Philippines

Enforcing Contracts in

Philippines

Listed below is a detailed summary of the efficiency of contract enforcement. It follows the evolution of a sale of goods dispute, tracking the time, cost and number of procedures involved from the moment the plaintiff files the lawsuit until actual payment.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Court Name (English): Quezon City Metropolitan Trial Court
  • City: Quezon city

About This Topic

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Indicator
Time (days) 842
Filing and service 58
Trial and judgment 580
Enforcement of judgment 204
Cost (% of claim) 26
Attorney cost (% of claim) 10
Court cost (% of claim) 6
Enforcement Cost (% of claim) 10
Procedures (number) 37
Filing and service
1      Plaintiff requests payment: Plaintiff or his lawyer asks Defendant orally or in writing to comply with the contract.
2      Plaintiff’s hiring of lawyer: Plaintiff hires a lawyer to represent him before the court.
*      Plaintiff’s filing of summons and complaint: Plaintiff files his summons and complaint with the court, orally or in writing.
*      Plaintiff’s payment of court fees: Plaintiff pays court duties, stamp duties, or any other type of court fee.
3      Registration of court case: The court administration registers the lawsuit or court case. This includes assigning a reference number to the lawsuit or court case.
*      Assignment of court case to a judge: The court case is assigned to a specific judge through a random procedure, automated system, ruling of an administrative judge, court officer, etc.
4      Court scrutiny of summons and complaint: A judge examines Plaintiff's summons and complaint for formal requirements.
*      Judge admits summons and complaint: After verifying the formal requirements, the judge decides to admit Plaintiff’s summons and complaint.
5      Court order for service: Upon Plaintiff’s request, judge orders process be served on Defendant.
*      Arrangements for physical delivery of summons and complaint: Plaintiff takes whatever steps are necessary to arrange for physical service of process on Defendant, such as instructing a court officer or a (private) bailiff.
6      First attempt at physical delivery: A first attempt to physically deliver summons and complaint to Defendant is successful in the majority of cases.
7      Substituted service: Substituted service is accomplished by publication in newspapers, by affixing a notice in court or on public bulletin boards, etc.
*      Application for pre-judgment attachment: Plaintiff submits an application in writing for the attachment of Defendant's property prior to judgment. (see assumption 5)
*      Decision on pre-judgment attachment: The judge decides whether to grant Plaintiff’s request for pre-judgment attachment of Defendant’s property and notifies Plaintiff and Defendant of the decision. This step may include requesting that Plaintiff submit guarantees or bonds to secure Defendant
8      Pre-judgment attachment.: Defendant's property is attached prior to judgment. Attachment is either physical or achieved by registering, marking, debiting or separating assets. (see assumption 5)
9      Custody of assets attached prior to judgment: Defendant's attached assets are put under enforcement officer's or (private) bailiff's care. (see assumption 5)
10      Report on pre-judgment attachment: Court enforcement officer or (private) bailiff issues and delivers a report on the attachment of Defendant’s property to the judge. (see assumption 5)
11      Hearing on pre-judgment attachment: A hearing takes place to resolve the question of whether Defendant’s assets can be attached prior to judgment. This process may include the submission of separate summons and petitions. (see assumption 5)
Trial and judgment
12      Defendant’s filing of defense or answer to Plaintiff’s claim: Defendant files a written pleading which includes his defense or answer on the merits of the case. Defendant's written answer may or may not include witness statements, expert statements, the documents Defendant relies on as evidence and the legal authori
13      Filing of pleadings: Plaintiff and Defendant file written pleadings and submissions with the court and transmit copies of the written pleadings or submissions to one another. The pleadings may or may not include witness statements or expert (witness) statements.
14      Pre-trial conference on procedure: The judge meets with the parties to discuss procedural issues (for example which applications and motions parties intend to file, which documents parties intend to rely on, what will be presented as evidence the oral hearing or trial, etc.)
*      Setting of date for mediation hearing: The judge sets a date for a mediation hearing, sometimes also called a 'pre-trial conference,' and notifies the parties of the hearing date.
