Philippines – Expanded Jurisdiction Of MTC.

16 November 2021

 

In an effort to declog the dockets of trial courts, specifically second-level trial courts or the Regional Trial Courts (RTC) in the country, President Rodrigo Duterte signed into law Republic Act (RA) 11576, which expanded the jurisdiction of the first-level trial courts, namely the Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts (collectively referred to as MTC).
 

In passing the law, the legislature found that court congestion was mainly seen in the RTC where there were a higher number of pending cases as compared to the first-level trial courts. Thus, the government saw that expanding the jurisdictional threshold amount of the MTC can help in decongesting the court’s dockets and further alleviate the problem of delay in disposition of cases.
 

RA 11576 amends the 40-year-old law, Batas Pambansa (BP) 129, or the Judiciary Reorganization Act of 1980, by adjusting the threshold values for civil cases under the jurisdiction of the MTC.
 

According to the Supreme Court (SC), the last time the jurisdictional amounts of trial courts nationwide were adjusted was in 2004, when the amount in Sec. 33(1) of BP 129 for first-level trial courts outside of Metro Manila was increased to P300,000. Since then, no further amendment to the jurisdictional amounts of the first-level trial courts has been made.
 

With the passage of RA 11576, the SC affirmed that “the jurisdictional amounts of the trial courts have now been adjusted to levels which are more suitable to the current economic conditions and property valuation in the country.”
 

Actions involving title to, or possession of real property, or any interest therein

The newly-signed law increased the jurisdictional amount cognizable by the RTC in all civil actions which involve the title to, or possession of, real property, or any interest therein from the previous amount of P20,000 (or P50,000 in Metro Manila) to P400,000.
 

Note, however, that the law retains the original jurisdiction over cases for forcible entry into and unlawful detainer of lands and buildings with the MTC.
 

Admiralty and maritime

RA 11576 also increased the jurisdictional amount cognizable by the RTC in all actions in admiralty and maritime jurisdiction to P2,000,000 from the previous amount of P300,000 (P400,000 in Metro Manila).
 

Probate matters, testate and intestate

With respect to all matters of probate, both testate and intestate, the law also increased the jurisdictional amount cognizable by the RTC to P2,000,000, from the previous amount of P300,000 (P400,000 in Metro Manila).
 

Other civil cases

Finally, RA 11576 increased the jurisdictional amount cognizable by the RTC in all other cases in which the demand, exclusive of interest, damages of whatever kind, attorney’s fees, litigation expenses and costs or the value of the property in controversy to P2,000,000 from the previous amount of P100,000.
 

SC’s authority to adjust the jurisdictional amounts

The new law also delegates to SC the authority to adjust the jurisdictional amount for first- and second-level courts to: (1) reflect the extraordinary supervening inflation and deflation of currency; (2) reflect change in the land valuation; or (3) maintain the proportion of caseload between first- and second-level courts.
 

The law, however, provides that the delegated authority to the SC is without prejudice on the part of Congress to adjust the amounts when the circumstances so warrant.
 

RA 11576, which was signed last 30 July and took effect last 21 August 2021, is prospective in nature and shall only apply to all civil cases filed in the first- and second-level courts from the date of effectivity thereof.
 

The law aims to not only declog the dockets of second-level courts but also to expedite the adjudication of pending and incoming cases, which in turn would lead to a better administration of justice.