RBAP MABS v.

101111

Small Claims Cases

A Quick Guide for Banks and their

Representatives

Foreword

ThisSmallClaimsCourt(SCC)QuickGuidewasdevelopedto
provideapracticalguideforbankrepresentativeswhoarenewto
smallclaimscourtsystem. ComplementarytotheHandbookon
the Rule of Procedure for Small Claims Cases issued by the
Supreme Court of the Philippines, this quick guide explains in
laymanstermsthechronologicalstepstofollowinfilingasmall
claimscase. Tofurtherprovideunderstanding,thisquickguide
includessamplesofactualdocumentsfromruralbankstoprovide
visualassistanceofhowtheformlookslikewhenitisfilledup.
Thisquickguidecontainsthelistofdocumentsneededwhenfiling
acase,whatformstofillup,wheretofilethecase,courtdecorum,
postfilingresponsibilitiesuptothefinaldecisionfromthejudge.
Wewouldliketoacknowledgetheruralbanksthathaveagreedto
supplytheactualdocumentsandcontributedtheirexperienceswith
smallclaimscases.

TableofContents

1.

WHATARESMALLCLAIMS?

Page 4

2.

WHEREDOYOUSTART?

a.ExhibitAStatementofClaim
b.ExhibitBCertificateofNonForumShopping
c.ExhibitCAdditionalDocuments
d.ExhibitDSpecialPowerofAttorney

610
11
1214
15

3.

WHOSHOULDSIGNTHEFORMS?

16

4.

HOWDOYOUFILEACASEATTHECOURT?

16

5.

WHATHAPPENSAFTERFILING?

17

a.ExhibitESummons
b.ExhibitFNoticeofHearing

18
19

6.

WHATHAPPENSAFTERTHESUMMONSISRECEIVED?

20

7.

WHATHAPPENSATTHEHEARING?

21

8.

COURTDECORUMANDPROTOCOL?

21

9.

HOWISSETTLEMENTACHIEVED?

22

10. HOWLONGBEFORETHEJUDGEDECIDES?
a.
b.
c.
d.

ExhibitGCourtDecision,NoresponseNoshow
ExhibitHCompromiseAgreement
ExhibitIMotionforExecution
ExhibitJWritofExecution

23
24
27
29
30

11. THINGSTOREMEMBER

31

12. References

34

13. Annex1CompleteSCCForms

35

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 SMALL CLAIMS?

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
be reduced to P100,000 or the claimant should waive their
right to any claims above P100,000.

WHERE DO YOU START?

1. Is the borrower still around? Before you decide to file
a case against a borrower, make sure that the
borrower can be located and is at the address
you provide the court. This is important. If the
summons cannot be 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 submit 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.
2. Are the loan documents case-ready? You should also
review the loans legal documents promissory note (PN),
disclosure statement, co-makers statement, deed of

assignment or chattel mortgage, 3 demand letters, etc.

Make sure that all data is complete and signatures affixed
where required.
Review the action your bank had taken to collect from the
client. Have these past action steps been documented?
Has the bank complied with the 3 reminder letters and
have they been received by the borrower/co-makers?
When you find that Mr. Borrower still resides in the address
indicated in the loan document and that all the possible
collection methods have been exhausted, and the loan
documents are case-ready, the bank may proceed with
filing the case.
3. You are now ready to fill out the forms required for
Small Claims. Before filing the case for small claims,
make sure all forms that the court requires should be duly
accomplished. If you file a case with incomplete
documents your claim can be dismissed. You would have
wasted your time, bank resources, and chances of
collection.
What are these forms?
a.Statement of Claim (Form1SCC);
b.Verification and Certification of Non-forum Shopping
(Form1A-SCC);
c. Additional claim documents;
d.Special Power of Attorney.
Together with these, all actionable documents, additional
evidence, and affidavits should be attached.
Note that no additional evidences will be accepted
once the claim has been docketed. To docket a claim
means that all actionable documents have been complied
with and verified, filing and docket fees paid, and accepted
by the clerk of court.
Once docketed, the case is
scheduled for raffling.
6

Examples of these forms actually filled out and filed by a

rural bank are shown as Exhibits A to C.

Exhibit A Statement of Claims, p. 1

Exhibit A Statement of Claims, p. 2

Exhibit A Statement of Claims, p. 3

10

Exhibit A Statement of Claims, p. 4

11

Exhibit A Statement of Claims, p. 5

12

Exhibit B Certificate of Non-forum Shopping

13

14

Exhibit C Additional
Statement of Account

documents:

Defendants

15

Exhibit C Additional documents: Collection Letter

16

Exhibit C Additional documents: Lawyers Collection

Letter

17

Exhibit D Special Power of Attorney

18

19

WHO SHOULD SIGN THE FORMS?

1.

The Bank has now prepared all the forms and is ready
to file the case. The bank may appoint a senior officer,
branch manager, supervisor, loans officer, or account
officer to represent the bank. Here, a board resolution
designating the representative and signatory for small
claims in behalf of the bank is needed.

2.

Remember that the client is the DEFENDANT (the

person against whom the case is filed) and the bank is
the PLAINTIFF (the one who is filing the case).

