What Is Small Claims Court in the Philippines?
The Small Claims Court in the Philippines provides a simplified and affordable process for resolving monetary disputes. Governed by the Rules on Small Claims Cases (A.M. No. 08-8-7-SC, as amended), it allows individuals and businesses to seek justice without hiring a lawyer.
This process promotes access to justice by reducing legal costs and ensuring that minor financial disputes are resolved quickly. Typically, cases are decided within one to two months, allowing both parties to move forward without the delays associated with traditional court cases.
Jurisdiction and Monetary Limits
Monetary Limits
As of the latest Supreme Court amendment, the maximum amount for small claims cases is PHP 1,000,000. This limit was raised from PHP 400,000 to improve access to justice for individuals and small businesses.
Jurisdiction
Cases must be filed in the appropriate Metropolitan Trial Court (MeTC), Municipal Trial Court (MTC), or Municipal Circuit Trial Court (MCTC), depending on where:
- The defendant resides, or
- The plaintiff resides, if the defendant’s address is unknown.
This ensures that cases are handled locally and efficiently.
Types of Cases Handled by Small Claims Court
The Philippine Small Claims Court hears a wide range of monetary disputes, including:
- Unpaid loans or debts from promissory notes and credit agreements.
- Non-payment for goods or services delivered.
- Property damage or loss caused by negligence or minor incidents.
- Refunds of deposits, such as those from leases or rental agreements.
Excluded Cases
The following are not covered under the small claims process:
- Criminal cases.
- Claims involving moral or exemplary damages.
- Disputes exceeding PHP 1,000,000.
Advantages of Small Claims Court
Choosing to file in the Small Claims Court offers several key benefits:
- No lawyers required – You can represent yourself.
- Quick resolution – Most cases are settled within 1–2 months.
- Low filing fees – Significantly cheaper than regular court proceedings.
- Simplified procedure – Minimal paperwork and no complex pleadings.
This system is particularly beneficial for ordinary citizens and small business owners seeking affordable legal remedies.
Steps to File a Small Claim in the Philippines
Step 1: Prepare the Complaint
Obtain a Small Claims Complaint Form from the nearest trial court or download it from the Supreme Court of the Philippines website. Fill in your details:
- Plaintiff’s name, address, and contact number.
- Defendant’s name, address, and contact number.
- Amount claimed and clear reason for the claim.
Step 2: Gather Supporting Documents
Attach all evidence supporting your claim, such as:
- Contracts or agreements.
- Receipts, promissory notes, or invoices.
- Photographs or written communications proving the transaction or loss.
Step 3: File the Complaint
Submit your completed form and supporting documents to the appropriate court. Pay the corresponding filing fee based on your claim amount.
Step 4: Serve the Defendant
After filing, the court issues a summons to the defendant, who will receive a copy of your complaint.
Step 5: Attend the Hearing
Both parties attend a single hearing to present evidence and arguments. The judge aims to resolve the case on the same day or within a few days.
Filing Fees for Small Claims Court
| Claim Amount | Approximate Filing Fee |
|---|---|
| Up to PHP 300,000 | PHP 2,500 – PHP 5,000 |
| PHP 300,001 – PHP 1,000,000 | PHP 5,000 – PHP 10,000 |
Filing fees may vary slightly depending on the specific court’s location and administrative rules.
Court Procedures for Small Claims
- Pre-Hearing Mediation: Courts often encourage parties to settle amicably through mediation before proceeding to the hearing.
- Summary Procedure: No formal pleadings or lengthy arguments are required.
- Decision: The judge typically issues a ruling immediately after the hearing or within a few days.
Once the decision is made, it becomes final and immediately executory, meaning it can be enforced without waiting for an appeal.
Tips for a Successful Small Claims Case
- Be Prepared – Organise your documents clearly and bring all evidence to support your claim.
- File in the Right Court – Ensure you file your case where the defendant or you reside.
- Be Concise – Focus only on the facts and avoid unnecessary details.
- Stay Professional – Address the judge respectfully and maintain composure.
- Consider Settlement – Mediation can often save time and preserve relationships.
Frequently Asked Questions
Do I need a lawyer for Small Claims Court?
No. Lawyers are not allowed to represent parties in small claims proceedings. You will represent yourself.
How long does it take to resolve a small claim?
Most small claims cases are resolved within 1 to 2 months of filing.
What if the defendant doesn’t appear in court?
If the defendant fails to appear despite being properly notified, the judge may issue a default judgment in favour of the plaintiff.
Can I file a claim for more than PHP 1,000,000?
No. Claims exceeding this amount must be filed before the Regional Trial Court (RTC) under regular civil procedures.
Can I appeal the decision?
Decisions in Small Claims Court are final and unappealable, except in cases involving fraud, lack of jurisdiction, or serious procedural errors.
Can a business file a claim in Small Claims Court?
Yes. Small and medium enterprises can file claims related to unpaid debts, invoices, or other money claims within the PHP 1,000,000 limit.
Conclusion
The Philippine Small Claims Court offers an efficient and accessible way to resolve monetary disputes up to PHP 1,000,000. By understanding its procedures, gathering strong evidence, and presenting your case clearly, you can achieve a fair and timely resolution without the high costs of traditional litigation.
For more information, visit the Supreme Court of the Philippines website or contact your nearest local trial court.
For fixed-fee legal help with your case,
contact Martin Taggart — your trusted UK legal partner.