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Republic of the Philippines Office of the President Housrng and Urban Devcloptrrcnt Coordinating CounciL HOUSING AND LAND USE REGULATORY BOARD BOARD OT.' COMMISSIONERS RESOLUTION NO.nzr Series of 2011 PROMULGATING THE 2OTT REVISED RULES O!- PROCEDURE OF THE HOUSING AND LAND USE R.EGULATORY BOARI) PuRSUANTTo Section 5 (c) and fi), Executive Order No.648, Series of 198'l, as arnended by Executive Order No.90, Series of 1986, and Executive Order No.535, Series of 1979. as amended by Section 26 of Republic Act No. 8763, and Republic Act No. 9904. the Housing and Lard Use Regulatory Board (HLURB) hereby adopts and promulgates the fbllowins Rules of Procedure. l,AR'l'I COMMON PROVISIONS Rule I TITLE AND CONSTRUCTION Section l.Title.- The following shall be known as the 20l l Revised Rules oI ProceduLe ol the Housing and Land Use Regulatory Board,, hereinafter ret'erred tcl as the "Rrries". Section 2. Coverage.- This Rules shall be bpplicable to the tbllowing disputes Lrr corltroversres: (a) Actions concerning unsound real estate.business practices liled by buyers; (b) Claims involving refund and other claims filed by subdivision lot ol condominiunt unit buyer against the project owner, developer, dealer, broker or salesmatr (c) Cases involving specific performance of contractual and statutory obligatiorrs t'iled try subdivision lot or condominium unit buyer against the project owner, developer, dcaler, broker or salesman; (d) Intra-association disputes or controversies arising out of the relations betweetr and antong members of homeowners associations; between any or all of thern and the homeowners association of which they are members; (e) Inter-association disputes or controversies arisir.rg out of the relations between and amortg lwo or more homeowners associations; (f) Disputes between such homeowners association and the state insofar as it concerns their individual franchise or right to exist and those which are intrinsically connected witli the regulation of homeowners associations or dealing with the internal affairs of such entity; (g) Suits filed in opposition to an applicatlon tbr certificate ol'registration and licensc to sell, development permit for condominium projects, clearance to mortgage, or the revocation or cancellation thereof, and locationa.l clea,rances, certifications or perrnits, when issued by the Regional Field Office of HLURB; (h) Appeals from decisions of local and regional planning and zoning bodies; and, ; Pdge 1of 20 IILURB Bldg., Kalayaan AvelLre colltel Mryatnall Street, Diliman, Quezon City rvrv r.v. li Ir rrb . gov.Dh

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Page 1: HOUSING AND LAND REGULATORY - HLURB Resolutions/2011 Board... · All natural or juridical persons who claim an interest in the controversy or in tlre subiect matter thereof adverse

Republic of the Philippines

Office of the President

Housrng and Urban Devcloptrrcnt Coordinating CounciL

HOUSING AND LAND USE REGULATORY BOARD

BOARD OT.' COMMISSIONERS

RESOLUTION NO.nzrSeries of 2011

PROMULGATING THE 2OTT REVISED RULES O!- PROCEDURE OF THEHOUSING AND LAND USE R.EGULATORY BOARI)

PuRSUANTTo Section 5 (c) and fi), Executive Order No.648, Series of 198'l, as arnended by

Executive Order No.90, Series of 1986, and Executive Order No.535, Series of 1979. as

amended by Section 26 of Republic Act No. 8763, and Republic Act No. 9904. the Housing

and Lard Use Regulatory Board (HLURB) hereby adopts and promulgates the fbllowins Rules

of Procedure.

l,AR'l'ICOMMON PROVISIONS

Rule ITITLE AND CONSTRUCTION

Section l.Title.- The following shall be known as the 20l l Revised Rules oI ProceduLe ol the

Housing and Land Use Regulatory Board,, hereinafter ret'erred tcl as the "Rrries".

Section 2. Coverage.- This Rules shall be bpplicable to the tbllowing disputes Lrr corltroversres:

(a) Actions concerning unsound real estate.business practices liled by buyers;

(b) Claims involving refund and other claims filed by subdivision lot ol condominiunt unit

buyer against the project owner, developer, dealer, broker or salesmatr

(c) Cases involving specific performance of contractual and statutory obligatiorrs t'iled try

subdivision lot or condominium unit buyer against the project owner, developer, dcaler,

broker or salesman;

(d) Intra-association disputes or controversies arising out of the relations betweetr and antongmembers of homeowners associations; between any or all of thern and the homeownersassociation of which they are members;

(e) Inter-association disputes or controversies arisir.rg out of the relations between and amortg

lwo or more homeowners associations;

(f) Disputes between such homeowners association and the state insofar as it concerns theirindividual franchise or right to exist and those which are intrinsically connected witli the

regulation of homeowners associations or dealing with the internal affairs of such entity;

(g) Suits filed in opposition to an applicatlon tbr certificate ol'registration and licensc to sell,

development permit for condominium projects, clearance to mortgage, or the revocation orcancellation thereof, and locationa.l clea,rances, certifications or perrnits, when issued by the

Regional Field Office of HLURB;

(h) Appeals from decisions of local and regional planning and zoning bodies; and,

; Pdge 1of 20

IILURB Bldg., Kalayaan AvelLre colltel Mryatnall Street, Diliman, Quezon Cityrvrv r.v. li Ir rrb . gov.Dh

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(i) Other analogous cases.

