[ CDA, October 06, 1992 ]
RULES ON PROCEDURE OF THE COOPERATIVE DEVELOPMENT AUTHORITY IN THE EXERCISE OF ITS QUASI-JUDICIAL FUNCTION
Pursuant to the provisions of Section 3 of Republic Act No. 6939 and the powers vested in it by existing laws, the Cooperative Development Authority hereby promulgates the following rules governing the pleading, practice and procedure before it or any of its officers:
SECTION 1. Title - These Rules shall be known and cited as the Rules on Procedure of the CDA in the exercise of its quasi-judicial function.
SECTION 2. Applicability of the Rules - These Rules shall be applicable to all petitions and complaints brought to the attention of the Authority.
SECTION 3. Construction - These Reules shall be liberally construed in order to promote the growth and viability of cooperatives, preserve harmony and the cooperative way of life within and among cooperatives and to achieve a just and expeditious determination of every action brought before the Authority.
SECTION 4. Definition of Terms - The following words or terms shall mean:
a. Authority refers to the Cooperative Development Authority and its Extension Offices.
b. Code shall refer to Republic Act No. 6938, otherwise known as the Cooperative Code of the Philippines.
c. Cooperative Laws shall refer to the Code, Republic Act No. 6939, the Rules and Regulations implementing the Cooperative Code, and other issuances of the Authority.
d. Cooperative Organizations shall refer to the duly registered cooperatives and other federations and unions.
e. Hearing Officers shall refer to such legal Officers and other qualified employees of the Authority as are authorized to conduct hearings and investigations of cases and/or complaints brought before the Authority.
RULE 2
Powers and Jurisdiction of the
Authority
SECTION 1. Express Powers - The Authority may exercise such powers as are enumerated under Section 3 of Republic Act No. 6939 and such other powers as expressly stated in the Code.
SECTION 2. Inherent Powers - When performing its statutory functions, the Authority and its Hearing Officers shall have the inherent power to:
a. Preserve and enforce order in its immediate presence;
b. Enforce order in proceedings brought before it or any of its offices or hearing officers under its authority;
c. Compel compliance of its orders and processes;
d. Compel the attendance of persons to testify in any petition or complaint pending before it and compel the production of documents relevant to such cases; and
e. Administer or cause to be administered oaths in a petition or complaint pending before it.
SECTION 3. Exclusive Jurisdiction - The Authority shall have the exclusive jurisdiction over the following petitions and cases brought before it:
a. Petitions for the approval of amendments to the articles of cooperation and/or by-laws of a cooperative;
b. Petitions for the division, merger or consolidation of cooperatives;
c. Petitions concerning the exercise of the rights of members of a cooperative, including the conduct of a financial audit;
d. Petitions to hold a regular or special general assembly meeting and/or elections of directors, officers or committee members of a cooperative;
e. Petitions for the removal of a director, officer or committee member of a cooperative;
f. Petitions for the voluntary dissolution of a cooperative;
g. Petitions for the suspension, revocation or cancellation of the certificate of registration of a cooperative for grounds stated in Articles 68 and 69 of the Code;
h. Petitions for the liquidation of a cooperative;
i. Petitions for the filing of the annual report and audited financial statements of a cooperative; and
j. Disputes concerning the internal affairs of cooperatives, such as but not limited to the rights and privileges of its members; the rules and procedures of meetings of the general assembly, board of directors and committees; the election and qualifications of officers, directors and committee members; the allocation and distribution of surpluses and all other matters.
Provided, however, That all petitions under subsections (b), (f), (g) and (h) shall be filed directly with the Legal and Registration Department.
SECTION 2. Concurrent Jurisdiction - (a) The Authority, through its deputized Legal Officers, may exercise concurrent jurisdiction with the provincial or city prosecutor in the preliminary investigation of individuals or cooperatives for violations of the provisions of Article 124 of the Code.
b. The resolution of cases involving only preliminary investigations wherein the respondent is found to be responsible for such violation of the Code shall be furnished to the provincial or city prosecutor, who shall determine whether a prima facie case exists to warrant the filing of criminal charges against such violators.
RULE 3
Transaction of Business
SECTION 1. Transaction of Business - The Authority shall transact its business through the Hearing Officers as may be appointed by the Authority. Further, the Authority may act on appeals brought before it from the resolutions of such Hearing Officers.
SECTION 2. Disqualifications of Administrator and Hearing Officers - (a) No Administrator or Hearing Officer shall take part in any proceeding wherein he, his spouse or child is related to any party, or counsel, if any, within the fourth civil degree of consanguinity or affinity, or in which he has publicly expressed pre-judgment of the case as may be shown by clear and convincing proof.
b. No Administrator or Hearing Officer shall take part in any proceeding in the case if he was formerly a member of the cooperative involved in such case, or its federation or union.
c. An Administrator or Hearing Officer may, in the exercise of his own discretion, inhibit himself from taking part in any proceeding in the case for just or valid reasons other than those mentioned above.
SECTION 3. Lack of Hearing Officer - Should a Hearing Officer be disqualified from the proceedings or inhibits himself from acting on a case, the Authority shall appoint another to act as Hearing Officer for the case, upon recommendation of the Director of the Legal and Registration Department.
RULE 4
Parties to Proceedings
SECTION 1. Applicability - These Rules shall be applicable for all proceedings brought before the Authority.
SECTION 2. Who May be Parties - (a) Only natural persons who are members of a cooperative, duly-registered cooperatives, their federations or unions may bring an action or request for mediation and conciliation before the Authority.
b. Should a government agency or any of its officials be included as a complainant or respondent to the complaint, such shall be considered as an amicus curiae, and shall be asked to submit their comments to the controversy.
