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14"' CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
1 
Introduced by Senator Ramon Bong Revilla, Jr. 
EXPLANATORY NOTE 
This bill provides for the creation and establishment of a small claims court 
system in the country. 
A Small Claims Court is a court of law whose main purpose is to hear and resolve 
disputes involving small amounts of money or property informally and without strict 
application of the rules of evidence. In a Small Claims Court, claims are presented by the 
litigants themselves - using Filipino, English or, insofar as may be practicable, local 
dialects. The Small Claims Court, therefore, is envisioned to be a judicial forum where 
disputes are promptly resolved. 
The creation of a Small Claims Court is one important step in the implementation 
of effective legal reform in the country. Clogged court dockets, lengthy disposition of 
cases, complicated trial procedures, and insufficient number of judges, are but some of 
the problems that beset the country's judicial system. Ultimately, the existence of these 
circumstances raise the cost of justice in the country - especially for those of meagre 
resources who can ill-afford to avail of judicial solutions to their legal predicaments. 
It is believed that the creation of a small claims court system in the country would 
address the long-standing problem of delay in the resolution of cases which is widely 
believed to be the cause of the erosion of the people's confidence in our judicial system. 
The establishment of Small Claims Courts in the country would help declog court dockets 
by unloading small claims cases in first-level courts and increase the ordinary Filipino's 
access to justice through a speedy, inexpensive resolution of small disputes without the 
necessity of securing the services of a legal counsel. Ultimately, it is envisioned that by 
facilitating the flow of cases, a Small Claims Court system would allow the people to 
obtain justice faster and restore their confidence in the country's judicial system. 
For the foregoing reasons, the prompt passage of this Bill is earnestly requested 


14’” CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
) 
4.. 
SENATE 
S.B. No. 
800 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
PROVIDING FOR THE CREATION AND ESTABLISHMENT OF SMALL 
CLAIMS COURTS IN THE PHILIPPINES, APPROPRIATING FUNDS 
THERF,FOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assem bled. 
Section 1. Short Title. - This Act shall be known as the Philippine Sninll Claims 
Coiirt Act. 
Section 2. Declaration of Policy. - The State recognizes that minor civil disputes 
are of special importance to the parties and of significant social and economic 
consequence collectively, The State therefore makes it a policy to provide a mechanism 
where such minor civil disputes can be resolved expeditiously, inexpensively and fairly. 
For the attainment of this objective, a judicial forum that will enable the parties to 
directly and personally resolve minor civil disputes shall be established. 
Section 3. Dejhitzon of Terms. - As used in this Act, unless the context indicates 
otherwise, the term 
a. “Plaintiff means the party who has filed a small claims action; the term 
includes a defendant who has filed a small claims action against a plaintiff. 
b. “Defendant” means the party against whom the plaintiff has filed a small 
claims action; the term includes a plaintiff against whom a defendant has filed a 
small claims action. 
c. “Judgment Creditor” means the party, whether plaintiff or defendant, in whose 
favor a money judgment has been rendered. 
d. “Judgment Debtor” means the party, whether plaintiff or defendant, against 
whom a money judgment has been rendered. 
e. “Person” means an individual, corporation, partnership, firm, association, or 
other entity. “Individual” means a natural person. 
Section 4. Creation of SmaZZ CZaznzs Courts. - There shall be established for every 
two Metropolitan Trial Court, Municipal Trial Court and Municipal Circuit Trial Courts a 
Small Claims Court to be presided by a Small Claims Court Judge-Arbitrator. 
Section 5. Qzmlzjbtions. - No person shall be appointed as a Small Claims Court 
Judge-Arbitrator unless he/ she is a natural-born citizen of the Philippines, at least thirty 
(30) years of age, member of the Philippine Bar, and for at least five (5) years, has been 


