Promulgating the Rules of Procedure of
the Human Settlements Adjudication
Commission
Section 1 TITLE: RULES OF PROCEDURE OF THE
HUMAN SETTLEMENTS ADJUDICATION
COMMISSION aka "Rules"
What is the coverage of
these Rules? (SH-7279-
DHSUD-RA-BA)
1. Cases involving (scmr) subdivisions, condominiums, memorial parks, and
similar real estate transactions.
2. Cases involving Homeowners Associations.
3. Disputes involving the implementation of Section 18 of RA No, 7279, as
amended by RA No. 10884, and its IRR.
4. Disputes or controversies involving laws and regulations being
implemented by the DHSUD except those cases falling within the
jurisdiction of other judicial or quasi-judicial body.
5. Appeals from the decision of the Regional Adjudicators on the above
cases;
6. Appeals from decisions of local and regional planning and zoning bodies;
and
7. Other analogous cases.
1. CASES INVOLVING SUBDIVISIONS, CONDOMINIUMS,
MEMORIAL PARKS, AND OTHER SIMILAR REAL ESTATE
DEVELOPMENTS.
A. Actions concerning unsound real estate business practices filed by buyers or
homeowners against the project owner or developer, which cause prejudice to the
buyers, OR which are committed with bad faith AND in disregard of the buyers'
rights.
Claims for refund, and other claims filed by a subdivision lot or condominium unti
buyer against the project owner, developer, dealer, broker, or salesman
Provided that, when the cause of action arises from buyer's rights under Section 23 of
PD 957 and the purchase price of the property is paid through a housing loan from a
bank or other financing institutions, the latter shall be impleaded as necessary party.
What is Section 23 PD 957 all about?
SECTION 23. Non-Forfeiture of Payments.
No installment payment made by a buyer in a new or existing subdivision or
condominium project for the lot or unit he contracted to buy shall be forfeited in
favor of the owner or developer when the buyer, after due notice to the owner or
developer desists from further payment due to the failure of the owner or
developer to develop the project according to the approved plans and within the
time limit for complying with the same. Such buyer may at his option be reimbursed
the total amount paid including amortization interests but excluding delinquency
interests, with interest thereon at the legal rate.
Cases involving specific performance of contractual and statutory
obligations arising from the sale of lot or unit and development of the
subdivision or condominium project.
Disputes involving open spaces or common areas, and their use filed by
the project owner or developer or the duly registered homeowners
association (HOA), including eviction of illegal occupants therein, in
accordance with the requirements of law, and the rules and regulations
promulgated by duly constituted authorities.
Suits to declare subdivision, condominium, or other real estate
developments within the regulatory jurisdiction of the DHSUD as
abandoned, as defined under Sec. 3, RA No. 11201 for the purpose of
Section 35 of PD 957;
Disputes involving easements within or among subdivision projects; and
Actions to annul mortgages and other agreements executed in vioation
of Sec. 18 of PD 957 filed by a subdivision lot or condominium unit buyer
against the project owner and/or developer and the mortgagee.
2. Cases involving Homeowners' Association:
Controversies involving the registration and regulation of HOAs;
Intra-association disputes or controversies arising out of the
relations between and among members of HOAs; between any and
all of them and the HOAs of which they are members;
Inter-association disputes or controversies arising out of the
relations between and among 2 or more HOAs; between and among
federations and other umbrella organizations, on matters pertaining
tothe exercise of their rights, duties, and functions.
Disputes between such HOA and the beneficial users of its services.
Disputes between the HOA and the State, insofar as it concerns their
individual franchise or right to exist and thise which are intrinsically
connected with the regulation of HOAs or dealing with the internal
affairs of such entity, including but not limited to violations of Secs/
18 and 19 of RA 9904.
How are the Rules
construed?
Section 3: These Rules shall be LIBERALLY CONSTRUED in order to
promote the general welfare and to assist the parties in obtaining a
just and speedy determination of every action, application, or
proceeding.
How is computation of period counted?
Section 3: In computing any period of time prescribed or allowed buy these
Rules, or by order of the Commission or by any applicable statute, the first day
shall be excluded, and the last day included. If the last day falls on a Saturday,
Sunday, or a legal holiday, the time shall not run until the last working day.
Suppletory Application:
Section 4. Provisions of the Rules of Court shall not be applicable except in
a suppletory manner.
