How to File a Small Claims Case for Non-Delivery After Payment (Philippines)

This article explains—in practical, step-by-step detail—how to use the Philippine small claims process when you paid for a product or service that was never delivered. It’s general information, not legal advice.

1) What a “small claim” is—and when to use it

A small claim is a purely monetary claim for a definite amount within the current small-claims cap set by the Supreme Court under A.M. No. 08-8-7-SC (Revised Rules on Small Claims Cases), as amended. It is heard by the First Level Courts (Metropolitan/Municipal Trial Courts, including MCTCs).

Use small claims when your goal is to recover money (e.g., refund of the price, down payment, deposit, or service fee), plus interest, liquidated damages, and/or costs—not to force delivery of the item or performance of the service. If you want the court to compel delivery or performance, that is not a small claim; the remedy there would be a different civil action.

Tip: The monetary ceiling has been revised over time. Check with the clerk of court for the prevailing cap on the filing date and make sure your total claim (principal + allowable interest + liquidated damages, if any) does not exceed it.

Examples that fit small claims (non-delivery after payment):

You paid for a phone or appliance from an online seller; nothing arrived by the agreed date.
You paid a contractor or freelancer in advance; the work was never started.
You reserved an event venue with a deposit; the venue was not made available and no refund was given.

2) The legal theory in plain language

Most non-delivery cases are breach of contract: you paid (or partially paid), the seller/service provider failed to deliver by the due date, and you suffered loss equal at least to the amount paid.

To win, you typically prove:

Contract/Agreement (order page, quotation, chat/email confirmation, terms and conditions).
Payment (deposit slip, e-wallet/bank transfer receipt, official receipt/invoice).
Obligation to deliver (what was promised, and when).
Breach/Non-delivery (tracking page, cancellation notice, unanswered follow-ups, or expired delivery window).
Demand (recommended: a written demand letter) and amount due (refund, interest, liquidated damages if stipulated).

Interest: Philippine legal interest has been 6% per annum for monetary awards since Nacar v. Gallery Frames (2013). In small claims, courts commonly award 6% simple interest from judicial or extrajudicial demand (e.g., your demand letter) until full payment, unless the contract sets a lawful rate.

3) Before you file: build your paper trail

Essential evidence checklist

Screenshot/print of the product/service listing, offer, or contract.
Proof of payment (bank/e-wallet receipt, teller validation, deposit slip, OR).
Identity of seller/service provider (name, number, business style, address, email, platform handle).
Communications (emails, chats, text messages, call logs).
Delivery terms and timeline (order confirmation, invoice, shipping ETA).
Follow-ups showing non-delivery (and any excuses).
Demand letter (with proof of sending—registered mail/express courier/email with read receipt/messaging app screenshot).

Why a demand letter matters: It’s not strictly required to sue, but it (a) can trigger default, (b) pegs the start of interest, and (c) often prompts voluntary refund.

Decide your claim amount

Principal: the amount you paid (or the unpaid balance you’re seeking, as applicable).
Contractual charges: only if the contract clearly provides (e.g., liquidated damages).
Legal interest: usually 6% p.a. from demand until full payment (compute simply; courts can recompute).
Attorney’s fees? Lawyers generally may not appear in small claims (see below), but reasonable costs of suit may be awarded at the court’s discretion. Avoid padding.

Check prescription (time limits)

Written contract claims generally prescribe later than oral agreements. As a practical rule, file as soon as possible after non-delivery and demand.

4) Where to file (venue) and who can appear

Venue: File in the First Level Court where you (the plaintiff) reside, the defendant resides, or where the cause of action arose (e.g., place of transaction or intended delivery). Choose the venue that is most convenient and supported by your documents.

Appearance/representation:

Parties personally appear. As a rule, lawyers cannot appear as counsel for parties in small claims. (A lawyer who is themselves a party may, of course, appear in their personal capacity.)
Sole proprietors may authorize an agent with a Special Power of Attorney (SPA).
Corporations/partnerships appear through an authorized representative with a board/partners’ resolution or secretary’s certificate. The representative need not be a lawyer.

