This month I was invited by the Las Pinas City Judges Association (LPCJA), led by Judge Joselito Vibandor, and the Las Pinas City Bar Association (LPBA), Inc., led by Atty. Melvyn Lagasca and Atty. Hilda Clave, to deliver a series of brief legal lectures on the new 2008 Supreme Court “rule on small claims cases” before the councilmen and youth leaders of two barangays in Las Pinas City, Philippines. For purposes of legal research of the visitors of this blog, may I reproduce below my lecture material.
Lecture Material:
2008 RULE OF PROCEDURE FOR SMALL CLAIMS CASES
(A.M. No. 08-8-7-SC, October 1, 2008, “Rule of Procedure for Small Claims Cases”)
Introduction
The “2008 Rule of Procedure for Small Claims Cases” is a special rule of procedure adopted by the Supreme Court to govern small claims cases. It is now being piloted in designated first level courts (Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts). The Rule allows a plaintiff to sue a defendant without the need of a lawyer.
Purpose
The purpose of a small claims process is to provide a simpler and a more inexpensive and expeditious means of settling disputes involving purely money claims. The plaintiff is allowed to handle his case from start to finish quickly and inexpensively. There are ready-made forms available. Strict court procedures, including the rules of evidence, do not apply. There is no need for a lawyer.
Small Claims
Small claims are exclusively for the payment or reimbursement of a sum of money not exceeding P100,000.00.
Pilot Small Claims Courts
These are first level courts (Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts). The Supreme Court has issued A.O. No. 141-2008 designating 22 first level courts all over the country as pilot courts to hear and decide small claims cases. The pilot courts shall be regularly assessed prior to national application of the Rule by all first-level courts.
Claims Covered
Typical claims include actual damages caused to vehicles, other personal property, real property or person. Money owed under a contract of lease, contract of loan, contract of services, contract of sale, or contract of mortgage, may also be demanded. It also includes purely civil actions for payment of money covered by a bounced or stopped check. An amicable settlement reached in the barangay or an arbitration award involving a money claim may also be enforced under this rule.
Combination of Small Claims
The plaintiff may combine in a single statement of claim one or more separate small claims against the same defendant provided that the total amount claimed, exclusive of interest and costs, does not exceed P100,000.00.
Excluded Claims
Criminal actions are excluded because under the 1987 Constitution (Sec. 14(2) of Article III, Bill of Rights) the accused in all criminal prosecutions has “the right to be heard by himself and counsel.” However, the civil aspect of a criminal action which seeks recovery of money as damages may be heard as a small claim if reserved or instituted separately prior to the filing of the criminal case (Rule 111, Rules of Criminal Procedure). A claim which is not purely for money is not covered by the Rule.
How To Start
The plaintiff must first accomplish a verified Statement of Claim (Form 1-SCC) and certify the information provided, stating that he has not filed any action involving the very same issue in any other court, tribunal or agency through a Verification and Certification of Non-Forum Shopping (Form 1-A-SCC). The Statement of Claim must be accompanied by certified duplicate photocopies of all supporting documents (i.e. contract, promissory note, affidavit/sworn statement of witnesses, pictures, receipts, etc.). The plaintiff then files the Statement of Claim with its accompanying documents with the small claims court, personally or through mail, and pays the correct docket and filing fees. (Sec. 5)
Filing Fees
The plaintiff shall pay the docket and other legal fees prescribed under Rule 141 of the Revised Rules of Court at the time of the filing of the Statement of the Claim with the Office of the Clerk of Court. If you do not have money to pay the fees because of your financial status, you may apply to the small claims court to qualify as an indigent, and once you qualify as an indigent you are exempt from payment of such fees. (Sec. 8). If declared as an indigent, a person is not exempt from payment of the P1,000.00 fee for service of summons and processes in civil cases. (Sec. 8).
Court Action
The court may dismiss the case outright when any grounds for the dismissal of a civil case is apparent or obvious from the Statement of Claim and supporting documents. (Sec. 9). If not dismissed outright, the court informs the defendant that a case has been filed against him through the issuance of Summons (Form 2-SCC) on the day of the receipt of the Statement of the Claim and accompanying documents. Through the Summons, the court directs the defendant to file his verified Response (Form 3-SCC) as well as other supporting documents or evidence, within a non-extendible period of ten (10) days from its receipt. The court also serves a Notice of Hearing (Form 4-SCC) to both parties, directing them to appear before it on a specific date and time, with a warning that no unjustified postponement shall be allowed. (Sec. 10). The Summons and Notice of Hearing must be accompanied by a copy of the Statement of Claim and documents submitted by plaintiff, and a copy of the Response to be accomplished by the defendant. (Sec. 10).