RULE 2
ACTIONS AND PROCEEDINGS
WHAT IS AN ACTION OR
PROCEEDING? (SECTION 5)
-is any suit filed with the HSAC by
which one party sues another for the
enforcement or protection of a right
or for the prevention or redress of a
wrong.
Filing of a VERIFIED
Filing of the ANSWER OR
COMPLAINT, or a duly Service of Summons on
duly accomplished
accomplished complaint the respondent, together
answer form as provided
form as provided under with a copy of the
under Section 30 hereof,
Section 21 hereof, and complaint and all
or any responsive
upon payment of the attachments thereto
pleading.
required legal fees.
Order of Proceedings Section, Rule 2
Writing of the Decision
Setting and conduct of Submission of POSITION and
MANDATORY PAPER and DRAFT ISSUANCE OF THE
CONFERENCE DECISION DECISION with notice to
the parties.
Where is the venue of all complaints or actions? (Section 7)
All complaints or actions shall be filed in the RAB which
has jurisdiction over the region where the project
involved is located.
Where the residence and/or principal office of the
complainant and respondent are BOTH LOCATED IN THE
SAME REGION: action may be filed in the RAB having
jurisdiction over the said region, regardless of the
location of the project involved. (At the complainant's
option), unless the parties have validly agreed in writing
before the the filing of the complaint or action on the
exclusive venue thereof.
In HOA cases, Complaint shall be filed in the RAB which
has jurisidiction over the region where the association is
registered with the DHSUD.
RULE 3
REAL PARTIES-IN-INTEREST, COUNSELS, AND REPRESENTATIVES
Who are the parties before the Commisision/RAB? (Section 8)
Every action or proceeding must be prosecuted and
defended in the name of the real-party-in-interest.
COMPLAINANTS: all natural or juridical persons who claim
an interest in the controversy or in the subject matter of the
action or proceeding and in obtaining the relief demanded.
RESPONDENTS: All natural or juridical persons who claim an
interest in the controversy or in the subject matter thereof
adverse to the complainant, or who are necessary to a
complete determination or settlement of the issues
involved therein.
What about indigent litigants? Section
9
-shall be exempt from the payment of legal fees.
-legal fees shall be a lien on any judgment rendered in favor of the indigent
litigant, unless the RAB or Commission otherwise provides in the Decision.
What shall the indigent do to be exempt?
-Execute an affidavit that his/her gross income does not exceed the pverty
threshold as determined by the appropriate government agency.
-Any falsity in the affidavit of the litigant shall be sufficient cause to strike out the
pleading of that party, without prejudice to whatever criminal liability that may
have been incurred.
-submit a Certificate of Inidgency from the DSWD, the Social Welfare and
Development Offices of the LGU, or from the Punong Barangay of the barangay
having jurisdiction over the residence of the litigant.
What is a derivative suit? Section 10
Member of a HOA in good standing may bring an action on behalf of the association
provided that:
a. Complainant was a member at the time the acts or transactions subject of the
action occurred and at the time the action was filed;
b. Complainant alleges with particularity that reasonable efforts exerted to exhaust
all remedies available under the association's articles of incorporation, bylaws, laws
or rules for the purpose of obtaining the reief prayed for; and
c. Complaint states a valid cause of action.
Is a lawyer required to appear in the proceedings Section 11?
NO. The appearance of counsel is OPTIONAL.
A. If a party is represented by counsel, the lawyer must indicate the ff in the
pleadings: (AR-PTR-IBP-MCLE)
a. Mailing ADDRESS which is not a post office box number, including the lawyer's
telephone/cellular phone number, and electronic mail address;
b. ROLL of Attorney's number;
c. Current PROFESSIONAL TAX RECEIPT NUMBER, including the date and place of
issue;
d. IBP Lifetime Membership Number or IBP OR Number, and date of issue; and
e. Certificate of exemption number or MCLE Certificate of Compliance number
and date of issue.
b. If a person is represented other than a lawyer:
-representative shall attach to the pleading a SPA authorizing him/her to file the
case.
-Representative shall indicate in the pleading:
his/her mailing address that is not a post office box number, including his/her
telephone or cellular number and email address.
c. If real party-in-interest is OUT OF THE COUNTRY: SPA must be authenticated by
the consular office concerned and comply with ither applicable formalities for its
execution.
d. If party represented is a corporation: representative shall attach to the
Complaint a secretary's certificate authorizing him/her to act on behalf of the
corporation.
