CHAPTER 33 CRIMCIV AFTER MID Flashcards
SMALL CLAIMS
The Rules on Expedited Procedures in the First Level Courts also
cover small claims cases.
In order to attain the objective of reducing the dockets of the
first level courts, the Supreme Court came up with a simplified and
inexpensive procedure for the disposition of small claims cases. After
a two-year pilot-testing, the Supreme Court promulgated on March 18,
2010 “The Rules of Procedure for Small Claims Cases.” Subsequently,
on December 8, 2015, the Supreme Court, through A.M. No. 08-8-7-SC,
approved “The Revised Rules of Procedure for Small Claims Cases,”
which took effect on February 1, 2016. It was further amended to
increase its scope on February 26, 2019, which took effect on April 1,
2019.
Eventually, the Supreme Court promulgated the Rules on
Expedited Procedures in the First Level Courts which introduced
changes to the original rule. However, only those small claims cases
filed from its date of effectivity are affected by these changes. Cases
which were filed prior to such date and are still pending before the
first level and second level courts shall remain and be decided by said
courts based on the applicable rules at the time of their filing.
Scope
OCA Circular No. 45-2019 dated March 21, 2019.
2April 11, 2022
The new Rules govern the procedure in the Metropolitan Trial
Court, Municipal Trial Court, Municipal Trial Court in Cities, and
Municipal Circuit Trial Court over cases which are purely civil in
nature and where the claim or relief prayed for by the plaintiff is solely
for payment or reimbursement of sum of money. It excludes actions
seeking other relief aside from payment or reimbursement of sum of
money and those coupled with provisional remedies.
To be governed by such Rules, the claim should not exceed
P1,000,000.00, exclusive of interest and costs.
For money owed, the claim or demand may be under any of the
following:
1.Contract of Lease;
2.Contract of Loan and other credit accommodations;
3.Contract of Services; or
4.Contract of Sale of personal property.
Under the contract of sale of personal property, the Rules exclude
recovery of personal property from its scope. However, by way of
exception thereto, the demand or claim for recovery of personal
property falls within its scope if the same is made the subject of a
compromise agreement between the parties.
Also falling within its scope is the enforcement of barangay
amicable settlement agreements and arbitration awards where the
money claim does not exceed P1,000,000.00. However, to fall within its
scope, it is a condition that no execution thereof has not been enforced
by the barangay within 6 months3 from the:
a.date of the settlement; or
b.date of receipt of the award; or
c.date the obligation stipulated or adjudged in the arbitration
award becomes due and demandable.
.
Joinder of Claims
“The plaintiff may join one or more separate small claims against
a defendant in a single statement of claim. However, the total amount
claimed in such joinder of claims should not exceed P1,000,000.00,
exclusive of interest and costs.
How Commenced
Pursuant to Section 417 of R.A. No. 7160.
The statement of claim is the equivalent of the complaint in
ordinary civil actions. A small claims action is commenced by the filing
of the Statement of Claim which must be verified and accompanied
THE FUNDAMENTALS OF CIVIL PROCEDURE
by a certification against forum shopping, splitting a single cause of
action and multiplicity of suits. No other formal pleading is necessary
to initiate a small claims action.
The plaintiff must state in the statement of claims if he, she, or
it is engaged in the business of lending, banking, and other similar
activities and the number of small claims cases which he, she, or it
filed within the calendar year regardless of the judicial station. If the
plaintiff misrepresents that he, she, or it is not engaged in the business
of lending, banking, and other similar activities when in fact he, she,
or it is so engaged, the claim shall be dismissed with prejudice and the
plaintiff shall be meted the appropriate sanctions including citation for
direct contempt.
The plaintiff must also indicate in the statement of claim his or her
consent to be served with the court issuances and other filings through
e-mail, facsimile, or other electronic means. Thus, he or she must also
indicate therein the chosen mode of electronic service.
The affidavits of witnesses and other supporting evidence must
also be attached to the statement of claim. The non-submission of the
required affidavits will cause the immediate dismissal of the claim or
counterclaim as the case may be.
