ADMINISTRATIVE CIRCULAR NO. 111-2007, November 13, 2007

TO	:	ALL JUDGES AND CLERKS OF COURT OF THE FIRST AND SECOND LEVEL COURTS
SUBJECT	:	CLARIFICATION RELATIVE TO THE NEW RULE ON LEGAL FEES INVOLVING SHERIFF’S COMMISSIONS

The Court En Banc acting on the letter dated 24 July
2007 of Atty. Enrico M. Lainez seeking clarification relative to the New
Rule on Legal Fees Involving Sheriff’s Commissions has issued a
Resolution dated 2 October 2007 in A.M. No. 07-8-392-RTC, to wit:

“In a letter dated July 24, 2007 addressed to the
Office of the Court Administrator (OCA), Atty. Enrico M. Lainez sought
clarification on whether the new rule on legal fees^[1] repealed the provision in the Procedure in Extrajudicial Foreclosure of Mortgage^[2] with respect to the maximum amount of P100,00 of the Rules of Cour in cases involving extrajudicial foreclosure of mortgage.

Atty. Lainez stated that his client has pending
petitions for extrajudicial foreclosure in the Regional Trial Courts
(RTCs) of Manila and Cabanatuan City. The clerks of court of the sid
RTCs computed the sheriffs fees under the new schedule that it
superseded the Procedure in Extrajudicial foreclosure of Mortgage
imposing a maximum cap of P100,00 on sheriff’s fees. Atty Lainez
believes otherwise.

In a memorandum dated August 7, 2007, the OCA
submitted Atty. Lainez’ letter for the Court’s consideration. It stated
that it had been receiving numerous queries on whether the limit on
sheriff’s fees in extrajudicial foreclosure of mortgage had been
repealed by the new rates of legal fees. These queries spawned various
interpretations leading to confusion and even disagreements in the
computation of the sheriff’s fees.

The Rule on Legal Fees, Rule 141, was revised on
July 20, 2004 precisely to provide funds for the payment of the special
allowances granted under RA 9227. It was pointed out during the
deliberations of the Committee headed by then Court Administrator the
funds for the Judiciary Development Fund substantially 99-10-05-0 was
approved prescribing the ceiling of P100,000 as extrajudicial
foreclosures. The Committee thus approved the removal of the ceiling of
P100,000 to enable the Supreme Court to raise funds for the special
allowances for the judiciary. When the Revised Rule of Legal Fees was
approved per the En banc resolution dated July 20, 2004 in A.M. No.
04-2-04-SC entitled 2004,” it effectively repealed A.M. No. 99-10-05-0
dated January 30, 2001, specifically the cap of P100,000.

Incidentally, it has to be clarified that the fees
for the services of sheriffs in extrajudicial foreclosures are not
payable to the sheriffs but to the clerk of court as said funds belong
to the judiciary and not to the sheriffs. Said fees from part of the
Judiciary Development Fund and the fund for the special allowances under
RA 9227.

WHEREFORE, the Court declares that the En Banc
resolution dated July 20, 2004 in A.M. 04-2-04-SC entitled “Revision of
Rule 141, Revised Rules of Court” which became effective August 16,
2004 has repealed the P100,000 cap for the payment of the sheriff’s fees
provided in A.M. No. 99-10-05-0 dated January 30, 2001.

SO ORDERED.”

For the information and guidance of all concerned.

November 13, 2007

 

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^[1]Revised Rule on Legal Fees per En banc
resolution dated July 20, 2004 in A.M. No. 04-2-04 SC entitled
“Revision of Rule 141, Revised Rules of Court”; effective August 16,
2004.

^[2]En Banc
resolution dated January 30, 2001 in A.M. No. 99-10-05-0 entitled “Re:
Procedure in Extrajudicial Foreclosure of Mortgage”; effective March 1,
2001.