5) Forms and filing

The Supreme Court provides ready-to-fill forms; you can obtain printed copies from the clerk of court.

Core filings

Statement of Claim (SCC) – states the facts, amount claimed, and relief sought.
Verification and Certification Against Forum Shopping – signed by you (or your authorized representative).
Affidavits of witnesses (in Q&A format) and documentary exhibits (label them clearly).
SPA / Secretary’s Certificate / Board Resolution (if you are authorizing a representative).
Proof of payment of filing fees or application for indigent status (if applicable).

Filing fees: Pay according to the current schedule (Rule 141). Indigent litigants (those who meet income/asset thresholds) may seek fee exemption; bring proof (barangay certificate of indigency, payslips, ITR, etc.).

6) What happens after filing: timeline & service

Docketing & hearing date. The court sets a hearing (typically soon after filing). You’ll receive a notice.
Summons to defendant. The court serves summons with your Statement of Claim and annexes.
- Modes of service include personal service, substituted service, and, when allowed by the revised rules and court directives, electronic service (e.g., email/messaging using the contact details you provided). Provide complete addresses (residential, workplace, email, mobile) to help the court serve.
Defendant’s Response. The defendant usually has 10 calendar days from receipt of summons to file a verified Response with their evidence and any compulsory counterclaim (also within the small-claims cap). No permissive counterclaims or third-party complaints.

If the defendant does not respond: The court may decide on the pleadings and your evidence, potentially resulting in a judgment in your favor.

7) The hearing: concise, no-frills, one-day process

Small claims are designed to finish in one appearance:

Judicial dispute resolution. The judge will first try to mediate. If you settle, the court issues a judgment upon compromise, which is immediately final and enforceable.
If no settlement: The judge proceeds to a simplified, informal trial. Bring originals of your key documents; use clear, short testimony.
- Evidence rules are relaxed. Affidavits and documents (including printouts/screenshots) are commonly received, subject to basic authenticity.
- Lawyers do not argue for you. Prepare to explain your claim in your own words.
Judgment. The court aims to render judgment on the same day or very shortly after.
- No appeal. Small-claims judgments are final and unappealable. The usual remedy for jurisdictional errors is a petition for certiorari (Rule 65) on grave abuse of discretion, which is exceptional.

8) Winning is half the battle: collecting your money

If the defendant doesn’t pay voluntarily:

File a Motion for Execution (there’s a form for this). The court issues a Writ of Execution.
The sheriff can:
- Garnish bank/e-wallet accounts and receivables (provide bank names, account identifiers if you know them, employer/payor info).
- Levy personal property (vehicles, equipment) or, in proper cases, real property.
You may recover 6% interest until full payment and certain sheriff’s fees/costs.

Practical tip: At filing, already list any known assets, banks, payment channels, or employers of the defendant to speed up execution if you win.

9) Special scenarios (non-delivery after payment)

Online platforms & marketplaces. Your primary defendant is usually the seller/service provider who took (or benefited from) your payment. Platforms often act as intermediaries; review terms of service to see if they hold funds (escrow) or assume liability. If the platform actually received your payment and controls release, consider including it—with a clear theory (e.g., unjust enrichment or contractual obligation)—provided your claim remains within the cap.
Seller has no fixed address / evasive. Provide all possible addresses (residential, workplace, pickup point, registered business address, platform KYC data, email, mobile). Ask the court to allow alternative/electronic service if permissible under the latest small-claims and electronic service rules.
Multiple payers/claimants. If several buyers were scammed by the same seller, each can file separately; joinder may be possible if the claims arise from the same transaction/series and the combined amount stays within limits, but keep cases simple to avoid delay.
Criminal angle (estafa/fraud). You may file a criminal complaint (separate from small claims). The civil aspect (refund) can be pursued in either venue, but do not double-recover. Most consumers choose small claims for speed when the goal is refund.

