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Small money claims cases in NCR hiked

to P400,000

4-5 minutes

Published February 27, 2019, 2:25 PM

By Rey Panaligan

Starting April 1, the limit for small money claims cases

filed with metropolitan trial courts (MeTCs) in the
National Capital Region (NCR) will be P400,000 per case.

Outside NCR, the limit for a small money claim filed with
the municipal trial courts in cities (MTCCs), municipal
trial courts (MTCs), and municipal circuit trial courts
(MCTCs) is P300,000.

Court Administrator Jose Midas P. Marquez said once

filed, small money claims have to be resolved by the
courts within 30 days and lawyers are not allowed to
participate in the court proceedings.

The increase in the limit was recommended by Marquez

to Associate Justice Diosdado M. Peralta, chair of the
special committee on small claims cases, who to it up
with the Supreme Court (SC) as a full court.

A press statement issued by the SC’s public information

office (PIO) stated that “before the concept of small
claims was introduced in our court system, the Revised
Rule on Summary Procedure applied to money claims
not exceeding P100,000 in first level courts outside
Metro Manila, while P200,000 for first level courts within
Metro Manila, known as MeTCs.”

It said: “The amounts were later increased to P300,000

and P400,000, respectively, under Republic Act No. 7691.
In 2010, the Court authorized the implementation of the
Rule of Procedure for Small Claims Cases to all first
level courts nationwide for money claims of not more
than P100,000. In 2015, the Supreme Court increased
this to P200,000 and in 2018, to P300,000.

“As a consequence, money claims filed before the first

level courts outside Metro Manila were all covered by the
Revised Rules of Procedure for Small Claims Cases,
whereas those filed before the MeTCs were considered
either as small claims cases for claims of up to
P300,000, or proceeded under the Revised Rule on
Summary Procedure, for claims above P300,000 to
P400,000.”

Justice Peralta said, “this move by the Court will result in

the speedier and more efficient resolution of money
claims cases, as well as help increase the country’s
score in the World Bank’s Ease of Doing Business
Report.”

In the World Bank’s 2019 Report, the Philippines ranked

124th out of 190 countries, dropping from its 2018
ranking of 113. This score is based on a number of
indicators, one of which involves measuring the time and
cost of resolving commercial disputes before the MeTCs
in Quezon City for claims amounting to 200 per cent of
the Philippine’s income per capita, or P337,331.00.

Peralta said that “applying the Revised Rules of

Procedure for Small Claims Cases in all money claims
filed before the MeTCs will increase the country’s score
in next year’s report.”

He pointed out that “the increase is in accord with the

four-point agenda of Chief Justice Lucas P. Bersamin for
the judiciary, to make our rules more efficient, effective
and responsive to the needs of the court users.”

The PIO said that “in a message relayed to the SC,

Department of Trade and Industry (DTI) Secretary
Ramon M. Lopez also expressed optimism that ‘the
move initiated by the Supreme Court will benefit small
entrepreneurs using the court system and result in an
increase in the country’s ranking in the World Bank Doing
Business Survey.’”

It also quoted Lopez as saying: “This reform is one of the

initiatives of the government to promote Ease of Doing
Business. The DTI is optimistic that the strong
partnership between the Executive and the Judicial
branches of government will bring positive results. We
look forward to working with the Supreme Court to
improve the quality of judicial processes index,
particularly in the area of court automation and case
management.”