SECTION 3. Parties in Interest - All actions filed with the Authority must be prosecuted and defended in the name of the real parties in interest.
SECTION 4. Designation of Parties - A party requesting relief shall be referred to as the Petitioner or Complainant. Any party being complained of or against whom a claim or interest is directed shall be referred to as the Respondent.
RULE 5
Commencement of Proceedings
SECTION 1. Commencement of Proceedings by a Party - (a) Any natural person or cooperative [that] may initiate a proceeding before the Authority, shall file a verified complaint containing his personal circumstances as well as those of the respondents' the jurisdictional facts and a concise statement of the ultimate facts constituting the causes of action and the relief sought.
b. Any complaint filed with the Authority not containing the requirements as stated in Section 1 of this Rule shall be considered as one for mediation and conciliation only.
SECTION 2. Commencement of Action by the Authority - In cases where the Authority is authorized to initiate proceedings, the Authority shall issue an order for a hearing reciting therein the purpose for which the hearing is called for and a concise statement of the facts giving rise thereto. Copies of such order shall be served upon persons or cooperative organizations having interest in the matter or who may be affected thereby.
RULE 6
Pleadings
SECTION 1. Filing of Pleadings - Every complaint, motion or other pleading must be filed in at least two (2) copies. However, when the number of respondents exceeds five (5), the complainant must file additional copies of such pleadings as there are additional respondents.
SECTION 2. How Filed - The documents referred to in the preceding Section should be filed with the Legal Officer or the Legal Division, whichever has jurisdiction over the proceeding personally or by registered mail. In case of the latter, the date of mailing shall be considered the date of filing, and the envelope thereof shall be attached to the records of the case.
SECTION 3. Form of Pleadings - (a) All pleadings filed before the Authority may be handwritten or typewritten on bond paper and shall be written in either English or Filipino.
b. The complaint and the answer shall be duly verified. Such verification shall be in the form of an affidavit that the petitioner, complainant or respondent had read the pleading and the allegations therein are true of his own knowledge and belief.
SECTION 4. Docket, Assignment of Numbers and Case Name - (a) Upon the filing of a complaint, the Legal Office or the Legal Division shall docket the same and assign a number. The numbering must be consecutive according to the date it is filed, must bear the year, and prefixed as follows:
c. The case name of a petition or complaint shall include the name of the cooperative, and the names of the petitioners or complainants and the respondents.
RULE 8
Intervention
SECTION 1. When Proper and Who May Be Permitted to Intervene - Any person or cooperative allowed to initiate a proceeding may, before the conciliation and mediation session, be permitted by the Authority, in its discretion, to intervene in such proceeding, if he has a legal interest in the matter under litigation, or in the success of either of the parties, or an interest against both, or when he is so situated as to be adversely affected by such proceeding.
SECTION 2. Motion for Intervention - A person desiring to intervene shall file a motion for leave of the Authority with notice upon all the parties to the action.
SECTION 3. Discretion of the Authority - In acting on a motion for intervention, the Authority, in the exercise of its discretion, shall consider whether or not the intervention will unduly delay or prejudice the adjudication of the rights of the original parties and whether or not the intervenor's rights may be fully protected in a separate action of proceeding.
RULE 9
Amended or Supplemental Pleadings
SECTION 1. When Amendments Allowed as a Matter of Right - A party may amend his pleading once as a matter of course at any time before a responsive pleading is served, or, if the pleading as one to which no responsive pleading is permitted and the action has not been placed on the calendar, he may so amend it at any time after it has been served.
SECTION 2. Amendments Only by Leave - After the case is set for hearing, substantial amendments may be made only upon leave of the Authority. Such leave may be refused if it appears that the motion was meant to delay the action or that the cause of action is substantially altered. Orders of the Authority upon the matters provided in this Section shall be made upon motion duly filed and after the adverse party has been notified and afforded an opportunity to be heard.
SECTION 3. Matters of Supplemental Pleadings - Upon motion of a party, the Authority may, upon notice and upon such terms as are just, permit him to serve a supplemental pleading setting forth transactions, occurrences or events which have happened since the date of the pleading sought to be supplemented.
RULE 10
Periods for Pleading
SECTION 1. Time to Answer - Unless otherwise provided in these Rules, the answer to a petition, complaint, amended complaint, or counter-complaint must be filed with the Authority within fifteen (15) days from receipt of a copy of the summons.
SECTION 2. Period to Intervene - When intervention is allowed, the same must be filed within five (5) days from receipt of the order allowing the intervention, unless a different period has been fixed by the Authority.
SECTION 3. Reply - Unless otherwise provided, a reply may be filed within five (5) days from receipt of a copy of the answer.
RULE 11
Motions
SECTION 1. Motions Defined - Every application for an order not included in a resolution of the Authority may be called a motion.
SECTION 2. Motions in Writing - All motions must be made in writing, except motions for continuance made in the presence of the adverse party, or those made in the course of a hearing.
SECTION 3. Contents of a Motion - A motion shall state the order sought to be obtained and the grounds upon which it is based.
SECTION 4. No Oral Arguments for Motions - No oral argument shall be heard in support of motions, unless the Authority provides otherwise.
SECTION 5. Omnibus Motion - A motion assailing a pleading or a proceeding shall include all objections then available, and all objections not so included shall be deemed waived.