Section 3. Construction. - This Rules shall be liberally construed in order to promote the

general welfare and to assist the parties in obtaining a just and speedy determinaticln o['everyaction application or proceeding.

Section 4. Nature o.f pr<tceedings.- Proceedings before HLURB shull be surntnirry itr

nature. The provisions of the Rules ol Court shall not be applicable except in a suppletorycharacter.

Rule 2AC'I'IONS AND PROCEEDINGS

Section 5. Actions and Proceedings. - An action or proceedings rneans any suit filed withHLURB by which one party sues another for the entbrcement or protection ol'a right or fbr thcprevention or redress of a wrong.

Section 6. Order of Proceedings.- The following proceedings shall be unitbrm tbr all cases

filed before the Arbiter:

(a) The commencement of an action through the filing of a verified cornplaint and uponpayment of the required legal fees;

(b) Service of summons on the respondent, together with a copy of the complaint and allattachments thereto;

(c) Filing of the answer;

(d) Mandatory conference;

(e) Optional submission of additional evidence; and,

(l) Notice of the Decision.

Section 7.Venue.- AJI complaints or actions shalt be filed in the Regional Field OfTice whichhas jurisdiction over the area where the project involved is located or, in cases of homeownerssuits, in the Regional Field Office where the homeowners association is registered.

Rule 3REAL PARTY IN INTEREST, COUNSELS AND REPRESENTATIVES

Section 8. Parties.- Every action or proceeding must be prosecuted and defended in the nameof the real party in interest.

A.ll natural or juridical persous who clairn an inlerest in the subject rxatter ol'the action orproceeding and in obtaining the relief demanded shall be joined and referred to as"complainan ts".

All natural or juridical persons who claim an interest in the controversy or in tlre subiect matterthereof adverse to the complainant, or who are necessary to a cornplete deterrnination orsettlement of the issues involved therein, shall be joined and referred to as "respondents".

Section 9. Indigent Litigants.- The rule on the qualifications of indigent litigants and thcirexemption from the payment of filing fees shall be in accordance with such rules as rray bepromulgated by the Supreme Court.

Section 10. Derivative Suit.- A member of a homeowners association in good standing maybring an action on behalf of the association provided that:

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(a) The complainant was a member at thq time the acts or transactions subject ()1' the actiorloccurred and at the time the action was filed;

(b) The complaint alleges with particularity that reasonable eflorts were exerted to exhaust allremedies available under the association's alticles of incorporation. bylaws, laws or rulcsfor the purpose of obtaining the reliefprayed forl and,

(c) The complaint states a valid cause of action.

Section ll. Appearance o.f CounseL or Represemutive.- The appearance ol' counscl otrepresentative is opt ional.

(a) If a party is represented by counsel, the lawyer must indicate tlre lbllowing in thepleadings:

(1) Mailing address which is not a post office box number, including tlre lawyer'stelephone/cellular phone number and email address, if available;

(2) Roll of Attorneys Number;

(3) Current Professional Tax Receipt Number, including the date and place of issue;

(4) IBP Official Receipt Number or IBP Lit'etime Membership Number, including the date

and place of issue; and,

(5) Mandatory Continuing Legal Education Compliance or Exemption Certificate Numbe rand the date of issue.

(b) A non-lawyer who represents a party shall attach to the pleading a special power ol'attorney authorizing such person to file tlre case and an afTiclavit duly executed by the partyrepresented stating the reasons why such person was so authorized.

(c) In case the real party-in-interest is out of the country, the special power of atlorney must lreauthenticated by the consular office concerned and comply with other applicablclormalities for their execution.

(d) In case the party represented is a corporation, the representative shall attach to thecomplaint, a board resolution authorizing such person to act on behalf of the corporation.

Failure of the party to comply with the requirements herein shall render the pleading as notfiled.

Rule 4PLEADINGS, MOTIONS, AND PRACTtCti

Section 12. Pleadings and Motions.- Pleadings and motions shall be Iiled in triplicate, plussuch number of copies as there are respondents, with proof of service to the other parties.

Section 13. Pleadings Allowed.- Pleadings are either nrandatory or discretionary.

(a) Mandatory Pleadings.- Mandatory pleadings are those which are absolutely nccessary lbrthe resolution of the case, such as, the Complaint, Answer, and Appeal Menrorandunt.

