In Land Bank of the Philippines v. Heirs of Sanchez1G.R. No. 214902, January 22, 2020, the Supreme Court ruled that the Land Bank of the Philippines is exempt from paying the costs of the suit under Section 1, Rule 142 of the Rules of Court,2Section 1 of Rule 142 provides: Section 1. Costs ordinarily follow results of suit. — Unless otherwise provided in these rules, costs shall be allowed to the prevailing party as a matter of course but the court shall have power, for special reasons adjudge that either party shall pay the costs of an action, or that the same be divided, as may be equitable. No costs shall be allowed against the Republic of the Philippines unless otherwise provided by law. since it is an instrumentality performing a governmental function in agrarian reform proceedings charged with the disbursement of public funds. Since the Land Bank of the Philippines is performing a governmental function in an agrarian reform proceeding, it is exempt from payment of costs of suit, including commissioners’ fees, as it is considered part of costs of suit.3Land Bank of the Phils. v. Rivera, G.R. No. 182431, November 17, 2010, 649 PHIL 575-589; Land Bank of the Phils. v. Gonzalez, G.R. No. 185821, June 13, 2013, 711 PHIL 98-121; Land Bank of the Phils. v. Ibarra, G.R. No. 182472, November 24, 2014, 747 PHIL 691-702; and Land Bank of the Philippines v. Baldoza, G.R. No. 221571, July 29, 2019.
The Court also applied Section 12, Rule 67 of the Rules of Court, which states:
Sec. 12. Costs, by whom paid. — The fees of the commissioners shall be taxed as a part of the costs of the proceedings. All costs, except those of rival claimants litigating their claims, shall be paid by the plaintiff, unless an appeal is taken by the owner of the property and the judgment is affirmed, in which event the costs of the appeal shall be paid by the owner.
Based on the said provision, the Court added that the Land Bank of the Philippines is not liable to pay for commissioners’ fees considering that the Heirs of Sanchez were the plaintiffs or the ones who initiated the complaint for determination of just compensation before the Special Agrarian Court.
Further reading:
- Land Bank of the Philippines v. Heirs of Sanchez, G.R. No. 214902, January 22, 2020.
