RULE OF PROCEDURE FOR SMALL CLAIMS CASES

Section 1. Title. - This Rule shall be known as " The Rule of Procedure for Small Claims Cases."

Section 2. Scope. - This Rule shall govern the procedure in actions before the Metropolitan trial Courts,
Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts for payment of
money where the value of the claim does not exceed One Hundred Thousand Pesos (P100,000.00)
exclusive of interest and costs.

Section 3. Definiton of Terms. - For purposes of this Rule:

(a) Plaintiff - refers to the party who initiated a small claims action. The term includes a defendant who
has filed a counterclaim against plainfill;

(b) Defendant - is the party against whom the plaintiff has filed a small claims action. The term includes a
plaintiff against whom a defendant has filed a claim, or a person who replies to the claim;

(c) Person - is an individual, corporation, partnership, limited liability partnership, association, or other
juridical entity endowed with personality by law;

(d) Individual - is a natural person;

(e) Motion - means a party's request, written or oral, to the court for an orderaction. It shall include an
informal written request to the court, such as a letter;

(f) Good cause - means circumtances sufficient to justify the requested order or other action, as
determined by the judge; and

(g) Affidavit - means a written statement or declaration of facts that are shown or affirmed to be true.

Section 4. Applicability - The Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial
Courts, and Municipal Circuit Trial Courts shall apply this Rule in all actions 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 action, or reserved upon the filing of the criminal action in
court, pursuant to Rule of 111 of the Revised Rules of Criminal Procedure.

These claims or demands may be;

(a) For money owned under any of 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.

Section 5. Commencement of Small Claims Action. - 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 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.

No formal pleading, other than the Statement of Claim described in this Rule, is necessary to initiate a
small claims action.

Section 6. Joinder of Claims - Plaintiff may join in a single statement of claim one or more separate small
claims against a defendant provided that the total amount claimed, exclusive of interest and costs, does
not exceed P100,00.00.

Section 7. Affidavits - The affidavits submitted under this Rule shall state only facts of direct personal
knowledge of the affiants which are admissible in evidence.

A violation of this requirement shall subject the party, and the counsel who assisted the party in the
preparation of the affidavits, if any, to appropriate disciplinary action. The inadmissible affidavit(s) or
portion(s) thereof shall be expunged from the record.

Section 8. Payment of Filing Fees. - 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.

A claim filed with a motion to sue as indigent (Form 6-SCC) shall be referred to the Executive Judge for
immediate action in case of multi-sala courts, or to the Presiding Judge of the court hearing the small
claims case. If the motion is granted by the Executive Judge, the case shall be raffled off or assigned to the
court designated to hear small claims cases. If the motion is denied, the plaintiff shall be given five (5)
days within which to pay the docket fees, otherwise, the case shall be dismissed without prejudice. In no
case shall a party, even if declared an indigent, be exempt from the payment of the P1,000.00 fee for
service of summons and processes in civil cases.

Section 9. Dismissal of the Claim. - After the court determines that the case falls under this Rule, it may,
from an examination of the allegations of the Statement of Claim and such evidence attached thereto, by
itself, dismiss the case outright of any of the grounds apparent from the Claim for the dismissal of a civil
action.

Section 10. Summons and Notice of Hearing - If no ground for dismissal is found, the court shall forthwith
issue Summons (Form 2-SCC) 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 (Form 4-SCC) 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, as
provided in Section 19 of this Rule.

The summons and notice to be served on the defendant shall be accompanied by a copy of the Statement
of Claim and documents submitted by plaintiff, and a copy of the Response (Form 3-SCC) to be
accomplished by the defendant. The Notice shall contain an express prohibition against the filing of a
motion to dismiss or any other motion under Section 14 of this Rule.

Section 11. Response - 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.

Section 12. Effect of Failure to File Response - Should the defendant fail to file his response within the
required period, the court by itself shall render judgement as may be warranted by the facts alleged in
the Statement of claim limited to what is prayed for. The court however, may, in its discretion, reduce the
amount of damages for being excessive or unconscionable

Section 13. Counterclaims Within the Coverage of this Rule - If at the time the action is commenced, the
defendant possesses a claim against the plaintiff that (a) is within the coverage of this rule, exclusive of
interest and costs; (b) arises out of the same transaction or event that is the subject matter of the
plaintiff's claim; (c) does not require for its adjudication the joinder of third parties; and (d) is not the
subject of another pending action, the claim shall be filed as a counterclaim in the response; otherwise,
the defendant shall be barred from suit on the counterclaim.

