RBAP MABS v.

101111

Small Claims Cases

A Quick Guide for Banks and their Representatives

Foreword

This Small Claims Court (SCC) Quick Guide was developed to provide a practical guide for bank representatives who are new to small claims court system. Complementary to the Handbook on the Rule of Procedure for Small Claims Cases issued by the Supreme Court of the Philippines, this quick guide explains in laymans terms the chronological steps to follow in filing a small claims case. To further provide understanding, this quick guide includes samples of actual documents from rural banks to provide visual assistance of how the form looks like when it is filled up. This quick guide contains the list of documents needed when filing a case, what forms to fill up, where to file the case, court decorum, post filing responsibilities up to the final decision from the judge. We would like to acknowledge the rural banks that have agreed to supply the actual documents and contributed their experiences with small claims cases.

Table of Contents

1. 2.

WHAT ARE SMALL CLAIMS? WHERE DO YOU START? a. Exhibit A Statement of Claim b. Exhibit B Certificate of Non-Forum Shopping c. Exhibit C - Additional Documents d. Exhibit D - Special Power of Attorney

Page 4 4 6-10 11 12-14 15 16 16 17 18 19 20 21 21 22 23 24 27 29 30 31 34 35

3. 4. 5.

WHO SHOULD SIGN THE FORMS? HOW DO YOU FILE A CASE AT THE COURT? WHAT HAPPENS AFTER FILING? a. Exhibit E Summons b. Exhibit F - Notice of Hearing

6. 7. 8. 9.

WHAT HAPPENS AFTER THE SUMMONS IS RECEIVED? WHAT HAPPENS AT THE HEARING? COURT DECORUM AND PROTOCOL? HOW IS SETTLEMENT ACHIEVED?

10. HOW LONG BEFORE THE JUDGE DECIDES? a. b. c. d. Exhibit G Court Decision, No response No show Exhibit H Compromise Agreement Exhibit I Motion for Execution Exhibit J Writ of Execution

11. THINGS TO REMEMBER 12. References 13. Annex 1 Complete SCC Forms

When a loan account becomes past due and you find it difficult to collect from your client, despite all efforts, you may file a small claim against that client, as a last resort.

WHAT ARE SMA

C A!MS"

Small claims are civil lawsuits for the collections of sums of money wherein the principal amount to be collected does not exceed P100,000. Interest and penalties do not form part of the principal amount. For cases where the principal amount is higher than P100 000 the claim should !e reduced to P100 000 or the claimant should waive their right to any claims a!ove P100 000.

WHERE #$ %$& START"

1. Is the borrower still around "efore you decide to file a case against a !orrower ma#e sure that the !orrower can !e located and is at the address you provide the court. $his is important. If the summons cannot !e served to the defendant and the sheriff files a sheriff return with the court the plaintiff will have 2 months to locate the defendant and su!mit a new address to the court. If you cannot comply with this then the case is dismissed and time effort and the amount of filing fee are wasted. !. Are the loan documents case"read# %ou should also review the loan&s legal documents ' promissory note (P)* disclosure statement co+ma#er&s statement deed of assignment or chattel mortgage 3 demand letters etc. ,a#e sure that all data is complete and signatures affi-ed where re.uired. /eview the action your !an# had ta#en to collect from the client. 0ave
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these past action steps !een documented2 0as the !an# complied with the 3 reminder letters and have they !een received !y the !orrower3co+ ma#ers2 4hen you find that ,r. "orrower still resides in the address indicated in the loan document and that all the possi!le collection methods have !een e-hausted and the loan documents are case+ready the !an# may proceed with filing the case. $. %ou are now read# to &ill out the &orms re'uired &or Small (laims. "efore filing the case for small claims ma#e sure all forms that the court re.uires should !e duly accomplished. If you file a case with incomplete documents your claim can !e dismissed. %ou would have wasted your time !an# resources and chances of collection. 4hat are these forms2 a. Statement of 5laim (Form1'S55*6 !. 7erification and 5ertification of )on+forum Shopping (Form18+ S55*6 c. 8dditional claim documents6 d. Special Power of 8ttorney. $ogether with these all actiona!le documents additional evidence and affidavits should !e attached. )ote that no additional evidences 'ill (e accepted once the claim has (een docketed) $o doc#et a claim means that all actiona!le documents have !een complied with and verified filing and doc#et fees paid and accepted !y the cler# of court. 9nce doc#eted the case is scheduled for raffling. :-amples of these forms actually filled out and filed !y a rural !an# are shown as )xhibits A to (.