RULE 12
Service and Filing of Pleadings and Other Papers
SECTION 1. Mode, Completion and Proof of Service - Service of pleadings, motions, notices, orders or resolutions and other papers, the completeness thereof, and proof of such service shall be made in the manner prescribed by the Rules of Court.
RULE 13
Prohibited Pleadings
SECTION 1. Pleadings Not Allowed - The following pleadings shall not be allowed:
a. motion to dismiss;
b. motion for a bill of particulars;
c. motion for extension of time to file memorandum;
d. motion for re-opening or re-hearing of case; and
e. motion to declare a party in default.
SECTION 2. Motion to Dismiss, If Filed - Should the respondent file a motion to dismiss, such shall constitute an answer and the proceeding may continue on the merits.
RULE 14
Summons
SECTION 1. Issuance of Summons - Unless otherwise provided herein, the Hearing Officer concerned shall issue the corresponding summons following the filing of the complaint.
SECTION 2. Contents - (a) Summons shall be directed to the respondent, signed by the Extension Director or the Director of the Legal and Registration Department, as the case may be, and shall contain: (1) the names of parties; and (2) a direction that the respondent shall answer the complaint within the time fixed by these Rules.
A copy of the complaint and its annexes, if any, shall be attached to each copy of the summons.
b. In petitions for the division, merger or consolidation of cooperatives, and for the suspension, revocation, cancellation or liquidation of cooperatives, notice of the pending case may be sent to government agencies and institutions which may be affected by the resolution of such issues.
SECTION 3. Service of Summons - The summons may be served by personal service or by registered mail. Personal service may be made by any authorized employee of the Authority, or for special reasons, by any person specially authorized by the Authority.
RULE 15
Conciliation and Mediation Conference
SECTION 1. Conference Proper - (a) Immediately after the issues have been joined, the Authority may send notice to the parties to attend a mediation and conciliation conference in order to determine whether any settlement or agreement can be reached by the parties after a thorough determination of the issues. The conference shall also define and simplify such issues raised.
b. Notice shall be given to all the parties concerned at least one (1) week prior to the date scheduled for the conference. Such notice shall contain the date, time and place of the conference which shall be convenient for all concerned.
SECTION 2. General Preparations - (a) The Hearing Officer may, at his discretion, have the following documents at his disposal during the conference:
1. The 1987 Constitution;
2. Republic Acts Nos. 6938 and 6939 and the Rules and Regulations Implementing the Cooperative Code of the Philippines;
3. The CDA Rules of Procedure and other pertinent issuances of the Authority;
4. The cooperative's Articles of Corporation and By-Laws;
5. The complaint and the answer of the parties; and
6. Other documents the Hearing Officer may deem necessary for the conference.
b. The conference room must be comfortable to all concerned so that the atmosphere shall be conducive to the settlement of the dispute. The parties and the Hearing Officer may be dressed in semi-formal attire when the conference is held within the offices of the Authority. If in the field, casual attire may be used.
SECTION 3. Conduct of Conference - (a) A conciliation or mediation conference is not a judicial proceeding per se. Hence, the technical rules of procedure may not be applicable in such cases.
b. The conduct of the conference shall be non-adversarial in nature and shall proceed with the end-in-view of settling any dispute between the parties. All parties involved or interested in the dispute shall be afforded the opportunity to ventilate their views concerning the dispute.
c. It is not required that the parties be represented by legal counsels for the purposes of mediation and conciliation. However, they may be at or near the conference area in order to provide whatever legal advice their clients may require.
d. Notes of the proceedings of the conference shall be made by the Hearing Officer and shall form part of the records of the case. At the request of either or both parties, stenographic notes or tape recordings of the meetings may be taken and transcripts be made available at cost to the party requesting the same.
SECTION 5. Recess and Suspension - The conference may be recessed from time to time in order for both parties to consult with one another. It may also be suspended from day to day until the positions of both parties on all issues are properly ventilated and exhausted.
SECTION 6. Settlement or Agreement - (a) Once all the issues have been ventilated and disposed of and the parties have reached an agreement, it shall be reduced into writing and signed by the parties thereto and/or representatives and the Hearing Officer.
b. The agreement shall be clear and concise and must contain all the points of the parties' understanding.
c. A resolution of the case shall be made by the Hearing Officer in accordance with these Rules, based on such agreements, and shall be furnished the parties.
SECTION 7. Certificate of Non-Resolution - (a) Should the parties be unable to reach an amicable settlement of their dispute and the complaint does not contain a specification of the relief sought, the case shall be deemed non-resolveable and a certificate of non-resolution shall be issued by the Authority, stating the reasons for non-resolution. Such shall be the basis for the filing of a proper action in a court of competent jurisdiction.
b. If no mediation or conciliation conference succeeds within three (3) months from the filing of the complaint, a certificate of non-resolution shall be issued by the Authority.
c. If no conference succeeds due to the non-attendance of either or both of the parties within the three-month period, a certificate of non-resolution shall be issued stating the non-attendance of the parties and other pertinent information.
d. A copy of the certificate of non-resolution issued by the Extension Office shall be furnished the Legal and Registration Department for its files.
RULE 16
Subpoena
SECTION 1. Subpoena ad Testificandum or Subpoena Duces Tecum - Subpoena ad Testificandum or Subpoena duces tecum may be issued by the Authority or any of its Hearing Officers motu proprio, or upon request of the parties in any proceeding.
SECTION 2. Form and Contents - A sub-poena shall be signed by the Extension Director or the Director of the Legal and Registration Department concerned. It shall state the title of the action and shall be directed to the person whose attendance is required, and in the case of a subpoena duces tecum, it shall also contain a reasonable description of the books, documents or things demanded which may be prima facie relevant to the petition or the complaint.
