Can small claims go beyond P100,000?

An avid reader of my column sent me an email inquiry regarding her predicament and to ask for my personal advice. This pertains to her delinquent account with a cooperative. I was told that her unpaid balance which I believe is already a delinquent account is now with the Small Claims Court. While this kind of story is not so much special to me as I have been receiving this kind of inquiries and/ or privy to more or less similar stories in the past, I am taking this opportunity of sharing her email and my answer to her so that it could also in a way help other readers who are in the same or similar situation. I believe that there are always lessons to be learned in experiences of others. Sort of warning of not committing the same mistake or if the situation is beyond one’s control, maybe an alternative decision could be made.

Of course, I took the liberty of editing her email and omitting some names and sensitive information as to protect one’s privacy as I always believe in confidentiality of information that are shared with me.

“Dear Ed Limtingco, I owe money from a Cooperative in the year 2004, worth 45,000. Through the years I paid 32,000 Php but I have failed paying because I was operated in my right breasts and our housing was also foreclose(d) so we need money to pay for the restructure of the amortization, in short I wasn’t able to continue paying. Now I’m being sued for small claim sum of money, the interest is very high plus the original amount loan PhP45,000 now it’s already PhP140,000. I got a summon from the court, we will meet in the court this coming Oct. 17, 2012. Please help me by giving me some sound advice. Can I pray to the judge since this is a small claim to lower down the 140,000, considering that I have made my payments but have just failed? Can small claim go beyond 100,000? What could be the right statement to tell the judge? Please help me.”                              As a backgrounder, the Small Claims Court (SCC) was rolled out sometime in 2010. As a matter of fact when I was still the Vice President/ Trustee of Cebu Chamber of Commerce and Industry (CCCI), I was one of those who were invited in the orientation and dialogue on Small Claims Court (SCC) in December 2010. The said SCC information drive was held in the beautiful Marco Polo Hotel. Some of the speakers were: 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 who gave a very brief but concise presentation on the salient features of the rule of procedure for the small claims under A.M no. 08-8-7-SC.

Now because of the establishment of small claims courts, going to court for a small sum of money has just become simple, inexpensive and expeditious. With its simple procedure, collecting delinquent accounts made it easy for everyone. Therefore, 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) and designated certain courts to handle such cases.

(to be continued)

Editor’s Note: For comments, rejoinders and questions related to credit & collection, Mr. Ed F. Limtingco can be reached at [email protected]