HOW DO YOU FILE A CASE AT THE COURT?

1.

When
all
documents
are
complete, you must file the
claim with the Clerk of Court
(CoC) in the appropriate court in
your area. This can be any of the
following:
Metropolitan
Trial
Court; Municipal Trial Court;
Municipal Circuit Trial Courts; or
Municipal Trial Courts in Cities (MTCC).

2. The Clerk of Court (CoC) then examines

the
documents and computes for the appropriate filing and
docket fees on the same day it is filed. The filing fee is
P1,000 per claim. When more than 10 claims are filed
in the same year, the following charges are applied on
top of P1,000.
11
21st
31st
41st

th

20
30th
40th
50th

th

Additional Filing Fees

claim
P500
claim
P600
claim
P700
claim
P800

per
per
per
per

claim
claim
claim
claim

20

3. When all the fees have been paid, the CoC shall docket
the case and schedule it for raffle. When the case has
been raffled, the docket will contain the raffle date and
branch where the case has been raffled.
4. Raffling a case means that the CoC will randomly select
a Judge who will handle your case through a bunotbunot system. When the Branch Clerk of Court (BCC)
where the case has been raffled to receives the case, it
is docketed in a special book exclusively for small
claims.

WHAT HAPPENS AFTER FILING?

1.

After the case has been docketed and raffled, the

assigned Judge shall examine the case and determine if
it qualifies under small claims. When the case is
determined not falling under small claims, the case will
not dismissed but rather redocketed under the appropriate
procedure and the filing fee reassessed.

2.

After examining the case and

the Judge finds grounds for
dismissal, the Judge may do it
outright. Otherwise, the Judge
schedules the hearing and
issues to the defendant the following documents within
24 hours after receipt of the Statement of Claim:
a. Summons (Form 2-SCC);
b. Notice of hearing (Form 4-SCC) with the plaintiff
copy furnished;
c. Information for the defendant;
d. Response form (Form 3-SCC);
e. Special Power of Attorney (Form 5-SCC); and,
21

f.
3.

A copy of the Statement of Claim with all

attached documents.

What is a Summons and what does it look like?

The summons notifies the defendant/s that failure to
respond within ten (10) days and appear at the
scheduled hearing may render judgment in favor of the
plaintiff. Exhibit D shows what a Summons look like.
Exhibit E Summons

22

4.

The Notice of Hearing indicates the date and time of

the hearing, which is within 30 days after the case has
been filed.
If the defendants/s reside outside the
judicial region, the hearing is set within 60 days after
the case is filed. Both documents are served within five
23

(5) days from date of issuance, but not to exceed thirty

(30) days.
Exhibit F Notice of Hearing

5.

These documents are served either by a court sheriff,

the deputy sheriff, process server, or any appointed
proper court officer.

24

6.

Whether the Summons and Notice of

Hearing are received or not by the
defendant, a Sheriffs Return is filed with
the court within five (5) days.
The
plaintiff is also served a copy of the
Sheriffs Return. If the plaintiff cannot
locate the defendant within two (2)
months, the case is then dismissed.

WHAT HAPPENS NEXT AFTER THE

SUMMONS IS RECEIVED?
1.

When the defendant receives the

Summons and Notice of Hearing,
must file a duly accomplished
response form (Form 3-SCC)
within ten (10) days. Similar to
plaintiff, the defendant also
submits
his/her
certified
photocopies
of
actionable
documents,
evidences,
and
affidavits for his/her defense
with his/her response.

he/she
the

2.

If the defendant does not submit his/her response but

appears at the hearing, he/she may still offer a defense
and negotiate a settlement.

3.

If the defendant fails to respond and does not appear at

the hearing, then Judgment will be rendered in favor of
the plaintiff.

4.

The defendant may also file a counterclaim for as long

as it is a small claim; arises out of the same transaction,
and is not the subject of another pending action.

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WHAT HAPPENS AT THE HEARING?

1.

On the scheduled day of the hearing, all parties should

appear personally.
Be in
court before the time
designated in the notice of
hearing. Wear your bank
uniform to the hearing as
you are an appointed
representative of the bank.
Bring
all
pertinent
documents on the day of
the hearing.

2.

No lawyer is allowed at the hearings and may not

represent any of the parties. The defendant may be
represented by a relative (who is not a lawyer) with the
Special Power of Attorney (Form 5-SCC) issued by the
defendant.

3.

If a party fails to appear, the Judge will decide the case

in favor of the party present at the scheduled hearing
and dismiss the case.

4.

If there are multiple defendants and only one of them

appears at the hearing, the court will proceed with the
hearing.

5.

When both parties fail to appear, the case will be

dismissed.