10) Common pitfalls—and how to avoid them

Claiming the wrong relief. Don’t ask the court to compel delivery—stick to money (refund + interest + liquidated damages, if any).
Exceeding the cap. If your total exceeds the cap, consider waiving the excess (state this in the Statement of Claim) or file a regular civil action instead.
Poor venue choice. Pick a venue with a clear nexus (your residence, defendant’s residence, or place of transaction/delivery).
Missing or messy evidence. Label exhibits; ensure screenshots show dates, amounts, and identities; attach proof of sending for your demand letter.
Not bringing originals. Have originals on hearing day for authentication, if available.
No execution plan. Identify assets early (banks, employers, platforms used).

11) Step-by-step checklist (print this)

Assemble evidence (contract/offer, proof of payment, chats/emails, tracking pages).
Send a demand letter (give a reasonable deadline; keep proof of service).
Compute your claim (principal + allowable interest + any liquidated damages), confirm it’s within the current cap.
Choose venue (your residence, defendant’s residence, or place of transaction/delivery).
Fill out forms (Statement of Claim + Verification; witness affidavits; SPA/board resolution if needed).
File and pay fees (or apply as an indigent litigant).
Monitor service of summons (give complete contacts/addresses).
Prepare for the hearing (bring originals; outline a 5-minute narrative of your case).
Attend mediation and trial (be concise; stick to documents).
If you win, move for execution if payment isn’t immediate.

12) Frequently asked questions

Q: Can I include moral and exemplary damages? Small claims focus on liquidated, readily determinable sums. Courts tend to exclude speculative or unliquidated damages; keep your prayer tight (refund + lawful interest + contractual liquidated damages + costs).

Q: Can I hire a lawyer to appear for me? As a rule, no. Lawyers may advise you and help draft your papers, but cannot appear as counsel in small claims. Parties (or authorized non-lawyer representatives for entities) personally appear.

Q: What if the seller is abroad? If the seller has assets, agents, or operations in the Philippines—or transacted through a local arm—you might still proceed. Otherwise, service of summons and execution can be challenging. Consider platform remedies, DTI consumer mediation, or chargeback with your bank while evaluating suit viability.

Q: Can the court hold the hearing online? Videoconference may be allowed subject to the court’s directives and the latest guidelines. Ask the clerk when you receive the notice of hearing.

Q: Is appeal available if I lose? Small-claims judgments are final. Only in exceptional cases can you pursue a Rule 65 petition (not a second bite on the merits).

13) Model demand letter (short form)

Subject: Demand for Refund Due to Non-Delivery [Date]

[Seller/Provider Name] [Address / Email / Mobile]

I paid ₱[amount] on [date] for [item/service] under [order no./agreement], with delivery/performance due on [date]. Despite follow-ups, delivery/performance has not occurred.

I hereby rescind the transaction and demand a full refund of ₱[amount] within [7/10] calendar days from receipt of this letter, plus legal interest of 6% per annum from demand until full payment.

If you fail to comply, I will file a small claims case without further notice and seek costs.

Sincerely, [Your name, address, contact details]

14) Filing day packing list

Government ID; copies of your pleadings and exhibits (at least 3 sets: for court, defendant, and you).
Originals of key documents.
Calculator and a simple interest computation sheet.
Notes: chronology of facts; bullet-point answers to likely questions (“What exactly did you pay, when, to whom, and what was promised?”).

15) Final reminders

Keep your story short and document-anchored. Judges appreciate clarity.
Be civil at mediation; many cases settle with a pay plan.
If you obtain judgment, act quickly to execute while the defendant still has assets.
Always verify the current small-claims cap and forms with the clerk of court on the day you file, as procedural thresholds and templates can change.

If you want, tell me your facts (amount paid, dates, what was promised, what proof you have), and I’ll draft a tight Statement of Claim outline you can paste into the court form.