(b) Discretionary Pleadings.- All other pleadings not prohibited may be filed. The tiling ot'these pleadings does not toll the reglementary periods and failure to file the same shall nothave any adverse effect on the rights of the parties.

Section 14. Prohibited Pleadings and Motions.- The following shall be considered asprohibited pleadings and motions which shall not be entertained:

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(u) Motion to dismiss;

(b) Motion for a bill of particulars;

(c) Petition for relief from judgment;

(d) Motions for reconsideration in whatever stage of the proceedings;

(e) Appeal from any interlocutory order, including but not limited to, cease and dcslst

orders;

(0 Motions for extension of time;

(g) Motions for postponement except for justifiable reasons;

(h) Motion to admit pleadings tiled beyond the reglementary period;

(i) Reply, except in answer to a compulsory counterclaim;

0) Fourth and subsequent party complaints; and,

(k) Motion for clarification of final orders and decisions.

The filing of such pleadings or motions shall not interrupt the running of the prescriptive perioci

and shall not bar the adjudication of the case.

An opposition to a motion may be filed, without waiting for a separate order therefor, withirrfive (5) days from the receipt of a copy of the rnotion.

Rule 5COMPLAINT

Section 15, Complainr.- The complaint shall contain the lbllowing:

(a) Caption and Title.- In all cases filed betbre the Regional Field Offices, the party initiatingthe action shall be called the "Complainant" and the opposing party the "Respondent".

(b) Body.- The body of the complaint shall'contain the full name of the real parties in interest,whether natural orjuridical, showing capacity to sue and to be sued, status, nrailing addressand designation, and a concise statement of the ultimate facts which support thecomplainant's cause of action, claims or reliefs, and the date of preparatiorl thereof.

(c) Relief.- The pleading shall specify the relief sought, but ir may add a general prayer fbrsuch other relief as may be deemed just or equitable.

(d) Signature.- The complaint must be signed and must contain the requirernents under Rule 3hereof. The signature of counsel constitutes a certification that such counsel has read thecomplaint; that to the best of such counsel's knowledge and infbluratiorl, there is goodground to support it; and that it is not interposed tbr delay.

(e) Verification.- A complaint is verified try an alTidavit that the conrplainanl has reacl thecomplaint and that the allegations therein are true and correct oi- complainaut's ownpersonal knowledge. A complaint based merely on "infbrr.nation and belief" or uporl"knowledge, information, and belief'sMll be dismissed.

(f) Certification Against Forum Shopping..- The complainant shall certify under oath in thccomplaint or other initiatory pleadings asserting a clairn for relie[', or in a sworr.r

certification annexed thereto and simulianeouslv filed therewith that:

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(1) The complainant has not theretotbre commenced any action or filed any clairrinvolving the same issues in any court, tribunal or quasi-judicial agency atrd, to lhc

best of the complainant's knowledge, no such other action or claim is pendirrg thereirr:

(2) lf there is such other pending action or claim, the cornplainant shall state the status

thereof: and.

(3) lf the complainant should thereafter learn that the same or similar action or claim has

been filed or is pending, the complainant shall report that fact within five (-5) days

therefrom to HLURB.

(g) The following shall be attached to the complaint upon filirrg:

(1) Proof of payment of filing t-ees;

(2) Documentary evidence supporting the cause of action; and

(3) In homeowners association cases, a certification issued by the chair of the ElectionCommittee in cases involving elections, or by the chair of the Crievance Comnrittec orany other committee constituted to resolve any maltcr in corrtroversy at the associationlevel, as the case may bp, stating under oath that the parties have been invited toparticipate in the proceedings to settle the dispute but that no arnicable settlement was

reached.

In the absence of an Election Committee and Grievance Cornrnittee or re fusal to issue

the certification, an affidavit attesting to this fact shall be rnade and further slating that

complainant has exhausted administrative remedies.

Non-conrpliance with any of the above requirements shall be a ground for the dismissal of thecomplaint without prejudice.

If it is proved that the complainant has engaged in deliberate forurl-shopping, the complaintshall be dismissed with prejudice.

Section 16. Elfects of Defective Signature, Verilicution untl Certilicutiln ol Nott-l:rtrurnShopping.-

(a) Any defect in the signature or verification under paragraphs (d) and (e) of the precedingsection shall not result in the dismissal of the complaint but shall be subject to correctionduring the mandatory conference. If the cornplainant refuses to rectify the error as directedby the Arbiter, the Arbiter shall dismiss the case without prejudice.

(b) Any defect of the certification against forum-shopping under paragraph (f) of the precedingsection shall be a ground tbr the dismissal of the complaint, without prejudice.

Section 17. Opposition to Applicatictn Jbr a Permit, License or Cleurance.- Anopposition to an application for clearance, permit or license shall be treated as a complaint and

all other provisions of Rule 5 of this Rules shall, except as otherwise provided, apply to suchoppositions.

