Small Claims Court COMPLETE Guide Philippines (DIY without a Lawyer and get your money back)

Vergel
August 23, 2022
Blog | Lawyer

Small Claims Court COMPLETE Guide Philippines (DIY without a Lawyer and get your money back)

A small claims court case is a court case you can do yourself so long as the amount you want to claim is Php 400,000 or less.

Some common situations are:

A contractor fails to complete a contract
Someone has loaned money from you and hasn’t paid
Where there is a loan, lease, or mortgage contract between you and someone else, and they haven’t paid
An amicable barangay agreement or arbitration award

For amounts of Php 400,000 and less, you can bring a small claims case to court yourself and get your money back – and you don’t need a lawyer to do it.

Why don’t I need a Lawyer for Small Claims actions?

A somber picture of a lawyer leaving court room for Small Claims Philippines. — This revision helps prevent clogging of the court’s docket.

A small claims action is specially designed to NOT need a lawyer (although guidance is recommended).

It has simplified rules to make it easier for a regular person to go to court and it has a streamlined process to speed things up.

It is the only type of case in the Philippines like this – and it’s the only one that you can do yourself.

A satisfied lender with the new revised procedure on Small Claims Philippines. — Such special case procedures is dropped by the heaven for the lenders.

Why?

The Supreme court made these special rules for 2 reasons:

To allow people who couldn’t afford a lawyer to still bring the case to court
To allow courts to speed up processing with simplified rules

For all other cases in the Philippines – please, get a lawyer.

For a small claims case – read on and we’ll help you do it yourself. 😊

Who can file a Small Claims case?

A lender holding his money retrieved after Small Claims Philippines case granted. — Lenders must follow court rules and procedures to possibly get their money back.

You can only file a small claims case if your case is eligible.

You are eligible if:

The amount you are trying to claim doesn’t exceed Php 400,00 excluding interest
You’ve already tried to claim the money yourself
You’ve gone through the Barangay*

Barangay town hall to make amicable settlements prior to Small Claims Court Rules. — An amicable settlement must be sought from the designated barangay prior to filing in court.

Yup, that’s right.

When you and the person who owes you, money lives in the same barangay, city or adjoining barangays, the barangay should be the first stop.

The court encourages people to go to the barangay first to try to help people avoid going to court.

How do I start a Small Claims case?

Prepare first all the necessary requirements before going to the first level courts for Small Claims Philippines. — Before moving on to the first-level courts, let’s do some groundwork.

You will need to file a small claims case with the first-level courts.

To do this, you will need to prepare some basic documents and strong evidence.

You will need the following documents:

Text messages from borrower used for Small Case Court Rules — Conversation chat screenshots are evidence that should be submitted as attachments to other documents.

Statement of Claim
Certification Against Forum Shopping, Splitting a Single Cause of Action, and Multiplicity of Suits
2 duly certified photocopies of the contract
Evidence such as Affidavits of witnesses, text messages, emails, and all other proof (More on this later, because this makes a case win or lose.)

What is a Statement of Claim?

A copy of a Statement of Claim submited for Small Claims Philippines. — Statement of Claim must be accomplished in multiple copies and everything must be originally signed!

We can help you fill-up the Statement of Claim with one of our lawyers.

A statement of claim needs the following information:

Your general and contact information
General and contact information of the person/s who loaned money from you
Information about the money owned, such as the amount, date, reason, any efforts you made to have the money paid back to you and the contract or proof that there is a loan.
Evidence* (I’ll take this up in a separate section since this is really important and you need to know this.)

A pile of evidence for Small Claims Court Rules. — In a fast trial like this, you have to give the best shot of your evidence to win the case.

Remember that your evidence has to be complete and truthful.

It’s very hard to add evidence after the case has been filed, so make sure that you’ve got all the evidence and the judicial affidavits ready.

The court can dismiss your case with prejudice – meaning you cannot file it again – if the evidence is lacking.

What is a Certification Against Forum Shopping?

Copy of Certification of Non-Forum shopping includes in the documents in filing Small Claims Philippines. — This certification must be duly notarized and is one of the mandatory requirements for small claims.

A Certification against Forum Shopping, splitting a Single Cause of Action, and a Multiplicity of Suits is a required certification.

This ensures that multiple cases cannot be filed against someone for the same reason.

This helps prevent clogging of the courts and to ensure that someone is only tried once.

Books on Revised Rules of Procedure for Small Claims Philippines cases. — Rules and regulations develop the bonds and structure of the game.

Specifically, it states:

That there is no other case for the same matter in any court currently existing and that the court is informed within 5 days if you do come to know of one.
That you haven’t filed more than 1 complaint against a defendant based on a single act or omission of the defendant
That you waive the right to file a criminal case for BP 22 based on the same matter

Be truthful on this – a case can be lost because this was inaccurate.

What is the evidence I need for Small Claims case?

A judge analyzing the evidence submitted for Small Claims Philippines. — In this type of case, the burden of proof lies on the claimant.

Aside from going to court, a lawyer’s job is to find evidence in your story and prepare it for court.

It is not easy to do.

You need to understand what the court considers the evidence.

