Rule of Procedure for Small Claims Cases

Prepared by:
ATTY. JOEL PASION DADIS Click to
3rd F, Boy Construction Bldg., Brgy. 2 edit Master subtitle style San Nicolas, Ilocos Norte

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Background

Before Rule on Small Money Claims -Revised Rules on Summary Procedure Small Claims Rule- A.M. No. 08-87-SC (October 27, 2009) * Judicial innovation

Amended

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Salient Features
Special procedure where money claims for P 100,000.00 or less. The process is expeditious and inexpensive: a. Indiscriminate postponements are not allowed (permitted only by reason of substantiated physical inability but only once) b. Appearance of lawyers is not allowed unless the attorney is the plaintiff or defendant.

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Salient Features
c. hearing is informal and in an expeditious manner d. terminated within one (1) day e. decision rendered on the same day f. decision shall be final and unappealable.

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Salient Features
Prohibited (a) (b) (c) (d) (e)

Pleadings Motion to dismiss the complaint; Motion for a bill of particulars; Motion for new trial, or for reconsideration of a judgment, or for reopening of trial; Petition for relief from judgment; Motion for extension of time to file pleadings, affidavits, or any other paper;

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Salient Features
(f) Memoranda (g) Petition for certiorari, mandamus, or prohibition against any interlocutory order issued by the court; (h) Motion to declare the defendant in default; (i) Dilatory motions for postponement; (j) Reply; (k) Third-party complaints; and (l) Interventions.

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Scope & Applicability

Kind

of Claim: only for payment of money

Covered

Amount: not more than P 100, 000 exclusive of interest and costs.

Note: Two or more claims may be joined in a single complaint against the same defendant provided the total amount of claims does not exceed P 100, 000 exclusive of interest and costs. (waive the excess of the jurisdictional
amount)
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Scope & Applicability

Nature

of Claim

1.

purely civil case for payment or reimbursement of sum of money civil aspect of criminal actions

1.

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Scope & Applicability

Bases

of Claim:

(a) Money owed by reason of: 1. 2. 3. 4. 5. Contract of Lease; Contract of Loan; Contract of Services; Contract of Sale; or Contract of Mortgage.

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Scope & Applicability

(b) Damages arising from: 1. Fault or negligence; 2. Quasi-contract; or 3. Contract; (c) Enforcement of a barangay amicable settlement or an arbitration award involving a money claim.

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Steps Before Filing

Prepare

and compile all relevant documents Evidence of claim (e.g. written contract; promissory note; acknowledgment receipts; checks; sworn statements of witnesses) Evidence of compliance of condition precedents: ( e.g. latest demand letter with proof of service & receipt; brgy. certificate to file action;
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1.

1.

Steps Before Filing

3. Evidence of Authority to Represent (e.g. SPA with full authority to enter into amicable settlement & make stipulations of facts and documents;BoardResolution/Secretarys Certificate if representing a juridical person)

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Steps Before Filing

Prepare a. b. c. d.

the Statement of Claim Accomplish Form 1-SCC If filed by a representative, complaint must be in the name of the principal Have it notarized Attach all relevant documents otherwise the same will not be admitted by the court unless there is good cause.

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GENERAL PROCEDURE
1.

Commencement the verified Statement of Claim with complete attachments (in duplicate copies; certified photocopies)

.File

Note: Verification & certification must be signed by the party himself/itself or the representative depending upon the extent of authority.
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GENERAL PROCEDURE
Jurisdiction: Venue:

MTC/MTCC

(a) Individual plaintiff: Place of residence of the plaintiff or defendant; (b) Juridical plaintiff: Principal place of business of the plaintiff or defendant

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GENERAL PROCEDURE
Payment

of Filing and Docket Fees unless exempted upon proof that plaintiff is indigent.

(mandatory fee: P1,000.00 for service of summons and processes)

2. Preliminary Examination by the Court If ground/s exist from a facial examinationoutright dismissal (without prejudice) If no ground- Court shall issue: 4/18/12 (a) Summons directing the defendant to

GENERAL PROCEDURE
3. Defendants Verified Response with supporting evidences (exclusionary rule applies) file & furnish the plaintiff within a non-extendible period of 10 days from receipt of summons Grounds for motion to dismiss should be pleaded

(Note: Motion to Dismiss is not allowed)

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GENERAL PROCEDURE
of defendant to timely file & serve a valid response AND to appear during the hearing: decision will be rendered on the same day as supported by facts. timely & valid response BUT defendant appears in the hearing: proceedings will continue as if a response was filed.
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Failure

No

GENERAL PROCEDURE
counter-claims: All existing counter-claims must be pleaded in the response otherwise barred except permissive counter-claim. Covered Counter-claims: (a) within the jurisdictional nature & amount ; (b) arises out of the same transaction or event that is the subject matter of the plaintiffs claim; (c) does not require for its adjudication the joinder of third parties; and (d) not the subject of another pending action.
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Defendants

GENERAL PROCEDURE
4. Hearing Appearance of parties/representatives Rules: a. No appearance by representative except for a valid cause & with a FULL written authority. (make authority transferrable) b. Individual party must be represented by a relative or next of kin. c. Juridical entities shall not be represented by a lawyer IN ANY CAPACITY . d. Unless he is a principal party, a lawyer is not allowed to appear. 4/18/12

GENERAL PROCEDURE
Effects of Non-Appearance of Parties is unjustifiably absent: a. cause for the dismissal of the claim without prejudice. b. permissive counterclaim of the defendant may be granted if substantiated.
Defendant a. b. Plaintiff

is unjustifiably absent: plaintiffs claim may be granted if substantiated but limited to the prayer all counter-claims of the defendant are 4/18/12

GENERAL PROCEDURE
Effects of Non-Appearance of Parties
(Note: if there 2 or more defendants sued for common cause of action and have pleaded a common defense, appearance of any of them benefits the non-appearing defendant)

Both parties are unjustifiably absent: dismissal with prejudice of both the claim and counterclaim.

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GENERAL PROCEDURE
Courts a. b.

c. d.

efforts for a settlement. judge shall exert efforts to bring the parties to an amicable settlement of their dispute. Any amicable settlement/ resolution must be in writing & submitted to court for approval. Settlement discussions shall be strictly confidential. any reference to any settlement made in the course of such discussions shall be punishable by contempt.
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GENERAL PROCEDURE
Failure

of Settlement

a. b. c.

hearing shall proceed informal and expeditious manner terminated within one (1) day.

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GENERAL PROCEDURE
5. Decision a. After hearing, court shall render its decision on the same day, based on the facts established by the evidence b. immediately be entered by the Clerk of Court in the court docket for civil cases c. a copy thereof forthwith served on the parties. d. Decision is final & unappealable

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THANK YOU!!!

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