An opposition to an application for locational clearance tbr projects of national orregional significance, if filed with the Regional Field Office, shall be elevated to theBoard of Commissioners which shall assurne original jurisdiction and resolve theopposition. All projects are presumed to be of local significance unless otherwisedeclared by the National Economic and Development Authority (NEDA).

The rules pertaining to contested applications for license, permit or clearance shall apply to

Page 5 of 20

cases filed for the revocation thereof.

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Decisions of the Board of Commissioners with respect to permits, Iicenses or clearances sliallbe immediately executory notwithstanding any appeal therefrorn.

iRule 6COMMENCEMENT OF ACTION OR PROCEEDINGS

Section 18. Filing and Service of I'leadings.- All pleadings shall be filed with lhe approprialerecords unit of the Regional Field Office or Board of Cornmissioners, as the casc may be. Tlreparty filing the pleadings, except a complaitt, shall serve the opposing parties with a copythereof and its supporting documents in thb tnanner provided under this Rules with proof ofsuch service.

Section 19. When Action is Deemed Comryenced.- An action is deerred cornnrenced upcln thefiling of a verified complaint with the Regional Field Office, in triplicate plus such nurnbcr o1'

copies as there are respondents, with supporting documents, aud upon paylnent ol- therequired filing fees. ; '

Section 20. Complaint Filed by Registeyelt Mail.- Lf the complaint is tiled by registered rnail,the action is deemed commenced on th<i date of mailing. The complainant shall attach to thecomplaint a money order in the amount of :the filing f'ees, payable to HLURB. The non-inclusion of the said money order shall be cause for dismissal of the complaint.

Section 21. Filing Fees.- The complainant.is required to pay the liling fees, as determinedby the Regional Field Office, at the time; of the filing of the cornplaint.

(a) Effect of non-payment of filing Jbes. - The rnon-payment of the filing fees at the time of thefiling of the complaint is a jurisdiction4l ,defect which shall be cause fbr the disntissal ofthe complaint without prejudice. i' , :.

I , I

(b) EJfect of delicient puyment ol'filingiLc.r:- Failure to fully pay the filing t'ees within five (5)days from notice of deficiency, as -iu[iequently determined by thc Arbiter, shall be a

ground for the dismissal of the complirint lryithout prejudice.

,' pgR.r zPROCEEDINGS BEFORE THE ARBITER

" e7TER

Arbiter.- Upon filing of the conrplaint and thernal Field Office shall, within three (3) days,

Section 23. Powers of the Arbiter The .A,r{bffer shall have the fbllowing powers:

(a) To hear and decide cases cognizabletpq,[:ILURB consistent with this Rules:

(b) To issue subpoen a ad testificandum :an! sunpoena tluces tecuml

(c) To issue cease and desist orders and oiii+l'iirouirional remedies allowed under rhis Rules;

(d) Totakejudicialnoticeofthecorporat{,reQordsoftheassociationortechnical docker ofrhesubdivision or condominium project u. $iili' n"..rtory;

(e) To cite and/or declare any person in diitni or indirect contempr;

(f) To impose fines and/or other penaltiEg'for. violation of this Rules and related laws andregulations, or any order, resolution, o! i&cision of HLURB; and,

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(g) To perform such other powers and functions as may be assigned by the Board of

Commissioners.

Section 24. Inhibition of the Arbiter.-

(a) Mandatory Inhibition.- The Arbiter shall inhibit from adjudicating u case on arry ol the

following grounds:

(1) The Arbiter's spouse, child or relative within the sixth degree of consanguinity or

affinity, is directly or indirectly interested in the subject of the litigation:

(2) The Arbirer is related ro either of the parties or their counsel within the sixth degrcc o{'

consanguinity or affinity; or i

(3) The Arbiter has participated as counsel in the same case.

(b) Discrctionury Inhibition.- The Arbiterby issuing an order stating any o:f theas basis for the inhibition.

may motu prctprio inhibit from handling a case

above grounds or any otheL .iustifiable grounds

Section 25. Procedure Jbr Inhibitbn.- The party seeking the inhibitiorr of an Arbiter slrall

file a motion for inhibition stating .the grounds with the evidence in support thereol.Thereafter, the Arbiter shall rule on the motion.

Section 26. Reassignment of Cases upon Inhibition of Arbiter.- In case the Arbiter inhibits

from hearing or adjudicating a case, the Regional Officer shall raffle the case to another arbiter.

In the absence of other arbiters in the Regional Field Office, the records o[ thc case shall be

transmitted to the trgal Aftairs Group. : '

Section 27. Procedure in Regional Fietd O.ffices witfutut Arbiter.- ln case a Regional lrield

Office does not have an Arbiter, the duly authorized Legal Otficer of the Regional Field Otficeshall perform the functions of an Arbiteq except to decide the case, to issue cease and desisl

orders and other provisional remedies and to cite parties in contempt which shall be perfbrtned

by the tegal Affairs Group.

