TO l'l'IJIlblic of tl)(' ~JI}l[illllil\l's' §llllr(,IlW <Collrt ®f(j((' of tl)(' <!COllrt£1blllini5'triltor 5t1.11111'1 OCA CIRCULAR NO. 26-2010 ALL JUDGES AND CLERKS OF COURT / ACCOUNTABLE OFFICERS OF THE FIRST AND SECOND LEVEL COURTS SUBJECT CLARIFICATION ON THE EXEMPTION OF THE GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS) FROM LEGAL FEES IMPOSED BY THE COURT ON GOVERNMENT -OWNED AND CONTROLLED CORPORATIONS AND LOCAL GOVERNMENT UNITS Quoted hereunder arc relevant portions of the Honorable Court's pronouncement in its En Bane Resolution dated February 11,2010, in Administrative Matter No. 08-2-01-0 (Re: Petition for Recognition of the Exemption of the Government Service Insurance System from Payment of Legal Fees), to wit: "xxxx xxxx xxxx xxxx The GSIS urges the Court to show deference Lo Congress by recognizing the exemption of the GSIS under Section 39 of RA 8291 frorn legal fees imposed under Rule 141. Effectively, the GSIS wants this Court to recognize a power of Congress to repeal, amend or modify a rule of procedure promulgated by the Court. However, the ConstiLution and jurisprudence do not sanction such view. xxxx xxxx xxxx xxxx The GSIS cannot successfully invoke the right Lo social security of governmenL employees in support of its petition. It is a corporaLe entiLy whose personality is separate and distinct from that of its individual members. The rights of its members are not iLs rights; its rights, powers and functions perLain to it solely and are not shared by its members. Its capacity to sue and bring actions under Section 41(q} of RA 8291, the specific power which involves the exemption
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TO
l'l'IJIlblic of tl)(' ~JI}l[illllil\l's'§llllr(,IlW <Collrt
®f(j((' of tl)(' <!COllrt£1blllini5'triltor5t1.11111'1
OCA CIRCULAR NO. 26-2010
ALL JUDGES AND CLERKS OF COURT /ACCOUNTABLE OFFICERS OF THE FIRSTAND SECOND LEVEL COURTS
SUBJECT CLARIFICATION ON THE EXEMPTION OFTHE GOVERNMENT SERVICE INSURANCESYSTEM (GSIS) FROM LEGAL FEES IMPOSEDBY THE COURT ON GOVERNMENT -OWNEDAND CONTROLLED CORPORATIONS ANDLOCAL GOVERNMENT UNITS
Quoted hereunder arc relevant portions of the HonorableCourt's pronouncement in its En Bane Resolution dated February11,2010, in Administrative Matter No. 08-2-01-0 (Re: Petition forRecognition of the Exemption of the Government Service InsuranceSystem from Payment of Legal Fees), to wit:
"xxxx xxxx xxxx xxxx
The GSIS urges the Court to show deference LoCongress by recognizing the exemption of the GSISunder Section 39 of RA 8291 frorn legal fees imposedunder Rule 141. Effectively, the GSIS wants this Courtto recognize a power of Congress to repeal, amend ormodify a rule of procedure promulgated by the Court.However, the ConstiLution and jurisprudence do notsanction such view.
xxxx xxxx xxxx xxxx
The GSIS cannot successfully invoke the right Losocial security of governmenL employees in support ofits petition. It is a corporaLe entiLy whose personality isseparate and distinct from that of its individualmembers. The rights of its members are not iLs rights;its rights, powers and functions perLain to it solely andare not shared by its members. Its capacity to sueand bring actions under Section 41(q} of RA 8291,the specific power which involves the exemption
,that it claims in this case, pertains to it and not toits members. Indeed, even the GSIS acknowledgesthat, in claiming exemption from the payment oflegal fees, it is not asking that rules be made toenforce the right to social security of its membersbut that the Court recognize the alleged right of theGSIS "to seek relief from the courts of justice sanspayment of legal fees".
However, the alleged right of the GSIS does notexist. The payment of legal fees does not take awaythe capacity of the GSIS to sue. It simply operates asa means by whieh that capacity may be implemented.
Since the payment of legal fees is a vitalcomponent of the rules promulgated by this Courtconcerning pleading, practice and procedure, itcannot be validly annulled, changed or modified byCongress. As one of the safeguards of this Court'sinstitutional independence, the power to promulgaterules of pleading, practice and procedure is now theCourt's exclusive domain. That po\ver is no longershared by this Court with Congress, much less with theExecutive.
Conqress could not have carved out anexemption for the GSIS from the "allment of leCialfees without transgressing another equallyimportant institutional safeguard of the Court'sindependence - fiscal autonomy. Fiscal autonomyrecognizes the power and authority of the Court to levy,assess and collect fees, including legal fces. Moreover,legal fees under Rule 141 have two basic components,the Judiciary Development Fund (JDF) and the SpecialAllowance for the Judiciary Fund (SAJF). Thc lawswhich established the JDF and the SAJF expresslydeclare the identical purpose of these funds tog1..1arantee the independence of the Judiciary asmandated by the Constitution and public policy. Legalfees therefore do not only constitute a vital source of theCourt's financial resources but also comprise anessential elemcnt of the court's fiscal independence.Any exemption (rom the payment of legal feesgranted by Congress to government-owned orcontrolled corporations and local government unitswill necessarily reduce the JDF and the SAJF.Undoubtedly, such situation is constitutionallyinfirm for it impairs the Court's guaranteed fiscalautonomy and erodes its independence."[Emphasisunderlined]]
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Henceforth, for strict compliance of all concerned is thedispositive portion of the abovementioned resolution of theSupreme Court En Bane dated February 1], 2010 in the A.M. No.08-2-01-0 which states that:
"WHEREFORE, the petition of the Government ServiceInsurance System for recognition of its exemption from thepayment of legal fees imposed under Section 22 of Rule 141 ofthe Rules of Court on government-owned or controlledcorporations and local government units is hereby DENIED."
