5. City of Naga argued in its Counterclaim that they had no cause of
Algura v. LGU (2006) action since the boarding house blocked the road right of way and such was a nuisance per se. Petitioner: Spouses Algura Respondent: LGU of City of Naga, Atty. Teoxon, Engr. Palmiano, Sergio 6. During the pre-trial, City of Naga filed a Motion to Disqualify them and Navarro Sr. as Indigent Litigants and subsequently, a Motion to Disqualify for Ponencia: Velasco, Jr. Non-Payment of Filing Fees. It alleged that the spouses had the ff sources of income: DOCTRINE: If the applicant for exemption meets the salary and a. Antonios net salary as a member of the PNP P3,000 property requirements under Section 19 of Rule 141, then the grant of b. Lorencitas sari-sari store and computer shop (ground the application is mandatory. On the other hand, when the application floor) nd does not satisfy one or both requirements, then the application should c. Boarding house located on the 2 floor: more than P3,000 a not be denied outright; instead, the court should apply the indigency month test under Section 21 of Rule 3 and use its sound discretion in determining the merits of the prayer for exemption. 7. Despite Spouses Alguras opposition, Naga RTC disqualified them as indigent litigants on the ground that they failed to substantiate See A/N for short explanation their claim for exemption and to pay the filing fees.
FACTS: 8. In compliance with such, Lorencita together with their neighbor
Bangate submitted affidavits in support of the spouses claim as 1. Spouses Algura (Antonio and Lorencita) filed a complaint for indigents. damages against the Naga City government and its officers due to an alleged illegal demolition of their residence and boarding house 9. The RTC denied their MR on the ground that Sec 18, Rule 141 and for payment of lost income derived from fees paid by their provides that the gross income of the litigant should not exceed boarders (P7,000 monthly). P3,000. Nowhere was it stated in the affidavit that the family did not earn a gross income of P3,000. Thus, Spouses Algura filed a 2. Simultaneously, they filed an Ex Parte Motion to Litigate as Indigent Petition for review on Certiorari of the order of the RTC with the Litigants to which Antonio Alguras Pay Slip was attached. SC. a. It showed a gross monthly income of around P10,400 and a net pay of around P3,600. ISSUE: WoN Spouses Algura should be considered as indigent litigants b. A Certification stating that they had no property declared who qualify for exemption from paying filing fees in their name for tax purposes was also appended. PROVISION: 3. The motion was granted so they were exempted from payment of filing fees. Rule 3, Section 21. Indigent party (JULY 1, 1997).
4. They claim that as a result of the demolition of a portion of their
xxx house, they allegedly lost a monthly income of P7,000. With this alleged lost, the meager income from Lorencitas sari-sari store and Antonios pay became insufficient for the expenses of the Such authority shall include an exemption from payment of docket and spouses and their 6 minor children for basic needs like food, bills, other lawful fees, and of transcripts of stenographic notes which the clothes, and schooling. court may order to be furnished him. The amount of the docket and other lawful fees which the indigent was exempted from paying shall be a lien on any judgment rendered in the case favorable to the indigent, unless the court otherwise provides. Digest Author: Alexi Calda xxx o Naga City RTC is ordered to set the hearing to determine WoN petitioners can qualify as indigent litigants. Rule 141, Section 16 (JULY 1984-FEB 28 2000). Pauper-litigants exempt DISPOSITION: WHEREFORE, the petition is GRANTED and the April 14, from payment of court fees.Pauper-litigants include wage earners whose 2000 Order granting the disqualification of petitioners, the July 17, 2000 gross income do not exceed P2,000.00 a month or P24,000.00 a year for Order denying petitioners' Motion for Reconsideration, and the September those residing in Metro Manila, and P1,500.00 a month or P18,000.00 a 11, 2001 Order dismissing the case in Civil Case No. RTC-99-4403 before year for those residing outside Metro Manila, or those who do not own the Naga City RTC, Branch 27 are ANNULLED and SET ASIDE. real property with an assessed value of not more than P24,000.00, or not Furthermore, the Naga City RTC is ordered to set the "Ex-Parte Motion to more than P18,000.00 as the case may be. Litigate as Indigent Litigants" for hearing and apply Rule 3, Section 21 of the 1997 Rules of Civil Procedure to determine whether petitioners can qualify as Rule 141, Section 18 (MARCH 2000 amended Section 16 the indigent litigants. abovementioned provision). Pauper-litigants exempt from payment of legal fees.Pauper litigants (a) whose gross income and that of their A/N: Sorry I had to paste the provisions to illustrate the differences. Just immediate family do not exceed four thousand (P4,000.00) pesos a remember that Rule 3, section 21 = indigency test while Rule 141, Section 18 month if residing in Metro Manila, and three thousand (P3,000.00) pesos sets the income and property requirements. So a month if residing outside Metro Manila, and (b) who do not own real property with an assessed value of more than fifty thousand (P50,000.00) MANDATORY APPROVAL: Compliance with both income and property requirement pesos shall be exempt from the payment of legal fees... INDIGENCY TEST THROUGH A HEARING ON MERITS: One or both are ***Theres a 2004 amendment but it is not relevant to this case not satisfied RULING + RATIO: NO The RTC in in its April 14, 2000 and July 17, 2000 order wrongly applied Rule 141, Section 18 on Legal Fees considering that the complaint was filed on September 1, 1999. The correct rules were Rule 3, Section 21 on Indigent Party and Rule 141, Section 16 on Pauper Litigants. See dates of effectivity in the provisions part. o Implication: Two requirements were a) income: not more than P24,000 [P2,000 or P1500 a month as the case may be] b) property: not more than P24,000 or P18,000. In this case, gross monthly income around P10k plus P3k from are combined, they are clearly above P1,500. This is also true even if the 2004 amendment of P3,000 a month limit is applied. o Rule 141 2000 and 2004 amendments also did not repeal Rule 3, Section 21. Therefore, if the applicant for exemption meets the salary and property requirements under Section 19 of Rule 141, then the grant of the application is mandatory. On the other hand, when the application does not satisfy one or both requirements, then the application should not be denied outright; instead, the court should apply the indigency test under Section 21 of Rule 3 and use its sound discretion in determining the merits of the prayer for exemption. o Spouses Algura do not own any property