15      Mediation hearing: The judge during this informal meeting with the parties encourages them to settle the case. The judge acts as mediator. If the case cannot be settled, the judge may draft a pre-trial conference report, after which the case may be allocated to another judg
16      Adjournments: Court proceedings are delayed because one or both parties request and obtain an adjournment to prepare for the oral hearing or trial.
17      Trial (prevalent in common law): The parties argue the merits of the case at (an) oral session(s) before the court. Witnesses and expert witnesses are questioned and cross-examined during trial.
18      Adjournments: Court proceedings are delayed because one or both parties request and obtain an adjournment during the oral hearing or trial, resulting in an additional or later trial or hearing date.
19      Order for submission of final arguments: The judge sets the deadline for the submission of final factual and legal arguments.
*      Final arguments: The parties present their final factual and legal arguments to the court either by oral presentation or by a written submission.
20      Notification of judgment in court: The parties are notified of the judgment at a court hearing.
21      Writing of judgment: The judge produces a written copy of the judgment.
22      Registration of judgment: The court office registers the judgment after receiving a written copy of the judgment.
23      Court notification of availability of the written judgment: The court notifies the parties that the written judgment is available at the courthouse.
24      Plaintiff's receipt of a copy of written judgment: Plaintiff receives a copy of the written judgment.
25      Notification of Defendant of judgment: Plaintiff or court formally notifies the Defendant of the judgment. The appeal period starts to run the day the Defendant is formally notified of the judgment.
26      Appeal period: By law, Defendant has the opportunity to appeal the judgment during a period specified in the law. Defendant decides not to appeal. Judgment becomes final the day the appeal period ends.
Enforcement of judgment
*      Plaintiff’s hiring of lawyer: Plaintiff hires a lawyer to enforce the judgment or continues to be represented by a lawyer during the enforcement of judgment phase.
27      Plaintiff's approaching of court enforcement officer or (private) bailiff to enforce the judgment: To enforce the judgment, Plaintiff approaches a court enforcement officer such as a court bailiff or sheriff, or a private bailiff.
*      Plaintiff’s request for enforcement order: Plaintiff applies to the court to obtain the enforcement order ('seal' on judgment).
28      Plaintiff’s advancement of enforcement fees: Plaintiff pays the fees related to the enforcement of the judgment.
29      Attachment of enforcement order to judgment: The judge attaches the enforcement order (‘seal’) to the judgment.
*      Delivery of enforcement order: The court's enforcement order is delivered to a court enforcement officer or a (private) bailiff.
30      Request to Defendant to comply voluntarily with judgment: Plaintiff, a court enforcement officer or a (private) bailiff requests Defendant to voluntarily comply with the judgment, giving Defendant a last chance to comply voluntarily with the judgment.
31      Plaintiff’s identification of Defendant's assets for attachment: Plaintiff identifies Defendant's assets for attachment.
32      Attachment: Defendant’s movable goods are attached (physically or by registering, marking or separating assets).
33      Report on execution of attachment: A court enforcement officer or private process server delivers a report on the attachment of Defendant's movable goods to the judge.
34      Enforcement disputes before court: The enforcement of the judgment is delayed because Defendant opposes aspects of the enforcement process before the judge.
35      Sale through public auction: The Defendant’s movable property is sold at public auction.
*      Direct sale: Defendant's property is sold but not through a public auction. (assumption 9 is disregarded here)
36      Distribution of proceeds: The proceeds of the public auction are distributed to various creditors (including Plaintiff), according to the rules of priority.
37      Reimbursement of Plaintiff’s enforcement fees: Defendant reimburses Plaintiff's enforcement fees which Plaintiff had advanced previously.
38      Payment: Court orders that the proceeds of the public auction or the direct sale be delivered to Plaintiff.

Nature of Procedures 38
Specialized commercial courts -1
Total Number of Procedures 37
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