COURT DECORUM AND PROTOCOL

1. Dress appropriately for the hearing. If you have a bank
issued uniform such as a short sleeved barong tagalog,
wear it to the hearing. If not, wear a semi formal polo
with collar. Do not use jeans or maong to the
hearing. Leather or semi formal shoes should be worn.
26

2. When inside the courtroom or the sala of the Judge,

remember to keep quiet until you are called by the
Judge. As much as possible, avoid going in and out of
the courtroom or sala repeatedly so as not to distract
the Judge and other people present in the courtroom or
sala. Always address the Judge as Your Honor and
call the defendant by their formal given name.
3. When it is your turn to face the Judge, English is the
preferred language but you may request the Judge for
his approval to use a language or dialect you are more
comfortable with and can be understood by the
defendant. Always talk to the Judge in a soft tone of
voice and in a very respectful manner.
4. More importantly, always keep your cell phone off or in
silent mode. The Judge and the Clerk of Court are very
particular about this.

HOW IS SETTLEMENT ACHIEVED?

1.

There are two ways by which both parties may resolve

the case.
You may come up with a compromise
agreement before the hearing or at
the hearing. In the former, both
parties fill-up the Settlement (Form
7-SCC) and present it to the court
before
the
hearing
starts.
Judgment is based on the
presented compromise agreement.
If no prior
compromise agreement is presented, the court orders
both parties to come up with a compromise, which
should be submitted within the day to the court for
resolution by the Judge.
If you cannot
agree
with the defendant on a compromise,
then
the case is decided based on its
merits.

27

2.

In some cases where settlement cannot be reached

within the day, any party may file for a motion to have
another Judge hear and decide on the case (Form 10SCC). The original Judge shall refer the case (form 11SCC) to the Executive Judge who in turn raffles the case
to another Judge on the same day it was referred. The
new Judge shall hear and decide on the case within 5
working days.

HOW LONG BEFORE THE JUDGE DECIDES?

1.

ONE (1) DAY. The Judge must make a

decision (Form 13-SCC) within the
day of the hearing. If the decision is
in favor of the plaintiff then the
decision shall be executed upon motion
(Form 9-SCC).
This means that the
courts decision will take effect soon as
the motion is filed.

2.

When the decision is rendered, it is entered into a book

of Judgments and docketed by the CoC.

3.

In most cases, the Judge reduces interest on the

collectible amount to 12% p.a. and usually excludes the
penalty charges.

4.

Exhibits G thru J show samples of actual decisions by

a Judge for a small claims case.

5.

In Exhibit 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.

6.

In Exhibit H, defendant did not submit his/her response

within the 10 day period but appeared on the day of the
hearing.
Both parties arrived at a compromise
agreement during the hearing.

28

7.

In Exhibit I, plaintiff files for a Motion for Execution of

the decision by the Judge. This was done because the
defendant still refuses to comply with the courts
decision.

8.

In Exhibit J, the Judge approves the motion for

execution (exhibit H) and issues a Writ of Execution
authorizing the Sheriff to levy or seize any goods or
properties of the defendant equal to the awarded
amount.

Exhibit G Sample Court Decision, p. 1: No-response no-show

defendant

29

30

Exhibit G Sample Court Decision, p.2: No-response no-show

31

Exhibit G Sample Court Decision, p. 3: No-response no-show

32

Exhibit H Sample Compromise Agreement, p. 1

33

Exhibit H Sample Compromise Agreement, p. 2

34

Exhibit I Motion for Execution

35

Exhibit J Writ of Execution

36

Things to remember:
1.

2.
loan

Make sure that you have located the

defendant and that he/she can be
reached at the address you
provided the court.

Bank can still file a case even when the

account has been written off.

3.

The amount for collection is P100,000 or lower,

excluding penalties and interests.

4.

The basic filing fee is P1,000 per claim. Additional

amount is paid per claim in excess of ten (10) claim
cases within a year.

5.

The bank is the plaintif. The client is the defendant.

6.

Know your rights before you file. For a more detailed

procedure, you may seek assistance from the CoC in
the place where you intend to file the case.

7.

Gather and complete all documents needed for the

case. You cannot submit new evidence at the hearing.

8.

Make xerox copies of all these documents:

a) Statements of Claim, Certificates of NonForum Shopping, Promissory Notes,
VOSAS, Oaths of Undertaking, Disclosure
Statements, Deeds of Assignment, and
other pertinent documents;
b) Received copies of the three (3) demand
letters;
c) Affidavit of Witnesses;
d) Board Resolution authorizing you to act as
representative of the bank.

9.

Accomplish Form 1-SCC and attach all evidences.

37

10.

Present your claim to the Clerk of Court and have it

notarized and certified.

11.

Pay the filing fees.

12.

Go to the court on the scheduled hearing day.

13.

Observe proper court decorum and protocol.

14.

No lawyers, please, to the hearing.

38

References
1.

Handbook on the Rule of Procedure for Small Claims

Cases, developed by the Supreme Court of the Philippines and
the American BAR Association Rule of Law Initiative, through
funding support from the United States Agency for International
Development, 2010

2.

Supreme Court of the Philippines website, for Annex 1,

complete blank set of SCC forms.

3.

Excerpts from actual small claims cases of Bangko

Kabayan, Rural Bank of Oroquieta, Cantilan Bank, and
Greenbank, for Exhibits A-J.

4.

Interviews with representatives of Cantilan Bank,

Greenbank, and Rural Bank of Oroquieta, for experiences
with actual small claims cases.

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40