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Pursuant to A.M. No. 08-8-7-SC, or the 2016 Revised Rules of Procedure for Small Claims Cases (amended by OCA Circular No. 45-2019, effective 01 April 2019) issued by the Supreme Court of the Philippines, money claims not exceeding P400,000.00 or P300,000.00, depending on the venue of the claim (as amended by OCA Circular No. 45-2019, effective 01 April 2019). Procedures to be followed are different from that of ordinary lawsuits for collection of sum of money, provided that the claims purely civil in nature where the claim or relief prayed for by the plaintiff is solely for payment or reimbursement of sum of money. All money claims exceeding the above-mentioned amounts are automatically excluded from the rules on small claims, and would be covered by the regular procedure in ordinary collection cases.
If this is your first time to file (or at least, consider filing) a small claims case, then here are some things that you need to know.
Demands that may be enforced under small claims
The following are just some of the examples of claims or demands that may be enforced before the Small Claims Court (as long as the amount does not exceed P400,000.00):
- Money owed under the any contract of lease, contract of loan, contract of services, contract of sale; or contract of mortgage;
- Liquidated damages arising from contracts;
- The enforcement of a barangay amicable settlement or an arbitration award involving a money claim [See: Sec. 5].
How to file a small claims case
Here is a quick guide on the steps to take when filing a small claims case:
Fill up the Statement of Claim – There is no more need for one to draft a complaint for small claims, as the complaining party would need only to fill up a ready-made form called “Statement of Claim” (download the blank forms here). This Statement of Claim would already serve as the complaint in a Small Claims Case.
Attach all necessary documents to the Statement of Claim – Make sure that all documents that you need to prove your claim are already attached to the Statement of Claim, because the court will not allow any evidence that was not attached or submitted together with the Statement of Claim unless good cause is shown for the admission of additional evidence. Also, if you have witnesses, make sure that their affidavits are already attached to the Statement of Claim before you submit it to the court [See: Sec. 6].
Have the Statement of Claim notarized – Towards the end of the Statement of Claim, there is a portion on Verification and Certification Against Forum Shopping. Don’t forget to have it notarized first before filing it with the court.
File the Statement of Claim before the court – The Statement of Claim must be filed before the Metropolitan/Municipal Trial Court of the place where the plaintiff (the one suing), resides, or where the defendant (the one being sued) resides [See: Sec. 7]. For being the one suing, since it is you who has the choice on where to file the Statement of Claim, it would be more practical and convenient for you to simply file it in the court of the place where you reside.
Simplified procedure
The procedure on small claims cases was promulgated for faster resolution of claims. Since the amount of claim is relatively small, it is the court’s policy not to keep these cases from dragging for long periods before finally being decided. Since the proceedings must be speedy, inexpensive, and informal, the procedure was simplified.
Among the most noticeable features of the procedure on small claims cases is that when a Statement of Claim is filed before the court, the court may do either of the following:
- Dismiss the claim outright – If upon examination of the allegations contained in the Statement of Claim and the attached evidence, it becomes apparent that there exist grounds for the dismissal of a civil action [See: Sec. 11].
- Issue summons and notice of hearing – If no ground for dismissal is found, summons shall be issued on the very day the Statement of Claim was filed before the court, directing the defendant to submit a verified Response. 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 will be allowed [See: Sec. 12].
During the hearings, however, appearance of lawyers is prohibited. It is expressly provided by the rules that no attorney shall appear in behalf of or represent a party at the hearing. 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 a lawyer to assist that party. The only exception to this rule is when the plaintiff or the defendant himself is a lawyer [See: Sec. 19].
Postponements are also discouraged in small claims proceedings. A request for postponement of a hearing may be granted only upon proof of the physical inability of the concerned party to appear before the court on the scheduled date and time. Also, such request for postponement may be availed of by either party only once [See: Sec. 21].
With the promulgation of the rules on small claims cases, collection of relatively small amounts had become much more simple and less expensive. After all, recovery of the money owed to you is not supposed to be difficult, so this innovation in our rules is a welcome development in the field of debt collection.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding credit and debt collection laws, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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good day po. ask ko lang po. kasi may loan po ako sa home credit . nagpadala daw po supoena small claims sa bahay kung saan ako nakatira. hidi ko po na received kasi lola ko po naka received at late na po naibigay sa akin . what i eman po is naibigay sa kain supoena tapos na hiring. Paano po kaya gagawin ko. hindi ko po alam naging result ng judgement sa akin. pde pa po ba ako mag appeal?
Hi Atty. May utang po ako online. 3000 pero 2700 lang natanggap ko. I failed to give back 3900 sa tamang oras at nagbayad ako ng interes na 900. Pero yun pla, kahit magbayad ng 900 additional 700 pa din. Bale 2700 na po naibayad ko. Ngayon pinupuah nila na bayadan ko eh 10500 daw. Ano pong magandang gawin ko dito sir? Thanks po.
Good Morning Atty.
