Small Claims Rule

SMALL CLAIMS

Going to court and suing has been very expensive and slow, especially only for collection of a small amount of money. The Supreme Court promulgated the Rule of Procedure for Small Claims (A.M. No. 08-8-7-SC). This covers all claims for payments or reimbursements for a sum of money not exceeding P 100,000.00. The claim covers payment or reimbursement arsing from unpaid loan, purchase price of a product or service, value of a stolen or damaged property, amount claimed as damages, etc. Note that in computing the amount the interest and cost of the suit is not included.

The Small Claims Court (SCC) has jurisdiction over this cases, however, the rule did not create new courts but merely designated Metropolitan Trial Courts, Municipal Trial Court in Cities, Municipal Circuit Trail Courts and Municipal Trial Courts also known as the first-level courts as Small Claims Courts.

Another is that there is no need for the person instituting the Small Claim suit to acquire the services of a lawyer, and the rule even prohibited the intervention of a lawyer unless he is one of the party in the case, but the parties may be assisted by a non-lawyer.

(Not confirmed)There is a precondition which is set forth in the Local Government code, that when parties are residents of the same city or municipality, there must be proof of conciliation proceeding, and that conciliation efforts failed, before a case can be filed in the court, otherwise the case would be dismissed for prematurity.

A small claim case may be instituted by filing before the SCC of a Statement of Claim (Click the link to download the Statement of Claim Form). Under the rule, a statement of claim must be:

1. Signed by the plaintiff or his/her duly authorized representative;
2. Verified and accompanied by a certificate of non-forum shopping (plaintiff must certify under oath before a notary public that he has personal knowledge of the facts and he attest the truthfulness of his/her allegation and also that he or she has not filed the same claim before other courts or tribunals (included in the Verification and Certification of Non-Forum Shopping Part));
3. Accompanied by affidavits of witnesses;
4. Accompanied by certified copies of any actionable document (contract or promissory note) or photographs of the subject of the claim (photos of a stolen or damaged personal property); and
5. Accompanied by other evidence to support the claim (a receipt).

Aftr the filing of the Statement of Claim before the SCC, the court will determine the merit of the case, SCC will either dismiss the case or proceed to the institution of the case. In case SCC finds no ground to dismiss the claim, the SCC will require the defendant to respond by filing an answer to your Statement of Claim within ten (10) days. The answer must also be signed and verified by the defendant, accompanied by Certified Copies of any documents/photographs, affidavits of witnesses and other evidences relied upon by for his defense. 

If the defendant will not file an answer/response the SCC will render judgment based on the evidence presented by the plaintiff or the complainant. But, if the defendant will file his answer, the SCC will schedule a hearing and require the parties to appear before the court.

(Note: Small Claims unlike ordinary civil case cannot move for the dismissal of the case except on the ground of lack of jurisdiction)

(Note: Evidence not attached in either the statement of claim or the response cannot be presented and admitted during the hearing of the case, except for good cause. An example is when during the filing of the case or filing of the answer the evidence was not available without fault or negligence of the plaintiff or defendant)

There are two kinds of counter claim, "Compulsory" and "Permissive," a compulsory counterclaim is one that arises out or is related from the plaintiff's claim, while a permissive counterclaim in any other claim of the defendant.

If the plaintiff fails to appear on the hearing, the SCC will dismiss the claim without prejudice of refiling. If the defendant filed a permissive counterclaim, the SCC will render judgment regarding the same. but, if defendant fails to appear o the hearing, the SCC will render judgment solely based on the plaintiff's claim. Failure of both parties will result to dismissal of the claim and counterclaim and the case cannot be filed again.

The trial is only be for one (1) day and decision will be rendered in that day, and the decision is not appealable.

This rule became effective on October 1, 2010