Saturday, December 19, 2015
"SMALL CLAIMS" CASES UP TO P200K
This is good news to cooperatives, who have availed of the Small Claims facility in filing with the courts claims for the payment or reimbursement of sum of money for example, from its members who owe the cooperative.
The Supreme Court (SC) has approved the "Revised Rules of Procedure for Small Claims Cases", which among other things, have expanded the coverage of amount of claims, from up to P100,000 to up to P200, 000.
To take effect on February 1, 2016, the Revised Rules were adopted in a Supreme Court Resolution, published December 19, 2015 in two newspapers of general circulation, one of which is the Philippine Star.
The original Rules of Procedure for Small Claims cases were promulgated and made effective on March 18, 2010 for all first-level courts nationwide.
Under the new Resolution, it said that "due to its success, there is need to introduce amendments to the existing Rules, to be more effective in reducing the dockets of the first level courts, a wider coverage and better access to the courts by the underprivileged."
The Revised Rules shall govern the procedure in actions before the Metropolitan Trial Court; Municipal Trial Courts in cities; Municipal Trial Courts; and Municipal Circuit Trial Courts, for the payment of money where the value of the claim does not exceed Two Hundred Thousand Pesos (P200, 000) inclusive of interests and costs.
The claim or demand may be for a) for money owed under either a Contract of Lease; Contract of Loan; Contract of Services; Contract of Sale; or Contract of Mortgage; b) For liquidated damages arising from contracts; and c) the enforcement of a barangay amicable settlement or an arbitration award involving a money claim covered by the Rule pursuant to Section 417 of Republic Act 7160, otherwise known as the Local Government Code of 1991.