Small Claims Courts in the Philippines
Small Claims Courts in the Philippines
Going to court for a small sum of money has just become cheaper and faster with the establishment of small claims courts. A simple procedure makes it easy for everyone.
According to former Court Administrator, now Supreme Court Associate Justice Jose P. Perez, 70% of cases before Metropolitan Trial Courts in Metro Manila are small claims (involving small amounts of money) and many of the litigants in these cases are poor. The same thing is true, if not more prevalent, in the provinces and rural areas of the Philippines.
To easily dispose of small claims, the Philippine Supreme Court promulgated the Rule of Procedure for Small Claims Cases , which will govern the litigation of claims for sums of money not exceeding 100,000 pesos (P100,000.00) and designated certain courts to handle such cases.
Cases Covered by Small Claims Courts
All claims for payments or reimbursements for a sum of money not exceeding P100,000.00 are now considered small claims and, therefore, may only be filed before Small Claims Courts (SCCs). The claim may arise from a variety of sources: unpaid loan, purchase price of a product or service, value of a stolen or damaged property, amount claimed as damages, etc. The amount limit does not include interests and costs. Thus, an indebtedness of P100,000.00 that earned an interest of P1,000.00 when due and incurred P200.00 as cost of collection - bringing a total of P101,200.00 - will still be within the jurisdiction of SCCs.
The rule did not create new courts but merely designated Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts (known as first-level courts because they are at the first and lowest level in a hierarchy of courts with increasing jurisdiction and powers and in the appeals process). Upon the effectivity of the rule on October 1, 2008, only 22 first-level courts were designated to act as SCCs throughout the country, but now all
Going to court for a small sum of money has just become cheaper and faster with the establishment of small claims courts. A simple procedure makes it easy for everyone.
According to former Court Administrator, now Supreme Court Associate Justice Jose P. Perez, 70% of cases before Metropolitan Trial Courts in Metro Manila are small claims (involving small amounts of money) and many of the litigants in these cases are poor. The same thing is true, if not more prevalent, in the provinces and rural areas of the Philippines.
To easily dispose of small claims, the Philippine Supreme Court promulgated the Rule of Procedure for Small Claims Cases , which will govern the litigation of claims for sums of money not exceeding 100,000 pesos (P100,000.00) and designated certain courts to handle such cases.
Cases Covered by Small Claims Courts
All claims for payments or reimbursements for a sum of money not exceeding P100,000.00 are now considered small claims and, therefore, may only be filed before Small Claims Courts (SCCs). The claim may arise from a variety of sources: unpaid loan, purchase price of a product or service, value of a stolen or damaged property, amount claimed as damages, etc. The amount limit does not include interests and costs. Thus, an indebtedness of P100,000.00 that earned an interest of P1,000.00 when due and incurred P200.00 as cost of collection - bringing a total of P101,200.00 - will still be within the jurisdiction of SCCs.
The rule did not create new courts but merely designated Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts (known as first-level courts because they are at the first and lowest level in a hierarchy of courts with increasing jurisdiction and powers and in the appeals process). Upon the effectivity of the rule on October 1, 2008, only 22 first-level courts were designated to act as SCCs throughout the country, but now all
References: Rule of Procedure on Small Claims Cases (A.M. No. 08-8-7-SC); Rules of Civil Procedure (Rules of Court); Local Government Code of 1991 (Republic Act No. 7160).