Defendant’s Action
The defendant shall file with the court a duly-accomplished and verified Response together with proof that he has served such Response to plaintiff within the prescribed period. The Response shall also be accompanied by certified copies of documents and the affidavits of witnesses and other evidence in support thereof. (Sec. 11). If he defaults, the court decides the case based on the facts alleged in the Statement of Claim and the supporting documents attached to it. (Sec. 12). The filing of a motion to dismiss instead of a response is prohibited under the rule, except on ground of lack of jurisdiction. (Sec. 14). The defendant may include in his Response a counterclaim. It is a claim which he files against plaintiff to seek the recovery of money only. If the counterclaim is compulsory in nature, it must be raised in the Response; otherwise, it is barred.
Hearing
The parties shall appear at the hearing personally or through a representative they may authorize under a Special Power of Attorney (Form 5-SCC) to enter into an amicable settlement, to submit to Judicial Dispute Resolution (JDR) and to enter into stipulations or admissions of facts and of documentary exhibits. (Sec. 16). Lawyers are not allowed at the hearing unless they are plaintiffs or defendants in the case. However, the parties can still consult with a lawyer to assist them to prepare for the hearing or for other matters outside the hearing. (Sec. 17). If party cannot properly present his claim or defense, the court, in its discretion, may allow another individual who is not a lawyer to assist him. (Sec. 17). If the plaintiff does not appear during the hearing, the claim shall be dismissed without prejudice. If the defendant does not appear, the effect will be the same as failure to file a Response, i.e., the court may decide the case based on the complaint alone. If both parties do not appear, the claim and counterclaim shall be dismissed with prejudice. (Sec. 18). Postponement may be granted only upon proof of the physical inability of the party to appear before the court on the scheduled date and time. A party may avail of only one (1) postponement. (Sec. 19).
To stress: If the defendant files a Response to the claim, the court shall schedule only one (1) hearing for the purpose of encouraging the parties to settle without the appearance of lawyers, to hear the statement of the parties under oath, and to consider all documentary evidence of the parties. After such hearing, the court will also issue the decision on the same day.
Role of the Judge: Decision or Compromise.
In small claims cases, the role of the judge is to ascertain the factual matters at issue and to elicit the evidence –– all in one hearing, and render a decision thereafter.
The judge shall encourage the parties to settle by employing the different modes of Judicial Dispute Resolution (JDR). The judge who employs JDR – as understood within the context of the rule of procedure for small claims cases – should be confined to exerting efforts in helping the parties arrive at an amicable settlement through mediation, conciliation, early neutral evaluation, or any other mode of JDR. This means the judge shall use any mode to try and bring about an amicable settlement between the parties. Any settlement or resolution of the dispute, shall be reduced into writing, signed by the parties, and submitted to the court for approval. (Sec. 21).
When JDR fails, the parties may agree in writing that the JDR judge shall hear and decide the case. The JDR judge shall proceed with the hearing in an informal and expeditious manner, which shall be terminated within one (1) day. However, if the parties do not agree, the JDR judge shall refer the case to the pairing judge for hearing and decision. (Sec. 22). The pairing judge shall hear and decide the case within five (5) working days from referral.
Appeal
A decision in small claims cases is final and unappealable. (Sec. 23). However, the Rule does not preclude a party from filing a petition for certiorari under Rule 65 of the Rules of Court when there is grave abuse of discretion amounting to lack or excess of jurisdiction in relation to a judgment in a small claims action (Note: Such a petition is prohibited with regard to interlocutory orders). Further, the aggrieved party can also file an action for annulment of judgment when the requirements under the Rules of Civil Procedure are complied with.
Prepared by:
MANUEL J. LASERNA JR., AB, LL.B., LL.M.
Partner, Laserna Cueva-Mercader Law Offices (LCM Law)
Founder, Las Pinas City Bar Association (LPBA), Inc.
Professor of Law, FEU (retired)
Contact:
Laserna Cueva-Mercader Law Offices (LCM Law)
Unit 15, Star Arcade, C.V. Starr Ave.
Philamlife Village, Las Pinas City
Tel/Fax 8742539; 8725443 (look for staff Prime Cueva)
Mobile: 09267192859.
Email: lcmlaw@gmail.com
Websites: http://attylaserna.blogspot.com
http://lcmlaw.multiply.com
Acknowledgment:
Supreme Court FAQ on the 2008 Rule on Small Claims Cases.
(Visit: http://sc.judiciary.gov.ph).