Lender stating his claim to a lawyer for Small Claims Philippines. — Lawyers are not allowed to appear in small claims proceeding but they can help with the preparations of the documents.

You’ll need to prove each step of the chain.

You’ll need to organize and present it easily – a small claims case is a very small case to the court so they won’t spend a lot of time trying to understand you.

Instead, you have to give them an easy and clear story with strong proof.

Contract of house loan required in filing Small Claims Philippines. — One of the principal pieces of evidence to present during the hearing is the actual contract of loan signed by the claimant and the defendant.

For a small claims case, you’d need the following:

The contract of the loan, mortgage, sale, etc.

It should clearly state who the parties involved are
It should state the amount and what the obligations of the parties are
Signed and properly notarized documents are highly valued by the court
If you do not have this, present what you do have – but of course, the court may not look on it as favorably.

A person withdrawing money from an ATM — Official Receipt is the principal evidence that must be presented by the complainant

Proof that you sent money to them (and that they received it!)

Bank, GCash or Paymaya transfer showing that you sent them the money
If you gave it in cash, you’ll need a witness’ affidavit to prove the money was given.
Any proof showing that they received it – such as a text, email, message or other saying that they received the amount.

A lady texting with her phone — Demand to pay is a form of the due process showing due diligence in collecting and must be proven by presenting proofs

3. Proof that you asked them to pay the amount back.

Courts prefer you’ve made an effort to get your money back before going to court.
Any screenshot of a text, message, email or witness testimony showing you’ve tried to get them to pay the money. A judicial affidavit is needed when you have a witness.

Contract is a proof for the Small Claims Philippines. — Special claims require extraordinary proof.

4. Any proof that strengthens the case

Courts want you to prove the facts.
They highly value written documents, preferably notarized or apostilled (if abroad) and in some cases require them
The more high-quality evidence that you have the better

Judicial affidavits is a strong proof for Small Claims Philippines — Other proofs that show that the defendant is trying to evade the collection such as moving residence and changing identities can be added to the judicial affidavit as proof.

Your evidence has to be high quality.

The court wants to see contracts and judicial affidavits (Legal documents of a witness’s testimony that are notarized. Yes, doing it well usually needs a lawyer.)

It has to prove that there was an agreement, that money was sent and that the obligation was not fulfilled.

It also has to be organized – courts are busy and your small claims case is one of many.

A tapping gavel indicates judge's final decision for Small Claims Court Rules. — The new resolution aims to avoid traffic jams along the extra mile trying this case.

The judge wants to see strong evidence logically arranged.

The judge will usually make a decision for a small claims action on the day itself or within 24 hours.

If the evidence is not well made, a judge is not going to spend time trying to understand what happened or figure out your case.

If the evidence is excellent, a judge is going to understand your case better and hopefully grant it.

Note: Your evidence should be complete from the beginning because adding new evidence during trial is pretty difficult.

Where do I file a Small Claims case?

First level courts is where to file your Small Claims Philippines case. — File a small claims action in a court of appropriate jurisdiction to avoid dismissal.

If you are not in the business of loaning money, you would file at the first-level court in the city or municipality you live in.

Before filing a court, check first to see if you need to first try to resolve it at the barangay level.

Resolving it at the barangay level is necessary if you and the person who owes you money:

Live in the same city
Live in the same barangay or
Live in adjoining barangays.

Settlement at the Barangay level first before bringing Small Claims Court Rules in Courts. — The court also considers the exhaustion of efforts at the barangay level before they fully accept a court case.

If the barangay fails, then you file at the first-level courts that have jurisdiction over where you live.

First level courts are courts such as the Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts, and Municipal Circuit Trial Courts.

If you are in the business of loaning money, then you file at the first level courts where the person who owes you money lives.

How much is the Filing Fee for a Small Claims case?

500 peso bills to suffice the Small Claims Philippines. — You will have minimal costs but may need to have a generous budget for contingencies.

If you are in the business of lending, filing fees are:

Not more than P20,000.00 – PHP 300.00
P20,000.00 to P100,000.00 – PHP 1,000.00
P100,000.00 to P200,000.00 – PHP 2,500.00
P200,000.00 to P300,000.00 – PHP 3,500.00
P300,000.00 to P400,000.00 – PHP 5,000.00

Cost of additional charge in Small Claims Philippines Filing Fee. — The more small claims that are filed in a year, the higher the frequent filer surcharge.

If you are not in the business of lending, filing fees are Php 700. And, if you have filed small claims cases before, there are additional filing fees. These would be:

Php 500 if you’ve filed more than 5 cases in a year
Php 600 if you have filed more than 10 cases in a year
Php 700 if you have filed more than 15 cases in a year

Indigent citizens are qualified to avail free the Small Claims Philippines. — The judiciary recognizes the need to legally protect the poor by waiving filing fees to qualified citizens.

A filing fee can sometimes be waived if you are indigent.

A declaration that you are indigent is needed and then this would need to be granted by the Executive Judge.

