Small Claims Court Procedure in the Philippines
(All references are to Philippine law and Supreme Court issuances current to 25 May 2025, unless otherwise indicated.)
1. What is a “small claim”?
A small claim is a purely civil action for the payment or reimbursement of a sum of money not exceeding ₱1,000,000, exclusive of interest, damages, attorney’s fees and costs. It is heard by first-level courts (MeTC, MTCC, MTC or MCTC) under a simplified, lawyer-light process that aims to dispense justice in a single day of hearing. (Ocampo & Suralvo Law Offices, Respicio & Co.)
2. Legal framework and evolution
| Year | Key issuance | Ceiling (₱) | Salient change | Source |
|---|---|---|---|---|
| 2008 | A.M. No. 08-8-7-SC (pilot) | 100 000 | Introduced Small Claims Rules | (RESPICIO & CO.) |
| 2013 | 1st revision | 200 000 | Expanded forms; more pilot courts | (RESPICIO & CO.) |
| 2016 | 2nd revision | 300 000 | One-day-hearing rule codified | (RESPICIO & CO.) |
| 11 Apr 2022 | Rules on Expedited Procedures in the First Level Courts (consolidated Small Claims + Summary Procedure) | 1 000 000 | E-filing, video hearings, barangay conciliation tweaks | (Ocampo & Suralvo Law Offices) |
Why not ₱400 000? Some secondary sites still cite the 2022 stand-alone revision (₱400 000). That figure was overtaken when the Small Claims Rules were folded into the new Rules on Expedited Procedures on 11 April 2022, which raised the cap to ₱1 million nationwide. Always rely on the latest A.M. No. 08-8-7-SC text or OCA circulars. (Ocampo & Suralvo Law Offices, RESPICIO & CO.)
Related statute: Republic Act 11576 (2021) simultaneously expanded ordinary first-level civil jurisdiction to ₱2 million, paving the way for the Supreme Court to recalibrate small-claims and summary thresholds. (Lawphil)
3. Courts with jurisdiction
- Exclusive original jurisdiction: MeTC, MTCC, MTC, MCTC.
- Venue: At plaintiff’s option—(a) where the plaintiff resides, (b) where the defendant resides, or (c) where the defendant’s principal place of business is found, provided the defendant resides/does business in the Philippines. (RESPICIO & CO.)
4. Claims that qualify
- Unpaid loans, credit-card or digital-lending debts
- Unpaid rentals or services
- Money claims arising from the enforcement of contracts, including barangay amicable settlements and arbitration awards ≤ ₱1 M where execution lapsed for 6 months or more
- Damages strictly ancillary to the money claim (e.g., interest, penalties)—but the principal claim must be ≤ ₱1 M. (Ocampo & Suralvo Law Offices, Respicio & Co.)
5. Excluded matters
Ejectment (unless purely rent); actions involving title or possession of real property; specific performance; foreclosure; probate; marital, labor or administrative cases; criminal actions; and any claim over ₱1 M (unless the excess is expressly waived—which is then lost forever). Splitting a single cause of action into multiple small claims is barred. (Ocampo & Suralvo Law Offices, Respicio & Co.)
6. Pre-filing requirement: barangay conciliation
If the parties reside in the same city/municipality, the claimant must first secure a Certification to File Action from the Punong Barangay or Lupon unless the dispute falls under a statutory exception (government entities, PRC-licensed professionals on duty, etc.). (RESPICIO & CO.)
7. Step-by-step procedure
| Step | What happens | Time limit |
|---|---|---|
| 1 | File verified Statement of Claim (Form 1-SCC) + evidence + Certificate against Forum Shopping | Day 0 |
| 2 | Pay docket fees (see §8) or apply as indigent | Day 0 |
| 3 | Clerk dockets & raffles; judge issues Summons & Notice of Hearing | Within 24 h |
| 4 | Serve summons personally, by courier, e-mail or plaintiff-assisted service (if sheriff fails) | Varied |
| 5 | Defendant files Verified Response (Form 2-SCC) + counterclaim ≤ ₱1 M | Within 10 calendar days of receipt |
| 6 | One-day hearing: ½-day mediation, ½-day summary presentation of evidence | Within 30 days of filing (60 days if any defendant is outside the region) |
| 7 | Judgment rendered within 24 h after hearing; decision is final & unappealable | Same/next day |
| 8 | Execution on motion; writ issued within 5 days | Post-judgment |
| Citations: (Ocampo & Suralvo Law Offices, RESPICIO & CO., RESPICIO & CO.) |
8. Fees and costs (indicative schedule, 2025)
| Amount of claim | Docket fee |
|---|---|
| ≤ ₱ 20 000 | ₱ 1 000 |
| 20 001 – 100 000 | 2 000 |
| 100 001 – 200 000 | 2 500 |
| 200 001 – 300 000 | 3 000 |
| 300 001 – 1 000 000 | 4 000 + incremental OCA surcharges for 5th + filings |
| Add ₱ 500 (mediation fund) and ₱ 200 (ICT) per case. Indigents may proceed in forma pauperis. (RESPICIO & CO.) |
9. Representation
- Personal appearance is the norm; lawyer-appearance is barred unless (a) the lawyer is the party, (b) the party is a juridical entity that designates an employee-representative, or (c) the judge allows counsel for justice’s sake.
