Judiciary reorganization and court system reform

Coverage of courts reorganized

The reorganization covers the Court of Appeals, Courts of First Instance, Circuit Criminal Courts, Juvenile and Domestic Relations Courts, Courts of Agrarian Relations, City Courts, Municipal Courts, and Municipal Circuit Courts under Section 2.
The organization under the Act specifically establishes a new Intermediate Appellate Court under Chapter I.
The Act creates Regional Trial Courts under Chapter II.
The Act creates Metropolitan Trial Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts under Chapter III.
The Act includes Shari’a Courts for funding purposes under Section 45.

Intermediate Appellate Court powers and structure

Section 3 creates an Intermediate Appellate Court with a Presiding Appellate Justice and forty-nine (49) Associate Appellate Justices, all appointed by the President of the Philippines.
Precedence among Associate Appellate Justices follows the dates of appointment, and when tied, the order of issuance; reappointment after service in another government position preserves original precedence under Section 3.
The Intermediate Appellate Court exercises powers through ten (10) divisions, each composed of five (5) members under Section 4.
The Court sits en banc only for administrative, ceremonial, or other non-adjudicatory functions under Section 4.
A vacancy or temporary inability of the Presiding Appellate Justice is handled by the Associate Appellate Justice first in precedence under Section 5.
If the Presiding Appellate Justice is present in a division session, he presides; if absent, the precedence Associate presides under Section 6.
The Presiding Appellate Justice and Associate Appellate Justices must have the same qualifications as those in the Constitution for Supreme Court Justices under Section 7.

Divisions, transfers, and jurisdiction

The ten (10) divisions are grouped as follows under Section 8:
- Four (4) Civil Cases Divisions for appeals in civil cases originating from Regional Trial Courts.
- Two (2) Criminal Cases Divisions for appeals in criminal cases originating from Regional Trial Courts.
- Four (4) Special Cases Divisions for original actions or petitions, petitions for review, and appeals in all other cases, including those from administrative agencies, except as in Section 9.
Appointments (except for the Presiding Appellate Justice) must specify whether they are for Civil, Criminal, or Special divisions under Section 8.
No member is assigned to divisions outside the specified class except when authorized by the Supreme Court upon recommendation of the Intermediate Appellate Court en banc, and only for exigencies of service and no more than six (6) months under Section 8.
The transfer prohibition does not apply when transfer occurs due to a permanent vacancy in a division chairmanship; the next in precedence Associate assumes the chairmanship under Section 8.
The Intermediate Appellate Court has jurisdiction under Section 9, including:
- Original jurisdiction to issue writs of mandamus, prohibition, certiorari, habeas corpus, and quo warranto, plus auxiliary writs or processes, whether or not in aid of appellate jurisdiction.
- Exclusive original jurisdiction over actions for annulment of Regional Trial Courts judgments.
- Exclusive appellate jurisdiction over final judgments/decisions/resolutions/orders/awards of Regional Trial Courts and quasi-judicial agencies, instrumentalities, boards, or commissions, except those falling within Supreme Court appellate jurisdiction under the Constitution, this Act, and Section 17 of the Judiciary Act of 1948.
The Intermediate Appellate Court may try cases, conduct hearings, receive evidence, resolve factual issues, and conduct new trials or further proceedings in cases within its original and appellate jurisdiction under Section 9.
The Act provides that these provisions do not apply to decisions and interlocutory orders issued under the Labor Code of the Philippines and by the Central Board of Assessment Appeals under Section 9.
The Intermediate Appellate Court holds a permanent station in City of Manila under Section 10, and sessions outside Manila may be authorized by the Supreme Court when demanded by public interest under Section 10.

Quorum, voting, reconsideration, and internal rules

For en banc sessions, a majority of the actual members constitutes quorum under Section 11.
For division sessions, three (3) members constitute quorum under Section 11.
Resolutions en banc require the affirmative votes of the majority of members present under Section 11.
Division decisions or final resolutions require the affirmative votes of three (3) members, reached after consultation before opinion writing under Section 11.
A motion for reconsideration of a decision or final resolution must be resolved by the Court within ninety (90) days from submission, and a second motion is not entertained unless the first motion results in reversal or substantial modification under Section 11.
The second motion for reconsideration must be resolved within forty-five (45) days from submission under Section 11.
Section 12 authorizes the Court en banc to promulgate rules governing division constitution and assignment, case distribution, and other operational matters; copies must be furnished to the Supreme Court.
Those rules/orders become effective fifteen (15) days after receipt by the Supreme Court unless directed otherwise by the Supreme Court under Section 12.