Hingi po ako ng advice, nagkautang din po ako sa isang mobile app o online lending company, na miss ko po na magbayad ngunit nang nag umpisa na po sila sa collection activities nila ay sobrang below the belt po, may mumurahin ka at sabi isasampal daw sa mukha ko ang warrant of arrest sa harap ng mga pamilya ko at pag napakulong daw nila ako ay may mga threat pa na ipapagahasa asawa ko habang nasa kulungan ako. Ganun po sila makipag usap kaya mula noon ay d ko na sinasagot tawag nila subalit ang interest ng inutang ko ay naging mahigit 50% at umaakyat pa araw araw. Ano po ang maipapayo nyo sa akin?
Hello sir,
Can I use FB messenger exchanges as agreement namin for loan nung nakahiram sa Amin? Tapos fund transfer receipts for the amounts na pinahiram?
I’m outside of Phils. My family is in Mindanao per nanghiram sa Amin taga Manila, where can I file the claim? Pwde sa Mindanao tapos SPA for my relative? Paano hearing Kung nasa Manila nanghiram? Salamat Po sa reply niyo
Paano po kung ayaw i-disclose ni defendant yung address nya? Pwede po ba ang last known address or address ng opisina nila?
Magkano po ang puwedeng hingin na interes kung taon na po ang binilang?
Kung hindi po talaga sila magbayad sa itinakda ng small claims court ano po ang susunod na hakbang?
Good day!
Attorney, same situation pero this time na provide ko na ang total sum ng utang ko. But the creditor is asking for the late payment and interest per day and is now contacting my employer. Pa resign na po ako this december, hinihintay ko lang po ang 13th month pay ko. Baka po matanggal ako dahil sa gagawin nila lalo akong mabaon sa utang dahil wala akong maipambabayad. Magpapasa nga din daw po sila ng case sa small claims court. Ano po pwede ko gawin? Nasa 6500 po binanggit na late payment at interest. Thanks
Hi Atty.
Goodmorning po sainyo, ako po ay isang ofw na nagtratrabaho sa middle east may nangutang po sakin ng halagang 100,000 dito may kasulatan po kami at nakapirma po sya, pwede ko po ba sya sampahan ng kaso kahit nasa abroad kaming dalawa? Bale kukuha lang po ako ng representative ko para mag file ng case, kasi po almost 3 taon na yung utang nya at nakasaad po doon na magpapatubo sya sakin dahil po inutang ko lang din po yung pera sa banko. Nagpadala napo ako ng letter of demand saknya ng isang beses pero nangako lang po sya na magbabayad at hanggang ngayon po hindi parin po sya nagbabayad, Sana po mabigyan nyo ako ng payo at kailngan ko na pong bayaran sa banko ang utang ko. Maraming maraming salamat po sainyo
Hi, may utang po kasi kami with the financing company. Nagkaproblema po kasi, e ang gusto nila mgbigay kami ng 20k a month. Kasi nasa 40k nalang utang ko inclusive of interest and penalty. Dpat last May pa tapos. Sabi ko mgdodown2 nalang ako. At wala naman buwan na indi ako naghuhulog at bnabayaran ko nman ang penalty and interest. Kung tutuusin bayad kona yung principal. Interest and penalty nalang kulang. Kaso hinaharass nila ang parents ko and brother na padadalhan ng demand letter, if indi ako makapagbigay ng 20k a month. Kasi lapse na daw yung payment ko. Sabi papadalhan nila demand letter yung company ng kuya ko, kasi sa kanya nakapangalan. E nawalan kasi ako ng work. So sabi ko mghuhulog2 nalang muna ako indi nman baba ng 5k hulog ko sa kanila. Pwede po ba yun? Mkakasuhan po ba kami? Thanks
Dear Eann c vela,
Since sa kapatid mo nakapangalan yung loan, pwede sya ma-demanda ng small claims. Pero yung demand letter ng creditor, dapat sa kanya ipadala at hindi sa kumpanya kung saan sya nagtatrabaho. Kung hindi sa kanya ipadala yung demand letter, pwede nyang i-deny na natanggap nya ito mula sa creditor just in case lang na mademanda sya ng small claims.
-Atty. Arjay
Follow-up lang po sa question ni Joseph, May Law po ba tayo para sa limitation ng interest?
Dear Justine,
Meron, at ito ay ang “Usury Law” (Act No. 2655). Kaya lang, sa ngayon suspended ang application ng Usury Law kaya walang ceiling ang interest na pwedeng mapag-usapan ng creditor at ng debtor.
-Atty. Arjay
May utang po ako online, Hindi KO pa sya nababayaran dahil may inuna akong bayaran lumagpas na po sa sa due date , yung 1800 KO ng utang nagging 2600, ngayon po , kada araw may patong na 80 pesos ,plus 700 na late payment fee, makakasuhan po ba ako kunng sakaling Hindi KO sya mabayaran, palake ng palake kase yung tubo,
Dear Joseph Ponsaran,
Pwede ka makasuhan ng small claims. Pero kung talagang kakasuhan ka man nila, sila lang ang makakapagsabi nun.
-Atty. Arjay