2022 Political Law, Q8

A law was passed exempting the Land Bank of the Philippines (LBP) from the payment of filing fees in collection cases on loans granted by LBP to its borrowers. The Office of the Court Administrator (OCA) of the Supreme Court issued a Memorandum requiring all courts to continue to collect filing fees in collection cases filed by LBP, stating that only the Supreme Court can decide on exemptions from payment of filing fees. LBP assails the OCA Memorandum, arguing that the exemption found in the law is within the plenary power of Congress to enact legislation. Moreover, the law was approved by the President. Thus, LBP argues that the act of the OCA violates the principle of separation of powers. Is LBP correct? Explain briefly. (5 points)

Quick check

Does Congress possess the constitutional power to exempt the Land Bank of the Philippines from paying court filing fees?

Under Section 5(5), Article VIII of the 1987 Constitution, what authority is exclusively vested in the Supreme Court?

What was the significant constitutional change introduced in the 1987 Constitution regarding judicial rulemaking?

Why is a legislative enactment granting a specific government corporation exemption from filing fees unconstitutional?

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How does an administrative memorandum from the Office of the Court Administrator requiring fee collection affect a statutory exemption?

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1. Rule-Making Power
Under Section 5(5), Article VIII of the 1987 Constitution, the Supreme Court possesses the exclusive power to promulgate rules concerning pleading, practice, and procedure in all courts, including the assessment and collection of legal fees. The 1987 Constitution removed the former power of Congress to repeal, alter, or supplement procedural rules. Consequently, the power to fix legal fees and prescribe exemptions therefrom is an inherent and exclusive judicial prerogative that cannot be validly exercised or encroached upon by statutory enactments of the legislature.

2. Separation Of Powers
The principle of separation of powers allocates distinct governmental functions among the legislative, executive, and judicial branches. While Congress possesses broad plenary legislative authority, it cannot enact laws that invade or impair the exclusive constitutional powers vested in the Judiciary. Exempting specific government corporations or litigants from paying court filing fees through legislative enactment violates separation of powers by encroaching upon the Supreme Court's exclusive rulemaking authority over judicial fees and procedural operations.

3. Judicial Fiscal Autonomy
Judicial fiscal autonomy guarantees the independence of the Judiciary from executive and legislative interference. Legal fees collected by courts form part of the Judiciary Development Fund and special allowances essential for maintaining judicial operations and officer compensation. Legislative attempts to grant statutory exemptions from court fees diminish judicial revenues and compromise the Judiciary's fiscal independence. Therefore, administrative directives issued by the Office of the Court Administrator requiring fee collection enforce the constitutional mandate protecting judicial autonomy.

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The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

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Where a question comes from an earlier examination, the suggested answer applies the law as it now stands, which may differ from the law in force when the question was given, and may therefore differ from what would have been the correct answer at that time. Where the difference is material, the answer notes it.The practice scoring feature measures wording overlap with the suggested answer. It is not a grade, carries no official weight, and says nothing about whether your reasoning is sound.Errors are possible. If you find one, please tell me and I will correct it.Last reviewed: October 2026