Small Claims Court in the Philippines: Filing Requirements, Fees, and Procedure

Introduction

The Small Claims Court system in the Philippines is designed to provide a speedy, inexpensive, and accessible means of resolving minor monetary disputes without the need for lawyers. Established under the Rules of Procedure for Small Claims Cases promulgated by the Supreme Court, this mechanism aims to decongest regular courts and promote access to justice for ordinary Filipinos. The system is governed primarily by A.M. No. 08-8-7-SC, as amended, which outlines the simplified procedures for claims involving money owed under contracts, loans, services, or damages, excluding interest, attorney's fees, litigation expenses, and costs.

The small claims process emphasizes informality, with hearings conducted in a non-adversarial manner. Parties represent themselves, and the judge actively facilitates resolution. This article comprehensively explores the filing requirements, fees, and procedure in the Philippine context, including jurisdictional limits, eligible cases, step-by-step processes, and related considerations.

Jurisdiction and Scope

Small Claims Courts have exclusive jurisdiction over civil actions where the claim for payment of money does not exceed PHP 400,000, exclusive of interest, damages of whatever kind, attorney's fees, litigation expenses, and costs. This threshold was increased from PHP 300,000 effective February 1, 2020, pursuant to Supreme Court Office of the Court Administrator (OCA) Circular No. 02-2020.

Courts with Jurisdiction

Metropolitan Trial Courts (MeTCs): In Metro Manila.
Municipal Trial Courts in Cities (MTCCs): In cities outside Metro Manila.
Municipal Trial Courts (MTCs): In municipalities.
Municipal Circuit Trial Courts (MCTCs): In circuits covering multiple municipalities.

These courts handle small claims as part of their regular docket but apply the specialized rules.

Eligible Cases

Small claims are limited to actions for the payment or reimbursement of money arising from:

Contracts of lease, loan, services, sale, or mortgage.
Enforcement of barangay amicable settlement agreements or arbitration awards involving money claims.
Damages arising from fault or negligence, quasi-contracts, or contracts.
Purely civil actions for money owed.

Excluded cases include:

Criminal actions.
Claims involving title to or possession of real property (e.g., ejectment cases, which fall under summary procedure).
Admiralty or marine cases.
Probate proceedings.
Actions for annulment of marriage or legal separation.
Cases requiring interpretation of tax laws or those under the jurisdiction of quasi-judicial bodies like the Housing and Land Use Regulatory Board (HLURB).

The claim must be for a liquidated amount (fixed and ascertainable). Unliquidated damages, such as those requiring evidence to determine the amount, are not covered.

Who Can File?

Natural persons (individuals) or juridical persons (corporations, partnerships) may file as plaintiffs.
Minors or incompetents must be represented by a guardian or next of kin.
No lawyer representation is allowed; parties must appear personally or through a duly authorized representative (e.g., for corporations, an officer with a board resolution).
Government entities may file, but indigent litigants can seek exemptions from fees.

The plaintiff must have a cause of action against the defendant, and the claim must not be barred by prescription (e.g., 10 years for written contracts, 6 years for oral contracts under the Civil Code).

Filing Requirements

To initiate a small claims case, the plaintiff must prepare and submit specific documents at the appropriate court. The process is straightforward to encourage self-representation.

Required Documents

Statement of Claim (Form 1-SCC): A verified form detailing the facts of the case, the amount claimed, and supporting evidence. It must be signed under oath before a notary public, judge, or authorized court personnel. The form is available for free at the court or downloadable from the Supreme Court website.
Certification of Non-Forum Shopping (included in Form 1-SCC): The plaintiff certifies that no similar action has been filed elsewhere.
Supporting Evidence:
- Contracts, receipts, promissory notes, or other documents proving the claim.
- Affidavits of witnesses (if any).
- Photographs or other tangible evidence.
- Two copies of all documents for the court and defendant.
Information for the Sheriff (Form 7-SCC): If execution of judgment is anticipated, details on the defendant's assets.
Proof of Demand: Evidence of a prior demand letter sent to the defendant, though not mandatory, it strengthens the case.

Where to File

The court with jurisdiction over the plaintiff's or defendant's residence, or where the contract was executed, or where the damage occurred (venue rules under the Rules of Court apply, but flexibility is allowed).
If the plaintiff is a non-resident, file where the defendant resides.

Additional Requirements

The claim must be filed within the prescriptive period.
Multiple claims against the same defendant can be joined if they arise from the same transaction and do not exceed the jurisdictional amount.
Counterclaims by the defendant are allowed if within the jurisdictional limit and arising from the same transaction; otherwise, they may be filed separately.
No formal pleadings beyond the Statement of Claim and Response are required.