The defendant may also elect to the file a counterclaim against the plaintiff that does not arise out of the
same transaction or occurrence , provided that the amount and nature thereof are within the coverage
of this Rule and the prescribed docket and the other legal fees are paid.

Section 14. Prohibited Pleadings and Motions - The following pleadings, motions, and petitions shall not
be allowed in the cases covered by this Rule:

(a) Motion to dismiss the compliant except on the ground of lack of jurisdiction;

(b) Motion for a bill of particulars;

(c) Motion for new trial, or for reconsideration of a judgement, or for reopening of trial;
(d) Petiton for relief from judgement;

(e) Motion for extension of time to file pleadings, affidavits, or any other paper;

(f) Memoranda;

(g) Petition for certiorari, mandamus, or prohibition against any interlocutory order issued by the court;

(h) Motion to declare the defendant in default;

(i) Dilatory motions for postponement;

(j) Reply;

(k) Third-party complaints; and

(l) Interventions.

Section 15. Availability of Forms; Assistance by Court Personnel. - The Clerk of Court or other 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.

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

Section 17. Appearance of Attorneys Not Allowed. - No attorney shall appear in behalf of or represent a
party at the hearing, unless the attorney is the plaintiff or defendant.

If the court determines that a party cannot properly present his/her claim or defense and needs
assistance, the court may, in its discretion, allow another individual who is not an attorney to assist that
party upon the latter's consent.

Section 18. 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 judgement on a permissive
counterclaim.

Failure of the defendant to appear shall have the same effect as failure to file a Response under Section
12 of this Rule. This shall not apply where one of two or more defendants 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.
Section 19. Postponement When Allowed. - 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.

Section 20. Duty of the Court. - At the beginning of the court session, the judge shall read aloud a short
statement explaining the nature, purpose and the rule of procedure of small claims cases.

Section 21. Judicial Dispute Resolution. - At the hearing, the judge shall conduct Judicial Dispute Resolution
(JDR) through mediation, conciliation, early neutral evaluation, or any other mode of JDR. Any settlement
(Form 7-SCC) or resolution (Form 8-SCC) of the dispute shall be reduced into writing, signed by the parties
and submitted to the court for approval (Form 12-SCC).

Section 22. Failure of JDR. - If JDR fails and the parties agree in writing (Form 10-SCC) that the hearing of
the case shall be presided over by the judge who conducted the JDR, the hearing shall so proceed in an
informal and expeditious manner and terminated within one (1) day.

Absent such agreement, (a) in case of a multi-sala court , the case shall, on the same day, be transmitted
(Form 11-SCC) to the Office of the Clerk of Court for immediate referral by the Executive Judge to the
pairing judge for hearing and decision within five (5) working days from referral; and (b) in case of single
sala court, the pairing judge shall hear and decide the case in the court of origin within five (5) working
days from referral by the JDR judge.

Section 23. Decision. - After the hearing, the court shall render its decision on the same day, based on the
facts established by the evidence (Form 13-SCC). The decision shall immediately be entered by the 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.

Section 24. Execution. - If the decision is rendered in favor of the plaintiff, execution shall issue upon
motion (Form 9-SCC).

Section 25. Applicability. of the Rules of Civil Procedure - The Rules of Civil procedure shall apply
suppletorily insofar as they are not inconsistent with this rule.

Section 26. Effectivity. - This Rule shall take effect on October 01, 2008 for the pilot courts designated to
apply the procedure for small claims cases following its publication in two newspaper of general
circulation.

The Rule governs the procedure in actions before the first level courts, i.e., Metropolitan Trial Courts,
Municipal Trials Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts (excluding Shari’a
Circuit Courts) for the payment of money where the value of the claim does not exceed One Hundred
Thousand Pesos (₧100,000.00) exclusive of interest and costs.

Explanatory note: The purpose of a small claims process is to provide an inexpensive and expeditious
means to settle disputes over small amounts. For purposes of the project, the amount has been set for
claims involving amounts of not more than ₧100,000.00.
The theory behind the small claims system is that ordinary litigation fails to bring practical justice to the
parties when the disputed claim is small, because the time and expense required by the ordinary litigation
process is so disproportionate to the amount involved that it discourages a just resolution of the dispute.
The small claims process is designed to function quickly and informally. There are no attorneys, no formal
pleadings and no strict legal rules of evidence. The small claims court system is not a " typical inferior
court." Parties are encouraged to file small claims court actions to resolve their minor disputes as opposed
to resorting to self-help or forcible means to seek their remedy. (Pace v. Hillcrest Motor Co.,161 Cal. Rptr.
663, 664 Ct. App. 1980)

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.
A small claims action is commenced by filing with the court an accomplished and verified Statement of
Claim in duplicate, accompanied by Certification of Non-Forum Shopping, a nd two (2) duly certified
photocopies of the actionable document/s subject of 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.

