Do you wish to collect money from someone who owes you but cannot afford to spend on heavy legal

fees? Is your
lessee not paying his rent but you do not want the hassle of a long court trial? Did you deliver products to your
customer yet he did not pay you? Have you experienced not being paid for the services you rendered? Perhaps,
a small claim action is right for you.

Please see below a simple Q & A on small claims cases in the Philippines.

1. What are small claims?

These are civil claims which are exclusively for the payment or reimbursement of a sum of money not exceeding
P300, 000.00 (amending A.M. No. 08-8-7-SC dated 10 July 2018 and effective 01 August 2018).

2. What are considered as small claim actions?

They are claims where the value of the claim does not exceed Three Hundred Thousand Pesos (P300, 000.00)
exclusive of interest and costs:

(a) For money owned under any of the following:

a. Contract of Lease;
b. Contract of Loan;
c. Contract of Services;
d. Contract of Sale; or
e. Contract of Mortgage;

(b) For liquidated damages arising contracts;

(c) The enforcement of a barangay amicable settlement or arbitration award on a money claim.

3. Give me examples of small claims cases.

a. Case to collect money from a person who owes you money (debtor)
b. Case to collect unpaid rental payments from a lessee
c. Case to recover the deposit made for a lease after the expiration of the lease
d. Case to collect payment for commission
e. Case to collect payment for services rendered
f. Case to collect payment for goods or property sold and delivered
g. or reimbursement for property, deposit, or money loaned;
h. Purely civil action for payment of money covered by bounced or stopped check.
i. Case to enforce settlement agreements of money claims made before the barangay

4. What is the purpose of small claims?

The purpose of a small claims process is to provide a simpler and a more inexpensive and expeditious means of settling
disputes involving purely money claims.

5. Where do I file my small claims case?

A small claims case is filed with the Metropolitan Trial Court, Municipal Trial Court in Cities, Municipal Trial
Court and Municipal Circuit Trial Courts. Since this is a civil case, it must be filed in the city:

a. Where the Plaintiff (the person suing) resides; or

b. Where the Defendant (the person being sued) resides; or
c. If the Plaintiff is in the business of lending, banking and similar activities, in the city where the Defendant resides, if the
Plaintiff has a branch in that city.

6. What is the procedure for small claims?

a. A small claims action is commenced by filing with the court an accomplished and verified Statement of Claim in
duplicate, accompanied by a Certification of Non-Forum Shopping, Splitting a Cause of Action and Multiplicity of Suits
and two (2) duly certified photocopies of the actionable document/s subjects of the claim, as well as the affidavits of
witnesses and other evidence to support the claim. No evidence shall be allowed during the hearing which was not
attached to or submitted together with the Claim, unless good cause is shown for the admission of additional evidence.
b. The plaintiff shall pay the docket and other legal fees, unless allowed to litigate as an indigent.
c. The court examines the claim. It may dismiss the case outright if it finds grounds to justify the dismissal.
d. If no ground for dismissal is found, the court shall issue Summons on the day of receipt of the Statement of Claim,
directing the defendant to submit a verified Response.
e. If the Defendant cannot be served with Summons, the court shall order the Plaintiff to cause the service of summons
within thirty (30) days from Notice. Otherwise, the case shall be dismissed.
f. The court shall also issue a Notice to both parties, directing them to appear before it on a specific date and time for
hearing, with a warning that no unjustified postponement shall be allowed.
g. The defendant shall file with the court and serve on the plaintiff a duly accomplished and verified Response within a
non – extendible period of ten (10) days from receipt of summons. The Response shall be accompanied by certified
photocopies of documents, as well as affidavits of witnesses and other evidence in support thereof. No evidence shall be
allowed during the hearing which was not attached to or submitted together with the Response, unless good cause is
shown for the admission of additional evidence.
h. The parties shall appear at the designated date of hearing personally or through a representative authorized under a
Special Power of Attorney. However, a lawyer cannot appear to represent the party.
i. At the hearing, the judge shall exert efforts to bring the parties to an amicable settlement.
j. If the case is settled, the settlement shall be reduced into writing, signed by the parties and submitted to the court for
approval
k. If no settlement is reached, the hearing shall so proceed in an informal and expeditious manner and terminated within
the same day.
l. After the hearing, the court shall render its decision within twenty-four (24) hours from termination of the hearing. The
decision shall immediately be entered by the Clerk of Court in the court docket and a copy thereof forthwith served on the
parties.