)xhibit A * Statement o& (laims, p. 1

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)xhibit A * Statement o& (laims, p. !

)xhibit A * Statement o& (laims, p. $

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)xhibit A * Statement o& (laims, p. +

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)xhibit A * Statement o& (laims, p. ,

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)xhibit B * (erti&icate o& -on"&orum Shoppin.

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)xhibit ( * Additional documents/ 0e&endant1s Statement o& Account

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)xhibit ( * Additional documents/ (ollection 2etter

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)xhibit ( * Additional documents/ 2aw#er1s (ollection 2etter

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)xhibit 0 * Special Power o& Attorne#

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WH$ SH$& # S!G* THE +$RMS"

1. $he "an# has now prepared all the forms and is ready to file the case. $he !an# may appoint a senior officer !ranch manager supervisor loans officer or account officer to represent the !an#. 0ere a !oard resolution designating the representative and signatory for small claims in !ehalf of the !an# is needed. /emem!er that the client is the #E+E*#A*T (the person against whom the case is filed* and the !an# is the , A!*T!++ (the one who is filing the case*.

2.

H$W #$ %$& +! E A CASE AT THE C$&RT"

1. 4hen all documents are complete you must file the claim with the 5ler# of 5ourt (5o5* in the appropriate court in your area. $his can !e any of the following? ,etropolitan $rial 5ourt6 ,unicipal $rial 5ourt6 ,unicipal 5ircuit $rial 5ourts6 or ,unicipal $rial 5ourts in 5ities (,$55*.

2. $he 5ler# of 5ourt (5o5* then e-amines the documents and computes for the appropriate filing and doc#et fees on the same day it is filed. $he filing fee is P1,000 per claim. 4hen more than -. claims are filed in the same year the following charges are applied on top of P1 000. 8dditional Filing Fees 11 ' 20 claim P100 per claim st th 21 ' 30 claim P;00 per claim st th 31 ' 40 claim P<00 per claim st th 41 ' 10 claim P=00 per claim
th th

3. 4hen all the fees have !een paid the 5o5 shall doc#et the case and
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schedule it for raffle. 4hen the case has !een raffled the doc#et will contain the raffle date and !ranch where the case has !een raffled. 4. /affling a case means that the 5o5 will randomly select a @udge who will handle your case through a A!unot+!unotB system. 4hen the "ranch 5ler# of 5ourt ("55* where the case has !een raffled to receives the case it is doc#eted in a special !oo# e-clusively for small claims.

WHAT HA,,E*S A+TER +! !*G"

1. 8fter the case has !een doc#eted and raffled the assigned @udge shall e-amine the case and determine if it .ualifies under small claims. 4hen the case is determined not falling under small claims the case will not dismissed !ut rather re+doc#eted under the appropriate procedure and the filing fee re+assessed. 8fter e-amining the case and the @udge finds grounds for dismissal the @udge may do it outright. 9therwise the @udge schedules the hearing and issues to the defendant the following documents within 24 hours after receipt of the Statement of 5laim? a. Summons (Form 2-SCC)6 !. )otice of hearing (Form 4-SCC) with the plaintiff copy furnished6 c. Information for the defendant6 d. /esponse form (Form 3-SCC)6 e. Special Power of 8ttorney (Form 5-SCC)6 and f. 8 copy of the Statement of 5laim with all attached documents. 3. 3hat is a Summons and what does it loo4 li4e $he summons notifies the defendant3s that failure to respond within ten (10* days and appear at the scheduled hearing may render Cudgment in favor of the plaintiff. :-hi!it D shows what a Summons loo# li#e. )xhibit ) * Summons
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2.

4.

5he -otice o& 6earin. indicates the date and time of the hearing which is within 30 days after the case has !een filed. If the defendants3s reside outside the Cudicial region the hearing is set within ;0 days after the case is filed. "oth documents are served within five (1* days from date of issuance !ut not to e-ceed thirty
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(30* days. )xhibit 7 * -otice o& 6earin.