RULE 17
Hearings
SECTION 1. Notice of Hearing - After the issues have been joined, the case shall be set for hearing and the parties, through counsel, if any, shall be served personally or by registered mail, giving sufficient time for the notices to be received by the parties not less than two (2) days before the date set. Whenever necessary, telegraphic notices may also be sent with the formal notice of hearing.
SECTION 2. Order of Hearing - Unless the Authority, for special reasons, declares otherwise, the order of the hearing shall be as follows:
a. The complainant shall present his evidence on his part;
b. The complainant-in-intervention, if any, shall present evidence in his part;
c. The respondent shall then offer evidence in support of his defense, if any;
d. The parties shall then respectively offer rebutting evidence only, unless the Authority, for good reasons, permits them to offer evidence upon their original case.
e. When the evidence is concluded, unless the parties agree to submit the case without arguments, the parties or their counsel may be allowed to argue, subject to the limitation of time as the Authority may prescribe.
f. In lieu of oral arguments, the parties may be allowed to submit their respective memoranda within a period of fifteen (15) days from the date of the last hearing.
RULE 18
Resolutions
SECTION 1. Resolutions - All resolutions reached by the Authority shall be in writing stating the facts clearly and distinctly and the law upon which it is based. The resolution shall also state the agreements reached by the parties during the conciliation and mediation conference, if any. Such resolution shall be issued under the seal of the Authority.
SECTION 2. Minute Resolution - No minute resolution resolving a complaint shall be rendered if evidence has been adduced and received.
SECTION 3. Period to Decide a Complaint - Any matter submitted to the Authority shall be decided within thirty (30) days from the date it is submitted for resolution.
SECTION 4. Service of Resolution - The resolution shall be served upon all parties of record and their counsel, if any. However, service shall also be made upon such parties and regulatory government agencies that have an interest in the success or failure of any cooperative, such as but not limited to the Land Bank of the Philippines, the Development Bank of the Philippines, the Central Bank, etc.
SECTION 5. Finality of Resolution - (a) Any resolution shall become final and executory within fifteen (15) days from the receipt of the parties of a copy of the resolution and no appeal or motion for reconsideration has been filed within the said period.
b. A resolution which is final and executory may be enforced through a writ or order of execution issued by the Authority.
SECTION 6. General Assembly Meeting - The Authority may order the holding of, or convene, motu proprio a general assembly, whether regular or special, in order to report the resolution of a petition or controversy to the members and to undertake procedures embodied in the resolution.
RULE 19
Appeals
SECTION 1. Appeal From Resolution of Extension Office Director and Director, LRD - (a) Any appeal from the resolution as signed by the Extension Office Director or Director of the Legal and Registration Department may be made to the Board of Administrators within fifteen (15) days from the receipt of a copy of such resolution by the appealing party by filing a notice of appeal and appeal brief with the office issuing such resolution, copy furnished the Board of Administrators.
b. Such appeal shall be decided by the Board of Administrators within thirty (30) days from its filing, unless otherwise provided for by the Board of Administrators.
SECTION 2. Appeal from Decision of the Board of Administrators - An appeal from the resolution of the Board of Administrators shall be made to the Office of the President within fifteen (15) days from the receipt of such resolution by the appealing party by filing a notice of appeal and an appeal brief with the Authority.
SECTION 3. Transmittal of Records - Within fifteen (15) days from the receipt of the notice of appeal and the appeal brief, the Extension Office or the Board of Administrators shall forward the entire records of the proceeding or certified photocopies thereof to the Board of Administrators or the Office of the President, as the case may be.
SECTION 4. Motion for Reconsideration - Any motion for reconsideration filed by any party shall be considered as an appeal.
SECTION 5. Resolution Based on Settlement - No appeal from a resolution which is based on mutual agreements reached by the parties during the mediation and conciliation conference shall be entertained by the Authority; Provided, however, That non-compliance of the agreements reached shall mean the immediate execution of such resolution.
RULE 20
General Provisions
SECTION 1. Support Staff - The Hearing Officers may require other employees or the Authority to assist them during their sessions or hearings or in the performance of his duties.
SECTION 2. Stenographers - (a) Stenographers may also be present at every session or hearing to take the stenographic notes of the proceedings.
b. Any party or their counsel may request for a copy of the transcript of stenographic notes of the hearing. The costs for such transcript shall be borne by the party requesting the transcript.
c. The fees for such transcript shall be at Four Pesos (P4.00) per page of not less than two hundred and fifty (250) words before any appeal is filed, and Three (P3.00) after the appeal is filed.
RULE 21
Supplementary Rules
SECTION 1. Rules of Court - In the absence of any applicable provision in these Rules, the pertinent provisions of the Rules of Court in the Philippines shall be applicable by analogy or in suppletory character and effect.
SECTION 2. Evidence - The parties and the Authority shall not be strictly bound by the technical rules on evidence and may resort to such evidence that a common prudent man may require.
RULE 22
Final Provisions
SECTION 1. Repealing Clause - All resolutions, rules and regulations of the Authority or parts thereof which are inconsistent with any provision of these Rules are hereby deemed repealed or modified accordingly.
SECTION 2. Separability Clause - If any part of these Rules is declared unconstitutional, the remaining part not affected thereby shall remain valid and effective.
SECTION 3. Effectivity - These Rules of Procedure shall take effect upon the approval of the Board of Administrators.