7. Can the decision of the small claims court be appealed?

No. The decision shall be final, executory and unappealable.

8. Can lawyers appear in the hearing?

Lawyers are not allowed to appear in behalf of or represent a party.

9. Can a representative appear in the hearing?

Yes, provided that appearance by representative is for a valid cause and the representative must be a relative of the
individual party and NOT a lawyer. Furthermore, the representative must be armed with a Special Power of Attorney.

10. I do not know how to make statements of claims and other legal documents. What can I do?

The Supreme Court has already made templated forms for the following:

a. Statement of Claim
b. Verification and Certification of Non-forum Shopping, Splitting a Cause of Action and Multiplicity of Suits
c. Response
d. Plaintiff’s Return/ Manifestation
e. Motion to Plead as Indigent
f. Special Power of Attorney
g. Joint Motion for DIimissal
h. Motion for Approval of Compromise Agreement
i. Motion for Execution

These forms may be secured from the courts.

11. I want to know more about Small Claims Cases. What resource material can I read?

For more information on Small Claims Cases, you may read A.M. No. 08-8-7-SC or “The 2016 Revised Rules of
Procedure for Small Claims Cases” issued by the Philippine Supreme Court.
 Understanding small claims cases and how it works for you

In view of congested court dockets and the slow pace in our justice system, the Supreme Court (SC) created Small Claims
Courts back in 2008. At present time, almost eight years after it was first introduced in the Philippines, most of our courts
are still clogged with dockets, but as suggested by the reports of the SC, the Small Claims has been a huge success in, at
least, disposing of monetary claims involving small amounts, and just this February 1, the SC increased the jurisdictional
amount of small claims from an amount not exceeding P100,000 to an amount not exceeding P200,000, thereby
guaranteeing wider coverage and better access to the courts by the underprivileged.

So what are exactly small claims? Small-claims cases are cases that are purely civil in nature, where the claim or relief
prayed for by the plaintiff is solely for payment or reimbursement of sum of money not exceeding P200, 000. Its purpose
is to provide a simplified and inexpensive procedure for collection of sum of money. Claims may arise out of money owed
from a contract of lease, loan, services, sale or mortgage; it also covers liquidated damages arising from contracts and the
enforcement of a barangay amicable settlement or an arbitration award involving a money claim.

The advantage of employing small-claims case is that it is expeditious, inexpensive and simplified. It is the effective
method to get a legal order of payment against people who owe you money.
It is inexpensive because a party can appear in his own behalf; in fact, there is no need for a lawyer in small-claims cases
because the hearing is conducted in an informal manner
.
It is expeditious because a hearing shall proceed within not more than 30 days from the filing of the statement of claim by
the petitioner and hearing shall be terminated in the same day, after such hearing, a decision must be made within 24
hours. Also, the decision is final, executory
and unappelable.

It is simplified because all the forms concerning small-claims cases are provided for by the court. In small-claims cases,
the plaintiff would simply accomplish pre-drafted forms, thus, eliminating the need for the filing of pleadings.
Although under the Rules of Procedure for Small Claims Cases, the appearance of a lawyer at the hearing is not allowed,
however, it is still best to consult a lawyer, especially in the preparation of all the necessary supporting documents and the
statement of claim in order to increase the likelihood of a successful collection, because once the case is submitted for a
decision, the judge would then base his decision only on the evidence submitted along with the statement of claims.

Small claims FAQ

May I quote in full below the official Supreme Court FAQ on the new Rule of Procedure for Small Claims Cases.

What is A.M. No. 08-8-7-SC or the “Rule of Procedure for Small Claims Cases”?

It is a special rule of procedure adopted by the Supreme Court pursuant to its rule-making power under Sec. 5(5) of
Article VIII of the 1987 Constitution, to govern small claims cases and is to be piloted in designated first level courts
(Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts).
This rule allows a plaintiff (the person suing) to sue a defendant (the person being sued) without the need of a lawyer.

This new rule becomes effective on 1 October 2008.

What is the purpose of small claims process?

The purpose of a small claims process is to provide a simpler and a more inexpensive and expeditious means of settling
disputes involving purely money claims than the regular civil process.