1. ;.

$hese documents are served either !y a court sheriff the deputy sheriff process server or any appointed proper court officer. 4hether the Summons and )otice of 0earing are received or not !y the defendant a Sheriff&s /eturn is filed with the court within five (1* days. $he
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plaintiff is also served a copy of the Sheriff&s /eturn. If the plaintiff cannot locate the defendant within two (2* months the case is then dismissed.

WHAT HA,,E*S *E/T A+TER THE S&MM$*S !S RECE!0E#"

1. 4hen the defendant receives the Summons and 0earing he3she must file a duly accomplished form (Form 3-SCC) within ten (10* days. Similar to the plaintiff the defendant su!mits his3her certified photocopies of actiona!le documents evidences and affidavits for his3her defense with his3her response. )otice of response also

2.

If the defendant does not su!mit his3her response !ut appears at the hearing he3she may still offer a defense and negotiate a settlement. If the defendant fails to respond and does not appear at the hearing then @udgment will !e rendered in favor of the plaintiff. $he defendant may also file a counterclaim for as long as it is a small claim6 arises out of the same transaction and is not the su!Cect of another pending action.

3. 4.

WHAT HA,,E*S AT THE HEAR!*G"

1. 9n the scheduled day of the hearing all parties should appear personally. "e in court !efore the time designated in the notice of hearing. 4ear your !an# uniform to the hearing as you are an appointed representative of the !an#. "ring all pertinent
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documents on the day of the hearing. 2. *o la'1er is allo'ed at the hearin2s and ma1 not represent an1 of the parties) $he defendant may !e represented !y a relative (who is not a lawyer* with the Special Power of 8ttorney (Form 5-SCC) issued !y the defendant. If a party fails to appear the @udge will decide the case in favor of the party present at the scheduled hearing and dismiss the case. If there are multiple defendants and only one of them appears at the hearing the court will proceed with the hearing. 4hen !oth parties fail to appear the case will !e dismissed.

3. 4. 1.

C$&RT #EC$R&M A*# ,R$T$C$

1. Dress appropriately for the hearing. If you have a !an# issued uniform such as a short sleeved !arong tagalog wear it to the hearing. If not wear a semi formal polo with collar. Do not use Ceans or AmaongB to the hearing. Eeather or semi formal shoes should !e worn. 2. 4hen inside the courtroom or the sala of the @udge remem!er to #eep .uiet until you are called !y the @udge. 8s much as possi!le avoid going in and out of the courtroom or sala repeatedly so as not to distract the @udge and other people present in the courtroom or sala. 8lways address the @udge as A%our 0onorB and call the defendant !y their formal given name. 3. 4hen it is your turn to face the @udge :nglish is the preferred language !ut you may re.uest the @udge for his approval to use a language or dialect you are more comforta!le with and can !e understood !y the defendant. 8lways tal# to the @udge in a soft tone of voice and in a very respectful manner. 4. ,ore importantly always #eep your cell phone off or in silent mode. $he @udge and the 5ler# of 5ourt are very particular a!out this.

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H$W !S SETT EME*T ACH!E0E#"

1. $here are two ways !y which !oth parties may resolve the case. %ou may come up with a compromise agreement !efore the hearing or at the hearing. In the former !oth parties fill+up the Settlement (Form 7-SCC) and present it to the court !efore the hearing starts. @udgment is !ased on the presented compromise agreement. If no prior compromise agreement is presented the court orders !oth parties to come up with a compromise which should !e su!mitted within the day to the court for resolution !y the @udge. If you cannot agree with the defendant on a compromise then the case is decided !ased on its merits. In some cases where settlement cannot !e reached the day any party may file for a motion to have another @udge hear and decide on the case (Form 10-SCC). $he original @udge shall refer the case (form 11-SCC) to the :-ecutive @udge who in turn raffles the case to another @udge on the same day it was referred. $he new @udge shall hear and decide on the case within 1 wor#ing days. within

2.

