In the Philippine judicial system, the Small Claims Procedure serves as a "fast track" for justice. It is designed to allow individuals to settle money disputes without the need for a lawyer, reducing costs and expediting resolutions. Under the revised rules promulgated by the Supreme Court, the process has become more accessible and streamlined than ever.

1. What is a Small Claims Case?

A small claims case is a special civil action filed in Metropolitan Trial Courts (MeTC), Municipal Trial Courts in Cities (MTCC), Municipal Trial Courts (MTC), or Municipal Circuit Trial Courts (MCTC).

The primary objective is to provide a simple, inexpensive, and expeditious procedure for settled money claims.

Key Characteristics:

No Lawyers Allowed: You cannot bring a lawyer to the hearing to represent you. This levels the playing field for those who cannot afford legal counsel.
Speed: Cases are typically resolved in a single hearing.
Informality: The strict rules of evidence used in regular courts do not apply.

2. Jurisdictional Amount

As of the most recent updates, the jurisdictional limit for small claims is:

PhP 1,000,000.00 (One Million Pesos) exclusive of interest and costs.

If your claim exceeds this amount, you must file a regular civil case, which involves more complex procedures and requires legal representation.

3. Scope: What Claims Are Covered?

Small claims apply exclusively to actions for payment of money where the claim is:

Purely for a sum of money arising from:

Contract of Lease
Contract of Loan
Contract of Services
Contract of Sale
Contract of Mortgage

Liquidated damages arising from contracts.
Enforcement of a barangay amicable settlement or an arbitration award involving money.

Note: Claims for "damages" not arising from a contract (such as physical injury or libel) are generally not covered under this procedure unless they are incidental to the money claim.

4. The Step-by-Step Filing Process

Step 1: Barangay Conciliation

Before filing in court, most cases require a Certificate to File Action from the Barangay. Under the Katarungang Pambarangay Law, you must first attempt to settle the dispute at the local level if both parties reside in the same city or municipality.

Step 2: Prepare the Updated Forms

The Supreme Court provides standardized, "fill-in-the-blank" forms to ensure simplicity. These are available at the Office of the Clerk of Court or online.

Essential Forms:

Form 1-SCC: Statement of Claim (The "Complaint")
Form 1-A-SCC: Verification and Certification against Forum Shopping
Form 2-SCC: Summons (To be filled out by the court)
Form 5-SCC: Response (To be filled out by the defendant)

Step 3: Filing and Payment of Fees

File the Statement of Claim in duplicate, along with all supporting evidence (receipts, contracts, demand letters). You must pay the legal fees at the time of filing.

Indigent Litigants: If you can prove you have no sufficient income, you may apply for an exemption from paying filing fees.

Step 4: The Summons and Response

The court will issue a Summons to the defendant. The defendant has ten (10) calendar days from receipt to file a Verified Response. If the defendant fails to file a response, the court may render judgment based on the facts alleged in the Statement of Claim.

Step 5: The Hearing (Judicial Dispute Resolution)

The judge will schedule a hearing. Both parties must appear personally.

Mediation: The judge will first try to convince the parties to reach a settlement.
Hearing: If mediation fails, the judge will proceed with a summary hearing. You present your evidence and testify. No formal cross-examination by lawyers happens here.

Step 6: The Decision

The judge must issue a decision within twenty-four (24) hours after the hearing ends. This decision is final, executory, and unappealable.

5. Prohibited Pleadings and Motions

To keep the process fast, the court does not allow "delaying tactics." The following are not allowed:

Motions to dismiss the complaint.
Motions for a bill of particulars.
Motions for extension of time.
Petitions for certiorari, mandamus, or prohibition against any interlocutory order.

6. Table: Summary of the Process

Stage	Action	Deadline/Timeline
Preparation	Barangay Conciliation	Variable
Filing	Submission of Form 1-SCC & Fees	Day 0
Issuance	Court issues Summons	Within 24 hours of filing
Response	Defendant files Form 5-SCC	10 days from receipt of summons
Hearing	Personal appearance of parties	Usually within 30 days of filing
Decision	Final Judgment issued	Within 24 hours of hearing

7. Vital Reminders

Demand Letter: Always send a formal demand letter to the debtor before filing. Attach a copy and the proof of receipt (Post Office registry receipt or receiving copy) to your claim. This proves the debt is "due and demandable."
Affidavits: If you have witnesses, their testimonies must be in the form of Judicial Affidavits attached to the Statement of Claim.
Multiple Claims: If you have multiple small claims against the same person, you may join them in one Statement of Claim, provided the total does not exceed PhP 1,000,000.00.