What are the distinct features of a small claims process?

Inexpensiveness, informality, and simplicity. Every aspect of the process is designed to allow a person to handle his/her
own case from start to finish quickly and inexpensively. There are ready-made forms available and strict procedural rules,
including the rules of evidence, do not apply. Hence, there is no need for a lawyer.

What are “small claims cases”?

These are civil claims which are exclusively for the payment or reimbursement of a sum of money not exceeding
P100,000.00.

What are “small claims courts”?

These are first level courts (Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and
Municipal Circuit Trial Courts). They hear and decide small claims cases following this new rule of procedure.
Does the new rule on small claims cases create new courts?
No. The new rule simply provides a procedure for prosecuting, defending, and adjudicating small claims cases, which by
law are already within the jurisdiction of first level courts.

To jumpstart the launch of this new rule, the Supreme Court issued Administrative Order (A.O.) No. 141-2008
designating 22 first level courts all over the country as pilot courts to hear and decide small claims cases, in accordance
with the new rule of procedure for small claims cases.
Thus, upon the effectivity of A.O. No. 141-2008, all small claims cases filed in the station of these pilot courts shall be
assigned immediately to the said courts. 1. 2. 3. 4. 5. 6.

Three (3) months after the implementation of this rule, an initial assessment shall be undertaken by the Technical Working
Group (TWG) on Small Claims Court Pilot Project. Six (6) months thereafter, a final assessment and project review shall
be submitted to recommend the feasibility of applying this rule to all small claims cases in all first level courts.

What is the scope of the rule?

The rule only covers cases in first level courts involving purely money claims where the value of the claim/s does not
exceed One Hundred Thousand Pesos (P100,000.00) and does not include interest and costs. (Sec. 2)

What kinds of claims or demands are covered by this rule?

Typical claims include actual damages caused to vehicles, other personal property, real property or person. Money owed
under a contract of lease, contract of loan, contract of services, contract of sale, or contract of mortgage, may also be
demanded.

It also includes purely civil actions for payment of money covered by a bounced or stopped check.

An amicable settlement reached in the barangay or an arbitration award involving a money claim may also be enforced
under this rule.

Can separate claims be combined in one case?

Yes. The plaintiff may combine in a single statement of claim, one or more separate small claims against the same
defendant provided that the total amount claimed, exclusive of interest and costs, does not exceed P100,000.00. (Sec. 6)

What kinds of actions or claims or demands are excluded under this rule?
Criminal actions are excluded because of certain limitations or mandatory requirements under the 1987 Constitution,
particularly Sec. 14(2) of Article III (Bill of Rights), which grants the accused in all criminal prosecutions “the right to be
heard by himself and counsel.” Thus, a case for libel or slander cannot be filed in a small claims court. However, the civil
aspect of a criminal action which seeks recovery of money as damages may be heard as a small claim if reserved or
instituted separately prior to the filing of the criminal case.

There are also some kinds of civil cases that cannot be brought to a small claims court no matter how little the amount is
involved. Examples of these are a suit to force a person to fix a damaged good, or a demand for the fulfillment of an
obligation which is not purely for money.

How does one start a small claims case?

The plaintiff must first accomplish a verified Statement of Claim (Form 1-SCC) and certify the information provided,
stating that he/she has not filed any action involving the very same issue in any other court, tribunal or agency through a
Verification and Certification of Non-Forum Shopping (Form 1-A-SCC).

The Statement of Claim must be accompanied by certified duplicate photocopies of all supporting documents (i.e.
contract, promissory note, affidavit/sworn statement of witnesses, pictures, receipts, etc…)

The plaintiff then files the Statement of Claim with its accompanying documents with the small claims court, personally
or through mail, and pays the correct docket and filing fees. (Sec. 5)

Are there filing fees to be paid for small claims cases?

Yes, the plaintiff or defendant shall pay the docket and other legal fees prescribed under Rule 141 of the Revised Rules of
Court at the time of the filing of the Statement of the Claim with the Office of the Clerk of Court. 7. 8. 9. 10. 11. 12.

If you do not have money to pay the fees because of your financial status, you may apply to the small claims court to
qualify as an indigent, and once you qualify as an indigent you are exempt from payment of such fees. (Sec. 8)

Even if declared as an indigent, is a person still required to pay P1,000.00 for service of summons and processes?