Take note: The authorization of the representative to act on behalf of a party,
whether in the form of a secretary's certificate or a special power of attorney,
should be attached to the Complaint or other initiatory pleadings. Failure of the
party or counsel to comply with the requirements herein shall render the pleading
as not filed.
Misjoinder and Non-joinder of Parties (Section 12)
Not a ground of the dismissal of the action.
Parties may be dropped or added by order of the Regional Adjudicator on motion of any
party or motu proprio at any stage of the action and on such terms as are just.
CLAIM AGAINST A MISJOINED PARTY: may be severed, re-docketed, and proceeded
with separately, upon motion or at the discretion of the Regional Adjudicator, provided
that the subject matter (SM) thereof falls within the jurisdiction of the RAB. The party
making the claim against the misjoined party shall be ordered to pay the fee for the
action or the deficiency in the filing fees, if any.
What if indispensable party is not impleaded despite the Order of the RA?: Ground for
DISMISSAL.
RULE 4: PLEADINGS, MOTIONS, AND PRACTICE IN GENERAL
What is filing? (Section 13)
act of submitting the pleading or other submissions to the
Commission.
What is service? (Section 13)
act of providing a party with a copy of the pleading or other
submissions.
Except for the complaint as provided under Section 23 hereof,
all pleadings and motions shall be filed in triplicate, with proof
of service to the other parties, with the appropriate unit of the
RAB or the Office of the Executive Clerk of the Commission
(OECC), as the case may be. Failure to attach proof of service
shall render the same as not filed.
How are pledings and otions filed? (Section 14)
Submitting personally the original thereof, plainly indicated as such, to the RAB or OECC, as
the case may be;
Sending them by registered mail;
Sending them by courier; or
Transmitting them by electronic mail or other electronic means as may be authorized under
these Rules.
-in the 1st case: RAB or OECC shall endorse on the pleading the date and time of filing.
-in the 2nd and 3rd cases: date of mailing pf the pleadings and motions and payments or
deposits, as shown by the post office stamp on the envelope or registry receipt shall be
considered the date of their filing.
-in the 4th case: date of electronic transmission shall be considered the date of filing.
Steps when there is change of address, Email
address, or Facsimile number while the action is
pending. (Section 15)
must promptly file, within 5 calendar days from such change, a notice of change of
address or email address, or facsimile number with RAB or OECC, as the case may
be, and serve the notice on all other parties.
Service through email address or facsimile number on record of a party notifies the
RAB or OECC of any chnage, as aforementioned.
What is conventional service or filing of pleadings?
-filing or service PERSONALLY or by REGISTERED MAIL, and shall NOT BE
SERVED ELECTRONICALLY, unless express permission is granted by the
Commission or the RAB on these certain pleadings:
a. INITIATIORY PLEADINGS- (complaint, and initial responsive pleadings, such
as an Answer).
b. APPENDICES AND EXHIBITS to motions or other documents that are not
readily amenable to electronic scanning may, at the option of the party filing
such, be filed and served.
c. SEALED AND CONFIDENTIAL documents or records.
What are the pleadings allowed?
(Section 18)
MANDATORY PLEADINGS: those which are absolutely necessary for the resolution
of the case. (Complaint, Answer, and Appeal Memorandum).
DISCRETIONARY PLEADINGS: All other pleadings not prohibited may be filed. Filing
of these pleadings does not toll the reglementary period, and failure to file the same
shall not have any adverse effect on the rights of the parties.
What are the prohibited pleadings
and motions? (Section 19)
a. Motion to Dismiss
b. Motion for Bill of Particulars
c. Petition for Relief from Judgment
d. Motion for Reconsideration, except as provided under Section 123 hereof
e. Appeal from any interlocutory order, except with writ of preliminary injunction
f. Motion for extension of time;
g. Motion to admit pleadings filed beyond the reglementary period
Effect of filing such motions: SHALL NOT INTERRUPT the running of the prescriptive
period and shall not bar the adjudication of the case.
Can opposition be filed to these motions? YES, within 5 calndar days from receipt of
the copy of a motion. With or without the opposition, RAB shall resolved the same
after the lapse of the period.