When the parties have filed their respective position papers or the case is deemed subrnittcd lbrresolution, the Legal Officer shall, within five (-s) days therefrorn and with notice to the parties,

transmit the records of the case to the Legiit AtTairs Group tbr resolution.

The Director of the Irgal Affairs Group shall, within three (3) days from receipt thereof, assign

the case by raffle to a lrgal Affairs GrolpArbiter who shall resolve the case within a period ofthirty (30) days from assignment. i:,'

After the resolution of the case by the t-egal Aftairs Arbiter, the records of the case shall be

remanded to the Regional Field Office of origin foL the release and service of thc judgrnent to

the parties. ". ,

-.,,1;

,; RuleSSERVICE,AND SUMMONS

Section 28. Service of Summons, Notices,' ,llesolutions, Orders und Det'iskn: ln Gcrterul.- Asauthorized by the Arbiter, notices or summous ar-rd copies of orders, resolutious, and ciecisions,shall be served on the parties and/or counsel of record to the case personally by tlre prttcess

server or by registered mail, both within two (2) days from receipt by the process server lbr the

purpose of service thereof: provided, that in special circumstances, service of summons may be

effected in accordance with the pertinent provisions of the Rules of Court

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The return of service of summons shall be submittetl to the Regiotral Field Office, within lhrce

(3) days from the date of service thereof, stating legibly therein the pt'ocess serYer's llarlle, the

names of the persols served, and the date of receipt, which return shall be inrmediately attaclied

and form part of the records of the case. In case of service by registered mail, the Process server

shall write in the return, the names of persons served and the date of mailing of lhe surnmons,

resolution, or decision. If no service was etfected, the process server shall state the rcason

therelor in the retu rn.

Section 29. Service of Notices Through Electronic Means.- Notices nta1, tre served and etfected

to the parties through facsimile or electronic mail; provided, the party serving such tlotice

attaches an affidavit explaining how such hotice was effected and the manner of how receipt ofsuch notice was verified.

Section 30. Proof and Completeness of Service.- The retunl is primu Iacie proof of the l'acts

indicated therein. Service by registered rnail is complete upon receipt by the atldressee or his

agent; but if the addressee fails or refuses to claim such mail matter frorn the post office withirt

five (5) days tiom the date of first notice ol the postmaster, service shall take efI'ect after such

time.

Section 31. Issuance of Summons.- Upon a determination that tl.re complaint is sufficient inform and substance, the Arbiter shall tbrthwith issue the corresponding suntmons to thc

respondent. The process server, as authorized by the Arbiter, shall serve the sutrrttlotls,

together with a copy of the complaintl and the attached documents filed therewith, to the

respondent, in accordance with this Rules,

I Rule 9VERIFIED ANSWER

Section 32. Verified Answer or Responsive Pleading.- The respondent shall file a

verified answer or responsive pleading, together with the supporting docurnenLs withirr a

non-extendible period of ten (10) days from receipt of the summons, furnishing contplair.rant a

copy thereof.

All grounds for a motion to dismiss, counterclaim, or cross-claim must be pleaded orincorporated in the answer; otherwise, these shall be deemed waived.

Section 33. Effect of Failure to File a Verified Answar or lTesponsive I'lcudittg.- lf therespondent fails to file an answer or rcspor.rsive pleading within ten (10) days lrom the serviceof summons, the Arbiter shall direct the complainant to file, within ten (10) days, a verifiedposition paper and draft decision together with supporting documents. Thereafter, the case

shall be deemed submitted for resolution.

The respondent shall be entitled to notice ofsubsequent proceedings but shall not be allowed to

take part therein.

Rule 10

CONFERENCE, MEDIATION AND AMICABLE SETTLEMENT

Section 34. Mandatory Conf'erence. - The conduct of conference, including ntediation,is mandatory provided the period to conclude the same shall not exceed thirty (30) calendardays from the date of initial conference.

Within three (3) days from receipt of the Answer, the Arbiter shall forthwith issue the

corresponding notices to the parties for the conduct of the rlrandatory conference tbr the

following purposes:

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(a) To consider the possibility of an amicable settlement through rnediation;

(b) The scheduling by the Arbiter of the mediation which shall be signed by the parties ancl

shall serve as notice to them;

(c) The definition and simplification of the issues;

(d) The possibility of entering into admissions or stipulations of facts:

(e) The submission by the parties of additional docurnentary evidence; and,

(Q The resolution of all other preliminary matters.

The holding of the mandatory conference shall be terminated within thirty (30) days frotn lhe

date of in itial conference.

Section 35. Mediation Proceedings.- Mediation proceedings shatl be conducted by the Arbiteror a Mediator assigned by the Arbiter. However, when conciliation or other alternative nrodesof dispute resolution have already been resorted to prior to the filing of the case, mediationproceedings shall no longer be conducted.