Yes. Even if declared as an indigent, a person is not exempt from payment of the P1,000.00 fee for service of summons
and processes in civil cases. (Sec. 8)
Once a Statement of Claim is filed in the small claims court, may the court dismiss the case at its own instance?

Yes. The court may dismiss the case outright when any grounds for the dismissal of a civil case is apparent or obvious
from the Statement of Claim and supporting documents. (Sec. 9)

What is the duty of the court after a plaintiff files a Statement of Claim and it does not find any ground to dismiss
the claim?
The court informs the defendant that a case has been filed against him/her through the issuance of Summons (Form 2-
SCC) on the day of the receipt of the Statement of the Claim and accompanying documents. Through the Summons, the
court directs the defendant to file his/her verified Response (Form 3-SCC) as well as other supporting documents or
evidence, within a non-extendible period of ten (10) days from its receipt.

The court also serves a Notice of Hearing (Form 4-SCC) to both parties, directing them to appear before it on a specific
date and time, with a warning that no unjustified postponement shall be allowed. (Sec. 10)

The Summons and Notice of Hearing must be accompanied by a copy of the Statement of Claim and documents submitted
by plaintiff, and a copy of the Response to be accomplished by the defendant. (Sec. 10)

After a defendant has received the summons and notice from the court, what is he/she required to submit?

The defendant shall file with the court a duly-accomplished and verified Response together with proof that he/she has
served such Response to plaintiff within the prescribed period.

The Response shall also be accompanied by certified copies of documents and the affidavits of witnesses and other
evidence in support thereof. (Sec. 11)

What is the effect if a defendant fails to file a Response within the prescribed period for filing?

The court decides the case based on the facts alleged in the Statement of Claim and the supporting documents attached to
it. (Sec. 12)

Instead of filing a Response, can a defendant file a motion to dismiss the claim?

No. The filing of a motion to dismiss instead of a response is prohibited under the rule, except on ground of lack of
jurisdiction. (Sec. 14).

What is a counterclaim?

A counterclaim is a claim which a defendant files against the person who sues him (plaintiff). Similar to a claim, a
counterclaim must seek the recovery of money only.

If a defendant believes that he/she is entitled to be paid money by the plaintiff, such defendant must include this
counterclaim in his/her Response.

What happens when a defendant fails to include a counterclaim in his/her Response?

If the counterclaim is related to the plaintiff’s claim, or arose out of it (the legal term is “compulsory counterclaim”), it
must be raised in the same case. Otherwise, it will be barred.

Apart from a motion to dismiss a claim, are there other pleadings, motions, or petitions that cannot be filed?

Yes. These are the prohibited pleadings in Sec. 14 of this rule.

Who are required to appear at the hearing?

The parties shall appear at the hearing personally or through a representative they may authorize under a Special Power of
Attorney (Form 5-SCC) to enter into an amicable settlement, to submit to Judicial Dispute Resolution (JDR) and to enter
into stipulations or admissions of facts and of documentary exhibits. (Sec. 16)

Are lawyers allowed at the hearing?

No, lawyers are not allowed to appear at the hearing unless they are the plaintiff or the defendant.

Does this mean that lawyers are not allowed throughout the small claims process?

No, lawyers are only not allowed to appear at the hearing of the case. Since the process is still a legal process, the parties
and their authorized representatives can still consult with a lawyer to assist them to prepare for the hearing or for other
matters outside the hearing. (Sec. 17)
Who is allowed to assist a party who cannot properly present his/her claim or defense?

The court, in its discretion, may allow another individual who is not a lawyer to assist the party. (Sec. 17)

What happens if the parties do not appear at the hearing?

If the plaintiff does not appear, the claim shall be dismissed without prejudice.

If the defendant does not appear, the effect will be the same as failure to file a Response under Sec. 12 of this rule.

If both parties do not appear, the claim and counterclaim shall be dismissed with prejudice. (Sec. 18)

When is postponement of a hearing allowed?

It may be granted only upon proof of the physical inability of the party to appear before the court on the scheduled date
and time. A party may avail of only one (1) postponement. (Sec. 19)

What is the role of the judge designated to hear small claims cases? 28.