Regional Trial Courts organization and jurisdiction

The Act creates thirteen (13) Regional Trial Courts, one per judicial region listed under Section 13.
Judicial region composition is defined through specific provinces/cities per region under Section 13, and may be modified if provinces/sub-provinces/cities/municipalities are transferred or redistributed under Section 13.
Section 14 prescribes the number of Regional Trial Judges and the branch-seat distribution per region in detailed branch listings for all regions.
Qualifications for appointment as Regional Trial Judge require: natural-born citizen, at least thirty-five (35) years old, and at least ten (10) years engaged in law practice in the Philippines or held a public office requiring admission to the practice of law as an indispensable requisite under Section 15.
The Supreme Court determines the time and duration of daily sessions, with a rule that motions (except those requiring immediate action) are heard in the afternoon of every Friday, unless it falls on a holiday then the hearing is in the afternoon of the next succeeding business day, and the Supreme Court may fix different motion days for specified areas under Section 16.
Every Regional Trial Judge is appointed to a region as permanent station, with the appointment stating the branch and seat of original assignment; the Supreme Court may temporarily assign a judge to another region for public interest, but not longer than six (6) months without the judge’s consent under Section 17.
The Supreme Court may assign a judge to any branch/city/municipality within the same region as public interest may require, and this is not an assignment to another station under Section 17.
The Supreme Court defines territory appurtenant to each branch, and the defined territory determines venue and also identifies which trial courts a branch may exercise appellate jurisdiction over (Metropolitan Trial Courts, Municipal Trial Courts, Municipal Circuit Trial Courts) under Section 18.
Regional Trial Courts have exclusive original jurisdiction under Section 19 including:
- Civil actions where the subject is incapable of pecuniary estimation.
- Civil actions involving title to or possession of real property or any interest therein (excluding original jurisdiction for forcible entry and unlawful detainer which is conferred on Metropolitan/Municipal/Municipal Circuit Trial Courts).
- Admiralty and maritime actions where the demand or claim exceeds PHP 20,000.00.
- Probate (testate and intestate) where the gross value of the estate exceeds PHP 20,000.00.
- Actions involving the contract of marriage and marital relations.
- All cases not within the exclusive jurisdiction of any court/tribunal/person/body exercising judicial or quasi-judicial functions.
- Civil actions and special proceedings within the exclusive original jurisdiction of Juvenile and Domestic Relations Courts and Courts of Agrarian Relations as provided by law.
- Other cases where the demand exclusive of interest and costs or the value of property in controversy amounts to more than PHP 20,000.00.
Regional Trial Courts have exclusive original jurisdiction in criminal cases not within the exclusive jurisdiction of any court/tribunal/body, except those falling within Sandiganbayan exclusive and concurrent jurisdiction which shall be exclusively taken cognizance of by Sandiganbayan under Section 20.
Regional Trial Courts also have original jurisdiction under Section 21 to issue certiorari, prohibition, mandamus, quo warranto, habeas corpus, and injunction enforceable anywhere in their respective regions, and in actions affecting ambassadors and other public ministers and consuls.
The Supreme Court may designate certain Regional Trial Court branches for exclusive handling of specified special cases (criminal, juvenile and domestic relations, agrarian, urban land reform cases not under quasi-judicial bodies/agencies, and other special cases for speedy and efficient justice) under Section 23.
When Regional Trial Courts take cognizance of juvenile and domestic relations cases and/or agrarian cases, the special rules of procedure applicable under present laws continue unless amended by law or by Supreme Court rules under Section 24.

Metropolitan, Municipal, and Municipal Circuit Courts

The Act creates a Metropolitan Trial Court in each metropolitan area established by law, a Municipal Trial Court in each other city/municipality, and a Municipal Circuit Trial Court in each circuit grouped pursuant to law under Section 25.
Qualifications for judge of these courts require: natural-born citizen, at least 30 years old, and at least five (5) years engaged in law practice in the Philippines or held public office requiring admission to practice law as an indispensable requisite under Section 26.

