2015 Political Law, Q14

Congress enacted R.A. No. 14344 creating the City of Masuwerte which took effect on September 25, 2014. Section 23 of the law specifically exempts the City of Masuwerte from the payment of legal fees in the cases that it would file and/or prosecute in the courts of law. In two (2) cases that it filed, the City of Masuwerte was assessed legal fees by the clerk of court pursuant to Rule 141 (Legal Fees) of the Rules of Court. The City of Masuwerte questions the assessment claiming that it is exempt from paying legal fees under Section 23 of its charter. Is the claim of exemption tenable? Explain. (4%)

Quick check

Under Section 5(5), Article VIII of the 1987 Constitution, which body possesses exclusive authority to promulgate rules of procedure and legal fees?

In In Re Exemption of GSIS, how did the Supreme Court classify the payment of legal fees under Rule 141 of the Rules of Court?

Can Congress validly enact a legislative charter exempting a local government unit from paying legal fees in court proceedings?

What constitutional principle is violated when Congress attempts to alter or supplement procedural rules promulgated by the Supreme Court?

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Where do legal fees collected pursuant to Rule 141 of the Rules of Court accrue to support judicial independence?

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1. Judicial Rule-Making Power
Under Section 5(5), Article VIII of the 1987 Philippine Constitution, the Supreme Court possesses the exclusive power to promulgate rules concerning the protection and enforcement of constitutional rights, pleading, practice, and procedure in all courts. This constitutional grant vested rule-making authority exclusively in the Judiciary, effectively withdrawing the legislative power to repeal, alter, or supplement procedural rules. Consequently, statutes enacted by Congress that attempt to regulate procedural matters or interfere with court operations encroach upon judicial independence and violate the constitutional separation of powers.

2. Legal Fees Exemption
In In Re Exemption of GSIS from Payment of Legal Fees, the Supreme Court held that the payment of legal fees under Rule 141 of the Rules of Court is a procedural matter directly tied to the administration of justice. Legal fees are essential revenues that support judicial operations and maintain judicial fiscal autonomy. Therefore, statutory provisions enacted by Congress exempting government agencies, corporations, or local government units from paying court fees are unconstitutional. Only the Supreme Court has the authority to exempt litigating parties from paying legal fees.

3. Judicial Fiscal Autonomy
Judicial fiscal autonomy under Section 3, Article VIII of the Constitution guarantees that the Judiciary enjoys independence in managing its financial resources and court revenue. Court legal fees prescribed under Rule 141 form part of the Judiciary Development Fund and special allowances for judges. Encroachments by the Legislative branch in the form of statutory exemptions erode judicial fiscal autonomy. By insisting that legislative charters cannot exempt litigants from legal fees, the Supreme Court safeguards its constitutional power to control court revenues and preserve the proper administration of justice.

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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.

They are not official answers, have no connection with the Supreme Court, the Office of the Bar Confidant, or any bar review institution, and are not endorsed by any of them. Official answer keys, where released, should be preferred over anything here.Nothing on this page is legal advice, and reading it creates no lawyer-client relationship. Do not rely on any suggested answer in an actual legal matter. Consult counsel on your own facts.Suggested answers reflect the law and jurisprudence the author considers applicable as of the date shown.

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