In small claims cases, the role of the judge is to ascertain the factual matters at issue and to elicit the evidence––all in one
hearing, and render a decision thereafter The judge shall encourage the parties to settle by employing the different modes
of Judicial Dispute Resolution (JDR).

How does the judge employ the modes of JDR?

The judge who employs JDR – as understood within the context of the rule of procedure for small claims cases – should
be confined to exerting efforts in helping the parties arrive at an amicable settlement through mediation, conciliation, early
neutral evaluation, or any other mode of JDR. This means the judge shall use any mode to try and bring about an amicable
settlement between the parties. 29.

Any settlement or resolution of the dispute, shall be reduced into writing, signed by the parties, and submitted to the court
for approval. (Sec. 21)

What happens when JDR fails?

When JDR fails, the parties may agree in writing that the JDR judge shall hear 30. and decide the case. The JDR judge
shall proceed with the hearing in an informal and expeditious manner, which shall be terminated within one (1) day.

However, if the parties do not agree, the JDR judge shall refer the case to the pairing judge for hearing and decision. (Sec.
22)

What is the job of the pairing judge?

The pairing judge shall hear and decide the case within five (5) working days from referral.

Is an appeal of a decision allowed?

No. A decision in small claims cases is final and unappealable. (Sec. 23)

Does this not violate the right to due process?

No. The right of appeal is not a natural right or a part of the constitutionally guaranteed right to due process. It is merely a
statutory privilege and a procedural remedy of statutory origin, which may be exercised only in the manner and in
accordance with the provisions of the law authorizing such exercise.

The declaration that the decision is final and unappealable is in line with the nature of small claims which is designed to
preclude unnecessary or unmeritorious appeals that result in long drawn litigation for cases of this nature, pursuant to the
Supreme Court’s constitutional mandate to enact rules of procedure.

Does the law authorize the Supreme Court to dispense with the right to appeal from the first level courts to the Regional
Trial Courts (RTCs)?

Yes, under Sec. 36 of B.P. 129 as amended, “The Judiciary Reorganization Act of 1980”, the Supreme Court shall adopt
special rules or procedures applicable to cases requiring summary disposition in order to achieve an expeditious and
inexpensive determination thereof without regard to technical rules.
Furthermore, under Sec. 38 of the same law, appeals to RTCs shall be in accordance with the procedure prescribed by
law, and by such rules as the Supreme Court may prescribe.

What then is the remedy of a party when the decision is final and unappealable?

The rule does not preclude a party from filing a petition for certiorari under Rule 65 of the Revised Rules of Court when
there is grave abuse of discretion amounting to lack or excess of jurisdiction in relation to a judgment in a small claims
action (such a petition is prohibited with regard to interlocutory orders).

Further, the aggrieved party can also file an action for annulment of judgment when the requirements under the Rules of
Civil Procedure are complied with.

Will the Rules of Civil Procedure apply?

Yes, the Rules of Civil Procedure shall apply to those matters not covered by the new rule, insofar as they are not
inconsistent with it. (Sec. 25)

For example, the Rules of Civil Procedure are applicable to issues of jurisdiction, venue on personal actions, prescription,
parts of a pleading, presence or absence of cause of action, legal standing of parties to file the action, consolidation of
actions, adjournments and postponements, grounds for dismissal including the fact that a condition precedent for filing the
claim has not been complied with (i.e. prior conciliation before the katarungang pambarangay).

Are not the small claims cases effectively governed by the Rule on Summary Procedure, Court-Annexed Media¬tion, and
the Pre-Trial Rule?

Yes. The small claims cases, being purely money claims of P100,000.00 or less are covered under the Rule on Summary
Procedure. However, with the effectivity of this new rule, the court, in actions filed as small claims cases, shall now apply
the more specific procedure under this new rule.

By way of illustration, if a defendant files an answer called a Response to the claim, the court shall schedule only one (1)
hearing for the purpose of encouraging the parties to settle without the appearance of lawyers, to hear the statement of the
parties under oath, and to consider all documentary evidence of the parties. After such hearing, the court will also issue
the decision on the same day.

By providing more immediate and swifter justice, this new rule enhances the effectivity of the Rule on Summary
Procedure, Court-Annexed Mediation, and the Pre-Trial Rule, and in effect, increases access to justice for the poor and
disadvantaged members of our society.

