Small Money Claims

SMALL MONEY CLAIMS
The Supreme Court approved, through A.M. No. 08-8-7-SC dated 9

September 2008, the proposed “The Rule of Procedure for Small Claims Cases”
(see full text). Here’s the basic primer or discussion on the new procedure.
What is the scope and applicabilty of the Rule?

It covers cases at the MTC where the value of the claim does not exceed
P100,000.00, exclusive of interest and costs. It applies in all actions which are:
(a) purely civil in nature where the claim or relief prayed for by the plaintiff is
solely for payment or reimbursement of sum of money, and (b) the civil aspect
of criminal actions, either filed before the institution of the criminal action, or
reserved upon the filing of the criminal action in court. These claims or
demands may be:
1. For money owed under any of the following contracts: Lease, Loan,
Services, Sale, or Mortgage.
2. For damages arising from: Fault or negligence, Quasi-contract, or
Contract
3. The enforcement of a barangay amicable settlement or an arbitration
award involving a money claim covered by this Rule pursuant to Sec.
417 of Republic Act 7160, otherwise known as the Local Government
Code of 1991.
Am I required to pay filing fees?

Unless allowed to litigate as an indigent, you have to pay the regular
filing fees. In any case, even when declared an indigent, you MUST pay the
P1,000.00 fee for service of summons and processes in civil cases.
How to I apply as an indigent litigant?

The proper motion must be filed. If the motion is denied, you have 5
days within which to pay the docket fees, otherwise the case will be dismissed.
Are lawyers allowed to appear?

No attorney shall appear in behalf of or represent a party at the hearing, unless
the attorney is the plaintiff or defendant.
What is the general flow of the procedure?
1. Commencement. A small claims action is commenced by filing with the

court an accomplished and verified Statement of Claim in duplicate,
accompanied by a Certification of Non-forum Shopping, and 2 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. When
requested, the Clerk of Court or other court personnel shall provide assistance
regarding the availability of forms and other information about the coverage,
requirements as well as procedure for small claims cases.
2. Examination by the court. The court may, from an examination of the

allegations of the Statement of Claim and such evidence attached thereto, by
itself, dismiss the case outright on any of the grounds apparent from the Claim
for the dismissal of a civil action. If no ground for dismissal is found, the court
shall issue: (a) Summons on the day of receipt of the Statement of Claim,
directing the defendant to submit a verified Response; and (b) 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.
3. Response. The defendant shall file with the court and serve on the plaintiff a
duly accomplished and verified Response (affidavits of witnesses and other
evidence in its support) within a non-extendible period of 10 days from
receipt of summons. In case of faulure to file a Response, the court by itself
shall render judgment as may be warranted by the facts alleged in the
Statement of Claim limited to what is prayed for.
4. Hearing. The parties or their duly-appointed representatives shall appear at

the designated date of hearing. Failure of the plaintiff to appear shall be cause
for the dismissal of the claim without prejudice and the award of permissive
counterclaims in favor of the defendant who is present. Failure of the
defendant to appear has the same effect as the failure to file a Response.
5. Judicial Dispute Resolution (JDR). At the hearing, the judge shall conduct
JDR through mediation, conciliation, early neutral evaluation, or any other
mode of JDR. If JDR fails and the parties agree in writing that the hearing of the
case shall be presided over by the judge who conducted the JDR, the hearing
shall so proceed in an informal and expeditious manner and terminated within
1 day. Absent such agreement, the case shall, on the same day, be referred to
the pairing judge for hearing and decision within 5 working days from referral.
6. Decision. After the hearing, the court shall render its decision on the same
day. The decision shall be final and unappealable.
What is the date of effectivity of this Rule?
The Rule of Procedure for Small Claims Cases took effect on October 1, 2008
for the pilot courts designated to apply the procedure for small claims cases
following its publication in two newspapers of general circulation.
Most people decide not to sue a debtor when the amount involved seems
relatively small because of the known hassles and expenses of filing cases in
court. With litigation expenses and time wasted in court, forgetting a debt
seemed to be a practical solution instead, until recently, when the Supreme
Court issued the Small Claims Rule.
What is the Small Claims Rule?
This is an inexpensive and simple procedure for going after money claims that
are not more than P 100,000.00 (one hundred thousand Philippine pesos).
The proceedings are quick and informal and all you have to do is obtain a
blank form for Plaintiffs (the one suing), fill it up completely and attach the
required documents to prove your claim. Click here for a copy of the Plaintiff’s
form in PDF format. You can print this form and use it for filing.
Preparation of documents
Preparation is important for you to succeed in getting a favorable outcome for

your case will only be decided on the basis of the documents that you attach to
your form. Thus, before submitting your form, make sure that you have the
following:
 Documents proving your claim such as promissory notes, contracts,

receipts, Affidavits of witnesses, checks or pictures
 Latest demand letter and proof of delivery and proof of receipt (usually
a signed acknowledgment if personally delivered or a registry return
card if sent by registered mail)
 Certification to file action from the barangay (if applicable)
 Special Power of Attorney in case Plaintiff cannot attend
 In case of a corporation, a Secretary’s Certificate or Board Resolution
authorizing you to file the case
Other steps include:
 Making photocopies of the filing form and supporting attachments (at

least 5)
 Having the form including verification notarized by the Clerk of Court in
the Office of the Clerk of Court of the place where you are filing your
claim.
 Paying the filing fee.
 Getting the date of your scheduled hearing.
 Going to the court to which your case is assigned on the date of the
hearing
Note that you are not allowed to be represented by a lawyer in the Small
Claims proceedings but you may consult one BEFORE filing and attending your
hearing. If you are representing a company or corporation in a hearing, you
will also have to bring written authority to appear at the hearing, enter into an
amicable settlement, to submit to alternative modes of dispute resolution and
to enter into stipulations or admissions of facts and of documents.

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SMALL MONEY CLAIMS

The Supreme Court approved, through A.M. No. 08-8-7-SC dated 9

What is the scope and applicabilty of the Rule?

Am I required to pay filing fees?

How to I apply as an indigent litigant?

Are lawyers allowed to appear?

What is the general flow of the procedure?

1. Commencement. A small claims action is commenced by filing with the

2. Examination by the court. The court may, from an examination of the

4. Hearing. The parties or their duly-appointed representatives shall appear at

What is the Small Claims Rule?

Preparation is important for you to succeed in getting a favorable outcome for

 Documents proving your claim such as promissory notes, contracts,

Other steps include:

 Making photocopies of the filing form and supporting attachments (at

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