SALIENT FEATURES OF THE RULES FOR SMALL CLAIMS CASES

By: Assoc. Dean Oscar B. Bernardo

1. Small claims cases cover payment or reimbursement of money claims of

PhP300,000 or less, exclusive of interest and costs of suit, before MTCCs,
MTCs, and MCTCs, or PhP400,000 or less before MeTCs.

2. The money claim or money demand may be:

a. For money owed 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 liquidated Damages arising from contracts
c. Enforcement of Barangay Amicable Settlement or Arbitration Award
involving small money claims

3. Small claims case is commenced by filing of duly accomplished and verified

Statement of Claim by plaintiff accompanied by Certification against Forum
Shopping, Splitting of Cause of Action, and Multiplicity of Suits, two certified
photocopies of actionable documents, affidavits of plaintiff’s witnesses and
other supporting evidence.

4. Grounds For dismissal of Small Claims Case are by the court motu proprio
are:
a. Non-Submission of the required affidavits
b. Non- payment of filing fees in case of denial of motion to sue as indigent
c. Any valid ground for dismissal of the case
d. Misinterpretation of plaintiff that he is not engaged in banking, lending
or similar business when in truth, he is so engaged

5. The court shall issue summons to defendant on the day of receipt of

Statement of Claim, if no ground for dismissal is found, directing the
defendant to submit a verified Response.

The summons shall be accompanied by copy of plaintiff’s Statement of Claim,

supporting documents, and blank Response form for accomplishment by
defendant, and the Notice of Hearing of the Small Claims Case.

6. Within 10 days from receipt of summons, the defendant shall file with the
court and serve on plaintiff, a duly accomplished and verified Response,

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 accompanied by certified photocopies of documents, affidavits of
defendant’s witnesses, and other supporting evidence.

7. Failure of defendant to file verified Response on time or his failure to appear

on the date of hearing is a ground for the court to render judgment on the
same day of hearing, as may be warranted by the facts alleged in the verified
Statement of Claim.

Where defendant fails to file verified Response but appears on the day of
hearing, the court shall ascertain what defendant has to offer as defense and
proceed to hear and render judgment on the same day of hearing, as if
Response has been filed.

8. Defendant may file a compulsory counterclaim, within the coverage of the

Rules for Small Claims Case, or a permissive counterclaim, within the
coverage of same Rules, with payment of corresponding filing fees and other
legal fees.

9. Among prohibited pleadings and motions are:

a. Motion to dismiss Small Claims Case
b. Motion for new trial, motion for reconsideration of judgment, or
reopening of trial
c. Petition for relief from judgment
d. Certiorari, prohibition, mandamus against interlocutory order
e. Motion to declare defendant in default
f. Reply, rejoinder, third party complaint, intervention

10. Personal appearances of plaintiff and defendant on the day of hearing are
required. Appearance of attorneys at the hearing is not allowed, unless the
attorney is either plaintiff or defendant

However, an attorney may assist in the preparation of affidavits of the

parties and their witnesses.
Appearance of a representative of a party, for a valid cause, may be allowed,
provided such representative is not a lawyer but is related to or next of kin
of the individual party with Special Power of Attorney.

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11. Failure of plaintiff to appear on the day of hearing is a ground for dismissal
of Small Claims Case.
Presence of defendant, in the absence of plaintiff, is a ground for rendition
of judgment on permissive counterclaim.

Failure of defendant to appear on the day of hearing is a ground for rendition

of judgment as may be warranted by the facts alleged in plaintiff’s Statement
of Claim.

12. After the hearing, the court shall render judgment based on the facts
proved by evidence within 24 hours from termination of hearing.

The judgment shall be immediately entered by the Clerk of Court in the court
docket for civil cases and copies thereof shall be sent to the parties.

13. The decision in Small Claims Case is final, executory and unappeable.

14. The Rules of Civil Procedure apply suppletorily insofar as they are not
inconsistent with the Rules of Procedure for Small Claims Cases.

However, the rules on Mediation/Judicial Dispute Resolution do not apply to

Small Claims Cases.

The Judicial Affidavit Rule does not apply to Small Claims Cases.

15. Decision in Small Claims Case is reviewable by Petition for Certiorari under
Rule 65 with the Regional Trial Court.

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