COMPLAINT (RULE 5)-WHAT ARE THE CONTENTS OF A COMPLAINT? SECTION 20
A. CAPTION AND TITLE- "Complainant" vs "Respondent"
B. BODY- full name of the real parties-in-interest, whether natural or juridical,
showing capacity to sue or be sued, status, mailing address and designation, and
a CONCISE STATEMENT OF THE ULTIMATE FACTS which support the
complainant's cause of action, claims or reliefs, and the date of preparation.
c. RELIEF-specify the specific relief sought, but it may add a general prayer for
such other relief as may be deemed just or equitable.
D. SIGNATURE- constitutes as a certification that such party has read the
Complaint, that to the best of his or her/its knowledge, information, and belief
there is good ground to support the Complaint; and that it is not interposed for
delay.
E. VERIFICATION- made through an affidavit that the complainant or his/her/its
representative has read the Complaint and that the allegatiobns therein are ture
and correct of affiant's own personal knowledge or based on authentic
documents.
-A complaint which contains a verification based merely on "information
and belief" or "upon, knowledge, information, and belief," or lacks a
proper verification shall be treated as an UNSIGNED PLEADING.
F. CERTIFICATE AGAINST FORUM SHOPPING- The complainant shall
certify under oath in the Complaint or other initiatory pleading asserting
a claim for relief, or in a sworn certification annexed thereon and
simultaneously filed therewith that:
(1) Complainant has not theretofore commenced any action or filed any
claim involving the same issues in any court, tribunal, or quasi-judicial
agency and, to the best of the complainant's knowledge, no such other
action or claim is pending therein.
(2) If there such other pending action or claim, the complainant shall
state the status thereof; and
(3) If the complainant should thereafter learn that the same or similar
action or claim has been filed or ispending, complainant shall report the
fact within (5) calendar days therefrom to the HSAC.
If it is proved that the complainant has engaged in deliberate forum shopping, COMPLAINT
SHALL BE DISMISSED WITH PREJUDICE.
WHAT SHOULD BE ATTACHED TO THE COMPLAINT UPON FILING?
1. PROOF OF PAYMENT of filing fees, or Affidavit and Certificate of Indigency;
2. Original and CTC of DOCUMENTARY EVIDENCE supporting the cause of action;
3. In HOA cases, a certification issued by the chair of the Election Committee in cases involving
elections, or by the chair of Grievance Committee or any other committee constituted to
resolve any matter in controversy at the association level, as the case may be, stating that
the parties have been invited to participate in the proceedings to settle the dispute but no
amicable settlement has been settled.
4. HOA Certificate of Incorporation/Registration for cases filed for and in bhelaf of the HOA.
Above requirements shall apply to complainants represented by counsel and those not
presented by counsel or those using the prescribed complaint form. Non-compliance with
above requirements shall be a ground for dismissal of the Complaint without prejudice.
What are the effects of Defective Verification and Certification Against Forum
shopping?
a. DEFECT in the verification under paragraph (e) of Section 20: shall not result in
the dismissal of the Complaint but shall be subject to correction during the
mandatory conference. If complainant refuses to rectify the error as directed by
the Regional Adjudicator, case shall be dismissed without prejudice.
b. DEFECT in the CAFS under paragraph (f) of Section 20: ground for dismissal of
the complaint without prejudice.
RULE 6 COMMENCEMENT OF ACTIONS OR
PROCEEDINGS
When is an action is deemed commenced? (Section 23)
-upon FILING with the RAB of a verified complaint or duly-accomplished complaint
form as provided under Section 21 hereof, in TRIPLICATE, plus such number of
copies as there are respondents, with supporting documents.
-and upon PAYMENT of the required filing fees, except in appropriate cases where
the complainant is litigating as an indigent in accordance with Section 9.
If complaint is filed by REGISTERED MAIL. (Section 24)
action is deemed commenced on the date of mailing.
shall attach a postal money order in the amount of the filing fes, payable to to the
HSAC.
What happens the said money order is not included? DISMISSAL OF THE
COMPLAINT WITHOUT PREJUDICE.
FILING FEES (Section 25)
A. EFFECT OF NON-PAYMENT OF FILING FEES- considered a jurisdictional effect
which shall be cause for the dismissal of the Complaint or other initiatory pleading
WITHOUT PREJUDICE.
B. EFFECT OF DEFICIENT PAYMENT OF FILING FEES- Failure to fully pay the filing
fees within 5 calendar days from notice of deficiency, as subsequently determined
by the Regional Adjudicator= ground for dismissal of the Complaint or other
initiatory pleading without prejudice.
