In the Philippine judicial system, the Rule on Expedited Procedures in First Level Courts (specifically the section on Small Claims) provides a fast, inexpensive, and informal way to settle money-related disputes. It is designed so that ordinary citizens can seek justice without the need for a lawyer.

What is a Small Claim?

A Small Claim is a civil action before the Metropolitan Trial Courts (MeTC), Municipal Trial Courts in Cities (MTCC), Municipal Trial Courts (MTC), or Municipal Circuit Trial Courts (MCTC).

The Threshold: As of the latest Supreme Court updates, the jurisdictional amount for small claims is up to ₱1,000,000.00 (exclusive of interests and costs).
Nature of the Claim: It must be solely for the payment or reimbursement of a sum of money. This includes:
Money owed under contracts of lease, loan, services, sale, or mortgage.
Liquidated damages arising from contracts.
Enforcement of a barangay amicable settlement or an arbitration award involving money.

Requirements for Filing

Before heading to court, ensure you meet the following criteria:

Natural or Juridical Person: Individuals (natural) or corporations/partnerships (juridical) can file.
No Lawyers Allowed: Attorneys are strictly prohibited from appearing at the hearing. You must represent yourself. If a corporation is involved, an authorized representative (via a Secretary's Certificate) who is not a lawyer must appear.
Certificate to File Action: If the dispute is between residents of the same city or municipality, you must first undergo Barangay Conciliation. If no settlement is reached, the Barangay Captain will issue a "Certificate to File Action."

Step-by-Step Filing Process

1. Preparation of Forms

Small claims use standardized forms to simplify the process. You do not need to draft a formal "Complaint." Instead, you fill out:

Form 1-SCC: Information and Verified Statement of Claim.
Form 1-A-SCC: Verification and Certification Against Forum Shopping.

2. Attachment of Evidence

You must attach all supporting documents to the Statement of Claim. This includes:

Contracts, receipts, or promissory notes.
Demand letters sent to the defendant.
Affidavits of witnesses (Form 1-B-SCC).

3. Filing and Payment of Fees

Submit the completed forms in triplicate to the Office of the Clerk of Court.

Filing Fees: These are generally lower than regular civil cases but vary based on the amount being claimed.
Indigent Litigants: If you can prove you have no sufficient income or property (through certificates from the DSWD or local assessor), you may be exempt from paying filing fees, though legal fees for the sheriff's trust fund may still apply.

4. Issuance of Summons and Notice

If the court finds the claim sufficient, it will issue a Summons to the defendant. The court will also issue a Notice of Hearing to both parties, directing them to appear on a specific date.

5. The Response (Verified Response)

The defendant must file a Verified Response (Form 3-SCC) within ten (10) days of receiving the summons. If the defendant fails to respond or appear, the court may render judgment based on the facts alleged in the claim.

6. The Hearing

The hearing is informal and conducted in one day.

Mediation: The judge will first try to convince both parties to reach a settlement.
Judicial Dispute Resolution (JDR): If mediation fails, the judge will proceed to hear the case in a summary manner.

Comparison: Small Claims vs. Regular Civil Cases

Feature	Small Claims	Regular Civil Case
Legal Representation	Prohibited	Required/Allowed
Evidence	Affidavits & Docs Only	Full Trial (Testimony/Cross-exam)
Decision Timeline	Within 24 hours of hearing	Months or Years
Appeals	Final and Unappealable	Appealable to higher courts

Key Takeaway: Finality of Judgment

One of the most critical aspects of Small Claims is that the decision of the court is final, executory, and unappealable. This ensures that the "small" amount of money involved isn't consumed by years of litigation costs. If you win, you can immediately move for a Writ of Execution to collect the amount.

Note: Frequent filers (those who file more than 10 small claims in a year) are charged an additional "prolific filer" fee to prevent the abuse of the system by collection agencies.

Would you like me to help you draft a sample Demand Letter, which is a prerequisite for filing a Small Claim?