Plaintiff may join in a single Statement of Claim one or more separate small claims against a defendant as
long as the costs, does not exceed P100,000.00.
The plaintiff shall pay the prescribed fees upon filing, unless allowed to litigate as an indigent.

For the purposes of this rule: (a) Plaintiff is the party who has filed a small claims action. The term includes
a defendant who has filed a counterclaim against a plaintiff, (b) Defendant is the party against whom the
plaintiff has a filed a small claims action. The term includes a plaintiff against whom defendant has filed a
claim, or a person who replies to the claim; (c) Person is an individual, corporation, partnership, limited
liability partnership, association, or other entity; (d) Individual is natural person: (e) Motion means a
party’s request, written or oral, to the court for an order or other action. It shall include an informal
written request to the court, such as a letter; (f) Good cause means circumstances sufficient to justify the
requested order or other action, as determined by the judge; and (g) Affidavit means a written statement
or declaration of facts that are sworn or affirmed to be true.

The Court may dismiss the case outright on any of the grounds for dismissal of a civil actions provided by
the Rules of the Civil Procedure. A defendant may challenges jurisdiction or venue or court location by
including these defenses in his Response before appearing in the hearing, the court shall inquire into the
facts sufficiently to determine whether jurisdiction and authority of the court over the action are proper,
and shall make its determination accordingly.

No Motion to Dismiss shall be allowed except on the grounds under Section 13 thereof (See No. X below).

Should the defendant fail to file a response within the required period, the court shall render judgement
as may be warranted by the facts alleged in the Statement of Claim and limited to what prayed for therein.
The court may, in its discretion, reduce the amount of damages for being excessive or otherwise
unconscionable.

If at the time the action is commenced, a defendant possesses a claim against the plaintiff that (a) is within
the coverage of this Rule, exclusive of interest and costs; (b) arises out of the same transaction or event
that is the subject matter of the plaintiff’s claim; (c) does not require, for its adjudication, the joiner or
third parties; and (d) is not the subject of another pending action, this claim shall be included as a
counterclaim in the Response, otherwise, such counterclaim shall be barred.

The defendant may also elect to include in the Response a counterclaim against the plaintiff that does not
arise out of the transaction or occurrence provided that the amount and nature thereof are within the
coverage of this Rule and the prescribed docket fees are paid.
Prohibited pleadings and motions: (a) Motion to dismiss the complaint except on the ground of lack of
jurisdiction; (b) Motion for bill of particulars; (c) Motion for new trial, or for reconsideration of a
judgement, or for reopening of trial; (d) Petition for relief from judgement; (e) Motion for extension of
time to file pleadings, affidavits, or any other paper; (f) Memoranda; (g) Petition for certiorari, mandamus,
or prohibition against any interlocutory order issued by the court; (h) Motion to declare the defendant in
default; (i) Dilatory motions for postponement; (j) Reply; (k) Third-party complaints; and (l) Interventions.

Availability of Forms for the Parties who shall be assisted by Clerk of Court.

The parties must personally appear at the hearing; if unable, then through a designated representative
who must be duly authorized to enter into an amicable settlement.
Attorneys are not allowed at the hearing, except as plaintiff or defendant. However this does not preclude
them from offerings their services in assisting the party to small claims case to prepare for the hearing or
for other matters outside of the hearing. If the court determines that a party cannot properly present
his/her claim of defense and needs assistance, the court may, in its discretion, allow another individual,
who is not an attorney, to assist that party upon the latter’s consent.

Non-appearance of Parties. Failure of the plaintiff to appear shall be a cause for the dismissal of the
complaint without prejudice. The defendant who appears shall be entitled to judgement on a permissive
counterclaim.

On the other hand failure of the defendant to appear shall have the same effect as failure to file a
Response under Section 12 of this Rule. This is however shall not apply where one of two or more
defendants sued under a common cause of action and who pleaded a common defense shall appear at
the hearing.

Failure of both parties to appear shall causes the dismissal with prejudice of both the claim and
counterclaim.

