FAQs on Procedure for Small Claims Cases

The following are FAQs on Rule of Procedure on Small Claims Cases, A.M. No. 088!SC,
which "oo# effec" on $c"o%er &, '008. Re"rie(ed from Su)reme Cour"*s we%si"e. +a"e re"rie(ed,
&8 No(em%er, '008. +ownload )df co)- here.
1. What is AM. No.08-8-7-SC or the !ule of Procedure for Small Claims Cases"#
It is a special rule of procedure adopted by the Supreme Court pursuant to its rule-making power
under Sec. 5(5) of Article III of the !"#$ Constitution% to go&ern small claims cases and is to be
piloted in designated first le&el courts ('etropolitan (rial Courts% 'unicipal (rial Courts in
Cities% 'unicipal (rial Courts and 'unicipal Circuit (rial Courts). (his rule allows a plaintiff
(the person suing) to sue a defendant (the person being sued) without the need of a lawyer.
(his new rule becomes effecti&e on ! )ctober *++#.
$. What is the %ur%ose of small claims %rocess#
(he purpose of a small claims process is to pro&ide a simpler and a more ine,pensi&e and
e,peditious means of settling disputes in&ol&ing purely money claims than the regular ci&il
process.
&. What are the distinct features of a small claims %rocess#
Ine,pensi&eness% informality% and simplicity. -&ery aspect of the process is designed to allow a
person to handle his.her own case from start to finish /uickly and ine,pensi&ely. (here are
ready-made forms a&ailable and strict procedural rules% including the rules of e&idence% do not
apply. 0ence% there is no need for a lawyer.
'. What are small claims cases"#
(hese are ci&il claims which are e,clusi&ely for the payment or reimbursement of a sum of
money not e,ceeding 1!++%+++.++.
(. What are small claims courts"#
(hese are first le&el courts ('etropolitan (rial Courts% 'unicipal (rial Courts in Cities%
'unicipal (rial Courts and 'unicipal Circuit (rial Courts). (hey hear and decide small claims
cases following this new rule of procedure.
). *oes the ne+ rule on small claims cases create ne+ courts#
2o. (he new rule simply pro&ides a procedure for prosecuting% defending% and ad3udicating small
claims cases% which by law are already within the 3urisdiction of first le&el courts.
(o 3umpstart the launch of this new rule% the Supreme Court issued Administrati&e )rder (A.).)
2o. !4!-*++# designating ** first le&el courts all o&er the country as pilot courts to hear and
decide small claims cases% in accordance with the new rule of procedure for small claims cases.
(hus% upon the effecti&ity of A.). 2o. !4!-*++#% all small claims cases filed in the station of
these pilot courts shall be assigned immediately to the said courts.
(hree (5) months after the implementation of this rule% an initial assessment shall be undertaken
by the (echnical 6orking 7roup ((67) on Small Claims Court 1ilot 1ro3ect. Si, (8) months
thereafter% a final assessment and pro3ect re&iew shall be submitted to recommend the feasibility
of applying this rule to all small claims cases in all first le&el courts.
7. What is the sco%e of the rule#
(he rule only co&ers cases in first le&el courts in&ol&ing purely money claims where the &alue of
the claim.s does not e,ceed )ne 0undred (housand 1esos (1!++%+++.++) and does not include
interest and costs. (Sec. *)
8. What ,inds of claims or demands are co-ered ./ this rule#
(ypical claims include actual damages caused to &ehicles% other personal property% real property
or person. 'oney owed under a contract of lease% contract of loan% contract of ser&ices% contract
of sale% or contract of mortgage% may also be demanded.
It also includes purely ci&il actions for payment of money co&ered by a bounced or stopped
check.
An amicable settlement reached in the barangay or an arbitration award in&ol&ing a money claim
may also be enforced under this rule.
