How to File a Small Claims Case in the Philippines (and How a Lawyer Can Help You Win)

Post updated on: [last-modified]

What cases fall under Small Claims in the Philippines?

For a case to be filed as a Small Claims case, it must be strictly or purely civil in nature. Meaning, it should involve only an action seeking payment or reimbursement of a sum of money, where the value of the claim does not exceed P1,000,000. (This is a new threshold under A.M 08-8-7-SC to cover bigger debts [11 April 2022])

If your claim has an accompanying criminal aspect, it falls outside the coverage of the Rule on Small Claims.

Eligible causes of action are: Unpaid debts, credit card debts, small-scale loans, unpaid rent, or broken contracts.

If the cause of action involves only the civil aspect of Batas Pambansa Blg. 22 (the Bouncing Checks Law) and no criminal action has been instituted therefor, the case shall be tried under the Rules on Summary Procedure. If a criminal action is instituted for the same B.P. 22 violation, the civil aspect must be consolidated with the criminal action so they can be tried and decided jointly under the Rule on Summary Procedure.

Why are lawyers not allowed in small claims hearings?

Lawyers are prohibited from appearing in small claims cases to keep the proceedings simple, informal, fast, and inexpensive.

Through self-representation, ordinary individuals, especially low-income earners, will be encouraged to pursue or defend claims without the burden of attorney’s fees and procedural technicalities.

However, parties can always reach out to a lawyer for advice or assistance outside the court (either before or after the hearing).

Furthermore, if the judge determines that a party cannot properly present their claim or defense and needs assistance, the court has the discretion to allow another individual (provided they are not an attorney) to assist that party. Exception to the exception: If the lawyer themself is the party.

How a Lawyer CAN Help You Win a Small Claims Case

(Note: Before filing a small claims case, make sure you have already sent a factually and legally sound Final Demand Letter)

1. Drafting the Statement of Claim: Making sure the facts are airtight and legally sound so the judge doesn’t dismiss it on Day 1. You can always contact a lawyer to guide you in crafting the Statement of Claim Document.

2. Verification and Certification Against Forum Shopping, Splitting a Single Cause of Action, and Multiplicity of Suits (Form 1-SCC).

3. Two (2) duly certified photocopies of the actionable documents subject of the claim (e.g., contracts, promissory notes, receipts, bank deposit slips).

4. You must submit the affidavits of your witnesses. These must only state facts based on their direct personal knowledge or based on authentic records. (Rule IV Sec. 4)

5. Other evidence to support the claim: Any other documentary or object evidence needed to prove your claim. But first, you must be able to discern: Which receipts, texts, and contracts actually matter? (Filtering out the noise).

• Note: No evidence will be allowed during the hearing if it was not attached to your Statement of Claim, unless you can show a good cause for its late admission.
• Tips: (1) Use the proper marking system Mark your documentary or object evidence as Exhibits A, B, C (and so on) if you are the plaintiff or complainant, and as Exhibits 1, 2, 3 (and so on) if you are the defendant or respondent.
• (2) When submitting electronic copies, save or print each annex as an individual PDF file separated from the main pleading/Statement to ensure that no small text will be rendered as hard-to-read. Use a strict filename format separated by hyphens: [Annex Designation]-[Pleading Title/Claim Statement Title]-[Case Number].pdf
• (3) Arrange exhibits chronologically.

To reiterate, make sure you have sent a Final Demand Letter before filing your Form 1-SCC.

6. Reproduce as many copies of the documents above as there are defendants.

7. Business declaration: You must explicitly state in the form whether you are engaged in the business of lending, banking, or similar activities, and state the exact number of small claims cases you have filed within the calendar year.

8. If the plaintiff is a juridical entity (like a corporation), you must attach a Board Resolution or Secretary’s Certificate authorizing the representative to file the claim.

9. No formal pleading is necessary.

10. Trial Coaching: A lawyer can give the client a “script” or bullet points on how to answer the judge confidently.

11. If you win the case, but the debtor still won’t pay, a lawyer may step back in to help file a Motion for Execution to seize assets.

Can a Filipino residing abroad (OFW) file a small claims case?

Yes, an Overseas Filipino Worker (OFW) or a Filipino residing abroad can file a small claims case in the Philippines.

While the rules generally mandate the personal appearance of parties during the scheduled hearing, an OFW who is physically unable to attend can be represented by another person, provided the following strict requirements are met:

• Valid Cause: The absence must be for a valid cause, such as physical inability to travel to the court due to residing abroad.
• No Lawyers Allowed: The authorized representative must not be a lawyer.
• Special Power of Attorney (SPA): The OFW must execute an SPA using the court-prescribed Form 7-SCC.
• Specific Powers Granted: The SPA must expressly authorize the representative to perform the following acts without further consultation from the plaintiff:
  1. Enter into an amicable settlement;
  2. Submit to alternative modes of dispute resolution; and
  3. Enter into stipulations or admissions of facts and of documentary exhibits.

Where to File (Venue): Since the regular rules on venue apply, the OFW can have the Statement of Claim/s filed in the First Level Court (Metropolitan Trial Court, Municipal Trial Court in Cities, Municipal Trial Court, or Municipal Circuit Trial Court) of the city or municipality where the defendant resides.

Step-by-Step Process to File Your Claim

Step 1: Gather evidence and send a Final Demand Letter

Step 2: Fill out the Verified Statement of Claim

Step 3: Pay docket fees at the Hall of Justice

Step 4: Attend the hearing