small money claims

8/2/2019 Small Money Claims

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Rule of Procedure for

SmallClaims Cases

Prepared by:ATTY. JOEL PASION DADIS

3rd F, Boy Construction Bldg., Brgy. 2San Nicolas, Ilocos Norte


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Before Rule on Small Money Claims

-Revised Rules on Summary Procedure

Amended Small Claims Rule- A.M. No. 08-8-7-SC (October 27, 2009)

* Judicial innovation

Background


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Special procedure where money claims for P100,000.00 or less.

The process is expeditious and inexpensive:

a.

Indiscriminate postponements are notallowed (permitted only by reason ofsubstantiated physical inability but onlyonce)

b. Appearance of lawyers is not allowed unlessthe attorney is the plaintiff or defendant.

Salient Features


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c. hearing is informal and in an expeditiousmanner

d. terminated within one (1) day

e. decision rendered on the same day

f. decision shall be final and unappealable.

Salient Features


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Prohibited Pleadings

(a) Motion to dismiss the complaint;

(b) Motion for a bill of particulars;

(c) Motion for new trial, or for reconsiderationof a judgment, or for reopening of trial;

(d) Petition for relief from judgment;

(e) Motion for extension of time to file

pleadings, affidavits, or any otherpaper;

Salient Features


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(f) Memoranda

(g) Petition for certiorari, mandamus, orprohibition against any interlocutory orderissued 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.

Salient Features


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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 asingle complaint against the same defendant

provided the total amount of claims does notexceed P 100, 000 exclusive of interest andcosts. (waive the excess of the jurisdictionalamount)

Scope & Applicability


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Nature of Claim

1. purely civil case for payment orreimbursement of sum of money

1. civil aspect of criminal actions



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Bases of Claim:

(a) Money owed by reason of:

1. Contract of Lease;

2. Contract of Loan;

3. Contract of Services;

4. Contract of Sale; or5. Contract of Mortgage.



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(b) Damages arising from:1. Fault or negligence;

2. Quasi-contract; or

3. Contract;

(c) Enforcement of a barangay amicablesettlement or an arbitration award

involving a money claim.



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Prepare and compile all relevantdocuments

1. Evidence of claim (e.g. written contract;promissory note; acknowledgment receipts;checks; sworn statements of witnesses)

1. Evidence of compliance of conditionprecedents: ( e.g. latest demand letterwith proof of service & receipt; brgy.certificate to file action;

Steps Before Filing


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3. Evidence of Authority to Represent (e.g.SPA with full authority to enter into amicablesettlement & make stipulations of facts anddocuments;BoardResolution/SecretarysCertificate if representing a juridical person)

Steps Before Filing


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Prepare the Statement of Claima. Accomplish Form 1-SCC

b. If filed by a representative, complaint mustbe in the name of the principal

c. Have it notarized

d. Attach all relevant documents otherwisethe same will not be admitted by the court

unless there is good cause.

Steps Before Filing


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1. Commencement

. File the verified Statement of Claimwith complete attachments (in duplicatecopies; certified photocopies)

Note: Verification & certification must be

signed by the party himself/itself or therepresentative depending upon the extent ofauthority.

GENERAL PROCEDURE


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Jurisdiction: MTC/MTCC

Venue:(a) Individual plaintiff: Place of residence ofthe plaintiff or defendant;

(b) Juridical plaintiff: Principal place of

business of the plaintiff or defendant

GENERAL PROCEDURE


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Payment of Filing and Docket Feesunless exempted upon proof that plaintiff isindigent.

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

2. Preliminary Examination by the CourtIf ground/s exist from a facial examination-

outright dismissal (without prejudice)If no ground- Court shall issue:

(a) Summons directing the defendant to

GENERAL PROCEDURE


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3. Defendants Verified Responsewith supporting evidences (exclusionary rule

applies)file & furnish the plaintiffwithin a non-extendible period of 10 days

from receipt of summonsGrounds for motion to dismiss should be

pleaded(Note: Motion to Dismiss is not allowed)

GENERAL PROCEDURE


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Failure of defendant to timely file &serve a valid response AND to appearduring the hearing:

decision will be rendered on the same dayas supported by facts.

No timely & valid response BUT

defendant appears in the hearing:proceedings will continue as if a responsewas filed.

GENERAL PROCEDURE


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Defendants counter-claims: All existingcounter-claims must be pleaded in theresponse otherwise barred except permissivecounter-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 plaintiffsclaim;

(c) does not require for its adjudication thejoinder of third parties; and

(d) not the subject of another pending action.

GENERAL PROCEDURE


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4. HearingAppearance of parties/representatives

Rules:

a.

No appearance by representative except fora valid cause & with a FULL writtenauthority. (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.

GENERAL PROCEDURE


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Effects of Non-Appearance of Parties

Plaintiff is unjustifiably absent:

a. cause for the dismissal of the claim withoutprejudice.

b. permissive counterclaim of the defendantmay be granted if substantiated.

Defendant is unjustifiably absent:

a. plaintiffs claim may be granted ifsubstantiated but limited to the prayer

b. all counter-claims of the defendant are

GENERAL PROCEDURE


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Effects of Non-Appearance of Parties

(Note: if there 2 or more defendants sued forcommon cause of action and have pleaded a

common defense, appearance of any of thembenefits the non-appearing defendant)

Both parties are unjustifiably absent:

dismissal with prejudice of both the claimand counterclaim.

GENERAL PROCEDURE


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Courts efforts for a settlement.a. judge shall exert efforts to bring the parties

to an amicable settlement of their dispute.

b. Any amicable settlement/ resolution mustbe in writing & submitted to court forapproval.

c. Settlement discussions shall be strictly

confidential.d. any reference to any settlement made in

the course of such discussions shall bepunishable by contempt.

GENERAL PROCEDURE


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Failure of Settlement

a.

hearing shall proceedb. informal and expeditious manner

c. terminated within one (1) day.

GENERAL PROCEDURE


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5. Decisiona. After hearing, court shall render its decision

on the same day, based on the factsestablished by the evidence

b. immediately be entered by the Clerk ofCourt in the court docket for civil cases

c. a copy thereof forthwith served on theparties.

d. Decision is final & unappealable

GENERAL PROCEDURE


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THANK YOU!!!

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