New Legal Aid Requirements - For Indigents' Cause? Or A Lawyer's Dishonesty Contrivance?

A SUMMARY OF REQUIREMENTS
RULE ON MANDATORY LEGAL AID SERVICE

REQUIREMENTS.
Every practicing lawyer is required to render a minimum of sixty (60) hours of free legal aid services in a year.
o Practicing lawyer has been defined by the Rule as a member of the Philippine Bar who appears for and in behalf of parties in courts of law and quasi-judicial agencies, including but not limited to the NLRC, NCMB, DOLE Regional Offices, DAR Adjudication Board and NCIP. The term practicing lawyer shall exclude:
 Government employees and incumbent elective officials not allowed by law to practice;
 Lawyers who by law are not allowed to appear in court;
 Supervising lawyers of students enrolled in law student practice in duly accredited legal clinics of law schools and lawyers of NGOs and Peoples’ organizations;
 Lawyers not covered under subparagraphs (i) to (iii) including those who are employed in the private sector but do not appear for and in behalf of parties in courts of law and quasi-judicial agencies

The sixty (60) hours free legal aid services shall be spread within a period of twelve (12) months, with a minimum of five (5) hours each month. If the lawyer exceeds five hours free legal aid service in a month, the excess shall be credited for succeeding periods.
o Free legal aid services refer to:
 Appearance in court or quasi-judicial body for and in behalf of an indigent or pauper litigant
 Preparation of pleadings or motions
 Assistance by a practicing lawyer to indigent or poor litigants in court-annexed mediation and in other modes of alternative dispute resolution.
 Counsel de officio services

CREDIT FOR MCLE.
o A lawyer who renders mandatory legal aid service for the required number of hours in a year for the 3-year period covered by a compliance period under the MCLE Rules shall be credited to the following:
 2 credit units for legal ethics
 2 credit units for trial and pretrial skills
 2 credit units for alternative dispute resolution
 4 credit units for legal writing and oral advocacy
 4 credit units for substantive and procedural laws and jurisprudence
 6 credit units for such subjects as may be prescribed by the MCLE Committee
o A lawyer who renders mandatory legal aid service for the required number of hours in a year for at least 2 consecutive years within the 3-year period covered by a compliance period under the MCLE Rules shall be credited to the following:
 1 credit unit for legal ethics
 1 credit unit for trial and pretrial skills
 1 credit unit for alternative dispute resolution
 2 credit units for legal writing and oral advocacy
 2 credit units for substantive and procedural laws and jurisprudence
 3 credit units for such subjects as may be prescribed by the MCLE Committee

CERTIFICATE OF COMPLIANCE. The practicing lawyer shall secure a Certificate from the Clerk of Court attesting to the number of hours spent rendering free legal aid services in a case.

REPORT COMPLIANCE.
o The practicing lawyer shall report compliance with the requirement within ten (10) days of the last month of each quarter of the year (March, June, September, December).
o Said compliance report shall be submitted to the legal aid chairperson of the IBP Chapter within the court’s jurisdiction.
o The IBP Chapter shall issue a compliance certificate to the concerned lawyer and to the IBP’s NCLA.

Practicing lawyers shall indicate in all pleadings filed the number and date of issue of their certificate of compliance for the immediately preceding compliance period. Failure to do so would cause the dismissal of the case and expunction of the pleadings from the records.

PENALTIES.
o Failed to meet the minimum prescribed 60 hours – Practicing lawyer to explain to NCLA why he was unable to render the minimum prescribed number of hours. If no explanation has been given or if NCLA finds the explanation unsatisfactory, NCLA shall report and recommend to IBP Board of Governors that the erring lawyer be declared as a member of IBP not in good standing. Upon approval of NCLA’s report and recommendation, a notice of declaration shall be sent to the erring lawyer with a corresponding directive to pay a fine of P4,000.
o The “not in good standing” declaration shall be effective for a period of 3 months from receipt of erring lawyer. During such period, the lawyer cannot appear in court or any quasi-judicial body. Such status shall subsist even after the lapse of 3 month-period until and unless the penalty shall have been paid.
o Failed to comply with this Rule for at least 3 consecutive years – lawyer shall be subject of a disciplinary proceeding to be instituted motu propio by the Committee on Bar Discipline (CBD). If found administratively liable, a penalty of 1 year suspension may be imposed.
o Falsifies certificate/any form required to be submitted – shall be administratively charged with falsification and dishonesty and shall be subject to disciplinary action by the CBD, without prejudice to criminal charges.

New Rules on Corporate Rehabilitation

SC AMENDS RULES ON CORPORATE REHABILITATION

To expedite court procedures for the rehabilitation of corporations, partnerships and associations, the Supreme Court, on December 2, 2008, approved the new Rules of Procedure on Corporate Rehabilitation (A.M. No. 00-8-10-SC), The said rules, drafted by a committee of the Supreme Court with the assistance of private sector representatives, took effect last January 16, 2009, replacing the 2000 Interim Rules of Procedure on Corporate Rehabilitation.

The major amendments to the new Rules of Procedure on Corporate Rehabilitation include:

• Pre-Negotiated Rehabilitation Plans. Under the new Rules, if the proposed rehabilitation plan is approved by creditors holding at least two thirds (2/3) of the total liabilities of the debtor, which should be inclusive of (i) secured creditors holding more than half of the total secured claims and (ii) unsecured creditors holding more than half of the unsecured claims, then the parties can go to court for approval of the rehabilitation plan. From the filing of such petition, the court, in turn, is given a maximum of one hundred twenty (120) days to decide on the petition. Should it fail to do so within the said period, the rehabilitation plan shall then be deemed approved.

As regards other ordinary petitions for rehabilitation, the the court is given a maximum of one year to act on the petition. The new deadline set by the Supreme Court is expected to prevent delay in the resolution of rehabilitation cases, which has proven to be awfully detrimental to all the parties.

• Foreign Rehabilitation Proceedings. Another salient feature introduced by the Supreme Court is the recognition of foreign rehabilitation proceedings. This covers: (i) assistance sought by a foreign court or representatives in a Philippine court; (ii) assistance sought in a foreign state relative to a domestic rehabilitation proceeding; or, (iii) both pertaining to foreign and domestic proceedings.

With the new Rules of Procedure on Corporate Rehabilitation, debt-ridden companies and those encountering financial difficulties can look forward to some relief more than ever in view of the present global recession. ☺