Small Claims Cases are civil claims which are exclusively for the payment or reimbursement of a sum of money not
exceeding P100, 000.00.

In Small Claims Cases, ordinary litigants can prosecute and defend a small claims action without the participation of
lawyers.

22 first level courts all over the country have been designated as small claims courts to jump-start the pilot project.

In Small Claims Cases, judges ascertain the factual matters at issue and elicit the evidence––all in one hearing, and render
a decision thereafter.

Judges who employ JDR in Small Claims Cases exert efforts to help the parties arrive at an amicable settlement through
mediation, conciliation, early neutral evaluation, or any other mode of JDR.

The small claims court pilot project is a program of the Supreme Court in partnership with USAID and ABA-ROLI.
Steps for Filing a Small Claims Case in the Philippines

1. Go to either one of these places to file your case:

 First level court of the city where you live

 First level court of the city where your debtor (defendant) lives

2. First level courts are defined as any of the following:

 Metropolitan Trial Court

 Municipal Trial Courts in Cities
 Municipal Trial Court
 Municipal Circuit Trial Courts

3. Go to the Office of the Clerk of Court and fill up the following forms:

 Information for Plaintiff

 Statement of Claim
 Certification of Non-Forum Shopping

4. Accomplish a Verified Statement of Claim

As plaintiff, you would also need to accomplish a Verified Statement of Claim which certifies that all information you
gave is correct and you have not filed the same case in any other court.

5. Submit Proof of Loan

You would also need to provide other important documents that will show sufficient proof that the loan occurred, this can
be ANY of the following:

 Signed contracts by the defendants

 Promissory notes, receipts, bank deposit slips, checks and other “paper trails”
 Latest demand letter with proof of delivery and proof of receipt
 Affidavits of witnesses

6. Pay the Filing Fee

After this, the plaintiff will then have to pay a small amount to file the case. According to a lawyer friend, this is usually
around P1,250.00.

What happens next?

Now that all the documents are submitted, and all administrative fees are paid, the court will then assign the case to a
judge (through a raffle).

And if it’s found that there is merit to the case, the defendants will be given a Summon, Notice of Hearing, Information
for the Defendant, Response Form and other documents.

Then, the plaintiff will be informed and will be sent a Notice of Hearing which will state the scheduled date and time of
appearance in court.

During the Settlement Discussion, the two parties, with the mediation of the judge, will have the chance to settle the case.
If no agreement happens, the case will now move to a court hearing which should occur on the same day.

Lastly, at the hearing, the judge will now make his or her decision regarding the case. The decision is final, non-
appealable and immediately executory.

UPDATE: The Supreme Court (SC) has raised the amount of claims that fall within the jurisdiction of small claims courts
from P100,000 to P200,000 effective Feb. 1, 2016.

The Rule of Procedure for Small Claims Cases

Patience is a virtue for making people pay for what they owe. You will need to remind them over and over again about the
unpaid debts, but the result is not always what you expect. There can be times when you will get more lame excuses than
payments until you decide to put the issue to rest. The good news is, you can still get paid, thanks to the existence of small
claims court.
The Steps For Filing For A Small Claims Case

1. Go to either the first level court of the city where you reside or the first level court of the city where your debtor resides.

2. The first level courts are defined as the Municipal Circuit Trial Courts Municipal Trial Court, Metropolitan Trial Court
and Municipal Trial Courts in Cities.

3. Go to the Office of the Clerk of Court and fill up the Statement of Claim, Certification of Non-Forum Shopping and
Information for Plaintiff.

4. A Verified Statement of Claim must be accomplished as plaintiff and the information must be correct.

5. The important documents must also be provided as proof that the loan occurred. This will include the signed contracts
by the defendants, promissory notes, bank deposit slips, receipts and checks, affidavits of witnesses and latest demand
letter with proof of delivery or proof of receipt.

6. The plaintiff needs to pay a small amount to file the case, which may usually be around P1250.00

"This Rule applies to all actions that are: (a) purely civil in nature where the claim or relief prayed for by the plaintiff is
solely for payment/reimbursement of a sum of money, and (b) the civil aspect of criminal actions, either filed prior to the
institution of the criminal action, or reserved upon the filing of the criminal action in court, pursuant to Rule 111 of the
Revised Rules of Criminal Procedure. These claims or demands may be:For money owed under any of the
following:>Contract of lease;

>Contract of loan;

>Contract of services;

>Contract of sale; or

>Contract of mortgage;

For damages arising from:

>Fault or negligence;

>Quasi-contract; or

>Contract;

Enforcement of a barangay amicable settlement or an arbitration award involving money claims covered by this Rule
pursuant to Sec. 417 of Republic Act No. 7160, otherwise known as the "Local Government Code of 1991."

