ARTA believes newly signed law will improve the country’s standing in the World Bank’s Doing Business report

The Anti-Red Tape Authority (ARTA) believes the newly signed RA11576 will improve the country’s standing in the World Bank’s Doing Business report.

“The signing of Republic Act 11576, amending the Judiciary Reorganization Act of 1980, is a significant step forward as it will assist the country in further improving its standing in World Bank’s Doing Business Report,” said ARTA director-general Jeremiah Belgica.

RA 11576 increases the jurisdictional amount covered by the municipal, municipal circuit, and metropolitan trial courts to help hasten the resolution of cases.

Under the law, first-level courts such as municipal, municipal circuit, and metropolitan trial courts may now resolve civil actions involving title or possession of real property with a value of up to ₱400,000. The previous maximum was set at ₱50,000.

First-level courts may also resolve admiralty and maritime actions, civil cases, probate proceedings, as well as testate and intestate where demand does not exceed ₱2 million.

All those that exceed the amounts covered by the first-level courts will be handled by the regional trial courts.

Additionally, the law gives the Supreme Court the power to adjust the jurisdictional amount for the first and second-level courts.

Belgica pointed out how two indicators covered by the World Bank Doing Business report, resolving insolvency and enforcing contracts, require court intervention.

The resolving insolvency indicator measures the time, cost, and outcome of insolvency proceedings of domestic entities and the strength of the legal framework applicable to judicial liquidation and reorganization proceedings.

The enforcing contracts indicator covers the time and cost for resolving a commercial dispute through a local first-instance court and the quality of judicial processes index or the series of good practices that promote quality and efficiency in the court system.

In the Doing Business 2020 Report, the Philippines ranked 95th out of 190 economies with a score of 62.8, up from 124th and its score of 57.68 in 2019.

SOURCE: Phil Star