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    Rules On Small Claims

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    Rules On Small Claims

    Uploaded by

    cnavarro.shiela
    5 views4 pages

    Original Title

    Rules on Small Claims

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    5 views4 pages

    Rules On Small Claims

    Uploaded by

    cnavarro.shiela

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    THE RULE ON SMALL CLAIMS

    I. SCOPE:

    Actions for payment or reimbursement of a sum of money where the value of the
    claim does not exceed ONE MILLION PESOS (PHP 1,000,000.00).1

    II. APPLICABILITY:

    (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;2

    (c) Enforcement of a barangay amicable settlement or an arbitration award


    involving a money claim pursuant to Sec. 417 of Republic Act 7160 (The
    Local Government Code of 1991), provided that no execution has been
    enforced within six (6) months from the settlement date or receipt of an award
    or the date when the obligation becomes due and demandable and does not
    exceed One Million Pesos (PHP 1,000,000.00)3

    Note:

    - Recovery of personal property, unless it is made subject to a compromise


    agreement between the parties is excluded from the operation of the new
    Rules.4
    - Disputes involving title to or possession of property are not within the
    jurisdiction of Small Claims Courts.5

    III. VENUE FOR SMALL CLAIMS CASES:

    A small claims case is filed before the Metropolitan Trial Courts (MeTCs),
    Municipal Trial Courts in Cities (MTCCs), Municipal Trial Courts (MTCs), and
    Municipal Circuit Trial Courts (MCTCs), and must be filed in the city:

    a. Where the Plaintiff resides;


    b. Where the Defendant resides;
    c. If the Plaintiff is engaged in the business of lending, banking, and similar
    activities, and has a branch within the municipality or city where the
    defendant resides or is holding business, it shall be filed in the court of the city
    or municipality where the defendant resides or is holding business.

    Note: If there are two (2) or more defendants, it shall be filed in the court of
    the city or municipality where any of them resides or is holding business, at
    the option of the Plaintiff.

    1
    Office of the Court Administrator Circular No. 69-2022, 1 March 2022
    2
    A.M. No. 08-8-7-SC, The 2016 Revised Rules of Procedure for Small Claims Cases, 1 February 2016
    3
    SC Recalibrates Rules to Expedite Procedures in First Level Courts – Ocampo & Suralvo Law Offices
    (ocamposuralvo.com)
    4
    Ibid.
    5
    Small Claims in the Philippines: A Comprehensive Guide (respicio.ph)
    IV. PROCEDURES:

    1. FILING: File with the court the following forms and attachments:

    a. Statement of Claim/s;
    b. Verification and Certification Against Forum Shopping, Splitting a Single
    Cause of Action, and Multiplicity of Suits (Form 1-SCC);
    c. Certified photocopies of the actionable document/s subject of the claim;
    d. Affidavits of Witnesses and other evidence to support the claim (with as
    many copies thereof as there are defendants).

    For juridical entities:

    a. Board Resolution or Secretary’s Certificate (attached to the Statement of


    Claim/s)

    2. PAYMENT: Payment of Filing Fees – the plaintiff shall pay the docket and other
    legal fees unless allowed to litigate as an indigent.

    If more than 5 small claims are filed by one party within the calendar year: An
    additional filing fee of PHP 500.00 for every claim filed after the 5 th claim, and an
    additional PHP 100.00 or a total of PHP 600.00 for every claim filed after the 10 th
    claim, and another PHP 100.00 or a total of PHP 700.00 for every claim filed after
    the 15th claim, progressively and cumulatively.

    If a case is dismissed without prejudice and re-filed within 1 year from notice of
    dismissal: the plaintiff shall pay a fixed amount of PHP 2,000.00 as a filing fee,
    inclusive of fee for service of summons and processes.

    Note: In no case shall a party, even if declared indigent, be exempt from the
    payment of the PHP 1000.00 fee for service of summons and processes.

    3. EXAMINE: The court will examine the claim. It may dismiss the case outright
    on any of the following grounds:

    a. The court has no jurisdiction over the subject matter;


    b. There is another action pending between the same parties for the same cause;
    c. The action is barred by prior judgment;
    d. The claim is barred by the statute of limitations;
    e. The court has no jurisdiction over the person of the defendant;
    f. Venue is improperly laid;
    g. Plaintiff has no legal capacity to sue;
    h. The Statement of Claim/s states no cause of action;
    i. That a condition precedent for filing the claim has not been complied with; and
    j. Plaintiff failed to submit the required affidavits, as provided in Section 7 of this
    Rule.