Adopted: 6 Oct. 1992
(Sgd.) EDNA E. ABERILLA
Chairman
Board of Administrators
RULE 1
Title and Construction
Title and Construction
SECTION 1. Title - These Rules shall be known and cited as the Rules on Procedure of the CDA in the exercise of its quasi-judicial function.
SECTION 2. Applicability of the Rules - These Rules shall be applicable to all petitions and complaints brought to the attention of the Authority.
SECTION 3. Construction - These Reules shall be liberally construed in order to promote the growth and viability of cooperatives, preserve harmony and the cooperative way of life within and among cooperatives and to achieve a just and expeditious determination of every action brought before the Authority.
SECTION 4. Definition of Terms - The following words or terms shall mean:
a. Authority refers to the Cooperative Development Authority and its Extension Offices.
b. Code shall refer to Republic Act No. 6938, otherwise known as the Cooperative Code of the Philippines.
c. Cooperative Laws shall refer to the Code, Republic Act No. 6939, the Rules and Regulations implementing the Cooperative Code, and other issuances of the Authority.
d. Cooperative Organizations shall refer to the duly registered cooperatives and other federations and unions.
e. Hearing Officers shall refer to such legal Officers and other qualified employees of the Authority as are authorized to conduct hearings and investigations of cases and/or complaints brought before the Authority.
Powers and Jurisdiction of the
Authority
SECTION 1. Express Powers - The Authority may exercise such powers as are enumerated under Section 3 of Republic Act No. 6939 and such other powers as expressly stated in the Code.
SECTION 2. Inherent Powers - When performing its statutory functions, the Authority and its Hearing Officers shall have the inherent power to:
a. Preserve and enforce order in its immediate presence;
b. Enforce order in proceedings brought before it or any of its offices or hearing officers under its authority;
c. Compel compliance of its orders and processes;
d. Compel the attendance of persons to testify in any petition or complaint pending before it and compel the production of documents relevant to such cases; and
e. Administer or cause to be administered oaths in a petition or complaint pending before it.
SECTION 3. Exclusive Jurisdiction - The Authority shall have the exclusive jurisdiction over the following petitions and cases brought before it:
a. Petitions for the approval of amendments to the articles of cooperation and/or by-laws of a cooperative;
b. Petitions for the division, merger or consolidation of cooperatives;
c. Petitions concerning the exercise of the rights of members of a cooperative, including the conduct of a financial audit;
d. Petitions to hold a regular or special general assembly meeting and/or elections of directors, officers or committee members of a cooperative;
e. Petitions for the removal of a director, officer or committee member of a cooperative;
f. Petitions for the voluntary dissolution of a cooperative;
g. Petitions for the suspension, revocation or cancellation of the certificate of registration of a cooperative for grounds stated in Articles 68 and 69 of the Code;
h. Petitions for the liquidation of a cooperative;
i. Petitions for the filing of the annual report and audited financial statements of a cooperative; and
j. Disputes concerning the internal affairs of cooperatives, such as but not limited to the rights and privileges of its members; the rules and procedures of meetings of the general assembly, board of directors and committees; the election and qualifications of officers, directors and committee members; the allocation and distribution of surpluses and all other matters.
Provided, however, That all petitions under subsections (b), (f), (g) and (h) shall be filed directly with the Legal and Registration Department.
SECTION 2. Concurrent Jurisdiction - (a) The Authority, through its deputized Legal Officers, may exercise concurrent jurisdiction with the provincial or city prosecutor in the preliminary investigation of individuals or cooperatives for violations of the provisions of Article 124 of the Code.
b. The resolution of cases involving only preliminary investigations wherein the respondent is found to be responsible for such violation of the Code shall be furnished to the provincial or city prosecutor, who shall determine whether a prima facie case exists to warrant the filing of criminal charges against such violators.
Transaction of Business
SECTION 1. Transaction of Business - The Authority shall transact its business through the Hearing Officers as may be appointed by the Authority. Further, the Authority may act on appeals brought before it from the resolutions of such Hearing Officers.
SECTION 2. Disqualifications of Administrator and Hearing Officers - (a) No Administrator or Hearing Officer shall take part in any proceeding wherein he, his spouse or child is related to any party, or counsel, if any, within the fourth civil degree of consanguinity or affinity, or in which he has publicly expressed pre-judgment of the case as may be shown by clear and convincing proof.
b. No Administrator or Hearing Officer shall take part in any proceeding in the case if he was formerly a member of the cooperative involved in such case, or its federation or union.
c. An Administrator or Hearing Officer may, in the exercise of his own discretion, inhibit himself from taking part in any proceeding in the case for just or valid reasons other than those mentioned above.
SECTION 3. Lack of Hearing Officer - Should a Hearing Officer be disqualified from the proceedings or inhibits himself from acting on a case, the Authority shall appoint another to act as Hearing Officer for the case, upon recommendation of the Director of the Legal and Registration Department.
Parties to Proceedings
SECTION 1. Applicability - These Rules shall be applicable for all proceedings brought before the Authority.
SECTION 2. Who May be Parties - (a) Only natural persons who are members of a cooperative, duly-registered cooperatives, their federations or unions may bring an action or request for mediation and conciliation before the Authority.
b. Should a government agency or any of its officials be included as a complainant or respondent to the complaint, such shall be considered as an amicus curiae, and shall be asked to submit their comments to the controversy.
SECTION 3. Parties in Interest - All actions filed with the Authority must be prosecuted and defended in the name of the real parties in interest.
SECTION 4. Designation of Parties - A party requesting relief shall be referred to as the Petitioner or Complainant. Any party being complained of or against whom a claim or interest is directed shall be referred to as the Respondent.