Prior to the conduct of mediation proceedings, the Arbiter or Mediator slrall cxplain to thcparties the objectives, nature and rules of the mediation and thereafter, I'acilitatc thecommunication and negotiation between the parties in order to assist thern in reaching an

agreement regarding their dispute.

Section 36. Confidentiality of Mediation Proceedings.- All inforr-nation obtained during themediation proceedings shall be confidential.

Section 37. Appearance of Parties Mandatory.- The appearance of parties in the mediationproceedings is mandatory. ln case the parties cannot be personally present, their representativeshall be clothed with the proper special power of attorney or board resolution, as the case maybe, with full power to enter into a coinpromise agreement or settlement. Such authority shall bepresented to the Arbiter or Mediator before the commencement of the mediation proceeclings.

Section 38. Eftbct of Failure to Appear in tlte Metliation Prrtr:eetling.i.- When a party fails toappear personally or through a representative during the scheduled u.rediation proceedings, theparty present may move either for the termination of the proceedings or tbr the resettingthereof, in accordance with the schedule,set in the initial cont'erence.

Section 39. Compromise Agreemenr and Jhdgment Upon Comprontise.- lf a compromise isreached, the agreement shall be reducpd in writing, signed by the parties and attested to by theArbiter or Mediator. When conducted by the latter, the Mediator shall return the case to theArbiter together with the compromise agteement. The Arbiter shall ibrthwith reuder judgnrentbased on the compromise agreement which shall be immediately final and executory.

Section 40. Termination of Mediation, Proceedings. - Where no compromise or settlement isreached the Arbiter or Mediator conducting the mediation shall terminate the proceedings andshall issue a certificate attesting thereto. The case shall then be returned to tlrc Arbiterimmediately upon the termination of the mediation proceedings if such is conducted by the

ERS AND DRAFT DECTSIONSRule ll

t;,rPage 9 of 20

I

Mediator.

POSITION PAP

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Section 41. I'osition I'apers ancl Dralt Deci:'^ions,- When the nranclatory ctttrlercttcc ts

terminated within the 30-day period, the Arbiter shall issue an order directing the prrties to

simultaneously file within fifteen (15) days fronr receipt Ihercof their respective positirrrr

papers, jointly verified by the parties and their respective counsels, attachins thereto the

affidavits of their witnesses and documentary evidence, as well as their draft decisions as

provided for by Executive Order No. 26.

Said position papers and draft decisions shall state.clearly and distinctly the facts, tl.tc issucs

and applicable laws and jurisprudence on which they are based.

Section 42. Ocular Inspection andlor Clarificatory Hearinl4s.- At any time befbre the case isresolved, the Arbiter may require an ocular inspection of the project or conduct clarificatoryhearings provided the same are held within the period of thirty (30) days provided for the

resolution of the case.

Rule 12

JUDGMENT OF THE ARBITER

Section 43, When Case Deemed Submitted t'br Rexth.ttktr.- A case is deerned submitted lbrresolution when the parties have filed their respective position papers and draft decisions orwhen the period to file the same expires.

Section 44.Judgment - The Arbiter shall resolve the case within thirty (30) days l'rorn the (late

the case is deemed submitted tbr resoluJion. All pending ntotiolts as well as those unresolvedincidents filed after the submission of the case for resolution shall be resolved in the judgmerrt.

Section 45, Notice of the Judgment to the partle.r. - Within three (3) days from the resolution o[the case, the Arbiter, through the process server, shall lbrthwith send a copy of the judgment tothe parties.

PART 3PROCEEDINGS ON APPEAL

, Rule 13

BOARD OF COMMISSIONERS

Section 46. Composition.- Tbe Board of Commissioners is composed of the Clrairman, fbur (4)full-time Commissioners and four (4) ex o.fticict Commissioners representing the NationalEconomic and Development Authority, the Department o[ Justice, the Department ot'theInterior and Local Government, and the Department of Public Works aud Highways.

Section 47. Jurisdiction of the Board of Commissioners. - ln the exercise of its adiudicatoryauthority, the Board shall have jurisdictipn over the following cases:

(a) ExclusiveOfficer;

jurisdiction over controverSies involving orders and issuances of the Regional

(b) Original jurisdiction over oppositigns to applications for locational clearance lbrprojects of national or regional sigirificance;

(c) Appellate jurisdiction over the judgments of the Arbiters

(d) Appellate jurisdiction over decisions of local and regional planning and zoning bodies;and,

(e) Such other cases as provided by law.

Section 48. Divisions and Functions ol theBourd oJ Commisshners.-

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(a) Divisions.- The adjudicatory functions of the Board of Commissioners shall be exercised

through its four (4) Regular Divisions, consisting of two (2) full-time and one (1) e,t' rt.ffir:irt

Commissioner, and the Special Division, consisting of the lbur (4) full-tineCommissioners.

(b) Quorum.- The presence of at least two (2) Commissioners irr a regular Division artd thrce

(3) Commissioners in the Special Division shall constitule a quorum. The concurretrce ol a

majority of the Commissioners present and constituting a quorum in a division nleeting

shalt be necessary for the promulgation of a judgment.