0. Can se%arate claims .e com.ined in one case#
9es. (he plaintiff may combine in a single statement of claim% one or more separate small claims
against the same defendant pro&ided that the total amount claimed% e,clusi&e of interest and
costs% does not e,ceed 1! ++%+++.++. (Sec. 8)
10. What ,inds of actions or claims or demands are e1cluded under this rule#
Criminal actions are e,cluded because of certain limitations or mandatory re/uirements under
the !"#$ Constitution% particularly Sec. !4(*) of Article Ill (:ill of ;ights)% which grants the
accused in all criminal prosecutions the right to be heard by himself and counsel.< (hus% a case
for libel or slander cannot be filed in a small claims court. 0owe&er% the ci&il aspect of a criminal
action which seeks reco&ery of money as damages may be heard as a small claim if reser&ed or
instituted separately prior to the filing of the criminal case.
(here are also some kinds of ci&il cases that cannot be brought to a small claims court no matter
how little the amount is in&ol&ed. -,amples of these are a suit to force a person to fi, a damaged
good% or a demand for the fulfillment of an obligation which is not purely for money.
11. 2o+ does one start a small claims case#
(he plaintiff must first accomplish a &erified Statement of Claim (=orm !-SCC) and certify the
information pro&ided% stating that he.she has not filed any action in&ol&ing the &ery same issue in
any other court% tribunal or agency through a erification and Certification of 2on-=orum
Shopping (=orm !-A-SCC).
(he Statement of Claim must be accompanied by certified duplicate photocopies of all
supporting documents (i.e. contract% promissory note% affida&it.sworn statement of witnesses%
pictures% receipts% etc>)
(he plaintiff then files the Statement of Claim with its accompanying documents with the small
claims court% personally or through mail% and pays the correct docket and filing fees. (Sec. 5)
1$. Are there filin3 fees to .e %aid for small claims cases#
9es% the plaintiff or defendant shall pay the docket and other legal fees prescribed under ;ule
!4! of the ;e&ised ;ules of Court at the time of the filing of the Statement of the Claim with the
)ffice of the Clerk of Court.
If you do not ha&e money to pay the fees because of your financial status% you may apply to the
small claims court to /ualify as an indigent% and once you /ualify as an indigent you are e,empt
from payment of such fees. (Sec. # )
1&. 4-en if declared as an indi3ent5 is a %erson still re6uired to %a/ P15000.00 for ser-ice of
summons and %rocesses#
9es. -&en if declared as an indigent% a person is not e,empt from payment of the 1!%+++.++ fee
for ser&ice of summons and processes in ci&il cases. (Sec. # )
1'. 7nce a Statement of Claim is filed in the small claims court5 ma/ the court dismiss the
case at its o+n instance#
9es. (he court may dismiss the case outright when any grounds for the dismissal of a ci&il case
is apparent or ob&ious from the Statement of Claim and supporting documents. (Sec. ")
1(. What is the dut/ of the court after a %laintiff files a Statement of Claim and it does not
find an/ 3round to dismiss the claim#
(he court informs the defendant that a case has been filed against him.her through the issuance
of Summons (=orm *-SCC) on the day of the receipt of the Statement of the Claim and
accompanying documents. (hrough the Summons% the court directs the defendant to file his.her
&erified ;esponse (=orm 5-SCC) as well as other supporting documents or e&idence% within a
non-e,tendible period often (!+) days from its receipt.
(he court also ser&es a 2otice of 0earing (=orm 4-SCC) to both parties% directing them to appear
before it on a specific date and me% with a warning that no un3ustified postponement shall be
allowed. (Sec. !+)
(he Summons and 2otice of 0earing must be accompanied by a copy of the Statement of Claim
and documents submitted by plaintiff% and a copy of the ;esponse to be accomplished by the
defendant. (Sec. !+)
1). After a defendant has recei-ed the summons and notice from the court5 +hat is he8she
re6uired to su.mit#
(he defendant shall file with the court a duly-accomplished and &erified ;esponse together with
proof that he.she has ser&ed such ;esponse to plaintiff within the prescribed period.
(he ;esponse shall also be accompanied by certified copies of documents and the affida&its of
witnesses and other e&idence in support thereof. (Sec. !!)
