In the Philippines, the Small Claims Procedure is a simplified, inexpensive, and expeditious way to settle disputes involving a sum of money. This process is governed by the Revised Rules on Small Claims Cases, designed specifically to help individuals recover debts without the need for extensive legal knowledge or the high cost of a formal trial.

1. What is a Small Claims Case?

A small claims case is a civil action filed for the payment of money where the total claim does not exceed PHP 1,000,000.00 (exclusive of interest and costs). This procedure applies to all Metropolitan Trial Courts (MeTCs), Municipal Trial Courts in Cities (MTCCs), Municipal Trial Courts (MTCs), and Municipal Circuit Trial Courts (MCTCs).

Types of claims covered:

Money owed under a contract of lease, loan, services, sale, or mortgage.
Liquidated damages arising from contracts.
Enforcement of a check that was dishonored.
Claims based on quasi-contracts.

2. The "No Lawyer" Rule

One of the most distinct features of small claims is that lawyers are not allowed to represent any party in court. You must appear in person and represent yourself. While you may consult a lawyer to help prepare your documents, they cannot speak for you during the hearing. If you cannot represent yourself due to a valid reason (e.g., physical disability), you may appoint a non-lawyer representative through a Special Power of Attorney (SPA).

3. Step-by-Step Procedure

Step A: Mandatory Barangay Conciliation

Before filing in court, if the parties reside in the same city or municipality, you must generally undergo conciliation at the Barangay level. If no settlement is reached, the Lupong Tagapamayapa will issue a Certificate to File Action, which is a prerequisite for your court filing.

Step B: Preparing the Statement of Claim

You must fill out Form 1-SCC (Statement of Claim). This is a "pro-forma" document, meaning it is a "fill-in-the-blanks" form provided by the court. You must attach:

Verification and Certification of Non-Forum Shopping (included in the form).
Actionable Documents: Original or certified true copies of the promissory note, check, receipts, or any written agreement.
Affidavits of Witnesses: If you have witnesses, their sworn statements must be attached.

Step C: Filing and Payment of Fees

File your Statement of Claim (in triplicate) with the Clerk of Court of the MTC/MeTC where you or the defendant resides. You will be required to pay the filing fees. If you are an indigent or "pauper litigant," you may apply for an exemption from these fees, provided you meet the court's income requirements.

Step D: Issuance of Summons and Notice of Hearing

If the court finds your claim sufficient, it will issue a Summons to the defendant and a Notice of Hearing to both parties. This happens within 24 hours of filing.

Step E: The Defendant's Response

The defendant has ten (10) days from receipt of the summons to file a Response (Form 3-SCC). If the defendant fails to file a response or fails to appear at the hearing, the court may render judgment based on the facts alleged in your claim.

Step F: The Hearing and Judicial Dispute Resolution (JDR)

The hearing is usually scheduled within 30 days of filing. On the hearing day, the judge will first attempt to mediate between the parties (Judicial Dispute Resolution).

If a settlement is reached: The parties sign a Compromise Agreement, which the court approves. This has the force of a final judgment.
If no settlement is reached: The judge will proceed with a summary hearing. There is no formal cross-examination; the judge simply asks questions to clarify facts.

4. The Decision

The judge is required to render a decision within 24 hours after the hearing ends.

Important Note on Appeals: A decision in a small claims case is final, non-appealable, and immediately executory. This means you cannot appeal the decision to a higher court if you lose. The only remedy for a grave abuse of discretion is a Petition for Certiorari under Rule 65, which is a complex legal move.

5. Execution of Judgment

If you win and the defendant still refuses to pay, you must file a Motion for Execution. The court will then issue a Writ of Execution, empowering a sheriff to garnish the defendant's bank accounts or levy their personal properties to satisfy the debt.

Summary Table: Key Features

Feature	Description
Threshold	Up to PHP 1,000,000.00
Lawyers	Strictly prohibited from appearing/representing
Duration	Generally resolved in one hearing
Appeal	Not allowed; the decision is final
Forms	Pro-forma (standardized) forms are used