engaged in the practice of law in the Philippines, or has held a public ofice in the 
Philippines requiring admission to the practice of law as an indispensable requisite. 
Section 6. Jurisdiction. - The Small Claims Court shall exercise exclusive original 
jurisdiction over all civil actions where the value of the personal property or amount of 
the demand does not exceed Fifty Thousand Pesos (P50,OOO.OO): provided, That where 
there are several claims or causes of actions between the same parties or different parties, 
embodied in the same complaint, the amount of the demand shall be the totality of the 
claims in all causes of action, irrespective of whether the causes of action arose out of the 
same or different transactions: Provided, further, That a plaintiff can only institute small 
claims actions to recover a total of One Hundred Thousand Pesos (PlO0,OOO.OO) per 
annum, but in no case exceeding five (5) small claims actions per annum. In the exercise 
of its jurisdiction, the Court may grant equitable relief in the form or rescission, 
restitution, and specific performance whether in lieu of or in addition to awards for 
money or damages, The Court shall exercise jurisdiction over the small claims action 
until there has been full payment, performance or satisfaction of its judgment or order. 
Section 7. Parties. - Any person who is at least eighteen (18) years of age may be 
a party to a small claims action. A minor or incompetent person may be represented by a 
guardian ad litem appointed by a court of competent jurisdiction or by the judge of the 
Small Claims Court where the action is filed. 
Section 8. Representation. - Except as permitted under this Act, no attorney-at- 
law or any individual other than the plaintiff or defendant may take part in the filing, 
conduct or defense of a small claims action: Provided, that an attorney-at-law may, for 
and in hidher own behalf, defend himself/herself against any small claims action that has 
been filed against him/ her: Provided, Further, that the judgment creditor may avail the 
services of an attorney-at-law for the enforcement of the judgment. Husbands and wives 
who sue or are sued with his or her spouse may represent the other in their claim or 
defense. 
Section 9. Nature ofProceedzngs. - The hearing and disposition of small claims 
actions shall be informal without strict application of the rules of evidence, the object 
being to dispense justice promptly between the parties. The Rules of Procedure in Small 
Claims Courts, including the time and duration of sessions, shall be determined by the 
Supreme Court. 
Section 10. Mediation Center. - In each Small Claims Court, there shall be a 
Mediation Center to be presided over by the Small Claims Court Judge-Arbitrator or by 
his duly authorized Mediation Officer: Provided, that no person shall be designated as 
Mediation Officer unless he/she holds a Bachelor of Laws degree. 
Section 11. Mundatoiy Mediation Conference. - Prior to any hearing of any small 
claims action, the Small Claims Court Judge- Arbitrator shall order and schedule a 
mandatory mediation conference between or among the parties for the purpose of 
resolving the dispute, or arriving at an amicable settlement, under the supervision of the 
Small Claims Court Judge or Mediation Officer. Any settlement or resolution of the 
dispute arising from the mediation conference shall be reduced to writing and be 
embodied in a legally enforceable resolution to be signed by the Small Claims Court 
Judge. In case the mediation efforts fail, the Small Claims Court Judge shall immediately 
set the case for hearing. 
Section 12. Judgments and Processes. - All judgments determinative of the merits 
of the case shall be in writing, stating clearly the facts and the grounds on which they are 
based, signed by the Judge and filed with the Clerk of Court. The judgments or orders of 
the Court shall not be appealable, except upon the ground of grave abuse of 
discretion. 
Section 13. Honoraria and Allowances. - Judge-Arbitrators of the Small Claims 
Courts shall receive such honoraria and allowances as may be authorized and determined 
by the Supreme Court. 


Section 14. Stafing Pattern and Pilot Test Areas. - The Supreme Court shall 
submit to the President, within thirty (30) days from the effectivity of this Act, a staffing 
pattern for all courts constituted pursuant to this Act, including plans for the 
establishment of pilot Small Claims Courts in areas as may be determined by the 
Supreme Court. 
Section 15. Appropriations. - To carry out the provisions of this Act, there is 
hereby appropriated the sum of Twenty Five Million Pesos (P25,000,000.00fr)o m the 
General Appropriations Act for the current year. Thereafter, the appropriation for such 
funds as may be necessary for the purpose shall be provided for in the General 
Appropriation Acts. 
Section 16. Separability Clause. - If any provision of this Act shall be held to be 
unconstitutional or not valid, no other provisions shall be affected thereby. 
Section 17. EgectivQ. - This Act shall take effect after fifteen (15) days 
following its publication in the Official Gazette or in two (2) newspapers of general 
circulation. 
Approved,