Rule on Small Claims

1. The Rules increases the threshold amount of small claims cases to ₱1,000,000.00 and no

longer makes a distinction whether the claim is filed before the first level courts within or
outside Metro Manila.

2. The claim or demand may be for money owed under contracts of lease, loan and other
credit accommodations, services, and sale of personal property.

3. The recovery of personal property is excluded, unless made subject of a compromise

agreement between the parties.

4. Nevertheless, the enforcement of barangay amicable settlement agreements and

arbitration awards where the money claim does not exceed ₱1,000,000.00 is likewise
covered.

The Rules allows the service of summons by the plaintiff if returned unserved by the sheriff or
proper court officer, or if it shall be served outside the judicial region of the court where the case
is pending. If the case is dismissed without prejudice for failure to serve summons, the case may
be re-filed within one year from notice of dismissal, subject to the payment of a reduced filing
fee of ₱2,000.00.

Notices may now be served through mobile phone calls, SMS, or instant messaging software
applications. While videoconferencing hearings should be conducted using the Supreme Court-
prescribed platform, the court may allow the use of alternative platforms or instant messaging
applications with video call features, under certain conditions. The 30-day period within which
to set the hearing was extended to 60 days if one of the defendants resides or is holding business
outside the judicial region of the court. There shall only be one hearing day, with judgment
rendered within 24 hours from its termination. The Small Claims Forms have also been updated
and improved for ease of use, with translations in Filipino. The Rules  maintained that the
decision rendered by the first level courts in small claims shall be final, executory and
unappealable.

The Rules shall have a prospective application. Cases covered by these Rules which are

currently pending with the first level and second level courts shall remain with and be decided by
those same courts, in accordance with the applicable rules at the time of their filing. The SC
Public Information Office will immediately upload a copy of the Rules in the Supreme Court
website upon official receipt of the same from the Office of the Clerk of Court En Banc. ###