Note that the affidavits required under the rule must be based
on facts of direct personal knowledge of the affiant or based on
authentic records, which are admissible in evidence. A violation of
this requirement shall subject the party, and the counsel who assisted
the party in the preparation of the affidavit, if any, to appropriate
disciplinary action.
The inadmissible affidavit or the inadmissible portion thereof
shall be expunged from the record of the case.
Actionable documents attached to the statement of claim must be
duly certified photocopies.
Certification of Documents
The documents required to be certified may be certified by the
signature of the party concerned. This, however, applies only to private
documents and not to public or official documents.
Juridical Entities
For juridical entities, a board resolution or a secretary’s certificate
authorizing the person to file the claim must be attached to the
statement of claim.
Evidence Bar Rule
Evidence which were not attached to or submitted together with
the Statement of Claim shall not be allowed to be presented during the
hearing, unless a good cause is shown for the admission of additional
evidence.
Venue
In the same manner as in personal actions in ordinary civil actions,
venue lies at the place of residence of the plaintiff or the defendant, at
the election of the plaintiff.
However, if the plaintiff is in the business of lending, banking, or
similar activities, and it has a branch within the city or municipality
where the defendant resides or is holding business, the case shall be
filed in that city or municipality where the defendant resides or is
holding business.
If there are two or more defendants, the claim shall be filed in
the court of the city or municipality where any of them resides or is
holding office, at the option of the plaintiff.
Payment of Docket Fees
The plaintiff shall pay the required docket fees and other legal
fees. Only the Supreme Court can grant exemption from the payment
of filing fees.
If a party filed a motion to allow him or her to sue as an indigent,
the motion shall be referred to the Executive Judge for immediate
action in case of a multi-sala court. If granted, the case shall be raffled or
assigned to the court designated to hear small claims cases. However,
in no case that such party shall be exempt from paying the P1,000.00
fee for the service of summons and processes.
If the motion is denied, the plaintiff shall be given 5 calendar days
within which to pay the required docket fees. Failure to pay the docket
fees despite such order shall cause for the dismissal of the case without
prejudice.
Dismissal of Claims Before Response
After the court determines that the case falls under the rule on
small claims, it may, motu proprio, dismiss the case outright even before
the filing of the response on any of the following grounds:
a) The court has no jurisdiction over the subject matter;
b) There is another action pending between the same parties
for the same cause;
c) The action is barred by prior judgment;
d) The claim is barred by the statute of limitations;
e) The court has no jurisdiction over the person of the
defendant;
f) Venue is improperly laid;
g) Plaintiff has no legal capacity to sue;
h) The Statement of Claim states no cause of action;
i) That a condition precedent for filing the claim has not been
complied with; and
j) Plaintiff failed to submit the required affidavits as required
by the rule.
The order shall state whether the dismissal is with or without
prejudice.
Effect If Not Under This Rule
If the case does not fall under the rule on small claims but under
the rule on summary procedure or under a regular procedure, the same
shall not be dismissed. Instead, the case shall be re-docketed under
the appropriate procedure subject to the payment of any deficiency in
the applicable regular rate of filing fees. Thereafter, the case shall be
returned to the court where it was originally assigned to be proceeded
with under the applicable rule.
Similarly, if the action falls within the category of a small claim
but was filed under summary procedure or regular procedure, the
case will also not be dismissed. Instead, it will be re-docketed and
proceeded with as a small claims case.
Summons
If there is no ground for the dismissal of the action is found,
the court shall issue summons within 24 hours from receipt of the
statement of claim. It shall then be served upon the defendant directing
the latter to submit a verified response. Also served together with the
summons are:
1.a copy of the Statement of Claim and the documents
submitted by the plaintiff;
2.a blank Response Form (Form 3-SCC);
3.notice of hearing with a warning that no unjustified
postponement shall be allowed.
The notice of hearing shall also contain an express prohibition
against the filing of a motion to dismiss or other prohibited motions.
A blank Special Power of Attorney shall be attached to the notice of
hearing.
Service of Summons by the Sheriff or Other Court Officer
The summons, together with the notice of hearing, must be served
by the sheriff, his or her deputy, or other proper court officer within 10
calendar days from its issuance. Thereafter, the one who served the
same shall file with the court his or her Officer’s Return stating whether
it was served or not.