- Corporations file a Board Resolution or SPA naming their representative.
- Interpreters are provided free for indigent or non-Filipino/English speakers. (RESPICIO & CO.)
10. Rules on evidence & hearing
- Substantial evidence standard (lighter than “preponderance”).
- Formal rules of evidence are relaxed, but originals or certified copies must be produced; screenshots must be authenticated by affidavit.
- The judge may ask clarificatory questions; cross-examination is abbreviated. (RESPICIO & CO.)
11. Prohibited pleadings & motions
Motion to dismiss (except lack of jurisdiction), bill of particulars, new trial, reconsideration, extensions, discovery motions, third-party complaints, intervention, notices of appeal. These are summarily stricken to prevent delay. (Ocampo & Suralvo Law Offices)
12. Finality, remedies & execution
- The decision or approved compromise is immediately final, executory and unappealable.
- Only an extraordinary writ (Rule 65 certiorari) lies—and only on grave abuse of discretion.
- Execution follows Rule 39: levy on personalty, then realty; garnishment of bank accounts; post-judgment discovery. Instalment payments may be judicially approved. (Ocampo & Suralvo Law Offices)
13. Digital upgrades
- e-Filing & e-Payment via the Judiciary e-Payment System (GCash, PayMaya, cards).
- Routine video-conferencing for parties > 50 km apart or by agreement.
- Summons, orders and judgments may be served by e-mail or verified social-media account; decisions are digitally signed under the E-Commerce Act. (Ocampo & Suralvo Law Offices)
14. Interaction with other expedited procedures
- Civil claims > ₱1 M – ≤ ₱2 M now fall under Summary Procedure (likewise in the Rules on Expedited Procedures), not small claims.
- Beyond ₱2 M, the case must be filed as an ordinary civil action (often in the RTC under the amended B.P. 129 as revised by RA 11576). (Ocampo & Suralvo Law Offices, Lawphil)
15. Practical tips & common pitfalls
| Pitfall | What to do |
|---|---|
| Claim slightly over the cap | Waive the excess in the Statement of Claim—splitting is prohibited. |
| Wrong venue | Double-check addresses; attach barangay certificate of residency. |
| Incomplete attachments | Include demand letters, contracts, official receipts, valid IDs. |
| Sending a lawyer to the hearing | Unless you are the lawyer-party, the court will bar counsel. |
| Skipping barangay conciliation | Secure the Certification to File Action first, or show an exception. |
| Non-appearance | Plaintiff’s absence = dismissal; defendant’s absence = possible judgment. |
16. Frequently-asked questions
Can I add moral damages? Yes, provided the principal money claim + damages ≤ ₱1 M. (Respicio & Co.)
May the defendant counter-sue for ₱1.5 M? Only up to ₱1 M; any excess is deemed waived. (Ocampo & Suralvo Law Offices)
Is appeal ever possible? No ordinary appeal. Only a Rule 65 petition for certiorari—rare and strictly on jurisdictional error. (Ocampo & Suralvo Law Offices)
How long does a typical case last? Roughly 30–60 days from filing to judgment, versus years in ordinary civil suits. (Ocampo & Suralvo Law Offices, RESPICIO & CO.)
Future increases? The Supreme Court’s Sub-Committee has hinted at a ₱1.5 M–₱2 M cap once forms, e-systems and docket capacity stabilise (watch for fresh amendments in late 2025). (RESPICIO & CO.)
17. Key take-aways
- Know the cap: ₱1 M is the bright line; waive or file elsewhere.
- Use the forms: The Supreme Court-approved templates are mandatory.
- Come prepared: You get one hearing; bring originals, witnesses and ID.
- No delays, no appeals: Small claims trade technicalities for speed—embrace the finality.
- Leverage digital tools: e-Payments and video hearings now make provincial filing easier than ever.
Disclaimer: This article is for informational purposes only and is not legal advice. Always check the latest Supreme Court issuances or consult counsel for case-specific guidance.