The Supreme Court clarified that while clients of the Public Attorney’s Office (PAO) are exempt from docket and other fees when filing a case, they are not exempt from paying sheriff’s expenses. The Court, however, authorized PAO officials and employees to serve summons and other court processes to alleviate the financial burden on PAO’s clients. This decision balances the constitutional right to free access to courts with the operational costs associated with legal proceedings, ensuring that indigent litigants are not unduly burdened by expenses while maintaining the integrity of the judicial process.

Who Pays the Piper? PAO Clients, Sheriff’s Fees, and Access to Justice

This case revolves around a request by Chief Public Attorney Persida Rueda-Acosta to exempt PAO clients from paying sheriff’s expenses, arguing that these expenses are incidental to filing a case and should be covered by the exemption provided in Republic Act No. 9406 (R.A. No. 9406). The Office of the Court Administrator (OCA) opposed this request, stating that sheriff’s expenses are not legal fees payable to the government and thus not covered by the exemption. The Supreme Court was asked to interpret Section 6 of R.A. No. 9406, which exempts PAO clients from payment of “docket and other fees incidental to instituting an action in court and other quasi-judicial bodies.”

The central issue is whether the term “fees incidental to instituting an action” includes sheriff’s expenses. R.A. No. 9406 aimed to strengthen the PAO and ensure that indigent litigants have access to justice. To achieve this, Section 6 of R.A. No. 9406 states:

Sec. 6. New sections are hereby inserted in Chapter 5, Title III, Book IV of Executive Order No. 292, to read as follows:

x x x x

Sec. 16-D. Exemption from Fees and Costs of the Suit – The clients of PAO shall be exempt from payment of docket and other fees incidental to instituting an action in court and other quasi-judicial bodies, as an original proceeding or on appeal.

The costs of the suit, attorney’s fees and contingent fees imposed upon the adversary of the PAO clients after a successful litigation shall be deposited in the National Treasury as trust fund and shall be disbursed for special allowances of authorized officials and lawyers of the PAO.

The OCA argued that this exemption only covers legal fees listed under Rule 141 of the Rules of Court. The Supreme Court agreed, noting that statutory interpretation requires words to be understood in their plain and ordinary meaning, unless a technical meaning is intended. While Section 6 of R.A. No. 9406 does exempt PAO clients from certain fees, the Court found that sheriff’s expenses are not included in this exemption.

The Court differentiated between “fees” and “expenses.” Fees are charges fixed by law for specific privileges or services. They include filing fees, appeal fees, and sheriff’s fees, all of which are exacted for services rendered by the court. Sheriff’s expenses, on the other hand, are provided for under Section 10, Rule 141 of the Rules of Court:

Sec. 10. Sheriffs, PROCESS SERVERS and other persons serving processes.–

x x x x

In addition to the fees hereinabove fixed, the amount of ONE THOUSAND (P1,000.00) PESOS shall be deposited with the Clerk of Court upon filing of the complaint to defray the actual travel expenses of the sheriff, process server or other court-authorized persons in the service of summons, subpoena and other court processes that would be issued relative to the trial of the case. In case the initial deposit of ONE THOUSAND (P1,000.00) PESOS is not sufficient, then the plaintiff or petitioner shall be required to make an additional deposit. The sheriff, process server or other court authorized person shall submit to the court for its approval a statement of the estimated travel expenses for service of summons and court processes. Once approved, the Clerk of Court shall release the money to said sheriff or process server. After service, a statement of liquidation shall be submitted to the court for approval. After rendition of judgment by the court, any excess from the deposit shall be returned to the party who made the deposit.

x x x x

These expenses are deposited with the Clerk of Court to cover the travel costs of serving court processes, rather than being a fee for court services. The Supreme Court cited In Re: Exemption of Cooperatives from Payment of Court and Sheriff’s Fees Payable to the Government in Actions Brought Under R.A. 6938, where it clarified that sheriff’s expenses are not considered legal fees.

The difference in the treatment between the sheriff’s fees and the sheriff’s expenses in relation with the exemption enjoyed by cooperatives is further demonstrated by the wording of Section 10, Rule 141, which uses “fees” in delineating the enumeration in the first paragraph, and “expenses” in qualifying the subsequent paragraphs of this provision. The intention to make a distinction between the two charges is clear; otherwise, the Rules would not have used different designations. Likewise, the difference between the two terms is highlighted by a consideration of the phraseology in the first sentence of the second paragraph of Section 10, Rule 141, which uses the clause “in addition to the fees hereinabove fixed,” thereby unequivocally indicating that sheriff’s expenses are separate charges on top of the sheriff’s fees. (Italics supplied)

The Court recognized the financial burden this places on PAO clients, emphasizing the constitutional mandate of ensuring free access to courts for all, especially the poor. Section 11, Article III of the 1987 Constitution states that “[f]ree access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person by reason of poverty.” This principle ensures that poverty does not bar individuals from seeking justice.

Acknowledging this, the Supreme Court authorized PAO officials and employees to serve summons and other court processes, pursuant to Section 3, Rule 14 of the Rules of Court. This allows PAO to handle the service of court processes directly, relieving clients of the need to pay sheriff’s expenses. The PAO can then use its operating expenses to cover these costs, drawing from amounts recovered from adversaries as costs of suit, attorney’s fees, or contingent fees.

FAQs

What was the key issue in this case?	The key issue was whether clients of the Public Attorney’s Office (PAO) are exempt from paying sheriff’s expenses under Republic Act No. 9406, which exempts them from docket and other fees.
What did the Supreme Court decide?	The Supreme Court ruled that PAO clients are not exempt from sheriff’s expenses, as these are not considered legal fees. However, the Court authorized PAO employees to serve court processes to alleviate the financial burden.
Why are sheriff’s expenses not considered legal fees?	Sheriff’s expenses are not exacted for services rendered by the court but are meant to cover the travel expenses of the sheriff or process server in serving court processes. They are distinct from sheriff’s fees, which are for services rendered to a party.
What is the constitutional basis for the Court’s concern for PAO clients?	Section 11, Article III of the 1987 Constitution guarantees free access to courts and adequate legal assistance, ensuring that poverty does not prevent individuals from seeking justice.
How will PAO cover the costs of serving court processes?	The PAO can use its operating expenses to cover these costs, which can be drawn from amounts recovered from adversaries as costs of suit, attorney’s fees, or contingent fees.
What is the practical effect of this decision for PAO clients?	While they still are technically liable for sheriff’s expenses, in practice, the burden is lifted because PAO employees can directly serve court processes on their behalf.
What is the significance of R.A. No. 9406?	R.A. No. 9406 strengthens the PAO and ensures that indigent litigants have access to justice by exempting them from certain fees.
What is the role of the Office of the Court Administrator (OCA) in this case?	The OCA provided its interpretation of the law, arguing that sheriff’s expenses are not covered by the exemption provided to PAO clients.

In conclusion, the Supreme Court’s decision seeks to strike a balance between ensuring access to justice for indigent litigants and maintaining the operational integrity of the judicial system. By allowing PAO employees to serve court processes, the Court addresses the financial burden on PAO clients without broadly exempting them from expenses not explicitly covered by law.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: RE: LETTER DATED APRIL 18, 2011, G.R. No. 56059, July 30, 2013