Service of Summons by the Plaintiff
The court may order the plaintiff or his or her representative to
serve or cause the service of the summons if:
a) the summons is returned without being served on any or all
of the defendants; or
b) the summons is to be served outside the judicial region of
the court where the case is pending.
Plaintiff is a Juridical Entity
If the plaintiff is a juridical entity, it shall notify the court in
writing of the name of its authorized representative and shall attach
thereto a board resolution or a secretary’s certificate stating that such
representative is duly authorized to serve the summons on its behalf.
Duty of the Plaintiff After Service of Summons
In both instances where the plaintiff was ordered to serve or cause
the service of summons, the plaintiff shall inform the court within 30
calendar days from notice if it was served. 0 ft
Misrepresentation of the plaintiff that the defendant was served
with summons and it is later proved that no summons was served,
the case shall be dismissed with prejudice. The proceedings shall be
nullified and the plaintiff shall be declared in indirect contempt. The
plaintiff shall also be meted with fine in the amount of P5,000.00.
Effect If Summons was Not Served
If summons was not served upon the defendant, the statement
of claim shall be dismissed without prejudice. If there are more than
one defendant and the summons was not served on all of them, the
statement of claim shall be dismissed without prejudice as to those
who were not served therewith.
The case, however, may be re-filed within one year from notice of
the dismissal subject to payment of reduced filing fees.
Response
The response shall be the equivalent to the answer in ordinary
civil actions. It must be accomplished and verified by the defendant and
filed within a non-extendible period of 10 calendar days from receipt
of the summons. It shall be accompanied by certified photocopies
of documents and the affidavits of witnesses and other evidence in
support thereof.
Similarly, the defendant must also indicate in the response if he
or she consents to be served with the court issuances and other filings
through e-mail, facsimile, or other electronic means. If so, he or she
must indicate therein the chosen mode of electronic service.
Evidence Bar Rule
Just the same as in the statement of claim, the evidence bar rule
also applies to the response. Hence, evidence which were not attached
to or submitted together with the response shall not be allowed during
the hearing unless good cause is shown for the admission of additional
evidence.
Counterclaims
Compulsory counterclaims must be included in the response,
otherwise the same shall be barred. A counterclaim is considered
compulsory if:
- it is within the coverage of the rule, exclusive of interest and
costs; - it arises out of the same transaction or event that is the
subject matter of the plaintiff’s claim; - it does not require the joinder of third parties for its
adjudication; - it is not the subject of another pending action. 750 a’
The defendant may also elect to file a counterclaim against
the plaintiff that same does not arise out of the same transaction or
occurrence, thus partaking the nature of a permissive counterclaim,
provided that the amount and nature thereof are within the coverage
of the rule and the prescribed docket fees and other legal fees are paid.
Otherwise, such permissive counterclaim should be commenced in a
separate action.
Any amount pleaded in the counterclaim in excess of P1,000,000.00,
excluding interest and costs, shall be deemed waived.
Effect of Failure to File Response
If the defendant fails to file his or her response within the required
period and likewise failed to appear on the date set for hearing, the
court shall render judgment within 24 hours from the termination of
the hearing as may be warranted by the facts alleged in the statement
of claim and its attachments.
Effect If Defendant Appeared During the Hearing
If the defendant failed to file his or her response but appeared on
the date set for hearing, the court shall ascertain the defenses he, she,
or it to offer. The defenses offered by the defendant shall constitute as
his, her or its response. The court shall then proceed to hear the case on
the same day as if a response has been filed. It shall thereafter render
judgment within 24 hours from the termination of the hearing.
If the defendant relies on documentary evidence to support his,
her, or its defense, the court shall order him, her, or it to submit the
original copies thereof within 3 calendar days from the termination of
the hearing. Upon receipt thereof or upon the expiration of the period
to file the same, the court shall render judgment within 24 hours.
Appearances
The parties are required to personally appear on the designated
date of hearing. Appearance through a representative is only allowed
for a valid cause.