Metro Manila trial courts

Section 27 establishes the Metropolitan Trial Court of Metro Manila composed of eighty-two (82) branches, with the branch allotments per city listed by specific branch ranges (Manila, Quezon City, Pasay, Caloocan, Navotas, Malabon, San Juan, Mandaluyong, Makati, Pasig, Pateros, Taguig, Marikina, Paranaque, Las Piñas, Muntinlupa, Valenzuela).

Other metropolitan areas and permanent station

The Supreme Court constitutes Metropolitan Trial Courts in other metropolitan areas established by law, with territorial jurisdiction co-extensive with the metropolitan area cities/municipalities under Section 28.
Each Metropolitan Trial Judge is appointed to a metropolitan area as permanent station with branch and seat stated in the appointment, and may be assigned to any branch within the metropolitan area without being treated as assignment to another station under Section 28.

Municipal Trial Courts outside Metro Areas

Section 29 allocates branches for Municipal Trial Courts in every city not part of a metropolitan area, listing specific numbers for each city (e.g., Laoag City, Baguio City, Dagupan City, etc.).

Municipal Trial Courts in municipalities

Section 30 provides for Municipal Trial Courts in each municipality not comprised within a metropolitan area and not within a municipal circuit, generally as one-branch courts except with specified multi-branch allocations listed per municipality.

Municipal Circuit Trial Courts

Section 31 creates Municipal Circuit Trial Courts in each municipal circuit comprising one or more cities and/or municipalities.
Municipal circuits organized under Administrative Order No. 33, issued June 13, 1978 by the Supreme Court pursuant to Presidential Decree No. 537, are constituted as municipal circuits for establishment of Municipal Circuit Trial Courts and appointments of Municipal Circuit Trial Judges under Section 31.
The Supreme Court may further reorganize municipal circuit courts considering workload, geographical location, and other factors, pursuant to Presidential Decree No. 537 insofar as not inconsistent with this Act under Section 31.
Each Municipal Circuit Trial Judge is appointed to the municipal circuit that is his official station under Section 31.
The Supreme Court determines the city or municipality where sessions of the Municipal Circuit Trial Court are held under Section 31.

Jurisdiction, delegation, and special procedures

Metropolitan Trial Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts have, in criminal cases (except those within the exclusive original jurisdiction of Regional Trial Courts and the Sandiganbayan), under Section 32:
- Exclusive original jurisdiction over violations of city or municipal ordinances committed within their territorial jurisdiction.
- Exclusive original jurisdiction over offenses punishable with imprisonment of not exceeding four years and two months, or a fine of not more than four thousand pesos, or both, including civil liability arising from such offenses, regardless of kind/nature/value/amount of the penalty imposed, except as stated for criminal negligence property damage.
- For offenses involving damage to property through criminal negligence, exclusive original jurisdiction is where the imposable fine does not exceed twenty thousand pesos under Section 32.
In civil cases, these courts have under Section 33:
- Exclusive original jurisdiction over civil actions and probate proceedings (testate and intestate) where the value of personal property, estate, or amount of demand does not exceed twenty thousand pesos exclusive of interest and costs but inclusive of damages of whatever kind, provided the amount of damages is specifically alleged.
- Aggregation rule: where there are several claims or causes of action between the same or different parties embodied in the same complaint, the amount of the demand is the totality of the claims regardless of whether the causes of action arose out of the same or different transactions under Section 33.
- Exclusive original jurisdiction over forcible entry and unlawful detainer.
- In forcible entry/unlawful detainer, if the defendant raises ownership in pleadings and possession cannot be resolved without deciding ownership, ownership is resolved only to determine the issue of possession under Section 33.
Section 34 allows the Supreme Court to assign these courts to hear and determine cadastral or land registration cases covering lots with no controversy or opposition, or contested lots with value not exceeding twenty thousand pesos, with value determined by claimant’s affidavit, agreement of claimants, or the corresponding tax declaration.
Decisions in cadastral/land registration assigned cases are appealable in the same manner as Regional Trial Court decisions under Section 34.
Under Section 35, if all Regional Trial Judges in a province or city are absent, any Metropolitan/Municipal/Municipal Circuit Trial Judge may hear and decide petitions for habeas corpus or applications for bail in criminal cases where the absent Regional Trial Judges sit.
Under Section 36, in Metropolitan Trial Courts and Municipal Trial Courts with at least two (2) branches, the Supreme Court may designate branches to exclusively try cases requiring summary disposition including forcible entry and unlawful detainer, traffic law violations, violations of the rental law, and other cases requiring summary disposition as the Supreme Court determines.
The Supreme Court must adopt special rules or procedures to achieve expeditious and inexpensive determination without regard to technical rules; affidavits and counter-affidavits may be admitted in lieu of oral testimony and periods for filing pleadings may be non-extendible under Section 36.
Under Section 37, judges of these courts (except those in the National Capital Region) have authority to conduct preliminary investigation of crimes alleged to have been committed within their territorial jurisdiction cognizable by Regional Trial Courts.
Preliminary investigation follows Presidential Decree No. 911, Section 1(a), (b), (c), and (d) procedure under Section 37, and upon finding a prima facie case, the judge forwards records to the Provincial/City Fiscal for filing of the information with the proper court under Section 37.
No warrant of arrest shall issue by the judge in connection with a criminal complaint for preliminary investigation unless, after examination in writing under oath or affirmation of complainant and witnesses, the judge finds probable cause under Section 37.
Any warrant issued under this authority may be served anywhere in the Philippines under Section 37.

