Small Claims Cases vs.
Ordinary Collection Suits A small claims action must be filed in the
By: Jorge Patrick A. Yasay
A small claims case is an action before a first level
court for payment of a sum of money, not
exceeding P300,000. Small claims cases are
governed by A.M. No. 08-8-7-SC, as amended OCA
Circular No. 165-2018. These Rules provides the
procedure in actions before the first-level courts
where the value of the claim does not
exceedP300,000, exclusive of interest and costs.
The plaintiff-claimant 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 P300,000.
The Rules are applicable in all actions that are
purely civil in nature where the claim or relief prayed
for by the plaintiff-claimant is solely for payment or
reimbursement of sum of money. Among others, the
claim or demand 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; and
•For liquidated damages arising from
contract.
Filing 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
aCertification Against Forum Shopping (Form 1-A-
SCC), and two duly certified photocopies of the
actionable document/s subject of the claim, as well
as the affidavits of witnesses and other evidence to
support the claim.
The plaintiff must state in the Statement of Claim if
he/she/it is engaged in the business of lending,
banking and similar activities, and the number of
small claims cases filed within the calendar year
regardless of judicial station. No formal pleading,
other than the Statement of Claim/s described in this
Rule, is necessary to initiate a small claims action.
city/municipality where the plaintiff-
claimant or defendant resides. If the action involves
private juridical entities, the principal place of
business determines its residence.
The affidavits submitted under this Rule shall state
only facts of direct personal knowledge of the
affiants or based on authentic records, which are
admissible in evidence.
The plaintiff shall pay the docket and legal fees,
unless allowed to litigate as an indigent. The
maximum docket and legal fee is P3,500.However, if
more than five (5) small claims are filed by one party
within the calendar year, regardless of the judicial
station, an additional filing fee of P500.00 shall be
paid for every claim filed after the fifth (5th) claim,
and an additional P100.00 or a total ofP600.00 for
every claim filed after the tenth (10th) claim, and
another P100.00 or a total of P700 for every claim
filed after the fifteenth (15th) claim, progressively
and cumulativel
Procedure
The court will then examine the claim. It may dismiss
the case outright if it finds grounds to justify the
dismissal. 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.
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.
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.
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.
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 (Jorge Patrick A. Yasay joined the Firm in July
party. 2018 and works with Founding Partner Sig
Fortun as part of theLitigation and Dispute
Decision and Execution Resolution practice group. Jorge may be reached
at jpayasay@fnslaw.com.ph.)
After the hearing, the court shall render its decision
based on the facts established by the evidence
(Form 11-SCC), 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 for civil cases and a copy thereof
forthwith served on the parties. The decision shall be
final, executory and unappealable. When the
decision is rendered, execution shall issue upon
motion (Form 12-SCC) of the winning party.

An ordinary collection suit is filed for money

claims exceeding P300,000. If the aggregate
amount of the money claim, exclusive of interests
and costs, exceedsP300,000, the Revised Rules of
Procedure for Small Claims Cases finds no
application and the Rules of Civil Procedure shall
apply. If filed within Metro Manila, the Regional Trial
Court (RTC) has jurisdiction over cases where the
aggregate money claim exceeds P400,000. If the
aggregate money is P400,000 or below, the action
shall be filed before the Metropolitan Trial Courts. If
filed outside Metro Manila, the RTC has jurisdiction
where the aggregate money claim
exceeds P300,000; if P300,000 or below, then in the
MTC, MTCC or MCTC and under the rules for small
claims. The rules on venue are the same as that of
small claims (i.e. residence or principal place of
business of the plaintiff or the defendant).

Upon the filing of the complaint and payment of the

docket and legal fees, the Office of the Clerk of
Court will docket it. Then, it will be raffled to one of
the branches in that court. Summons will be issued
to the defendant in order to acquire jurisdiction over
his person. If summons was properly served,
defendant will then file his Answer to the Complaint.
Reply, Rejoinder and Sur-Rejoinder may be filed
after the filing of the Answer. Upon the filing of the
last pleading, the case will be set for pre-trial.
During the Pre-Trial Conference, the possibility of
amicable settlement will be discussed and the case
may be referred to mediation or conciliation. If the
case is not settled, then it will proceed to trial where
the parties will be given the opportunity to present
their evidence.