Commencement of Proceedings
SECTION 1. Commencement of Proceedings by a Party - (a) Any natural person or cooperative [that] may initiate a proceeding before the Authority, shall file a verified complaint containing his personal circumstances as well as those of the respondents' the jurisdictional facts and a concise statement of the ultimate facts constituting the causes of action and the relief sought.
b. Any complaint filed with the Authority not containing the requirements as stated in Section 1 of this Rule shall be considered as one for mediation and conciliation only.
SECTION 2. Commencement of Action by the Authority - In cases where the Authority is authorized to initiate proceedings, the Authority shall issue an order for a hearing reciting therein the purpose for which the hearing is called for and a concise statement of the facts giving rise thereto. Copies of such order shall be served upon persons or cooperative organizations having interest in the matter or who may be affected thereby.
Pleadings
SECTION 1. Filing of Pleadings - Every complaint, motion or other pleading must be filed in at least two (2) copies. However, when the number of respondents exceeds five (5), the complainant must file additional copies of such pleadings as there are additional respondents.
SECTION 2. How Filed - The documents referred to in the preceding Section should be filed with the Legal Officer or the Legal Division, whichever has jurisdiction over the proceeding personally or by registered mail. In case of the latter, the date of mailing shall be considered the date of filing, and the envelope thereof shall be attached to the records of the case.
SECTION 3. Form of Pleadings - (a) All pleadings filed before the Authority may be handwritten or typewritten on bond paper and shall be written in either English or Filipino.
b. The complaint and the answer shall be duly verified. Such verification shall be in the form of an affidavit that the petitioner, complainant or respondent had read the pleading and the allegations therein are true of his own knowledge and belief.
SECTION 4. Docket, Assignment of Numbers and Case Name - (a) Upon the filing of a complaint, the Legal Office or the Legal Division shall docket the same and assign a number. The numbering must be consecutive according to the date it is filed, must bear the year, and prefixed as follows:
a. CO - Legal Division, Central Officeb. Should the case be on appeal to the Board of Administrators, the letter "A" shall be appended to the docket number of the Central Office.
b. DAG - Dagupan Extension Office
c. TUG - Tuguegarao Extension Office
d. CAR - CAR Extension Office
e. SFR - San Fernando (Pampanga) Extension Office
f. NCR - Manila Extension Office
g. CAL - Calamba Extension Office
h. NAG - Naga Extension Office
i. ILO - Iloilo Extension Office
j. CBU - Cebu Extension Office
k. TAC - Tacloban Extension Office
l. CYO - Cagayan de Oro Extension Office
m. PAG - Pagadian Extension Office
n. DVO - Davao Extension Office
o. KID - Kidapawan Extension Office
c. The case name of a petition or complaint shall include the name of the cooperative, and the names of the petitioners or complainants and the respondents.
Intervention
SECTION 1. When Proper and Who May Be Permitted to Intervene - Any person or cooperative allowed to initiate a proceeding may, before the conciliation and mediation session, be permitted by the Authority, in its discretion, to intervene in such proceeding, if he has a legal interest in the matter under litigation, or in the success of either of the parties, or an interest against both, or when he is so situated as to be adversely affected by such proceeding.
SECTION 2. Motion for Intervention - A person desiring to intervene shall file a motion for leave of the Authority with notice upon all the parties to the action.
SECTION 3. Discretion of the Authority - In acting on a motion for intervention, the Authority, in the exercise of its discretion, shall consider whether or not the intervention will unduly delay or prejudice the adjudication of the rights of the original parties and whether or not the intervenor's rights may be fully protected in a separate action of proceeding.
Amended or Supplemental Pleadings
SECTION 1. When Amendments Allowed as a Matter of Right - A party may amend his pleading once as a matter of course at any time before a responsive pleading is served, or, if the pleading as one to which no responsive pleading is permitted and the action has not been placed on the calendar, he may so amend it at any time after it has been served.
SECTION 2. Amendments Only by Leave - After the case is set for hearing, substantial amendments may be made only upon leave of the Authority. Such leave may be refused if it appears that the motion was meant to delay the action or that the cause of action is substantially altered. Orders of the Authority upon the matters provided in this Section shall be made upon motion duly filed and after the adverse party has been notified and afforded an opportunity to be heard.
SECTION 3. Matters of Supplemental Pleadings - Upon motion of a party, the Authority may, upon notice and upon such terms as are just, permit him to serve a supplemental pleading setting forth transactions, occurrences or events which have happened since the date of the pleading sought to be supplemented.
Periods for Pleading
SECTION 1. Time to Answer - Unless otherwise provided in these Rules, the answer to a petition, complaint, amended complaint, or counter-complaint must be filed with the Authority within fifteen (15) days from receipt of a copy of the summons.
SECTION 2. Period to Intervene - When intervention is allowed, the same must be filed within five (5) days from receipt of the order allowing the intervention, unless a different period has been fixed by the Authority.
SECTION 3. Reply - Unless otherwise provided, a reply may be filed within five (5) days from receipt of a copy of the answer.
Motions
SECTION 1. Motions Defined - Every application for an order not included in a resolution of the Authority may be called a motion.
SECTION 2. Motions in Writing - All motions must be made in writing, except motions for continuance made in the presence of the adverse party, or those made in the course of a hearing.
SECTION 3. Contents of a Motion - A motion shall state the order sought to be obtained and the grounds upon which it is based.
SECTION 4. No Oral Arguments for Motions - No oral argument shall be heard in support of motions, unless the Authority provides otherwise.
