Last week, I shared with you an email inquiry regarding our topic today. This pertains to the outstanding account with a cooperative. I was told that the unpaid balance, which I believe, is already a delinquent account is now with the Small Claims Court. While these kind of stories are not so special to me as I have been receiving these kind of inquiries and/ or privy to more or less similar stories in the past, I am taking this opportunity to share her story and my answer to her so that it could also in a way help other readers who are in the same or similar situation. I believe that there are always lessons to be learned in the experiences of others.
So one may ask, what is the amount and type of cases covered by Small Claims Courts? As per the handbook on the Rule of Procedure for Small Claims cases, all claims for payments or reimbursements for a sum of money not exceeding P100,000 are now considered small claims and, therefore, may only be filed before Small Claims Courts (SCCs). The claim may arise from a variety of sources: unpaid loan, purchase price of a product or service, value of a stolen or damaged property, amount claimed as damages, etc. The amount limit does not include interests and costs. So, for example, an indebtedness of P100,000 that earned an interest of P1,500 (1.5%) when due and incurred P500 as added cost such as admin or collection fee - bringing a total of P102,000. This amount will still be considered within the jurisdiction of SCCs.
According to the briefing I attended in Marco Polo Hotel sometime in December 2010, the reality is that the said rule did not create new courts but merely designated lower courts such as: Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts, they are known as first-level courts because they are at the first and lowest level in a hierarchy of courts with increasing jurisdiction and powers and in the appeals process. It was also said that all personnel within this courts were all well trained.
In general, what makes SCC unique is the fact that the parties (both the plaintiff and defendant) will have to represent themselves, as it is clearly stated that there are no lawyers allowed. A lawyer can still appear in SCC when he is either the claimant or respondent himself. However, the defendant or plaintiff may be assisted during the hearing by someone who is still not a lawyer if he or she cannot present her claim or defense. Likewise, a party may be represented by another, provided that the representative is not a lawyer and is given a special power of attorney which authorizes him or her to settle the case amicably, participate in any alternative dispute resolution and make admissions of facts and documents. These are commonly called para-legal personnel or staff of a company.
Lastly, it is also important to note that it only takes one day for most cases to be heard and decided under Small Claims Court.
For comments, rejoinders and questions related to credit & collection, Mr. Ed F. Limtingco can be reached at elimtingco@yahoo.com.