17. What is the effect if a defendant fails to file a !es%onse +ithin the %rescri.ed %eriod for
filin3#
(he court decides the case based on the facts alleged in the Statement of Claim and the
supporting documents attached to it. (Sec. !*)
18. 9nstead of filin3 a !es%onse5 can a defendant file a motion to dismiss the claim#
2o. (he filing of a motion to dismiss instead of a response is prohibited under the rule% e,cept on
ground of lack of 3urisdiction. (Sec. !4)
10. What is a counterclaim#
A counterclaim is a claim which a defendant files against the person who sues him (plaintiff).
Similar to a claim% a counterclaim must seek the reco&ery of money only.
If a defendant belie&es that he.she is entitled to be paid money by the plaintiff% such defendant
must include this counterclaim in his.her ;esponse.
$0. What ha%%ens +hen a defendant fails to include a counterclaim in his8her !es%onse#
If the counterclaim is related to the plaintiffs claim% or arose out of it (the legal term is
compulsory counterclaim<)% it must be raised in the same case. )therwise% it will be barred.
$1. A%art from a motion to dismiss a claim5 are there other %leadin3s5 motions5 or %etitions
that cannot .e filed#
9es. (hese are the prohibited pleadings in Sec. !4 of this rule.
$$. Who are re6uired to a%%ear at the hearin3#
(he parties shall appear at the hearing personally or through a representati&e they may authori?e
under a Special 1ower of Attorney (=orm 5-5CC) to enter into an amicable settlement% to submit
to @udicial Aispute ;esolution (@A;) and to enter into stipulations or admissions of facts and of
documentary e,hibits. (Sec. !8)
$&. Are la+/ers allo+ed at the hearin3#
2o% lawyers are not allowed to appear at the hearing unless they are the plaintiff or the
defendant.
$'. *oes this mean that la+/ers are not allo+ed throu3hout the small claims %rocess#
2o% lawyers are only not allowed to appear at the hearing of the case. Since the process is still a
legal process% the parties and their authori?ed representati&es can still consult with a lawyer to
assist them to prepare for the hearing or for other matters outside the hearing. (Sec. !$)
$(. Who is allo+ed to assist a %art/ +ho cannot %ro%erl/ %resent his8her claim or defense#
(he court% in its discretion% may allow another indi&idual who is not a lawyer to assist the party.
(Sec. !$)
$). What ha%%ens if the %arties do not a%%ear at the hearin3#
If the plaintiff does not appear% the claim shall be dismissed without pre3udice.
If the defendant does not appear% the effect will be the same as failure to file a ;esponse under
Sec. !* of this rule.
If both parties do not appear% the claim and counterclaim shall be dismissed with pre3udice. (Sec.
!#)
$7. When is %ost%onement of a hearin3 allo+ed#
It may be granted only upon proof of the physical inability of the party to appear before the court
on the scheduled date and time. A party may a&ail of only one (!) postponement. (Sec. !")
$8. What is the role of the :ud3e desi3nated to hear small claims cases#
In small claims cases% the role of the 3udge is to ascertain the factual matters at issue and to elicit
the e&idence B all in one hearing% and render a decision thereafter. (he 3udge shall encourage
the parties to settle by employing the different modes of @udicial Aispute ;esolution (@A;).
$0. 2o+ does the :ud3e em%lo/ the modes of ;*!#
(he 3udge who employs @A; B as understood within the conte,t of the rule of procedure for
small claims cases B should be confined to e,erting efforts in helping the parties arri&e at an
amicable settlement through mediation% conciliation% early neutral e&aluation% or any other mode
of @A;. (his means the 3udge shall use any mode to try and bring about an amicable settlement
between the parties.
Any settlement or resolution of the dispute% shall be reduced into writing% signed by the parties%
and submitted to the court for appro&al. (Sec. *!)
&0. What ha%%ens +hen ;*! fails#
6hen @A; fails% the parties may agree in writing that the @A; 3udge shall hear and decide the
case. (he @A; 3udge shall proceed with the hearing in an informal and e,peditious manner%
which shall be terminated within one (!) day.