SECTION 5. Omnibus Motion - A motion assailing a pleading or a proceeding shall include all objections then available, and all objections not so included shall be deemed waived.
Service and Filing of Pleadings and Other Papers
SECTION 1. Mode, Completion and Proof of Service - Service of pleadings, motions, notices, orders or resolutions and other papers, the completeness thereof, and proof of such service shall be made in the manner prescribed by the Rules of Court.
Prohibited Pleadings
SECTION 1. Pleadings Not Allowed - The following pleadings shall not be allowed:
a. motion to dismiss;
b. motion for a bill of particulars;
c. motion for extension of time to file memorandum;
d. motion for re-opening or re-hearing of case; and
e. motion to declare a party in default.
SECTION 2. Motion to Dismiss, If Filed - Should the respondent file a motion to dismiss, such shall constitute an answer and the proceeding may continue on the merits.
Summons
SECTION 1. Issuance of Summons - Unless otherwise provided herein, the Hearing Officer concerned shall issue the corresponding summons following the filing of the complaint.
SECTION 2. Contents - (a) Summons shall be directed to the respondent, signed by the Extension Director or the Director of the Legal and Registration Department, as the case may be, and shall contain: (1) the names of parties; and (2) a direction that the respondent shall answer the complaint within the time fixed by these Rules.
A copy of the complaint and its annexes, if any, shall be attached to each copy of the summons.
b. In petitions for the division, merger or consolidation of cooperatives, and for the suspension, revocation, cancellation or liquidation of cooperatives, notice of the pending case may be sent to government agencies and institutions which may be affected by the resolution of such issues.
SECTION 3. Service of Summons - The summons may be served by personal service or by registered mail. Personal service may be made by any authorized employee of the Authority, or for special reasons, by any person specially authorized by the Authority.
Conciliation and Mediation Conference
SECTION 1. Conference Proper - (a) Immediately after the issues have been joined, the Authority may send notice to the parties to attend a mediation and conciliation conference in order to determine whether any settlement or agreement can be reached by the parties after a thorough determination of the issues. The conference shall also define and simplify such issues raised.
b. Notice shall be given to all the parties concerned at least one (1) week prior to the date scheduled for the conference. Such notice shall contain the date, time and place of the conference which shall be convenient for all concerned.
SECTION 2. General Preparations - (a) The Hearing Officer may, at his discretion, have the following documents at his disposal during the conference:
1. The 1987 Constitution;
2. Republic Acts Nos. 6938 and 6939 and the Rules and Regulations Implementing the Cooperative Code of the Philippines;
3. The CDA Rules of Procedure and other pertinent issuances of the Authority;
4. The cooperative's Articles of Corporation and By-Laws;
5. The complaint and the answer of the parties; and
6. Other documents the Hearing Officer may deem necessary for the conference.
b. The conference room must be comfortable to all concerned so that the atmosphere shall be conducive to the settlement of the dispute. The parties and the Hearing Officer may be dressed in semi-formal attire when the conference is held within the offices of the Authority. If in the field, casual attire may be used.
SECTION 3. Conduct of Conference - (a) A conciliation or mediation conference is not a judicial proceeding per se. Hence, the technical rules of procedure may not be applicable in such cases.
b. The conduct of the conference shall be non-adversarial in nature and shall proceed with the end-in-view of settling any dispute between the parties. All parties involved or interested in the dispute shall be afforded the opportunity to ventilate their views concerning the dispute.
c. It is not required that the parties be represented by legal counsels for the purposes of mediation and conciliation. However, they may be at or near the conference area in order to provide whatever legal advice their clients may require.
d. Notes of the proceedings of the conference shall be made by the Hearing Officer and shall form part of the records of the case. At the request of either or both parties, stenographic notes or tape recordings of the meetings may be taken and transcripts be made available at cost to the party requesting the same.
SECTION 5. Recess and Suspension - The conference may be recessed from time to time in order for both parties to consult with one another. It may also be suspended from day to day until the positions of both parties on all issues are properly ventilated and exhausted.
SECTION 6. Settlement or Agreement - (a) Once all the issues have been ventilated and disposed of and the parties have reached an agreement, it shall be reduced into writing and signed by the parties thereto and/or representatives and the Hearing Officer.
b. The agreement shall be clear and concise and must contain all the points of the parties' understanding.
c. A resolution of the case shall be made by the Hearing Officer in accordance with these Rules, based on such agreements, and shall be furnished the parties.
SECTION 7. Certificate of Non-Resolution - (a) Should the parties be unable to reach an amicable settlement of their dispute and the complaint does not contain a specification of the relief sought, the case shall be deemed non-resolveable and a certificate of non-resolution shall be issued by the Authority, stating the reasons for non-resolution. Such shall be the basis for the filing of a proper action in a court of competent jurisdiction.
b. If no mediation or conciliation conference succeeds within three (3) months from the filing of the complaint, a certificate of non-resolution shall be issued by the Authority.
c. If no conference succeeds due to the non-attendance of either or both of the parties within the three-month period, a certificate of non-resolution shall be issued stating the non-attendance of the parties and other pertinent information.
d. A copy of the certificate of non-resolution issued by the Extension Office shall be furnished the Legal and Registration Department for its files.
Subpoena
SECTION 1. Subpoena ad Testificandum or Subpoena Duces Tecum - Subpoena ad Testificandum or Subpoena duces tecum may be issued by the Authority or any of its Hearing Officers motu proprio, or upon request of the parties in any proceeding.