Judgments, processes, and appellate rules

Section 38 requires that judgments determining the merits must be in writing, clearly state facts and law, be signed by the Judge, and filed with the Clerk of Court; they are appealable to Regional Trial Courts as the law and procedures provide under Section 38.
Under Section 38, processes issued by these courts in cases within their jurisdiction may be served anywhere in the Philippines without necessity of certification by the Regional Trial Court Judge.
The period for appeal from final orders/resolutions/awards/judgments/decisions is fifteen (15) days from notice under Section 39.
In habeas corpus cases, the appeal period is forty-eight (48) hours from notice of the judgment appealed from under Section 39.
No record on appeal is required; the entire original record must be transmitted with consecutively numbered pages and an index of contents under Section 39.
Section 39 provides that this rule does not apply in special proceedings and other cases where multiple appeals are allowed under applicable Rules of Court.
Under Section 40, every decision or final resolution in appealed cases must clearly state findings of fact and conclusions of law, whether contained in the decision or final resolution itself or adopted by reference.

Compensation, longevity, staffing, and transitional provisions

Intermediate Appellate Justices, Regional Trial Judges, Metropolitan Trial Judges, Municipal Trial Judges, and Municipal Circuit Trial Judges receive compensation and allowances authorized by the President under guidelines in Letter of Implementation No. 93 pursuant to Presidential Decree No. 985, as amended by Presidential Decree No. 1597 under Section 41.
Section 42 provides monthly longevity pay equal to 5% of the monthly basic pay for each five (5) years of continuous, efficient, and meritorious service in the judiciary, with a cap: total salary after longevity pay must not exceed the salary of the Justice or Judge next in rank.
Within thirty (30) days from the Act’s effectivity, the Supreme Court must submit to the President a staffing pattern for all courts constituted under this Act to serve as basis for the President’s implementing order under Section 43.
Section 44 requires immediate carrying out of the provisions by an Executive Order.
Courts existing prior to reorganization continue as presently constituted until completion is declared by the President; upon such declaration, the old courts are deemed automatically abolished and incumbents cease holding office under Section 44.
Pending cases must be transferred to the appropriate courts constituted under this Act, including their functions, records, equipment, property, and necessary personnel under Section 44.
Applicable appropriations are transferred to the appropriate courts constituted under this Act, to be augmented from funds for organizational changes as provided in Batas Pambansa Blg. 80, and thereafter included in the annual General Appropriations Act under Section 44.
Section 45 mandates that Shari’a Courts constituted under Presidential Decree No. 1083 (the “Code of Muslim Personal Laws of the Philippines”) are included in the funding appropriations under this Act.
Section 46 grants separated judiciary members and subordinate employees a gratuity equal to one month's salary for every year of continuous service rendered in any branch of government or the nearest favorable fraction, based on the highest salary received.
Under Section 46, such member or employee may opt to retire under the Judiciary Retirement Law or general retirement law if requirements are met.

Repeal and consolidation rules

Section 47 repeals or modifies the provisions of Republic Act No. 296 (Judiciary Act of 1948) as amended by Republic Act No. 5179, as amended by the Rules of Court, and all other inconsistent statutes, letters of instructions, general orders, or parts thereof.
The repeal is limited to provisions inconsistent with this Act under Section 47.
No sunset clause is provided; the Act mandates immediate effectivity and immediate implementation through Executive Order under Sections 44 and 48.