In the Philippine judicial system, the Small Claims Process was designed to provide an expedited, inexpensive, and informal means to settle money claims. By removing the requirement for attorneys and streamlining procedures, the Supreme Court aimed to make justice accessible to the "common man." However, while the process is simplified, it is not free.
Understanding the financial obligations involved—specifically filing fees and court costs—is essential for any litigant looking to recover a debt without exhausting their resources in the process.
1. The Basis of Filing Fees
Filing fees are the administrative costs paid to the court to docket a case. Under the Revised Rules on Small Claims Cases, these fees are generally lower than those in regular civil actions, but they are mandatory upon the filing of the Statement of Claim.
- Valuation-Based Scaling: The total amount of filing fees is directly proportional to the amount being claimed. The higher the claim (up to the current threshold of P1,000,000.00 in Metropolitan Trial Courts), the higher the filing fee.
- The "Pocketbook" Rule: Generally, if you are the one suing (the Plaintiff/Claimant), you must advance these costs. If you win the case, the judge typically orders the Defendant to reimburse you for these expenses as part of the final decision.
2. Breakdown of Costs
When you visit the Clerk of Court to file your claim, the total amount you pay is usually a composite of several specific funds:
| Fee Type | Description |
|---|---|
| Judiciary Development Fund (JDF) | Established to help maintain and improve court facilities and equipment. |
| Special Allowance for the Judiciary (SAJ) | A fund created to provide additional benefits to justices, judges, and court personnel. |
| Legal Fees | The standard administrative processing fee for the case. |
| Legal Research Fund (LRF) | A small percentage (usually 1% or a fixed minimum) added to support the UP Law Center. |
| Mediation Fee | A fixed fee paid because Small Claims cases are often referred to the Philippine Mediation Center (PMC). |
3. Additional Incidental Expenses
Beyond the basic filing fees paid at the counter, litigants should account for:
- Service of Summons: This covers the cost of the court Sheriff or Process Server delivering the official notice to the defendant. If the defendant is outside the court's immediate jurisdiction, additional travel or mailing expenses (via registered mail) may apply.
- Affidavits and Notarization: Since Small Claims rely heavily on written evidence, your Statement of Claim and the Affidavits of your witnesses must be notarized. Notaries public charge varying fees for these services.
4. The "Frequent Filer" Rule
To prevent the abuse of small claims courts by large corporations or collection agencies, the Supreme Court imposes a Progressive Filing Fee for "frequent filers."
Note: If a claimant files more than ten (10) small claims cases within a single calendar year in the same court station, the filing fees increase significantly for every succeeding case. This is intended to discourage "clogging" the dockets with commercial debt collection.
5. Exemption for Indigent Litigants
The Philippine Constitution guarantees that "free access to the courts... shall not be denied to any person by reason of poverty." If a claimant truly cannot afford the filing fees, they may petition the court to be treated as an Indigent Litigant.
- Requirements: To qualify, the claimant must prove that their gross income does not exceed a certain threshold (often based on the regional minimum wage) and that they do not own real property with an assessed value exceeding a specific amount.
- Effect: If the motion is granted, the claimant is exempt from paying filing fees, the LRF, and other costs. However, these fees usually become a "lien" on any judgment they win—meaning the costs will be deducted from the money collected from the defendant and paid back to the court.
6. Summary of Key Principles
- Pay Promptly: Failure to pay the full filing fee at the time of filing is often grounds for the dismissal of the claim.
- Keep Receipts: Always retain the Official Receipt (OR) issued by the Clerk of Court. This is your proof of payment and is necessary if you wish to claim "costs of suit" from the defendant later.
- No Lawyer Fees: Remember that lawyers are strictly prohibited from appearing in Small Claims hearings. This significantly reduces the overall "legal cost," as you do not have to pay for professional representation.