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  • Writer's pictureZiggurat Realestatecorp

Small claims cases

How to claim or demand for money owed?

Please be informed of Sections 1 and 18 of AM 08-8-7-SC, dated March 1, 2022, otherwise known as the Rules on Expedited Procedures in the First Level Courts, which states that:

"Section 1. Small Claims Cases, as defined hereunder, where the claim does not exceed One Million Pesos (P1,000,000.00), exclusive of interest and costs.

"A 'small claim' is an action that is purely civil in nature where the claim or relief raised by the plaintiff is solely for the payment or reimbursement of a sum of money. It excludes actions seeking other claims or reliefs aside from payment or reimbursement of a sum of money and those coupled with provisional remedies.

"The claim or demand may be:

"(a) For money owed under any of the following:

"1. Contract of Lease;

"2. Contract of Loan and other credit accommodations;

"3. Contract of Services; or

"4. Contract of Sale of personal property, excluding the recovery of the personal property, unless it is made the subject of a compromise agreement between the parties.

"Sec. 18. Appearance of Attorneys Not Allowed. - No attorney shall appear in behalf of or represent a party at the hearing, unless the attorney is the plaintiff or defendant.

"If the court determines that a party cannot properly present his/her/its claim or defense and needs assistance, the court may, in its discretion, allow another individual who is not an attorney to assist that party upon the latter's consent."

Based on the above-stated law, claims or demand for money owed under contracts of loan and other credit accommodations may be filed in the first level court as a small claim without the need or assistance of a lawyer, provided that the amount involved does not exceed the threshold amount.

You may file the case on your own, without the assistance of a lawyer as the rules even prohibit the appearance of a lawyer for or on behalf of another.

Source: Manila Times

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