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RepublicofthePhilippines

SUPREMECOURT
Manila

ENBANC

RE:QUERYOFMR.ROGER
C.PRIORESCHIRE
EXEMPTIONFROMLEGAL
ANDFILINGFEESOFTHE
GOODSHEPHERD
FOUNDATION,INC.

A.M.No.0969SC

Present:

PUNO,CJ,
QUISUMBING*,
YNARESSANTIAGO*,
CARPIO,
CORONA,
CARPIOMORALES,
CHICONAZARIO,
VELASCO,JR.,
NACHURA,
LEONARDODECASTRO,
BRION,
PERALTA,
BERSAMIN,
DELCASTILLO**,and

ABAD**,JJ.
Promulgated:
August19,2009

xx

RESOLUTION

BERSAMIN,J.:

In his letter dated May 22, 2009 addressed to the Chief Justice, Mr. Roger C. Prioreschi,
administratoroftheGoodShepherdFoundation,Inc.,wrote:

The Good Shepherd Foundation, Inc. is very grateful for your 1rst. Indorsement to pay a
nominal fee of Php 5,000.00 and the balance upon the collection action of 10 million pesos, thus
givingusaccesstotheJusticeSystempreviouslydeniedbyanupfrontexcessivecourtfee.

The Hon. Court Administrator Jose Perez pointed out to the need of complying with OCA
CircularNo.422005andRule141thatreservesthisprivilegetoindigentpersons.Whilejudgesare
appointedtointerpretthelaw,thistypeoflawseemstobeextremelydetailedwithrequirementsthat
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donotleavemuchroomforinterpretations.

Inaddition,thislawdealsmainlywithindividualindigentanditdoesnotincludeFoundationsor
Associations that work with and for the most Indigent persons. As seen in our Article of
Incorporation,since1985theGoodShepherdFoundation,Inc.reachedouttothepoorestamongthe
poor,tothenewlybornandabandonedbabies,tochildrenwhoneversawthesmileoftheirmother,to
oldpeoplewhocannotaffordafewpesostopayforcommonprescriptions,tobrokenfamilieswho
returnedtoanormallife.Inotherwords,wehavebeenworkinghardfortheveryFilipinopeople,that
theGovernmentandthesocietycannotreachto,orhaverejectedorabandonedthem.

Can the Courts grant to our Foundation who works for indigent and underprivileged
people,thesameoptiongrantedtoindigentpeople?

ThetwoExecutiveJudges,thatwehaveapproached,fearaccusationsoffavoritismorotherkind
ofattackiftheyapprovesomethingwhichisnotclearlyandspecificallystatedinthelaworapproved
byyourHONOR.

CanyourHonorhelpusoncemore?

Gratefulforyourunderstanding,Godblessyouandyourundertakings.

WeshallbeprivilegedifyoufindtimetovisitourorphanagetheHomeofLoveandtheSpiritual
RetreatCenterinAntipoloCity.

ToanswerthequeryofMr.Prioreschi,theCourtscannotgranttofoundationsliketheGood
Shepherd Foundation, Inc. the same exemption from payment of legal fees granted to indigent
litigantsevenifthefoundationsareworkingforindigentandunderprivilegedpeople.

Thebasisfortheexemptionfromlegalandfilingfeesisthefreeaccessclause,embodiedin
Sec.11,Art.IIIofthe1987Constitution,thus:

Sec.11.Freeaccesstothecourtsandquasijudicialbodiesandadequatelegalassistanceshallnotbe
deniedtoanypersonbyreasonofpoverty.

The importance of the right to free access to the courts and quasi judicial bodies and to
adequatelegalassistancecannotbedenied.Amovetoremovetheprovisiononfreeaccessfromthe
Constitutiononthegroundthatitwasalreadycoveredbytheequalprotectionclausewasdefeated
[1]
bythedesiretogiveconstitutionalstaturetosuchspecificprotectionofthepoor.

InimplementationoftherightoffreeaccessundertheConstitution,theSupremeCourtpromulgated
[2]
[3]
rules, specifically, Sec. 21, Rule 3, Rules of Court, and Sec. 19, Rule 141, Rules of Court,
whichrespectivelystatethus:

Sec.21.Indigentparty.Apartymaybeauthorizedtolitigatehisaction,claimordefenseasan
indigentifthecourt,uponanexparteapplicationandhearing,issatisfiedthatthepartyisonewho
hasnomoneyorpropertysufficientandavailableforfood,shelterandbasicnecessitiesforhimself
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andhisfamily.

Suchauthorityshallincludeanexemptionfrompaymentofdocketandotherlawfulfees,andof
transcriptsofstenographicnoteswhichthecourtmayordertobefurnishedhim.Theamountofthe
docket and other lawful fees which the indigent was exempted from paying shall be a lien on any
judgmentrenderedinthecasefavorabletotheindigent,unlessthecourtotherwiseprovides.