0owe&er% if the parties do not agree% the @A; 3udge shall refer the case to the pairing 3udge for
hearing and decision. (Sec. **)
&1. What is the :o. of the %airin3 :ud3e#
(he pairing 3udge shall hear and decide the case within fi&e (5) working days from referral.
&$. 9s an a%%eal of a decision allo+ed#
2o. A decision in small claims cases is final and unappealable. (Sec. *5)
&&. *oes this not -iolate the ri3ht to due %rocess#
2o. (he right of appeal is not a natural right or a part of the constitutionally guaranteed right to
due process. It is merely a statutory pri&ilege and a procedural remedy of statutory origin% which
may be e,ercised only in the manner and in accordance with the pro&isions of the law
authori?ing such e,ercise.
(he declaration that the decision is final and unappealable is in line with the nature of small
claims which is designed to preclude unnecessary or unmeritorious appeals that result in long
drawn litigation for cases of this nature% pursuant to the Supreme CourtCs constitutional mandate
to enact rules of procedure.
&'. *oes the la+ authori<e the Su%reme Court to dis%ense +ith the ri3ht to a%%eal from the
first le-el courts to the !e3ional =rial Courts >!=Cs?#
9es% under Sec. 58 of :.; !*" as amended% D(he @udiciary ;eorgani?ation Act of !"#+<% the
Supreme Court shall adopt special rules or procedures applicable lo cases re/uiring summary
disposition in order to achie&e an e,peditious and ine,pensi&e determination thereof without
regard to technical rules.
=urthermore% under Sec. 5# of the same law% appeals to ;(Cs shall be in accordance with the
procedure prescribed bylaw% and by such rules as the Supreme Court may prescribe.
&(. What then is the remed/ of a %art/ +hen the decision is final and una%%eala.le#
(he rule does not preclude a party from filing a petition for certiorari under ;ule 85 of the
;e&ised
;ules of Court when there is gra&e abuse of discretion amounting to lack or e,cess of
3urisdiction in relation to a 3udgment in a small claims action (such a petition is prohibited with
regard to interlocutory orders).
=urther% the aggrie&ed party can also file an action for annulment of 3udgment when the
re/uirements under the ;ules of Ci&il 1rocedure are complied with.
&). Will the !ules of Ci-il Procedure a%%l/#
9es% the ;ules of Ci&il 1rocedure shall apply to those matters not co&ered by the new rule%
insofar as they are not inconsistent with it. (Sec. *5)
=or e,ample% the ;ules of Ci&il 1rocedure are applicable to issues of 3urisdiction% &enue on
personal actions% prescription% parts of a pleading% presence or absence of cause of action% legal
standing of parties to file the action% consolidation of actions% ad3ournments and postponements%
grounds for dismissal including the fact that a condition precedent for filing the claim has not
been complied with (i.e. prior conciliation before the Eatarungang 1ambarangay).
&7. Are not the small claims cases effecti-el/ 3o-erned ./ the !ule on Summar/ Procedure5
Court-Anne1ed Mediation5 and the Pre-=rial !ule#
9es. (he small claims cases% being purely money claims of 1!++%+++.++ or less are co&ered
under the ;ule on Summary 1rocedure. 0owe&er% with the effecti&ity of this new rule% the court%
in actions filed as small claims cases% shall now apply the more specific procedure under this
new rule.
:y way of illustration% if a defendant files an answer called a ;esponse to the claim% the court
shall schedule only one (!) hearing for the purpose of encouraging the parties to settle without
the appearance of lawyers% to hear the statement of the parties under oath% and to consider all
documentary e&idence of the parties. After such hearing% the court will also issue the decision on
the same day.
:y pro&iding more immediate and swifter 3ustice% this new rule enhances the effecti&ity of the
;ule on Summary 1rocedure% Court- Anne,ed 'ediation% and the 1re-(rial ;ule% and in effect%
increases access to 3ustice for the poor and disad&antaged members of our society.
This FAQ )ro(ides general informa"ion a%ou" "he new Rule of Procedure for Small Claims
Cases. ." is no" in"ended "o )ro(ide or "a#e "he )lace of fu"ure in"er)re"a"ions of "he Cour".