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 that date and time. Every party may avail of only one (1)
postponement.
Judicial Dispute Resolution. At the hearing, the court shall exert all efforts to encourage the parties to
resolve their dispute through mediation, conciliation, early neutral evaluating or any other mode of JDR.
Any settlement or resolution of the dispute shall be reduced into writing, signed by the parties, and
submitted to the court for approval.

If JDR fails and the parties agree in writing (Form 10-SCC) that the hearing of the case shall be presided
over by the judge who conducted the JDR, the hearing shall so proceed in an informal and expeditious
manner and terminated within one (1) day.

Absent such agreement, (a) in case of a multi-sala court, the court shall, on the same day, be transmitted
(Form 11-SCC) to the Office of the Clerk of Court for immediate referral by the Executive Judge to the
pairing judge for hearing and decision within five (5) working days from referral; and )b) in case of a single
sala court, the pairing judge shall hear and decide the case in the court of origin within five (5) working
days from referral by the JDR judge.
Decision. After the hearing, the court shall, on the same day, render its decision using the form provided.
The decision shall immediately be entered by the Clerk of Court in the court docket for civil cases and a
copy thereof served on the parties. The decision is final and unappealable.
Execution. If the decision is rendered in favor of the plaintiff, execution shall issue upon motion (Form 9-
SCC).
KATARUNGAN PAMBARANGAY

TO: ALL REGIONAL TRIAL COURTS, METROPOLITAN TRIAL COURTS, MUNICIPAL TRIAL COURTS AND
MUNICIPAL CIRCUIT TRIAL COURTS
SUBJECT: GUIDELINES ON THE KATARUNGANG PAMBARANGAY CONCILIATION PROCEDURE TO PREVENT
CIRCUMVENTION OF THE REVISED KATARUNGANG PAMBARANGAY LAW [SECTIONS 399-422, CHAPTER
VII, TITLE I, BOOK III, R. A. 7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991].

The Revised Katarungang Pambarangay Law under R. A. 7160, otherwise known as the Local Government
Code of 1991, effective on January 1, 1992 and which repealed P. D. 1508, introduced substantial changes
not only in the authority granted to the Lupong Tagapamayapa but also in the procedure to be observed
in the settlement of disputes within the authority of the Lupon.cralaw

In order that the laudable purpose of the law may not be subverted and its effectiveness undermined by
indiscriminate, improper and/or premature issuance of certifications to file actions in court by the Lupon
or Pangkat Secretaries, attested by the Lupon/Pangkat Chairmen, respectively, the following guidelines
are hereby issued for the information of trial court judges in cases brought before them coming from the
Barangays:chanrobles virtual law library

I. All disputes are subject to Barangay conciliation pursuant to the Revised Katarungang Pambarangay Law
[formerly P. D. 1508, repealed and now replaced by Secs. 399-422, Chapter VII, Title I, Book III, and Sec.
515, Title I, Book IV, R.A. 7160, otherwise known as the Local Government Code of 1991], and prior
recourse thereto is a pre-condition before filing a complaint in court or any government offices, except in
the following disputes:chanrobles virtual law library

[1] Where one party is the government, or any subdivision or instrumentality thereof;
[2] Where one party is a public officer or employee and the dispute relates to the performance of his
official functions;

[3] Where the dispute involves real properties located in different cities and municipalities, unless the
parties thereto agree to submit their difference to amicable settlement by an appropriate Lupon;

[4] Any complaint by or against corporations, partnerships or juridical entities, since only individuals shall
be parties to Barangay conciliation proceedings either as complainants or respondents [Sec. 1, Rule VI,
Katarungang Pambarangay Rules];

[5] Disputes involving parties who actually reside in barangays of different cities or municipalities, except
where such barangay units adjoin each other and the parties thereto agree to submit their differences to
amicable settlement by an appropriate Lupon;

[6] Offenses for which the law prescribes a maximum penalty of imprisonment exceeding one [1] year or
a fine of over five thousand pesos (P5,000.00);

[7] Offenses where there is no private offended party;

[8] Disputes where urgent legal action is necessary to prevent injustice from being committed or further
continued, specifically the following:chanrobles virtual law library
[a] Criminal cases where accused is under police custody or detention [See Sec. 412 (b) (1), Revised
Katarungang Pambarangay Law];
[b] Petitions for habeas corpus by a person illegally deprived of his rightful custody over another or a
person illegally deprived of or on acting in his behalf;

[c] Actions coupled with provisional remedies such as preliminary injunction, attachment, delivery of
personal property and support during the pendency of the action; and cralaw

[d] Actions which may be barred by the Statute of Limitations.

