Revised Rules of Procedure for Small Claims Cases. (As amended by OCA Circular No.

45-2019, effective 01 April 2019.)

Which court has jurisdiction over a

collection suit?
The Metropolitan Trial Courts (MeTC) shall have exclusive jurisdiction over payment of
money where the value of the claim does not exceed Four Hundred Thousand Pesos
(P400, 000.00), exclusive of costs and interest. In this case, the claim shall be prosecuted
under the Revised Rules of Procedure for Small Claims Cases. (As amended by OCA
Circular No. 45-2019, effective 01 April 2019.)

The Metropolitan Trial Courts shall have exclusive jurisdiction over payment of money
where the value of the claim exceeds Three hundred thousand pesos (P300, 000.00) but
does not exceed Four hundred thousand pesos (P400, 000.00). In this case, the collection
suit is considered as an ordinary civil action which shall be prosecuted under the Revised
Rules of Civil Procedure.

The Municipal Trial Courts (MTCs), Municipal Trial Courts in Cities (MTCCs), and Municipal
Circuit Trial Courts (MCTCs) shall have exclusive jurisdiction over payment of money where
the value of the claim, exclusive of costs and interest, does not exceed Three Hundred
Thousand Pesos (P300, 000.00). The same shall be prosecuted under the Revised Rules of
Procedure for Small Claims Cases. (As amended by OCA Circular No. 45-2019, effective
01 April 2019.)

However, plaintiff may join in a single statement of claim one or more separate small claims
against a defendant provided that, the total amount claimed, exclusive of interests and costs
does not exceed the Four hundred thousand pesos (P400, 000.00) in MeTCs, and Three
hundred thousand pesos (P300, 000.00) in MTCs, MTCCs, and MCTCs. (As amended by
OCA Circular No. 45-2019, effective 01 April 2019.)

If it exceeds the jurisdictional amount (Four hundred thousand pesos (P400, 000.00) in
MeTCs, and Three hundred thousand pesos (P300, 000.00) in MTCs, MTCCs, and
MCTCs), the Regional Trial Court shall have exclusive jurisdiction.

How much court fees or Docket Fees

are paid in a collection suit?
Filing and docketing of the complaint are not separate but are complementary.  It is not
simply the filing of the complaint or appropriate initiatory pleading, but the payment of the
prescribed docket fee that vests a trial court with jurisdiction over the subject matter or
nature of the action.

The purpose of docket fees is to take care of court expenses in the handling of cases in
terms of costs of supplies, use of equipment, salaries and benefits.

An action to collect a sum of money that is within jurisdiction of the MTC but with accessory
prayer for damages beyond MTC jurisdiction, the damages, interest, attorneys’ fees,
litigation expenses are to be excluded in determining jurisdiction but docket fees are still to
be collected.

In general terms, roughly two percent (2%) of the total amount claimed will constitute the
docket fees and the equivalent amount will be assessed by the court upon filing the case.

6. What is the procedure for small claims?

a. A small claims action is commenced by filing with the court an accomplished and verified
Statement of Claim in duplicate, accompanied by a Certification of Non-Forum Shopping,
Splitting a Cause of Action and Multiplicity of Suits and two (2) duly certified photocopies of
the actionable document/s subjects of the claim, as well as the affidavits of witnesses and
other evidence to support the claim. No evidence shall be allowed during the hearing which
was not attached to or submitted together with the Claim, unless good cause is shown for
the admission of additional evidence.

b. The plaintiff shall pay the docket and other legal fees, unless allowed to litigate as an
indigent.

c. The court examines the claim. It may dismiss the case outright if it finds grounds to justify
the dismissal.

d. If no ground for dismissal is found, the court shall issue Summons on the day of receipt
of the Statement of Claim, directing the defendant to submit a verified Response.

e. If the Defendant cannot be served with Summons, the court shall order the Plaintiff to
cause the service of summons within thirty (30) days from Notice. Otherwise, the case shall
be dismissed.

f. The court shall also issue a Notice to both parties, directing them to appear before it on a
specific date and time for hearing, with a warning that no unjustified postponement shall be
allowed.
g. The defendant shall file with the court and serve on the plaintiff a duly accomplished and
verified Response within a non – extendible period of ten (10) days from receipt of
summons. The Response shall be accompanied by certified photocopies of documents, as
well as affidavits of witnesses and other evidence in support thereof. No evidence shall be
allowed during the hearing which was not attached to or submitted together with the
Response, unless good cause is shown for the admission of additional evidence.

h. The parties shall appear at the designated date of hearing personally or through a
representative authorized under a Special Power of Attorney. However, a lawyer cannot
appear to represent the party.

i. At the hearing, the judge shall exert efforts to bring the parties to an amicable settlement.

j. If the case is settled, the settlement shall be reduced into writing, signed by the parties
and submitted to the court for approval

k. If no settlement is reached, the hearing shall so proceed in an informal and expeditious
manner and terminated within the same day.

l. After the hearing, the court shall render its decision within twenty-four (24) hours from
termination of the hearing. The decision shall immediately be entered by the Clerk of Court
in the court docket and a copy thereof forthwith served on the parties.

7. Can the decision of the small claims court be appealed?

No. The decision shall be final, executory and unappealable.

8. Can lawyers appear in the hearing?

Lawyers are not allowed to appear in behalf of or represent a party.

9. Can a representative appear in the hearing?

Yes, provided that appearance by representative is for a valid cause and the

representative must be a relative of the individual party and NOT a lawyer. Furthermore, the
representative must be armed with a Special Power of Attorney.

10. I do not know how to make statements of claims and other legal documents. What
can I do?

The Supreme Court has already made templated forms for the following:

a. Statement of Claim

b. Verification and Certification of Non-forum Shopping, Splitting a Cause of Action and

Multiplicity of Suits
c. Response

d. Plaintiff’s Return/ Manifestation

e. Motion to Plead as Indigent

f. Special Power of Attorney

g. Joint Motion for DIimissal

h. Motion for Approval of Compromise Agreement

i. Motion for Execution

These forms may be secured from the courts.