(c) Dissenting Opinion.- A member of a Division may dissent fronr the decisron oi the

majority by writing a dissenting opinion.

(d) Inhibition - No motion to inhibit the entire Division o[ the Cornrnission shall be

entertained. However, any Commissioner may inhibit from the consideration and

resolution of any case or matter before the Division and shall so state in writing the legal orjustifiable grounds therefor.

(e) Consolidation of Cases.- Appealed cases involving the sarne parties, issues, or relatcd

questions of fact or law may be consolidated betbre the Division to lvhich the case with the

lowest case number is assisned.

Rule 14APPEAL MEMORANDUM AND COUNTER-MEMORANDUM

Section 49. Allowed Pleadings.- The only pleadings allowed on appeal are the AppealMemorandum and the Counter-Memorandum. Unless otherwise directed by the Board ofCommissioners, no other pleadings shall be allowed and the filing thereof does not toll theperiod for the resolution of the appeal. :

Section 50. Appeal Memorandum.- An appeal may be taken from the decision of the Arbiter onany legal ground and upon payment of the appeal fee, by filing with the Regional Field Otficea verified appeal memorandum in three (3) copies within fifteen (15) days fiom receipt o1'lheassailed decision.

Within five (5) days from receipt of the appeal memorandum, the Regional Field OfTice shallelevate the records of the case to the Board of Commissioners tosether with the surnmary rJf

proceedings.

Section 51. Contents of AppeaL Memorandum.-

(a) Title and Caption.- The heading shall s[ate that the case is filed under the jurisdiction ofthe HLURB. The caption shall be the same as that stated in the original case but the partyappealing shall be additionally designated as the "Appellant" arrd the party against whonrthe appeal is made as the "Appellee"; r

(b) Statement of Date of Receipt of Appealeid Decision.- The staternent of the date when theappellant received a copy of the appealed decision;

(c) Statement of the Facts and Incidents.- Th$ summary of the tacts leading to tlie filing of thecase, or giving rise to the omission or commission of the acts constituting the cause ofaction or defense, and the proceedings coriducted, inclusive of the material dates;

(d) Statement of the lssaes.- The issues to be resolved in the appeal;

(e) Statement of the Grounds lbr the Appeal.- The grounds upon which the appeal is based;

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(fl Reliefs.- The ultimate claims of the parties;

(g) Verificatictn.- The verification which shall be in accordance with Section l-5 (c) of this

Ru les;

(h) AJlidavit of service to the other party.- Ati affidavit stating the date ol service of the appeal

memoranoum upon the other party and a copy of the registry return receipt which shall be

attached thereto, and,

(1) Appeal Bond.- In case of money judgment, an appeal bond in cash or rnanager's check

posted with the Board or surety bond in accordance with the succeeding sectiotl, equivalenl

to the amount of the award and actual damages, excluding interests, other damages, and

attorney's fees.

Section 52. Requirements of the Surety Bond.-

(a) Formal Requirements.- A surety bond shall be issued by a reputable bonding cor.nparly

duly accredited by the Supreme Court, and shall be accomparried by originat or certified

true copies of the following:

(1) A joint declaration under oath by the appellant and the bonding comparly, attesting that

the bond posted is genuine, and shall be in effect until final disposition of the case;

(2) An indemnity agreement between the appellant and bonding colrlpany;

(3) Proof of security deposit or collateral securing the bond, provided that a check shall

not be considered as an acceptable security;

(4) Certificate of authority from the Insurance Commission;

(5) Certificate of registration from the Securities and Exchange Commission;

(6) Certificate of authority to transact surety business from the Otfice of tlte President;

(7) Certificate of accreditation and authority from the Supreme Court; and,

(8) Notarized board resolution or secretary's cerlificate fi'orn the bonding corllparlyshowing its authorized signatories and their specirnen signatures.

(b) Validity.- An appeal bond in cash or surety shall be valid and efl'ective frorn the date ofdeposit or posting until the case is finally decided, resolved, or tertnrnated, ctt' lhc awatd

satisfied. This condition shall be deemed incorporated in the terms and conditions of the

surety bond, and shall be binding or.r the appellant and the bonding company.

The appellant shall furnish the appetlee with a certified true copy of the said surety bond

with all the above-mentioned supporting documents. The appellee shall verify the

regularity and genuineness thereof and immediately report any irregularity to the Board ofCornmissioners. Upon verification by the Board of Commissioners that the bond is

irregular or not genuine, the Board of Commissioners shall cause the immediate dismissal

of the appeal, and censure or cite in contempt the responsible parties and their counsels, or

subject them to reasonable fine or penalty.

Section 53. Counter-Memorandum.- Upon receipt of a copy of the appellattt's ntetnoranduntand without waiting for any separate order tiom the Board of Commissioners, the appellee

shall file a counter-memorandum in three (3) copies within a non-extendible period o1 ten ( I0)days from receipt of the appellant's memorandum, with proof of service to the appellant.

