EXEMPTION OF COOPERATIVES FROM PAYMENT OF COURT AND SHERIFF’S FEES NO LONGER STANDS

On 11 February 2010, the Supreme Court En Banc issued a Resolution in A.M. No. 08-2-01-0, (Re: Petition for Recognition of the Exemption of the Government Service Insurance System (GSIS) for Payment of Legal Fees, A.M. No. 08-2-01-0, 11 February 2010, 612 SCRA 193) which denied the petition of the Government Service Insurance System (GSIS) for recognition of its exemption from payment of legal fees imposed under Section 22 of Rule 141 of the Rules of Court.

In the GSIS case, the Supreme Court citing Echegaray v. Secretary of Justice, 361 Phil. 73 (1999) stressed that the 1987 Constitution molded an even stronger and more independent judiciary; took away the power of Congress to repeal, alter, or supplement rules concerning pleading, practice and procedure; and held that the power to promulgate these Rules is no longer shared by the Court with Congress, more so, with the Executive. 

In a decision dated 26 February 2010 in Baguio Market Vendors Multi-Purpose Cooperative (BAMARVEMPCO) v. Cabato-Cortes, G.R. No. 165922, 26 February 2010, 613 SCRA 733.) the Supreme Court reiterated its ruling in the GSIS case when it denied the petition of the cooperative to be exempted from the payment of legal fees under Section 7(c) of Rule 141 of the Rules of Court relative to fees in petitions for extra-judicial foreclosure.  On 10 March 2010, relying again on the GSIS ruling, the Court En Banc issued a resolution clarifying that the National Power Corporation is not exempt from the payment of legal fees. (In Re:  Exemption of the National Power Corporation from Payment of Filing/Docket Fees, A.M. No. 05-10-20-SC, 10 March 2010).  With the foregoing categorical pronouncements of the Supreme Court, it is evident that the exemption of cooperatives from payment of court and sheriff’s fees no longer stands.  Cooperatives can no longer invoke Republic Act No. 6938, as amended by Republic Act No. 9520, as basis for exemption from the payment of legal fees (IN THE MATTER OF CLARIFICATION OF EXEMPTION FROM PAYMENT OF ALL COURT AND SHERIFF FEES OF COOPERATIVES DULY REGISTERED IN ACCORDANCE WITH R.A. NO. 9520 VS. PERPETUAL HELP COMMUNITY COOPERATIVE, A.M. NO. 12-2-03-0, MARCH 13, 2012, PEREZ, J.).