extension Office), CAR (CARAGA Extension Office) (Rule 7, Section 6(a)).
If the case is on appeal to the Board of Administrators, the letter “A” is appended to the docket number of the Central Office (Rule 7, Section 6(b)).
The petition/complaint must include the name of the cooperative and the names of the petitioner/complainants and respondents (Rule 7, Section 6(c)).
A party may be allowed to intervene before rendition of resolution, in the CDA’s discretion, if the intervenor has legal interest in the matter or in the success of a party or an interest against both, or is adversely affected (Rule 8, Section 1).
A motion for leave to intervene must be filed with notice upon all parties (Rule 8, Section 2).
The CDA must consider whether intervention will unduly delay or prejudice adjudication and whether intervenor rights may be fully protected in a separate proceeding (Rule 8, Section 3).
Amendments are allowed once as a matter of course before a responsive pleading is served; if no responsive pleading is permitted and the case has not been placed on the calendar, amendment may be made at any time after service (Rule 9, Section 1).
After the case is set for hearing, substantial amendments may be made only with leave of the CDA; leave may be refused if meant to delay or if the cause of action is substantially altered, and the CDA must act on motion filed with notice and opportunity to be heard (Rule 9, Section 2).
Supplemental pleadings: upon motion, the CDA may permit service setting forth transactions, occurrences, or events that happened after the date of the pleading sought to be supplemented (Rule 9, Section 3).
The answer must be filed within fifteen (15) days from receipt of a copy of the summons, unless otherwise provided (Rule 10, Section 1).
If intervention is allowed, intervention must be filed within five (5) days from receipt of the order allowing intervention, unless a different period is fixed by the CDA (Rule 10, Section 2).
A reply may be filed within five (5) days from receipt of a copy of the answer, unless otherwise provided (Rule 10, Section 3).
Motions are applications for orders not included in a resolution, and all motions are in writing except motions for continuance made in the presence of the adverse party or made in the course of a hearing (Rule 11, Sections 1 and 2).
A motion must state the order sought and the grounds (Rule 11, Section 3).
No oral argument is heard in support of motions unless the CDA deems otherwise (Rule 11, Section 4).
Omnibus motions must include all objections then available; objections not included are deemed waived (Rule 11, Section 5).
Service and filing of pleadings, motions, notices, orders/resolutions, and other papers follow the manner prescribed in these Rules and, suppletorily, the Rules of Court (Rule 12, Section 1).
Prohibited pleadings must not be filed, including:
- Motion to dismiss;
- Motion for a bill of particulars;
- Motion for extension of time to file memorandum;
- Motion for re-opening or re-hearing of case; and
- Motion to declare a party in default (Rule 13, Section 1).
If a motion to dismiss is filed, it constitutes an answer and the proceeding continues on the merits (Rule 13, Section 2).

Summons; evidence process; conciliation

Upon the filing of the complaint or petition, the corresponding summons must be issued within five (5) days from the date of filing (Rule 14, Section 1).
Summons must be directed to the respondent, signed by the Extension Director or the Director of the Legal and Registration Department, and must contain:
- Names of parties;
- A directive to answer within the time fixed by the Rules; and
- Notice that if the respondent does not answer, the complainant may take judgment by default and may be granted the relief applied for (Rule 14, Section 2(a)).
The Hearing Officer must proceed motu proprio to render judgment on the complaint for such relief as the Hearing Officer’s pleading may warrant (Rule 14, Section 2(a)).
A copy of the complaint and annexes must be attached to each summons (Rule 14, Section 2(a)).
In petitions for division/merger/consolidation and for suspension/revocation/cancellation/liquidation of cooperatives, notice of the pending case may be sent to government agencies and institutions affected by the resolution (Rule 14, Section 2(b)).
Alias summons may be issued by the Hearing Officer on demand of the petitioner/complainant if summons is returned unserved or lost, in the same form as the original (Rule 14, Section 3).
Summons may be served by the CDA process server or, for special reasons, by any person specially authorized by the Hearing Officer (Rule 14, Section 4).
After service, the process server must return summons together with proof of service (Rule 14, Section 5).
Personal service must be made by handing a copy to the respondent in person; if refused, tender it to him (Rule 14, Section 6).
Substituted service is allowed when personal service cannot be made for justifiable causes by:
- Leaving copies at the respondent’s dwelling house or residence with someone of suitable age and discretion residing therein; or
- Leaving copies at the respondent’s principal office or regular place of business with a competent person in charge (Rule 14, Section 7).
Proof of service must be in writing stating manner, place, and date of service; specify papers served and the name of the person who received them; and must be sworn to if made by a person other than the CDA server (Rule 11).
Voluntary appearance before the CDA is equivalent to service for acquiring jurisdiction over the person unless there is an explicit reservation (Rule 11).