There are other fees aside from filing fees:

Sherriff’s Trust Funds of Php 1,000.
Summons fees of Php 200
Legal Research fees of Php 10 minimum, but varies depending on the amount
Mediation Fund of Php 500
Victim’s Compensation Fund of Php 5

Filing Fee calculation of Php 20,000

Computation for the total Filing fee of Small Claims Amount — Payments must be made only on certain days, so it’s a good idea to tick the clock when paying your filing fee.

So, let’s do an example:

Say the amount involved is Php 20,000.

If you are engaged in the business of lending, the amount you would need to pay is Php 2,015 without an additional filing fee amount.

Filing Fee of Php 300
Sherriff’s Trust Funds of Php 1,000.
Summons fees of Php 200
Legal Research fees of Php 27
Mediation Fund of Php 500
Victim’s Compensation Fund of Php 5.

A regular employee calculating the Small Claims Philippines to file a case. — The purpose of the Judicial Reform Program is to better serve small-time lenders.

If you are not engaged in the business of lending, the amount you would need to pay is Php 2,415 with an additional filing fee amount as applicable.

Filing Fee of Php 700
Sherriff’s Trust Funds of Php 1,000.
Summons fees of Php 200
Legal Research fees of Php 27
Mediation Fund of Php 500
Victim’s Compensation Fund of Php 5

Filing Fee calculation of Php 200,000

Let’s increase the amount to Php 200,000.

Because filing fees and legal research funds increase when the amount increases, the amount you would pay increases if you are not in the business of lending.

Breakdown of claimant's total Small Claims Philippines Filing Fee. — There are four fixed fees that are required by the court to fund the conduct of small claims proceedings.

If your business is lending, the amount is Php 4,232 without an additional filing fee amount.

Filing Fee of Php 2,500
Sherriff’s Trust Funds of Php 1,000.
Summons fees of Php 200
Legal Research fees of Php 27
Mediation Fund of Php 500
Victim’s Compensation Fund of Php 5.

Accountant computing Bank's Small Claims Philippines Filing Fee. — If you are in the lending business, you need to clarify your true role in the business.

If you don’t lend as a business, the amount is reduced to Php 2,415 with an additional filing fee amount as applicable.

Filing Fee of Php 700
Sherriff’s Trust Funds of Php 1,000.
Summons fees of Php 200
Legal Research fees of Php 10
Mediation Fund of Php 500
Victim’s Compensation Fund of Php 5

What is the process for Filing a Small Claims case?

Forms submitted upon filing Small Claims Philippines. — The process is streamlined, but it requires your herculean effort for there’s a lot of coordination to do.

Filing a small claims case is fairly straightforward.

The process is this:

Create all the documents you need (yes, for this part it is really advisable to get a lawyer because if the claim is dismissed you cannot appeal it). These documents would be:

Statement of Claim
Certification Against Forum Shopping, Splitting a Single Cause of Action, and Multiplicity of Suits
Copies of the contract
Judicial Affidavits
Barangay Agreement or Amicable Settlement, if applicable

a lady justice symbolizing right judgement of evidence for Small Claims Court Rules. — Justice is based on how the factual summary supports your claims.

Your Statement of Claim should include all the proof and affidavits needed. It’s tough to add new evidence after it’s been filed.

File at court.
Court should serve a Summons, Notice of Hearing, blank Response Form, and a copy of all the documents you filed to the person who owes you money. If the court cannot serve it, you will be required to serve it and you’ll need to inform the court in 30 days.

Lender and borrow debating for amicable settlements before Small Claims Court Rules. — “A good settlement is better than a good lawsuit” – Abraham Lincoln.

4. You or your representative (who must be a relative and cannot be a lawyer) must attend the hearing. You can only postpone once and should have proof of physical inability to appear.

You will need to follow up with the court for the Decision so get contact numbers and emails for the sheriff, the clerk of court and the civil in charge. Be prepared to go there if needed.
Decision and execution by the Sheriff – hopefully in your favor.

How do I win the case?

Lender is worried for his filed Small Claims Philippines — The more knowledge you take the wiser you move.

Gather strong evidence, and follow our advice and the rules of the court.

When cases fail, they do so because:

The evidence was not strong enough
The rules of the court weren’t followed
There wasn’t enough follow-up.

Lender gathering his evidence to be used in Small Claims Philippines. — To add evidence during a trial, it must obtain good cause. Attaching it during the filing process is a great move.

It’s so important to have the right evidence (this is actually why cases are expensive. It takes time to gather and organize evidence. It takes practice and experience too).

Read the evidence section up top, and think about it.

Make sure you understand what’s needed and ask for advice

(Or get a consultation with one of our lawyers here if you need help.)

It is better to make follow ups of Small Claims Philippines decisions — Some courts have heavy backlogs and following up is a good move to remind them of your case.

Another reason cases fail is that the rules of the court aren’t followed.

In a small claims case, the rules are pretty streamlined.

But you’ve got to show up for the hearing, get summons done, and avoid postponements.

And remember that the last reason – follow up!

Courts are really overworked.

If a court is overworked, then you’ll need to follow up on summons, on the hearing, on the decision and on everything that needs coordination.

You can do it (yes, there is a lot of detail and a lot of work but it’s doable) and you can definitely get your money back.