Understanding SMALL CLAIMS
Having issues with money is something that isn’t new to the ears. At some point, we would hear from our friends and family that they happen to lend a certain amount to another person, only to be left unpaid. Despite repeated demands through texts and calls, these demands remain unheeded. Since the demands are ignored, people tend to just give up and let the debtor or the borrower off the hook.
However, sometimes, the amount lent may not be too hefty, but is still of value, especially to the creditor. After all, we all work hard for the income we earn, and at the end of the day, we all value that.
Due to the impression that filing a case for sum of money is costly and tedious, people often feel discouraged to pursue their money claims. This is where Small Claims comes in.
The objectives of Small Claims are to protect and advance the constitutional right of persons to a speedy disposition of their cases; to provide a simplified and inexpensive procedure for the disposition of small claims cases; and to introduce innovations and best practices for the benefit of the underprivileged.
The Revised Rules of Procedure for Small Claims Cases are applicable for money owed under the following: contract of lease; contract of loan; contract of services; contract of sale; or contract of mortgage. It likewise applies to liquidated damages arising from contracts and the enforcement of a barangay amicable settlement or an arbitration award involving a money claim covered by the Rule, pursuant to Sec. 417 of The Local Government Understanding Code of 1991
Previously, the amount of the money claim must not exceed Php200,000 for it to be covered by Small Claims. However, in 2019, the Supreme Court En Banc resolved and amended the Revised Rules of Procedure for Small Claims Cases. The money claim or the jurisdictional amount must not exceed Php400,000 for MeTCs and Php300,000 for MTCCs, MTCs, and MCTCs, exclusive or interest and costs.
According to Sec. 6 of the Revised Rules of Procedure for Small Claims Cases, a small claims action is commenced by filing with the court an accomplished and verified Statement of Claim (Form 1-SCC) in duplicate, accompanied by a Certificate Against Forum Shopping, Splitting a Single Cause of Action, and Multiplicity of Suits (Form 1-A-SCC), and two duly certified photocopies of the actionable
documents subject of the claim, as well as the affidavits of witnesses and other evidence to support the claim. No evidence shall be allowed during the hearing, which was not attached to or submitted together with the Statement of Claim, unless good cause is shown for the admission of additional evidence.
The forms are also now made available online, for ease of access. These forms are also available with the courts, where one can request a copy or have it photocopied.
It is important to remember to attach all the documents pertinent to the small claims case since the court will no longer allow admission of any evidence once the hearing starts, unless for good cause. Just the same, to avoid inconvenience, one should attach the pertinent documents to the Statement of Claim.
A Filing Fee shall likewise be paid by the plaintiff. He shall pay the docket and other legal fees prescribed under Rule 141 of the Revised Rules of Court, unless he is allowed to litigate as an indigent. Exemption from the payment of filing fees shall be granted only by the Supreme Court.
Despite the fact that attorneys are not allowed to appear in behalf of or represent a party at the hearing, unless the attorney himself is the plaintiff or defendant, it is imperative on the part of the plaintiff to still consult with a lawyer to properly accomplish the Statement of Claim. Consulting with a lawyer will also help the plaintiff understand and know how to handle his case in court, if needed. The lawyer may not be present in court, but remains to have a role in the commencement and preparation of the small claims case.