Any adverse party may contest the grant of such authority at any time before judgment is
rendered by the trial court. If the court should determine after hearing that the party declared as an
indigentisinfactapersonwithsufficientincomeorproperty,theproperdocketandotherlawfulfees
shallbeassessedandcollectedbytheclerkofcourt.Ifpaymentisnotmadewithinthetimefixedby
thecourt,executionshallissueforthepaymentthereof,withoutprejudicetosuchothersanctionsas
thecourtmayimpose.(22a)

Sec.19.Indigentlitigantsexemptfrompaymentoflegalfees.Indigentlitigants(a)whosegross
income and that of their immediate family do not exceed an amount double the monthly minimum
wageofanemployeeand(b)whodonotownrealpropertywithafairmarketvalueasstatedinthe
current tax declaration of more than three hundred thousand (P300,000.00) pesos shall be exempt
frompaymentoflegalfees.

The legal fees shall be a lien on any judgment rendered in the case favorable to the indigent
litigantunlessthecourtotherwiseprovides.

Tobeentitledtotheexemptionhereinprovided,thelitigantshallexecuteanaffidavitthatheand
his immediate family do not earn a gross income abovementioned, and they do not own any real
property with the fair value aforementioned, supported by an affidavit of a disinterested person
attestingtothetruthofthelitigantsaffidavit.Thecurrenttaxdeclaration,ifany,shallbeattachedto
thelitigantsaffidavit.

Anyfalsityintheaffidavitoflitigantordisinterestedpersonshallbesufficientcausetodismiss
the complaint or action or to strike out the pleading of that party, without prejudice to whatever
criminalliabilitymayhavebeenincurred.

The clear intent and precise language of the aforequoted provisions of the Rules of Court
indicate that only a natural party litigant may be regarded as an indigent litigant. The Good
Shepherd Foundation, Inc., being a corporation invested by the State with a juridical personality
[4]
separate and distinct from that of its members, is a juridical person. Among others, it has the
power to acquire and possess property of all kinds as well as incur obligations and bring civil or
[5]
criminalactions,inconformitywiththelawsandregulationsoftheirorganization. Asajuridical
person,therefore,itcannotbeaccordedtheexemptionfromlegalandfilingfeesgrantedtoindigent
litigants.
ThattheGoodShepherdFoundation,Inc.isworkingforindigentandunderprivilegedpeopleisof

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no moment. Clearly, the Constitution has explicitly premised the free access clause on a persons
poverty,aconditionthatonlyanaturalpersoncansuffer.

Thereareotherreasonsthatwarranttherejectionoftherequestforexemptioninfavorofa
juridicalperson.Forone,extendingtheexemptiontoajuridicalpersononthegroundthatitworks
for indigent and underprivileged people may be prone to abuse (even with the imposition of rigid
documentation requirements), particularly by corporations and entities bent on circumventing the
ruleonpaymentofthefees.Also,thescrutinyofcompliancewiththedocumentationrequirements
mayprovetootimeconsumingandwastefulforthecourts.

INVIEWOFTHEFOREGOING, the Good Shepherd Foundation, Inc. cannot be extended the

exemptionfromlegalandfilingfeesdespiteitsworkingforindigentandunderprivilegedpeople.

SOORDERED.

LUCASP.BERSAMIN
AssociateJustice

WECONCUR:

REYNATOS.PUNO
ChiefJustice

(Onofficialleave)(Onofficialleave)

LEONARDOA.QUISUMBINGCONSUELOYNARESSANTIAGO
AssociateJusticeAssociateJustice

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ANTONIOT.CARPIORENATOC.CORONA
AssociateJusticeAssociateJustice

CONCHITACARPIOMORALESMINITAV.CHICONAZARIO
AssociateJusticeAssociateJustice

PRESBITEROJ.VELASCO,JR.ANTONIOEDUARDOB.NACHURA
AssociateJusticeAssociateJustice

TERESITAJ.LEONARDODECASTROARTUROD.BRION
AssociateJusticeAssociateJustice

(NoPart)

DIOSDADOM.PERALTAMARIANOC.DELCASTILLO
AssociateJusticeAssociateJustice

(NoPart)

ROBERTOA.ABAD
AssociateJustice

*Onofficialleave.
*Onofficialleave.
**Tooknopartinthedeliberation.
**Tooknopartinthedeliberation.

[1]
Bernas, 1987 Philippine Constitution of the Republic of the Philippines: A Commentary, 1996 Ed., p. 4064, citing the
Journalofthe1935ConstitutionalConvention12751277.
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[2]
1997RulesofCivilProcedure.
[3]
Asrevised,effectiveAugust16,2004.
[4]
TheCivilCodeprovides:
Art.44Thefollowingarejuridicalpersons:
1)TheStateanditspoliticalsubdivisions
2) Othercorporations,institutionsandentitiesforpublicinterestorpurpose,createdbylawtheirpersonalitybeginsas
soonastheyhavebeenconstitutedaccordingtolaw
3) Corporations, partnerships and associations for private interest or purpose to which the law grants a juridical
personality,separateanddistinctfromthatofeachshareholder,partnerormember.
[5]
Art.46,CivilCode.

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