H$W $*G BE+$RE THE 3&#GE #EC!#ES"

1. $*E 4-5 #A%) The 3ud2e must make a decision 87orm 1$"S((9 'ithin the da1 of the hearin2 . If the decision is in favor of the plaintiff then the decision shall !e e-ecuted upon motion (Form 9SCC). $his means that the court&s decision will ta#e effect soon as the motion is filed. 2. 3. 4hen the decision is rendered it is entered into a !oo# of @udgments and doc#eted !y the 5o5.

In most cases the @udge reduces interest on the collecti!le amount to 12F p.a. and usually e-cludes the penalty charges.

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4. 1.

E6hi(its G thru 3 show samples of actual decisions !y a @udge for a small claims case. In E6hi(it G defendants did not respond within 10 days from receipt of the summons and did not attend the hearing. Decision was rendered in favor of the plaintiff on the same day. In E6hi(it H defendant did not su!mit his3her response within the 10 day period !ut appeared on the day of the hearing. "oth parties arrived at a compromise agreement during the hearing. In E6hi(it !7 plaintiff files for a ,otion for :-ecution of the decision !y the @udge. $his was done !ecause the defendant still refuses to comply with the court&s decision. In E6hi(it 37 the @udge approves the motion for e-ecution (e-hi!it 0* and issues a 4rit of :-ecution authoriGing the Sheriff to levy or seiGe any goods or properties of the defendant e.ual to the awarded amount.

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)xhibit : * Sample (ourt 0ecision, p. 1/ -o"response no"show de&endant

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)xhibit : * Sample (ourt 0ecision, p.!/ -o"response no"show

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)xhibit : * Sample (ourt 0ecision, p. $/ -o"response no"show

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)xhibit 6 * Sample (ompromise A.reement, p. 1

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)xhibit 6 * Sample (ompromise A.reement, p. !

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)xhibit I * Motion &or )xecution

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)xhibit ; * 3rit o& )xecution

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Thin2s to remem(er8
1. ,a#e sure that you have located the defendant and that he3she can !e reached at the address you provided the court. 2. 3. 4. 1. ;. "an# can still file a case even when the loan account has !een written off.

$he amount for collection is P100 000 or lower e-cluding penalties and interests. $he !asic filing fee is P1 000 per claim. 8dditional amount is paid per claim in e-cess of ten (10* claim cases within a year. $he !an# is the plaintiff. $he client is the defendant. Hnow your rights !efore you file. For a more detailed procedure you may see# assistance from the 5o5 in the place where you intend to file the case. Iather and complete all documents needed for the case. %ou cannot su!mit new evidence at the hearing. ,a#e xerox copies of all these documents? a5 Statements of Claim7 Certificates of *on9+orum Shoppin27 ,romissor1 *otes7 0$SAS7 $aths of &ndertakin27 #isclosure Statements7 #eeds of Assi2nment7 and other pertinent documents: (5 Received copies of the three 4;5 demand letters: c5 Affidavit of Witnesses: d5 Board Resolution authori<in2 1ou to act as representative of the (ank) 8ccomplish 7orm 1"S(( and attach all evidences. Present your claim to the 5ler# of 5ourt and have it notariGed and certified.

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11. 12. 13. 14.

Pay the filing fees. Io to the court on the scheduled hearing day. 9!serve proper court decorum and protocol. )o lawyers please to the hearing.

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References 1. 0and!oo# on the /ule of Procedure for Small 5laims 5ases developed
by !e S"preme Co"r of !e #!ilippi$es %$d !e &meric%$ '&( &ssoci% io$ ) ("le of *%+ ,$i i% ive- !ro".! f"$di$. s"ppor from !e /$i ed S % es &.e$cy for ,$ er$% io$%l 0evelopme$ - 2010

2. 3. 4.

Supreme 5ourt of the Philippines we!site for &$$ex 1- comple e bl%$1 se

of SCC forms.

:-cerpts from actual small claims cases of "ang#o Ha!ayan /ural "an# of 9ro.uieta 5antilan "an# and Ireen!an# for 2x!ibi s &-3. Interviews with representatives of 5antilan "an# Ireen!an# and /ural "an# of 9ro.uieta for experie$ces +i ! %c "%l sm%ll cl%ims c%ses.

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