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Section 54.EJfectoJ'FilinganAppeal.-Theappealshall staytheexecutio[of ar.rydecisionor

order of the Arbiter unless otherwise provided in this Rules'

Section 55. Admissibility of New Evidence on Appeal.- The Board of Commissioners may, itr

the evaluation of the appeal, order reception of evidence or conduct furthcr proceedings. trr

take judicial notice of oih"r reco.ds of the HLURB, provided the same are held rvitlrirr tlic

periodof sixty(60)daystbrtheresolutionof thecaseunderRule l6of thisRules.

Rule l5DISMISSAL OFTHEAPPEAL

Section 56. Dismissal of the AppeaL - The appeal shalt be dismissed on any of the fbllowing

grounds:

(a) Filing of the appeal beyond the reglementary period;

(b) Failure to state the date of receipt of the appealed decision by the appellant;

(c) Joint motion of the parties to dismiss the appeal;

(d) Withdrawal of the appeal;

(e) Failure to pay appeal fees;

(f) Failure to post appeal bond;

(g) Failure to furnish the other party a copy of the appeal memorandum: or,

(h) Failure to comply with the orders of the Board of Commissioners and/or the requirernents

of this Rules.

Rule 16

JUDGMENT OFTHE BOARD OF COMMISSIONERS

Section 57. Judgment of the Board ol'Commissioners.-The Board of Commissioners shall

resolve the appeal within sixty (60) days from the date the appeal is deemed submitted forresolution. A1l pending motions as well as those unresolved incidents filed after the submission

of the appeal for resolution shall be resolved in the judgment.

Section 58. Notice of the.ludgment.'' Upon resolution of thc appeal, the Board ol'

Commissioners shall notify the parties thereof by serving upon them a copy the judgment.

Section 59. 1/o Motion for Reconsideration Jbr Judgment ort Appeal.- No motion tbrreconsideration shall be atlowed nor 6ntertained fiom the judgment of the Board ofCommissioners on appealed cases.

; PART4FINALITY AND EXECUTION OF JUDGMENT

Rule 17

FINALITY OFJUDGMENT

Section 60. Finality of Judgment.- Decisions or orders of the Arbiter and the Board ofCommissioners shall be deemed final and executory in accordance with the followiug:

(a) Decisions, resolutions or orders of the Arbiter shall beconre tinal and executory lifteerr(15) days after the date of receipt thereof by the parties and no appeal has been filed withinthe said period;

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(b) Decisions, resolutions or orders of the Board of Commissioners shall become final and

executory fifteen (15) days after the receipt thereof by the parties and no appeal lras treert

filed within the said period.

Rule l8EXECUI'ION

Section 61. Execution of Judgments.- Executior.r shall issue only upon motiou of an interested

party upon a final decision, resolution or order. A motion for execution shall bc filed, copy

furnished the other parties, with the Regional Field Otfice of origin and accompanied by:

(a) The original copy or certified true copy of the entry of .iudgrnent or certilicate or tlrdcl

of finality issued by the Board of Commissioners, the Office of the Prcsident. the Court

of Appeals or the Supreme Court, as the case may be; and,

(b) Certified true copies of all judgments on the case.

The Arbiter shall resolve the motion and issue the writ of executiort within a period ol' fifteen(15) days from receipt of the motion fbr execution. When an opposition is filed, within a period

of five (5) days from receipt of the motion fbr execution, the Arbiter shall resolve the incidcrltwithin fifteen (15) days from receipt of the opposition.

Section 62. Writs of Execution - All writs of execution shall be issued by the Arbiterdirected to the sheriff concerned.

Section 63. Prohibited Pleadings in Exectttiort Proceedings.- Pleadings or ntotiorrs in lheguise of an appeal on collateral issues or questions deemed already passed upon orconsidered in the resolution of the case or incident shall not be entertained in the resolutionof the motion for execution.

Section 64. Resolution of Incidents of Execution - All incidents pertaining to the executionof the final and executory judgment shall be resolved by the Arbiter.

Section 65. Executir,tn Pending Appeul.- Where execution pending appeal is allowed and the

execution is granted upon such terms considered proper for the protection or security of therights of the adverse party, the party moving for execution shatl be required to post a bond toanswer for whatever damages that the adverse party may sustain by reason of the execution if itshould be finally decided that the movant is not entitled thereto.

PART 5PROVISIONAL AND SPECIAL REMEDIES

Rule 19

GENERAL PROVISIONS

Section 66. Coverage.- This Rules shall be applicable to the following provisional and specialremedies, which include:

(a) Creation of Management Committee;

(b) Cease and Desist Order;

(c) Contempt;

(d) Inspection of Books and Records; and.

(e) Other applicable provisional and special remedies in tlre Rules of Court.

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