SECTION 2. Form and Contents - A sub-poena shall be signed by the Extension Director or the Director of the Legal and Registration Department concerned. It shall state the title of the action and shall be directed to the person whose attendance is required, and in the case of a subpoena duces tecum, it shall also contain a reasonable description of the books, documents or things demanded which may be prima facie relevant to the petition or the complaint.
Hearings
SECTION 1. Notice of Hearing - After the issues have been joined, the case shall be set for hearing and the parties, through counsel, if any, shall be served personally or by registered mail, giving sufficient time for the notices to be received by the parties not less than two (2) days before the date set. Whenever necessary, telegraphic notices may also be sent with the formal notice of hearing.
SECTION 2. Order of Hearing - Unless the Authority, for special reasons, declares otherwise, the order of the hearing shall be as follows:
a. The complainant shall present his evidence on his part;
b. The complainant-in-intervention, if any, shall present evidence in his part;
c. The respondent shall then offer evidence in support of his defense, if any;
d. The parties shall then respectively offer rebutting evidence only, unless the Authority, for good reasons, permits them to offer evidence upon their original case.
e. When the evidence is concluded, unless the parties agree to submit the case without arguments, the parties or their counsel may be allowed to argue, subject to the limitation of time as the Authority may prescribe.
f. In lieu of oral arguments, the parties may be allowed to submit their respective memoranda within a period of fifteen (15) days from the date of the last hearing.
Resolutions
SECTION 1. Resolutions - All resolutions reached by the Authority shall be in writing stating the facts clearly and distinctly and the law upon which it is based. The resolution shall also state the agreements reached by the parties during the conciliation and mediation conference, if any. Such resolution shall be issued under the seal of the Authority.
SECTION 2. Minute Resolution - No minute resolution resolving a complaint shall be rendered if evidence has been adduced and received.
SECTION 3. Period to Decide a Complaint - Any matter submitted to the Authority shall be decided within thirty (30) days from the date it is submitted for resolution.
SECTION 4. Service of Resolution - The resolution shall be served upon all parties of record and their counsel, if any. However, service shall also be made upon such parties and regulatory government agencies that have an interest in the success or failure of any cooperative, such as but not limited to the Land Bank of the Philippines, the Development Bank of the Philippines, the Central Bank, etc.
SECTION 5. Finality of Resolution - (a) Any resolution shall become final and executory within fifteen (15) days from the receipt of the parties of a copy of the resolution and no appeal or motion for reconsideration has been filed within the said period.
b. A resolution which is final and executory may be enforced through a writ or order of execution issued by the Authority.
SECTION 6. General Assembly Meeting - The Authority may order the holding of, or convene, motu proprio a general assembly, whether regular or special, in order to report the resolution of a petition or controversy to the members and to undertake procedures embodied in the resolution.
Appeals
SECTION 1. Appeal From Resolution of Extension Office Director and Director, LRD - (a) Any appeal from the resolution as signed by the Extension Office Director or Director of the Legal and Registration Department may be made to the Board of Administrators within fifteen (15) days from the receipt of a copy of such resolution by the appealing party by filing a notice of appeal and appeal brief with the office issuing such resolution, copy furnished the Board of Administrators.
b. Such appeal shall be decided by the Board of Administrators within thirty (30) days from its filing, unless otherwise provided for by the Board of Administrators.
SECTION 2. Appeal from Decision of the Board of Administrators - An appeal from the resolution of the Board of Administrators shall be made to the Office of the President within fifteen (15) days from the receipt of such resolution by the appealing party by filing a notice of appeal and an appeal brief with the Authority.
SECTION 3. Transmittal of Records - Within fifteen (15) days from the receipt of the notice of appeal and the appeal brief, the Extension Office or the Board of Administrators shall forward the entire records of the proceeding or certified photocopies thereof to the Board of Administrators or the Office of the President, as the case may be.
SECTION 4. Motion for Reconsideration - Any motion for reconsideration filed by any party shall be considered as an appeal.
SECTION 5. Resolution Based on Settlement - No appeal from a resolution which is based on mutual agreements reached by the parties during the mediation and conciliation conference shall be entertained by the Authority; Provided, however, That non-compliance of the agreements reached shall mean the immediate execution of such resolution.
General Provisions
SECTION 1. Support Staff - The Hearing Officers may require other employees or the Authority to assist them during their sessions or hearings or in the performance of his duties.
SECTION 2. Stenographers - (a) Stenographers may also be present at every session or hearing to take the stenographic notes of the proceedings.
b. Any party or their counsel may request for a copy of the transcript of stenographic notes of the hearing. The costs for such transcript shall be borne by the party requesting the transcript.
c. The fees for such transcript shall be at Four Pesos (P4.00) per page of not less than two hundred and fifty (250) words before any appeal is filed, and Three (P3.00) after the appeal is filed.
Supplementary Rules
SECTION 1. Rules of Court - In the absence of any applicable provision in these Rules, the pertinent provisions of the Rules of Court in the Philippines shall be applicable by analogy or in suppletory character and effect.
SECTION 2. Evidence - The parties and the Authority shall not be strictly bound by the technical rules on evidence and may resort to such evidence that a common prudent man may require.
Final Provisions
SECTION 1. Repealing Clause - All resolutions, rules and regulations of the Authority or parts thereof which are inconsistent with any provision of these Rules are hereby deemed repealed or modified accordingly.
SECTION 2. Separability Clause - If any part of these Rules is declared unconstitutional, the remaining part not affected thereby shall remain valid and effective.
SECTION 3. Effectivity - These Rules of Procedure shall take effect upon the approval of the Board of Administrators.
Adopted: 6 Oct. 1992
Chairman
Board of Administrators