Explanatory Note: The kinds of cases that can be filed in Small Claims Court vary, but the case must seek money only.
For example, a suit cannot be brought in Small Claims Court to force a person or business to fix a damaged good; or to
demand fulfillment of a promised obligation which is not purely for money, or to seek money to compensate for pain and
suffering. Some of the kinds of cases which are allowed as small claims include the following:

>Actual damage caused to vehicles, other personal property, real property or person;

>Payment or reimbursement for property, deposit, or money loaned;

>Payment for services rendered, insurance claim, rent, commissions, or for goods sold and delivered;

>Money claim pursuant to contact, warranty or agreement; and

>Purely civil action for payment of money covered by bounced or stopped check."

The rationale behind the Philippine Rule of Procedure for Small Claims Cases as Amended (SC En Banc Resolution
dated October 27, 2009 in A.M. No. 08-8-7-SC) is to make claims for P100,000.00 or less be heard in a quick and
inexpensive manner through a procedure that is simple and informal. It is informal as only the parties appear at the
hearing. Lawyers are not allowed to appear. The parties themselves will present their case speaking even in their own
dialect. The Rule encourages parties to settle their differences with the court’s assistance. But even if the Rule of
Procedure for Small Claims Cases is simple, laymen could not easily digest the wordings of the rule, thus, defeating its
very purpose. As a court worker assisting in the filing of Small Claims Cases, this blog aims to shed light to some basic
questions raised about this rule.
What is the “Small Claims Rule”?
The Small Claims Rule is a special procedure where money claims for P100,000.00 or less, exclusive of interest and
cost are heard. The process is quick and inexpensive. The procedure is simple and informal.
Who can file Small Claims Cases?
Any person whether an individual, corporation, partnership, limited liability partnership, association, or other
juridical entity endowed with personality with law.
What are the cases covered under the Small Claims Rule?
The Rule applies to all action which are: (a) purely civil in nature where the claim or relief prayed for by the
plaintiff is solely for payment or reimbursement of sum of money, and (b) the civil aspect of criminal actions, either filed
before the institution of the criminal action, or reserved upon the filing of the criminal action in court, pursuant to Rule
111 of the Revised Rules Of Criminal Procedure.
These claims or demands may be:
(a) For money owed under the following:
1. Contract of Lease;
2. Contract of Loan;
3. Contract of Services;
4. Contract of Sale; or
5. Contract of Mortgage;
(b) For damages arising from any of the following:
1. Fault or negligence;
2. Quasi-contract; or
3. Contract;
(c) The enforcement of a barangay amicable settlement or an arbitration award involving a money claim covered by
this Rule pursuant to Sec. 417 of Republic Act 7160, otherwise known as the Local Government Code of 1991.
Where to file Small Claims Cases?
Small Claims Cases can be filed before the Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal
Trial Courts, and Municipal Circuit Trial Courts where the plaintiff or any of the principal plaintiffs resides, or where the
defendant or any of the principal defendants resides, or in the case of a non-resident defendant where he may be found, at
the election of the plaintiff.
How is Small Claims Action commenced?
A small claims action is commenced by filing with the court an accomplished and verified Statement of Claim
(Form 1-SCC) in duplicate, accompanied by a Certification of Non-forum Shopping (Form 1-A, SCC), and two (2) duly
certified photocopies of the actionable documents/subject of the claim, as well as the affidavits of witnesses and other
evidence to support the claim.
What to prepare before filing an accomplished and verified Statement of Claim?
The plaintiff should gather all documents and evidence pertinent to the claim. Examples:
(a.) Contract/Agreement
Promissory Note/Receipts/Affidavit of Witness/es/ other important documents such as Check/s or Picture/s
(b.) Latest Demand Letter (if any), its proof of service and proof or receipt
(c.) Certificate to File Action from the barangay, if necessary
(d.) Special Power of Attorney in case plaintiff cannot attend the hearing
(e.) Secretary’s Certificate of Board Resolution authorizing you to file the case, if you are representing a corporation,
partnership, cooperative or association
Is there a filing fee for Small Claims Cases?
 Yes. The plaintiff shall pay the docket and other legal fees prescribed under Rule 141 of the Revised Rules of
Court, unless allowed to litigate as an indigent.