If a party appears through a representative, the latter must be
equipped with a Special Power of Attorney, a board resolution or a
secretary’s certificate which authorizes him or her to:
1.enter into an amicable settlement of the dispute; and
2.enter into stipulations or admissions of facts and of
documentary exhibits.
However, the representative must not be a lawyer. Even juridical
entities should not be represented by a lawyer in any capacity.
If a party cannot properly present his or her claim or defense and,
thus, needs assistance, the court, in its discretion and with the consent
of that party, may allow him or her to be assisted by another. That
individual, however, shall in no case be an attorney.
Legal Representation
An attorney is not allowed to appear in behalf of a party either as
counsel or as a mere representative. The only exception to this is when
the attorney is either the plaintiff or the defendant.
Postponement
Note that a party may only avail of one postponement, which
shall only be allowed if there is proof of physical inability of that party
to appear.
Effects of Non-appearance
Failure of the plaintiff to appear on the date of hearing shall be
cause for the dismissal of the Statement of Claim without prejudice.
The defendant who appears in the absence of the plaintiff shall be
entitled to judgment on his or her counterclaim.
Non-appearance of the defendant shall have the same effect as
failure to file a response. Thus, the court shall render judgment within
24 hours from the termination of the hearing as may be warranted by
the facts alleged in the statement of claim and its attachments.
However, if there are two or more defendants who are being sued
for a common cause of action and they pleaded a common defense in
their response, and one of them appeared during the hearing, this rule
shall not apply. Thus, the court may proceed to hear and decide the
case on the basis of the defense set up in the response.
que Failure of both parties to appear on the date of hearing shall cause
the dismissal of both the Statement of Claim and the counterclaim.
Such dismissal shall be both with prejudice.
Settlement
During the hearing, the court shall exert efforts to bring the
parties to an amicable settlement. Any settlement or resolution reached
shall be reduced into writing and subject to the approval of the court.
The court shall then render judgment within 24 hours based on such
compromise agreement.
The compromise agreement submitted to the court for approval
must be signed by both parties. The parties must also confirm it before
the court during the hearing. If it appears that only one of the parties or
neither of the parties confirm it, the court shall direct the non-appearing
party to confirm the compromise agreement within 3 calendar days
from notice of the order. If no confirmation or denial is received within
that period, the compromise agreement shall be deemed confirmed.
Where no compromise agreement has been reached, the court
shall proceed to hear the case.
All discussions during the settlement proceeding are confidential.
Dismissal During Hearing
If the court determines during the hearing that there is a ground
for the dismissal of the Statement of Claim, the court may, motu proprio,
dismiss the case even if the ground is not pleaded in the response.
If the plaintiff misrepresented that he/she/it is not engaged in
the business of banking, lending, or similar activities, the Statement
of Claim shall be dismissed with prejudice and plaintiff shall be
sanctioned, including citation for direct contempt.
As discussed earlier, the claim may also be dismissed for the non-
appearance of the plaintiff or by both parties.
Decision
After the hearing, the court shall issue its decision within 24
hours from its termination. Such decision shall be final, executory, and
unappealable.
Execution
The execution of the judgment rendered by the court shall issue
upon ex-parte motion of the winning party. The writ shall be issued
upon proof of receipt of the decision rendered is on record.
However, the proof of receipt is no longer required when the
judgment was rendered based on compromise agreement.
Remedy Against the Decision
A.L. Ang Network, Inc. vs. Mondejar, G.R. No. 200804, January 22, 2014.
304
The proper remedy against an adverse decision in small claims
cases is to file a petition for certiorari under Rule 65 where the court
acted with grave abuse of discretion amounting to lack of or in excess
of its jurisdiction. The petition should be filed before the corresponding
Regional Trial Court.
It would be an error for the Regional Trial Court to dismiss the
petition merely on its apprehension that it was only filed to circumvent
the non-appealable nature of small claims cases because it asks the
court to supplant the decision of the lower court with another decision
directing the defendant therein to pay bigger sum than what has been
awarded. The Regional Trial Court could either grant or dismiss the
petition based on an evaluation of whether or not the lower court
gravely abused its discretion by capriciously, whimsically, or arbitrarily
disregarding evidence that is material to the controversy.
