Small Claims Court a.k.a. People's Courts (Part 2)

CEBU CITY, Philippines - Last December 10, 2010, the Small Claims Court Technical Working Group (SCC-TWG) in cooperation with the American Bar Association-Rule of Law Inc (ABA-ROLI) conducted a public information drive on the salient features of the rule of procedure for the small claims under A.M no. 08-8-7-SC. It was held in Marco Polo Hotel and all of the speakers namely: Hon. Maria Filomena D. Singh, Presiding Judge, Quezon City RTC branch 85 who is also a member of the Small Claims Court, Technical Working Group (TWG); Hon. Geraldine Faith Econg, Judicial Reform Program Administrator; Atty. Jack Andrew O Miranda, Operations Director of American Bar Association (ABA)-ROLI; and Atty Thelma C. Bahia, Assistant Court Administrator and Vice-Chair of SCC-TWG gave a very brief but concise presentation. The open forum was equally interactive and informative.

There were eight (8) salient features that were highlighted namely:

(1) The SCC is simple, inexpensive and expeditious for money claims amounting to Php 100,000.00 and below excluding interest, attorney's fees and costs (Sections 2, 4, 6).

(2) There are now more Pilot Courts. First Level Courts at place of residence of plaintiff or defendant, at plaintiff's option (Sections 4, 25 cf. ROC).

(3) No lawyers. It was said that “no attorney shall appear in behalf of or represent a party at the hearing, unless the attorney is the plaintiff or defendant.” (Sections 17, 16) – cannot sign the pleadings/motions. However, lawyers may still participate with the following: (1) to give legal advice; (2) to prepare pleadings, motions, evidence, etc.; (3) to notarize.

(4) There are now more Information Officers. Clerks of Courts have been designated as “Information Officers” to provide assistance to litigants about the Rule and available forms. (Section 15).

(5) Forms are free. All forms are ready-made and free at the COC (Section 15). The COC is also authorized to notarize, as necessary, for free. The forms may be used themselves or only as a guide to prepare more detailed pleadings/motions.

(6) One day hearing and judgment. On the day of hearing, the Small Claims Court must render judgment, either on the merits or based on the parties' agreement. (Section 23).

(7) Judicial Dispute Resolution (JDR). At the hearing, the court will first try to mediate between the parties. If judicial mediation succeeds, a judgment based on the parties' agreement will issue. If it fails, a judgment on the merits must be rendered. (Sections 21, 22, 23). Also, judgment is final and unappealable. The decision in Small Claims Cases is final and not subject to appeal (Section 23). It is immediately executory upon motion (Section 24). The remedy of the losing party is a petition for certiorari for grave abuse of discretion (Rule 65, ROC).

(8) As a general rule, no postponement. However, there are exceptions, such as: physical inability (1) request for postponement; (2) proof of physical inability; (3) not later than date and time of hearing; (4) only one postponement per party (Section 19). (to be continued)

For comments, rejoinders and questions on credit and collection matters, send email to [email protected]. (FREEMAN)