What To Do With Small Claims?

What if you lent somebody P10,000.00 and that somebody refuse to pay you? Will
you hire a lawyer to collect the amount? Chances are, you will hesitate to seek the
services of a lawyer since it would be impractical to pay him more than what you
seek to collect. How do you then collect the money?

Our Supreme Court provided a remedy for small claims cases so that you can
enforce your claim expeditiously and economically without having to resort to a
lawyer. A.M. No. 08-8-7-Sc, the Rule of Procedure For Small Claims Cases, as
amended, is the answer to your prayer. Its salient provisions are:

1. It covers cases for payment of money where the value of the claim does not
exceed P100,000.00 exclusive of costs and interests.
2. The case is cognizable by the Metropolitan Trial Courts, MTCCs, Municipal Trial
Courts, and Municipal Circuit Trial Courts.

3. It is applicable for civil actions only where the nature of the claim by the
plaintiff is solely for reimbursement of sum of money by virtue of contracts of
loan, lease, services, sale, or mortgage; the civil aspect of criminal actions; for
damages arising from fault, negligence, quasi-contract or contract; the
enforcement of a barangay amicable settlement or an arbitration award
involving a money claim.

4. The Rule also provides for the procedure of initiating, hearing and deciding
Small Claims cases, as follows:

a. Plaintiff shall file a Statement of Claim accompanied by Certificate of No Forum

Shopping, certified photocopies of the actionable document, and affidavits of the
witnesses to support the claim;
b. Pay the filing fees. If the plaintiff is an indigent, he shall file a motion to sue as an
indigent which shall be approved by the Executive Judge or the Presiding Judge. If
denied, he has five days within which to pay the filing fees;
c. The court shall determine if the case falls under the Small Claims Rule, and may
dismiss the case if it is shown that any of the ground for dismissal of civil action is
apparent on the Statement of Claim;
d. If no ground for dismissal exists, the Judge shall issue a Summons directing the
Defendant to submit a Verified Response within 10 days. The Response shall be
accompanied by certified copies of documents as well as affidavits of witnesses in
support thereof.
e. Failure to file a Response, as well as failure to appear during the date set for
hearing, shall entitle the Plaintiff to judgment. If no Response was filed but
Defendant appears during the hearing, the judge shall determine what defense he
has to offer and proceed to hear, mediate or adjudicate the case as if a Response
was filed.
f. Only the Statement of Claim and the Response are allowed as pleadings;
g. Lawyers for the parties may not appear, except if the attorney himself is the
plaintiff or defendant.
h. The failure of the Plaintiff to appear during the hearing shall be cause for
dismissal of the claim without prejudice. Failure of the defendant to appear shall
have the same effect as failure to file a Response.
i. Only one postponement for each party is allowed.
j. After the hearing, the judge shall render a decision based on facts established by
the evidence. The decision is final and unappealable.

At least now, you have a way of collecting unpaid loans without having to go
through an expensive and time-consuming litigation.