Fees

The small claims system minimizes costs to make justice accessible. Fees are regulated by the Supreme Court and may be updated periodically.

Filing Fees

For claims up to PHP 400,000: A flat fee of PHP 1,000 to PHP 5,000, depending on the amount claimed and the court location. Specifically:
- Claims not exceeding PHP 20,000: PHP 500 to PHP 1,000.
- Claims from PHP 20,001 to PHP 100,000: PHP 1,000 to PHP 2,500.
- Claims from PHP 100,001 to PHP 400,000: PHP 2,500 to PHP 5,000.
These are docket fees paid upon filing.
No legal research fund fee, judiciary development fund fee, or mediation fee for small claims.

Other Fees

Service of Summons: PHP 500 to PHP 1,000, depending on distance.
Execution of Judgment: Sheriff's fees for enforcement, typically PHP 500 plus expenses.
Motion Fees: Generally none, as motions are prohibited except for dismissal or execution.
Indigent Litigants: Exempt from fees upon submission of a certificate of indigency from the barangay or DSWD, or an affidavit of assets and income.

Fees are paid in cash or via authorized channels at the court's cashier. Non-payment results in non-acceptance of the filing.

Procedure

The small claims procedure is expedited, aiming for resolution within 30 days from filing.

Step 1: Filing and Evaluation

Plaintiff files the Statement of Claim and pays fees.
The court evaluates if the case qualifies as small claims (within 5 days). If not, it may be referred to regular procedure or dismissed.
If accepted, the court issues a Summons (Form 2-SCC) and Notice of Hearing, served to the defendant via personal service or substituted service.

Step 2: Defendant's Response

Defendant has 10 days from receipt of summons to file a verified Response (Form 3-SCC), attaching evidence and any counterclaim.
Failure to respond leads to judgment based on the plaintiff's claim (default judgment).

Step 3: Judicial Dispute Resolution (JDR)

Before trial, the judge conducts JDR to encourage settlement. If successful, a compromise agreement is approved as judgment.
If no settlement, the case proceeds to hearing.

Step 4: Hearing

Conducted informally on the scheduled date (usually within 15-30 days from filing).
Parties present evidence and arguments without lawyers.
The judge asks questions, examines evidence, and may call witnesses.
No formal trial rules; cross-examination is limited.
Hearing concludes in one day unless postponed for valid reasons (postponements are discouraged).

Step 5: Decision

Judge renders decision on the same day or within 5 days.
Decision is final and executory; no appeal allowed, but a petition for certiorari may be filed with the Regional Trial Court for grave abuse of discretion.

Step 6: Execution

If defendant fails to comply, plaintiff files a Motion for Execution (Form 6-SCC).
Writ of Execution issues within 5 days, enforced by the sheriff (e.g., levy on property, garnishment).
Execution must occur within 180 days.

Prohibited Actions

No motions to dismiss (except for lack of jurisdiction), declare in default, or other dilatory motions.
No interventions or third-party complaints.
No discovery procedures.

Special Considerations

Barangay Conciliation

For claims not exceeding PHP 400,000 between residents of the same city/municipality, prior barangay conciliation is required under the Katarungang Pambarangay Law (RA 7160). Certificate to File Action must be attached to the Statement of Claim.

Electronic Filing and Hearing

In response to the COVID-19 pandemic, the Supreme Court allows electronic filing via email or designated platforms in pilot courts, and videoconference hearings under A.M. No. 21-07-23-SC.

Enforcement and Remedies

Judgments are immediately executory.
If new evidence emerges, a motion for new trial is not allowed; relief is through certiorari.
Violation of the rules may lead to administrative sanctions against court personnel.

Statistics and Impact

The system has resolved millions of cases since inception, reducing court backlog.
Common issues include loan defaults, unpaid services, and consumer disputes.

Amendments and Updates

The rules are subject to Supreme Court amendments; for instance, the 2016 revisions introduced forms and streamlined processes, while 2019-2020 updates raised jurisdictional amounts.

Conclusion

The Small Claims Court in the Philippines embodies the principle of speedy justice, making it an effective tool for resolving minor disputes. By adhering to the filing requirements, paying minimal fees, and following the streamlined procedure, litigants can achieve resolution without undue burden. For specific cases, consulting court personnel or the Integrated Bar of the Philippines for free legal advice is recommended, though representation is barred in proceedings. This system underscores the judiciary's commitment to inclusivity and efficiency in the Philippine legal landscape.