Conferences, subpoenas, hearings, resolutions

After issues are joined in controversies legally subject to amicable settlement, the CDA sends notice for a mediation and conciliation conference to determine whether settlement can be reached after determining issues (Rule 15, Section 1(a)).
The conference must also consider simplification of issues and a schedule of hearing to proceed continuously as scheduled until completed and terminated, and other matters aiding just and speedy disposition (Rule 15, Section 1(a)).
Notice of conference must be given at least seven (7) days prior to the scheduled conference date and must state the date, time, and place convenient for all concerned (Rule 15, Section 1(b)).
The conference must proceed with the end-in-view of settling the dispute and must afford all involved/interested parties opportunity to ventilate views (Rule 15, Section 2(a)).
Legal counsel is not required to attend for mediation and conciliation, though they may be at or near the conference area to provide legal advice (Rule 15, Section 2(b)).
Hearing Officers must make notes of the proceedings, which form part of the case records; at request, stenographic notes or tape recordings may be taken and transcripts made available at the cost of the requesting party (Rule 15, Section 2(c)).
If the parties reach agreement after all issues are ventilated, the agreement must be reduced into writing and signed by the parties/representatives and the Hearing Officer; the agreement must be clear and concise and contain all points of the parties’ understanding (Rule 15, Section 3(a) and (b)).
The Hearing Officer must issue a resolution based on such agreements and furnish it to the parties (Rule 15, Section 3(c)).
Subpoenas may be issued motu propio by the CDA or Hearing Officer, or upon request of the parties, in any proceeding (Rule 16, Section 1).
Subpoenas may be subpoena ad testificandum or subpoena duces tecum.
Subpoenas must be signed by the Extension Director or the Director of the Legal and Registration Department concerned and must state the title of the action and be directed to the person whose attendance is required; a subpoena duces tecum must include a reasonable description of the books, documents, or things demanded that may be prima facie relevant (Rule 16, Section 2).
After issues are joined, the case is set for hearing; through counsel if any, the parties are served notice personally or by registered mail, with sufficient time for receipt not less than two (2) days before the hearing date; telegraphic notice may be sent when necessary (Rule 17, Section 1).
Unless the CDA declares otherwise for special reasons, the order of hearing is:
- Complainant presents evidence;
- Complainant-in-intervention presents evidence;
- Respondent offers evidence in support of defense, if any;
- Parties offer rebutting evidence only unless permitted to offer evidence upon their original case for good reasons;
- Upon conclusion, parties/counsel may argue unless submitting without arguments is agreed; and
- Submissions of memoranda may be allowed instead of oral arguments within fifteen (15) days from the date of the last hearing (Rule 17, Section 2).
Resolutions reached by the CDA must be in writing stating facts clearly and distinctly and the law on which based, and must state any agreements from mediation/conciliation conference, if any; resolutions must be issued under the seal of the Authority (Rule 18, Section 1).
No minute resolution disposing of a complaint shall be rendered if evidence has been adduced and received (Rule 18, Section 2).
Any matter submitted to the CDA must be decided within thirty (30) days from the date it is submitted for resolution (Rule 18, Section 3).
Resolutions must be served upon parties of record and their counsel, and also upon interested regulatory government agencies that have interest in the success or failure of any cooperative (including but not limited to Land Bank of the Philippines, Development Bank of the Philippines, Central Bank, etc.) (Rule 18, Section 4).
Resolutions become final and executory within fifteen (15) days from receipt of the resolution copy if no appeal or motion for reconsideration is filed within that period (Rule 18, Section 5(a)).
Final and executory resolutions may be enforced through a writ or order of execution issued by the CDA (Rule 18, Section 5(b)).
The CDA may order the holding of or convene motu propio a regular or special general assembly to report the resolution and undertake procedures embodied in the resolution (Rule 18, Section 6).

