Filing a Small Claims Suit

By: Eric Benjamin D. Lavadia / April 25, 2025

Pursuing legal action to recover a relatively small sum of money may once have seemed burdensome or impractical—but that is no longer the case. Recent reforms have introduced a faster, more straightforward, and cost-efficient process for resolving monetary disputes.

The Rules on Expedited Procedures in the First‑Level Courts (A.M. No. 08‑8‑7‑SC), which took effect on April 11, 2022, streamline the resolution of small claims cases. These rules allow creditors to recover modest sums quickly and inexpensively—without engaging counsel—before the appropriate Metropolitan, Municipal, and Municipal Circuit Trial Courts.

A small claim is a purely civil action seeking payment or reimbursement of money not exceeding P1,000,000.00, exclusive of interest and costs. The claim must arise from a contract of lease, loan, services, or sale of personal property. To keep the process simple, lawyers are prohibited from appearing; only the parties themselves may participate. Litigation expenses are significantly reduced because there is a single hearing, minimal docket fees, and the use of standardized pleadings—making the small claims process far less costly than ordinary or summary actions.

The process begins when the plaintiff files a Statement of Claim (Form 1‑SCC), which is downloadable from the Supreme Court website, along with all relevant supporting documents. Upon receipt, the court serves the claim on the defendant, who must file a Verified Response (Form 3-SCC) within 10 calendar days. The court then schedules a single hearing, during which the judge first attempts to facilitate an amicable settlement. If unsuccessful, the judge proceeds immediately to hear the parties’ arguments. A decision must be rendered within 24 hours after the hearing, and the judgment is immediately executory and unappealable.

Before initiating a small claim, ensure that all documents are complete, clear, and legible. The principal amount must be stated separately from interest and penalties in the Statement of Claim. Defendants should promptly file the Verified Response, attaching all supporting evidence, and consider making a partial payment or proposing a settlement to avoid enforcement proceedings.

While lawyers may not appear as counsel in court, sound legal advice remains invaluable. Our Firm can evaluate whether your claim meets the P1,000,000.00 threshold and whether the cause of action properly arises from the required types of contracts. Though the Statement of Claim and Verified Response use standardized forms, we can assist you in completing these forms accurately to ensure compliance with formal and evidentiary requirements. We can also help you explore settlement options or draft payment proposals in advance of the hearing.

Disclaimer: This advisory is for general informational purposes only and does not constitute legal advice. Rules, thresholds, and procedures may change. For guidance tailored to your specific circumstances, please consult our Firm directly.