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Small Claims are exclusively for the payment or reimbursement of a sum of money
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The money claim must not exceed P400,000 or P300,000 depending on the venue
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Lawyers are not allowed to appear in Small Claims cases
On the concept of Small Claims
Small Claims refer to civil claims which are for the sole payment or reimbursement of a sum of money.
These are claims where the value of claim, exclusive of interests and costs, does not exceed Four Hundred Thousand Pesos (Php 400,000) for areas within the National Capital Region, or Three Hundred Thousand Pesos (Php 300,000) for areas outside the National Capital Region.
Small Claims may arise out of money owed from a contract of lease, loan, services, sale, or mortgage. It also covers liquidated damages arising from contracts and the enforcement of a barangay amicable settlement or an arbitration award involving a money claim.
The following are examples of small claims cases:
- Collection of money from a friend or any person who owes you money
- Collection of unpaid rental payments from a lessee
- Reimbursement for property, deposit, or money loaned
- Collection for payment of services rendered
Purpose of Small Claims
Small Claims provide a simpler and more inexpensive and expeditious means of settling disputes involving purely money claims. It is inexpensive because a party can appear on his own. Lawyers are not allowed to appear in behalf or represent a party.
The hearing is conducted in an informal manner and proceeds within Thirty (30) days from the filing of the statement of claim and the hearing is terminated in the same day. After such hearing, a decision must be made within Twenty-four (24) hours. The decision is final, executory and unappealable.
Where to file Small Claims case?
A Small Claims case may be filed, after payment of the filing fees unless exempted, with the Metropolitan Trial Courts (MeTCs) if within the National Capital Region. However, if outside the National Capital Region, it may be filed with the Municipal Trial Court in Cities (MTCCs), Municipal Trial Courts (MTCs), and Municipal Circuit Trial Courts (MCTCs).
Please take note that the Small Claims case must be filed in the city or municipality where the person suing or the person being sued resides, at the option of the former.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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