[9] Any class of disputes which the President may determine in the interest of justice or upon the
recommendation of the Secretary of Justice;
[10] Where the dispute arises from the Comprehensive Agrarian Reform Law (CARL) [Secs. 46 & 47, R. A.
6657];

[11] Labor disputes or controversies arising from employer-employee relations [Montoya vs. Escayo, et
al., 171 SCRA 442; Art. 226, Labor Code, as amended, which grants original and exclusive jurisdiction over
conciliation and mediation of disputes, grievances or problems to certain offices of the Department of
Labor and Employment];

[12] Actions to annul judgment upon a compromise which may be filed directly in court [See Sanchez vs.
Tupaz, 158 SCRA 459].cralaw

II. Under the provisions of R. A. 7160 on Katarungang Pambarangay conciliation, as implemented by the
Katarungang Pambarangay Rules and Regulations promulgated by the Secretary of Justice, the
certification for filing a complaint in court or any government office shall be issued by Barangay authorities
only upon compliance with the following requirements:chanroblesvirtuallawlibrary
[1] Issued by the Lupon Secretary and attested by the Lupon Chairman (Punong Barangay), certifying that
a confrontation of the parties has taken place and that a conciliation settlement has been reached, but
the same has been subsequently repudiated (Sec. 412, Revised Katarungang Pambarangay Law; Sec. 2[h],
Rule III, Katarungang Pambarangay Rules);
[2] Issued by the Pangkat Secretary and attested by the Pangkat Chairman certifying
that:chanroblesvirtuallawlibrary
[a] a confrontation of the parties took place but no conciliation/settlement has been reached (Sec. 4[f],
Rule III, Katarungang Pambarangay Rules); or
[b] that no personal confrontation took place before the Pangkat through no fault of the complainant
(Sec. 4[f], Rule III, Katarungang pambarangay Rules).

[3] Issued by the Punong Barangay as requested by the proper party on the ground of failure of settlement
where the dispute involves members of the same indigenous cultural community, which shall be settled
in accordance with the customs and traditions of that particular cultural community, or where one or
more of the parties to the aforesaid dispute belong to the minority and the parties mutually agreed to
submit their dispute to the indigenous system of amicable settlement, and there has been no settlement
as certified by the datu or tribal leader or elder to the Punong Barangay of place of settlement (Secs. 1,4
& 5, Rule IX, Katarungang Pambarangay Rules); and
[4] If mediation or conciliation efforts before the Punong Barangay proved unsuccessful, there having
been no agreement to arbitrate (Sec. 410 [b], Revised Katarungang Pambarangay Law; Sec. 1, c. (1), Rule
III, Katarungang Pambarangay Rules), or where the respondent fails to appear at the mediation
proceeding before the Punong Barangay (3rd par. Sec. 8, a, Rule VI, Katarungang Pambarangay Rules), the
Punong Barangay shall not cause the issuance at this stage of a certification to file action, because it is
now mandatory for him to constitute the Pangkat before whom mediation, conciliation, or arbitration
proceedings shall be held.cralaw

III. All complaints and/or informations filed or raffled to your sala/branch of the Regional Trial Court shall
be carefully read and scrutinized to determine if there has been compliance with prior Barangay
conciliation procedure under the Revised Katarungang Pambarangay Law and its Implementing Rules and
Regulations as a pre-condition to judicial action, particularly whether the certification to file action
attached to the records of the case comply with the requirements hereinabove enumerated in Par. II;
IV. A case filed in court without compliance with prior Barangay conciliation which is a pre-condition for
formal adjudication (Sec. 412 [a] of the Revised Katarungang Pambarangay Law) may be dismissed upon
motion of defendant/s, not for lack of jurisdiction of the court but for failure to state a cause of action or
prematurity (Royales vs. IAC, 127 SCRA 470; Gonzales vs. CA, 151 SCRA 289), or the court may suspend
proceedings upon petition of any party under Sec. 1, Rule 21 of the Rules of Court; and refer the case
motu proprio to the appropriate Barangay authority applying by analogy Sec. 408 [g], 2nd par., of the
Revised Katarungang Pambarangay Law which reads as follows:chanrobles virtual law library

"The court in which non-criminal cases not falling within the authority of the Lupon under this Code are
filed may, at any time before trial, motu proprio refer case to the Lupon concerned for amicable
settlement.
Strict observance of these guidelines is enjoined. This Administrative Circular shall be effective
immediately.

Manila, Philippines; July 15, 1993.