SC revises rules for small claims courts

MANILA, Philippines – The Supreme Court (SC) has raised the amount of claims that fall within the jurisdiction of small claims courts from P100,000 to P200,000 effective Feb. 1 next year.

This is based on the ruling of the SC en banc in its Dec. 8 promulgation on the revised rules of procedure for small claims cases that would take effect on Feb. 1 next year.

It increased from P100,000 to P200,000, exclusive of interest and costs, the amount or value of the claim falling within the jurisdiction of small claims courts.

All first-level courts, except for Shari’a courts, are small claims courts. These include the Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts. 

The revised rules’ section on applicability provides that the claim or demand may be, among others, for money owed under a contract of lease, contract of loan, contract of services, contract of sale or contract of mortgage, as well as the enforcement of a barangay amicable settlement or an arbitration award involving a money claim.

It also stated that the claim or demand might be “for liquidated damages arising from contracts.” 

In the original rules, it was not specified whether the damages are liquidated or unliquidated. It merely generally stated that the claims may be for damages arising from fault or negligence, quasi-contract or contract.

The revised rules were promulgated “to protect and advance the constitutional rights of persons to a speedy disposition of their cases, provide a simplified and inexpensive procedure for the disposition of small claims cases, and, introduce innovations and best practice for the benefit of the underprivileged.”

The small claims project empowers ordinary Filipinos to litigate on their own money claims of P200,000 or less by providing them an inexpensive, informal, and simple procedure. 

The procedure for small claims cases relaxes or dispenses with ordinary rules of civil procedure and evidence such as strict pleading requirements and formal discovery measures. Disputes are resolved quickly and inexpensively as small claims courts are tasked to decide cases only at the first hearing.         

The full text of the revised rules may be viewed by logging on to the SC’s website, sc.judiciary.gov.ph.