Contempt; appeals; enforcement effects

Direct contempt: a person guilty of misbehavior in the presence of or so near the Hearing Officer or Administrator as to obstruct or interrupt proceedings—including disrespect, offensive personalities, refusal to be sworn or answer as a witness, or refusal to subscribe an affidavit/deposition when lawfully required—may be summarily adjudged in contempt and punished by a fine of not more than PHP 500.00, imprisonment not exceeding ten (10) days, or both (Rule 18A, Section 1).
Indirect contempt: a person who fails or refuses to comply with a promulgated decision, order, or writ without justifiable cause after being required to comply is punished for contempt pursuant to the Rules of Court (Rule 18A, Section 2).
Appeals from resolutions signed by the Extension Officer Director or Director, Legal and Registration Department must be filed with the Board of Administrators within fifteen (15) days from receipt of the resolution by filing:
- a notice of appeal;
- an appeal brief; and
- payment of the corresponding docket fee with the office issuing the resolution (Rule 19, Section 1(a)).
Failure to comply within the reglementary period is construed as failure to perfect the appeal, causing dismissal (Rule 19, Section 1(b)).
The Board of Administrators decides the appeal within thirty (30) days from filing unless extended by the Board (Rule 19, Section 1(c)).
Appeals from decisions of the Board of Administrators must be filed to the Office of the President within fifteen (15) days from receipt of the Board resolution by filing a notice of appeal and appeal brief with the CDA (Rule 19, Section 2).
Transmission of records: within fifteen (15) days from receipt of notice of appeal, appeal brief, and proof of payment of corresponding fee, the Extension Office or Board of Administrators must forward the entire records or certified photocopies to the Board of Administrators or the Office of the President, as the case may be (Rule 19, Section 3).
No appeal is entertained from a resolution based on mutual agreements reached during mediation and conciliation; non-compliance triggers immediate execution of the resolution (Rule 19, Section 4).

General provisions; costs; supplementary rules; repeal

Hearing Officers may require other CDA employees to assist during sessions or hearings or in performance of duties (Rule 20, Section 1).
Stenographers may be present at every session/hearing to take stenographic notes (Rule 20, Section 2(a)).
Parties or counsel may request copies of transcripts of stenographic notes; the requesting party bears transcript costs (Rule 20, Section 2(b)).
Transcript fees are PHP 6.00 per page of not less than 250 words before any appeal is filed, and PHP 3.60 after the appeal is filed (Rule 20, Section 2(c)).
Where no applicable provision exists in these Rules, the pertinent Rules of Court of the Philippines apply by analogy or suppletory character and effect (Rule 21, Section 1).
Parties and the CDA are not strictly bound by technical rules on evidence and may use such evidence as a common prudent man may require (Rule 21, Section 2).
Any CDA resolutions, rules, or regulations (or parts thereof) inconsistent with these Rules are deemed repealed or modified accordingly (Rule 22, Section 1).
If any part of these Rules is declared unconstitutional, the remaining parts not affected remain valid and effective (Rule 22, Section 2).
These Rules take effect upon approval of the Board of Administrators (Rule 22, Section 3).