What are the actions of the Court after a Small Claims Case had been filed?
The Court has two (2) actions:
(a.) Dismissal of the Claim. – After the court determines that the case falls under the Rule of Procedure for Small
Claims Cases, it may, from an examination of the allegations of the Statement of Claim and such evidence attached
thereto, by itself, dismiss the case outright on any of the grounds apparent from the Claim for the dismissal of a civil
action.
(b.) Summons and Notice of Hearing. – If no ground for dismissal is found, the court shall forthwith issue Summons
on the day of receipt of the Statement of Claim, directing the defendant to submit a verified Response.
The court shall also issue a Notice to both parties, directing them to appear before it on a specific date and time for
hearing, with a warning that no unjustified postponement shall be allowed.
When to file a Response in Small Claim Cases?
The defendant shall file with the court and serve on the plaintiff a duly accomplished and verified Response with a
non-extendible period of ten (10) days from receipt of summons.
How to make a Response?
A Response form (Form 3-SCC) will be served to the defendant. The defendant will simply fill up the form. The
Response shall be accompanied by certified photocopies of documents, as well as affidavits of witnesses and other
evidence in support thereof.
What is the effect of failure to file a Response?
Should the defendant fail to file his Response within the required period, and likewise fail to appear at the date set
for hearing the court shall render judgment on the same day, as may be warranted by the facts.
Should the defendant fail to file his response within the required period but appears at the date set for hearing, the
court shall ascertain what defense he has to offer and proceed to hear, mediate or adjudicate the case on the same day, as
may be warranted by the facts.
Is a representative allowed in Small Claims Cases?
Appearance through a representative is allowed but must be for a valid cause. The representative of an individual-party
must not be a lawyer, and must be related to or next-of-kin of the individual party. Juridical entities shall not be
represented by a lawyer in any capacity.
The representative must be authorized under a special power of attorney to enter into an amicable settlement of the
dispute and to enter into stipulations or admissions of facts and of documentary exhibits.
What is the effect of non-appearance of parties?
Failure of the plaintiff to appear shall be cause for the dismissal of the claim without prejudice. The defendant who
appears shall be entitled to judgment on a permissive counterclaim.
Failure of the defendant to appear shall have the same effect as failure to file a Response. This shall not apply where
one or two or more defendant who are sued under a common cause of action and have pleaded a common defense appears
at the hearing.
Failure of both parties to appear shall cause the dismissal with prejudice of both the claim and counterclaim.
Is postponement allowed in Small Claims Cases?
A request for postponement of a hearing may be granted only upon proof of the physical inability of the party to
appear before the court on the scheduled date and time. A party may avail of only one (1) postponement.
What will happen during the hearing of Small Claims Cases?
At the hearing, the judge shall exert efforts to bring the parties to an amicable settlement of their dispute. Any
settlement or resolution of the dispute shall be reduced into writing, signed by the parties and submitted to the court for
approval.
What will happen if there is no settlement?
If efforts at settlement fail, the hearing shall proceed in an informal and expeditious manner and be terminated
within one (1) day.
When will Decision be issued in Small Claims Cases?
After the hearing, the court shall render its decision on the same day, based on the facts established by the evidence.
The decision shall immediately be entered by Clerk of Court in the court docket for civil cases and a copy thereof
forthwith served on the parties.
The decision shall be final and unappealable.
How to execute Small Claims Cases?
If the decision is rendered in favor of the plaintiff, execution shall issue upon a motion.
Finally, under the Rule of Procedure for Small Claims Cases, the Clerk of Court or other court personnel shall provide
such assistance as may be requested by a plaintiff or a defendant regarding the availability of forms and other information
about the coverage, requirements as well as procedure for small claims cases.
Sources:
1. The Rule of Procedure for Small Claims Cases as Amended (S.C. En Banc Resolution dated October 27, 2009 in A.M.
No. 08-8-7-SC).
2. The Philippine Rules of Court.