SMALL CLAIMS COURT PROCEDURE IN THE PHILIPPINES (Updated to the 2022 amendments to A.M. No. 08-8-7-SC)
1. Statutory & Regulatory Foundations
| Instrument | Key Features | Effectivity |
|---|---|---|
| A.M. No. 08-8-7-SC (Original, 2008) | Creates the “Rule of Procedure for Small Claims Cases.” Monetary ceiling ₱100 000; simplified, lawyer-free process. | 15 Oct 2008 |
| 2015 Revised Rules | -–– | 01 Apr 2016 |
| 2016 Amendment | Ceiling doubled to ₱200 000; expanded causes of action. | 01 Feb 2016 |
| 2018 Revised Rules | One consolidated form; mandatory referral to mediation deleted to save time; decision due within 24 h of hearing. | 01 Sep 2018 |
| 2020 Interim Guidelines (pandemic) | e-Filing & videoconference hearings allowed. | 05 May 2020 |
| 2022 Amendment | Ceiling raised to ₱400 000 nationwide; clarified representation rules; allows filing where either party resides or transacts. | 11 Apr 2022 |
Hierarchy – The Rule supplements, and in case of conflict overrides, the regular Rules of Court for cases within its scope (Rule 1 §2, A.M. No. 08-8-7-SC).
2. Concept & Policy Goals
- Access to justice – Eliminates most technical pleadings, liberates parties from attorney’s fees, and requires resolution within weeks.
- Decongestion – Diverts low-value money disputes away from first-level courts’ regular docket.
- Speed – A single‐day hearing; judgment due 24 hours after submission for decision; finality typically within 15 days.
3. Jurisdiction & Covered Claims
| Criterion | Rule |
|---|---|
| Nature | Purely money claims – liquidated damages arising from contract, deeds, loans, services rendered, purchase price, rentals, deposit, reimbursement, or enforcement of a barangay settlement. |
| Ceiling (principal + interest + penalties) | ₱400 000 or below at filing date (2022 rule). |
| Multiple claims | May be aggregated only when based on the same transaction or series of transactions; otherwise each claim must independently satisfy the ceiling. |
| Exclusions | Moral, exemplary or damages for defamation, possession or ownership of real property, annulment of contract, intra-corporate disputes, labor matters, probate, family law, criminal liability. |
4. Who May Sue & Be Sued
| Party Type | Appearance |
|---|---|
| Natural person | Must appear personally; lawyers may not represent nor assist inside the courtroom, except if the party-litigant is himself/herself a lawyer. |
| Juridical person (corporation, partnership, coop) | Must authorize one natural-person representative by board resolution or secretary’s certificate; representative appears personally. |
| Government or GOCC | Not covered – controversies where the government is a party are excluded from small claims. |
5. Venue
The plaintiff has the option to file in the first-level court (Municipal or Metropolitan Trial Court) of:
- His or her residence, OR
- Defendant’s residence, OR
- Where the cause of action arose (new in 2022).
Barangay venue: If parties reside in the same city/municipality and are not otherwise exempt (e.g., corporations), prior barangay conciliation is mandatory and the Certification to File Action must be attached (§19, Katarungang Pambarangay Law).
6. Pleadings & Forms (Everything is Pre-Printed)
| Document | No. of Pages | Contents |
|---|---|---|
| Statement of Claim (SC) | 4 | Names, addresses, concise narration, amount, computation, certification of non-forum shopping. |
| Verification/Certification | – | Sworn before court personnel or notary—free of charge inside court. |
| Response | 2 | Defendant’s defenses, admissions, counterclaim (if any, must also be ≤ ₱400 000). |
| Notice of Hearing | Auto-issued with summons by the court clerk upon docketing. |
Attachments: documentary evidence (contracts, receipts, promissory notes, demand letters) must be originals or certified true copies, plus IDs of parties and barangay certification, if required.
7. Fees & Costs (as of 2025)
| Bracket (Claim) | Docket Fee | Summons & Service | Mediation Fee |
|---|---|---|---|
| Up to ₱20 000 | ₱1 000 | ₱300 | None (mediation abolished in 2018 rule) |
| ₱20 001 – ₱100 000 | ₱2 500 | “ | – |
| ₱100 001 – ₱200 000 | ₱5 000 | “ | – |
| ₱200 001 – ₱400 000 | ₱7 500 | “ | – |
Indigent litigants (monthly income ≤ double the minimum wage and no property worth > ₱300 000) may file pauper litigant motion; docket fees are deferred and, if they lose, adjudged as costs.
8. Timeline At-a-Glance
| Day | Responsible Party | Action |
|---|---|---|
| 0 | Plaintiff | Files SC; pays fees. |
| 0–1 | Clerk | Issues Summons & Notice of Hearing (usually 30 days from filing). |
| 5 | Sheriff/Process Server | Completes service on defendant. |
| 15 | Defendant | Files Response (no counter-motion to dismiss allowed). |
| Hearing Day (set within 30 days) | Judge | One-day, face-to-face hearing: (1) explore compromise, (2) receive evidence, (3) render judgment within 24 h. |
| +0–15 days | Losing party | Must comply or pay; judgment becomes final & executory after 15 days if unsatisfied. |
| Upon motion | Winning party | May obtain Writ of Execution; sheriff enforces (garnishment, levy, bank freeze). |
9. Hearing Mechanics
Call of the case / Appearance Check
- Non-appearance of plaintiff: dismissal without prejudice.
- Non-appearance of defendant but duly served: court may render judgment on the pleadings.
- Both absent: dismissal with prejudice.