    4. ISSUANCE OF SUMMONS AND NOTICE OF HEARING: If no ground for


    dismissal is found, the court shall issue a Summons and Notice of Hearing within
    24 hours from receipt of the Statement of Claim, directing the defendant to submit
    a verified Response.

    Service of Summons:

    - Shall be served by the sheriff within 10 calendar days. Within 5 calendar


    days from such service, the Officer’s Return shall be filed with the court
    furnished to the plaintiff.
    - If the Defendant cannot be served with Summons and the latter is to be
    served outside the judicial region of the court where the case is pending,
    the court may order the Plaintiff or his/her representative to serve the
    Summons within 30 calendar days, otherwise the Statement of Claim shall
    be dismissed without prejudice as to those who were not served with
    Summons. However, the case may be re-filed within 1 year from the
    notice of dismissal.

    5. FILE A RESPONSE: The Defendant shall file a verified Response (Form 3-


    SCC) within a non-extendible period of 10 calendar days from receipt of
    Summons.

    If Defendant fails to file a Response and fails to appear on the date of hearing: the
    court will render judgment within 24 hours from the termination of the hearing.

    If Defendant fails to file a Response but appears on the date of hearing: the court
    shall ascertain his/her defense which shall constitute his/her Response and
    proceed to hear the case on the same day and render a judgment within 24 hours
    from the termination of the hearing.

    If Defendant relies on documentary evidence to support his defense: the court


    shall order him/her to submit original copies of such documents within 3 calendar
    days from termination of hearing and upon receipt of such, the court shall render
    judgment within 24 hours.

    If Defendant possesses a claim against Plaintiff: may file a counterclaim in the


    Response (otherwise, shall be barred from suing) that is:

    a. Within the coverage of this Rule, exclusive of interests and costs;


    b. Arises out of the same transaction or event that is the subject matter of
    the plaintiff’s claim;
    Exception: May file if does not arise out of the same transaction,
    provided that the amount and nature are within the coverage of this
    Rule and prescribed docket and other legal fees are paid.
    c. Does not require adjudication of the joinder of third parties;
    d. Not a subject of another pending action

    Note: Any amount pleaded in a counterclaim in excess of PHP 1,000,000.00,


    excluding interests and costs, shall be deemed waived.

    6. APPEARANCE OF BOTH PARTIES: The parties shall personally appear on


    the designated date of the hearing. The representative must not be a lawyer. Such
    representative must be authorized under a Special Power of Attorney (Form 7-
    SCC), board resolution, or secretary’s certificate.

    No attorney shall appear at the hearing unless he/she is the Plaintiff or Defendant.
    The court may allow another individual to assist a party if he/she cannot properly
    present his/her claim or defense.

    Failure of the plaintiff to appear: dismissal without prejudice. The defendant who
    appears in the absence of the plaintiff shall be entitled to judgment on the
    counterclaim.

    Failure of the defendant to appear: same effect as failure to file a Response. (not
    applicable if two or more defendants)

    Failure of both parties: dismissal with prejudice of both Statement of Claim and
    counterclaim.
    Postponement: 1 postponement may be granted only upon proof of the physical
    inability of the party to appear.

    7. HEARING: the judge shall first exert efforts to bring the parties to an amicable
    settlement. It shall be reduced into writing and signed by the parties and
    immediately submitted to the court for approval at the hearing. (FORM 9-SCC).
    The court will render judgment within 24 hours and furnish copies to the parties.

    If efforts at settlement fail: the court shall proceed to hear the case in an informal
    and expeditious manner and render judgment within 24 hours from termination of
    the hearing.

    If at any time before or after the hearing, a compromise agreement is submitted,


    signed by both parties, but only 1 party or neither party appears to confirm it, the
    court shall issue an order directing the non-appearing party to confirm within 3
    days from notice thereof, otherwise it shall be deemed confirmed.

    8. DECISION: After the hearing, the court shall render its decision within 24 hours
    from the termination of the hearing (FORM 11-SCC). Such decision shall
    immediately be entered by the Clerk of Court in the court docket and a copy will
    be served on the parties.

    9. EXECUTION: When a decision is rendered and proof of receipt is on record,


    execution shall issue upon ex parte motion of the winning party.

    A decision based on compromise shall not be covered by the requirement of proof


    of receipt.

    10. CERTIFICATION: All documents attached to the Statement of Claim/s or


    Response that are required to be certified, except public or official documents,
    shall be certified by the signature of the plaintiff or defendant.

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