Pre-trial Settlement (now informal; mediation centers no longer mandatory). Judge explores compromise; if successful, judgment on compromise is immediately issued.
Presentation of Evidence
- Documentary: marked, identified, admitted in minutes.
- Testimonial: usually limited to direct narration; cross-examination strictly on factual matters.
- Affidavits are acceptable in lieu of live testimony if parties stipulate.
Decision
- Form: “Decision” or “Judgment” with dispositive portion.
- Content: brief statement of facts, issues, ruling, amount due, costs, interest, and enforcement directive.
- Service: personally or by registered mail/email within 24 h.
10. Appeal & Review
| Remedy | Availability |
|---|---|
| Ordinary appeal (Rules 40/41) | Not available. Judgment is final, executory, and unappealable. |
| Petition for certiorari (Rule 65) | Technically available but only for grave abuse of discretion amounting to lack or excess of jurisdiction; rarely entertained. |
| Motion for Reconsideration | Prohibited. |
| Relief from judgment (Rule 38) | Possible, but only on the limited grounds (fraud, accident, mistake, excusable negligence) and filed within 60 days of learning and 6 months from entry. |
11. Prohibited Pleadings & Motions
- Motion to Dismiss (except on lack of jurisdiction over the subject matter)
- Motion for Bill of Particulars
- Motion for New Trial / Reconsideration / Re-opening of Trial
- Petition for Relief from Judgment (unless per Rule 38 as above)
- Appeal / Certiorari / Mandamus (except Rule 65 for grave abuse)
- Third-party Complaints, Interventions, Memoranda
12. Execution of Judgment
- Voluntary compliance – debtor pays directly to creditor or deposits with court.
- Motion for Execution – granted as a matter of right once judgment is final.
- Sheriff’s Steps – demand for immediate payment; if unpaid, levy on personal then real property; garnishment of bank deposits; employer wage garnishment.
- Exempt property – Art. 155 Civil Code applies (basic dwelling, clothing, tools of trade, etc.).
- Satisfaction – partial or full; sheriff files return; court issues order of satisfaction.
13. Special Notes & Tips
| Topic | Practical Point |
|---|---|
| Prescription | Filing the SC interrupts prescription under Art. 1155 Civil Code. |
| Interest computation | If silent, courts apply 12 % p.a. for loans/forbearance prior to 01 Jul 2013; thereafter 6 % p.a. (Nacar v. Gallery Frames, G.R. 189871, 13 Aug 2013). |
| Splitting | A creditor may not split a P600 000 claim into two P300 000 SC cases; that is forum shopping and will be dismissed with prejudice. |
| Settlement | Any time before entry of judgment, parties may submit a Compromise Agreement; court approves and that becomes enforceable. |
| Corporate claimants | Must attach original or certified true copies of the following: SEC registration, latest General Information Sheet, board resolution authorizing representative. |
| Electronic Service | 2020 guidelines allow service by email/Viber; party must give express consent in SC form. |
| Language | Pleadings may be in English or Filipino; judges commonly allow annexes in vernacular provided accompanied by unsworn translation. |
14. Frequently Asked Questions
- Can I hire a lawyer for advice? – Yes, outside court. Inside the hearing, counsel cannot actively participate unless the party is a lawyer himself/herself.
- What if the defendant files bankruptcy? – Claim becomes a “small claim” not preferred in insolvency proceedings; creditor must file with the insolvency court.
- Are online lending apps covered? – Yes, provided the principal, interest, and charges aggregate ≤ ₱400 000 and the contract is proven (often via screenshots + app terms).
- Can OFWs sue while abroad? – Yes, through a duly-authorized attorney-in-fact with SPA executed before Philippine consulate.
- Is garnishment of SSS/GSIS benefits allowed? – No; Republic Act 8291 §39 and SSS Law exempt pensions from execution.
15. Model Litigation Checklist (Plaintiff)
- Gather Evidence – contract, promissory notes, invoices, delivery receipts, demand letter, proof of mailing.
- Demand Letter – give at least 10 days to pay; helps establish default & interest.
- Barangay Proceedings – if required, secure Certification to File Action.
- Fill out SC Form – double-check arithmetic; include email/phone.
- Notarize or Court-verify – free before the clerk of court.
- Pay Docket Fee – keep official receipt.
- Track Service – ensure sheriff actually served; follow up if returned unserved.
- Prepare for Hearing – bring originals, three photocopies, witness (if any), and a concise script (5-minute narrative).
- Comply with Judgment – if you lose, pay promptly to avoid execution.
16. Impact & Statistics
- Disposition Speed: Supreme Court monitoring reports (2019) show 92 % of small claims are disposed within 90 days from filing.
- Settlement Rate: Around 30 % end in voluntary compromise at the single-day hearing.
- Court Congestion: Pilot courts reported a 45 % reduction in civil docket backlog within three years of adopting the rule.
(While formal nationwide data for 2023-2024 are not yet published, anecdotal reports from Metro Manila MeTCs indicate continued high clearance rates even with the ₱400 000 threshold.)
Conclusion
The Philippine Small Claims procedure offers the fastest, least-costly judicial remedy for ordinary money claims. By abolishing most pleadings, dispensing with lawyers inside the courtroom, and mandating a same-day hearing capped by a 24-hour decision, the rule gives individual creditors, micro-entrepreneurs, and consumers a realistic path to collect debts without being priced out of justice. Mastery of the straightforward filing requirements—and strict compliance with the tight timelines—is all that stands between an aggrieved party and an immediately enforceable judgment.