SC Recalibrates Rules to Expedite Procedures in First Level Courts

On 01 March 2022, the Supreme Court promulgated A.M. No. 08-8-7-SC or the Expedited Procedures in First Level Courts, in order to reconcile and harmonize the coverage of the 1991 Revised Rule on Summary Procedure and the 2016 Revised Rules on Small Claims Cases.

In promulgating A.M. No. 08-8-7-SC, the Supreme Court also took into consideration the following laws:

1. Republic Act No. 11576, which expanded the jurisdictional amount cognizable by First Level Courts in civil cases to Two Million Pesos (PHP2,000,000.00) and the jurisdictional amount for recovery of real property with the assessed value to Four Hundred Thousand Pesos (PHP400,000.00); and
   
2. Republic Act No. 10951, which adjusted the value of property and damage on which a penalty is based, and the fines imposed under the Revised Penal Code, as amended.

Amendments to the Revised Rule on Summary Procedure

Pursuant to the amendments, the civil cases covered by the Rule on Summary Procedure now consists of the following:

1. Forcible entry and unlawful detainer cases, regardless of the amount to be recovered. Attorney’s fees, if awarded, shall not exceed One Hundred Thousand Pesos (PHP100,000.00);
   
2. All civil actions, except probate proceedings, admiralty and maritime actions and small claims where the claim does not exceed Two Million Pesos (PHP2,000,000.00).
   
3. Complaints for damages where the claims do not exceed Two Million Pesos (PHP2,000,000.00);
   
4. Cases for enforcement of barangay amicable settlement agreements and arbitration award where the money claim exceeds One Million Pesos (PHP1,000,000.00), provided that no execution has been enforced within six (6) months from the settlement date or receipt of award or the date when the obligation becomes due and demandable;
   
5. Cases solely for the revival of judgment of any first level court; 
   
6. The civil aspect of violations of Batas Pambansa Blg. 22 (BP 22), if no criminal action has been instituted. 
   
7. With respect to criminal cases, violation of BP 22 is explicitly included, and the penalty threshold of all other criminal cases is increased to imprisonment not exceeding one year, or a fine not exceeding Fifty Thousand Pesos (PHP50,000.00), or both, and a fine not exceeding One Hundred Fifty Thousand Pesos (PHP150,000.00) for offenses involving damage to property through criminal negligence. If the prescribed penalty consists of imprisonment and/or a fine, the prescribed imprisonment shall be the basis for determining the applicable procedure. Arraignment and pre-trial shall be scheduled and conducted in accordance with the Revised Guidelines for Continuous Trial of Criminal Cases.

In cases of appeal, any judgment, final order, or final resolution of the first level courts on summary procedure may be appealed to the appropriate Regional Trial Court (RTC) exercising jurisdiction over the territory under Rule 40 for civil cases and Rule 122 for criminal cases. The judgment of the RTC on the appeal shall be final, executory, and unappealable.

Amendments to the Rules on Small Claims

The following are the significant amendments made on the Rules on Small Claims:

1. The threshold amount in small claims cases is now One Million Pesos (PHP1,000,000.00), regardless of whether the case is filed within or outside Metro Manila. This covers claims or demands for money owed under contracts of lease, loan and other credit accommodations, services, and sale of personal property.
   
2. Recovery of personal property, unless it is made subject of a compromise agreement between the parties, are excluded from the operation of the new Rules. Nevertheless, the enforcement of barangay amicable settlement agreements and arbitration awards where the money claim does not exceed One Million Pesos (PHP1,000,000.00) are included, provided that no execution has been enforced within six (6) months from the settlement date or receipt of award or the date when the obligation becomes due and demandable.
   
3. Joinder of two or more separate small claims against a defendant is allowed, provided that the total amount claimed does not exceed One Million Pesos (PHP1,000,000.00).
   
4. If more than five (5) claims are filed by one party within the calendar year, additional filing fee of Five Hundred Pesos (PHP500.00) shall be paid for every claim filed after the fifth (5th) claim and an additional One Hundred Pesos (PHP100.00) or a total of Six Hundred Pesos (PHP600.00) for every claim filed after the tenth (10th) claim and another One Hundred Pesos (PHP100.00) or a total of Seven Hundred Pesos (PHP700.00) for every claim filed after the fifteenth (15th) claim, progressively and cumulatively
   
5. Service of summons through the plaintiff is allowed if it is returned unserved by the sheriff or proper court officer, or if it shall be served outside the judicial region of the court where the case is pending. If the plaintiff misrepresents that the defendant was served, the case shall be dismissed with prejudice and the plaintiff shall be declared in indirect contempt and/ or be meted a fine of Five Thousand Pesos (PHP5,000.00).
   
6. If a case is dismissed without prejudice for failure to serve summons, it may now be re-filed with a fixed filing fee of Two Thousand Pesos (PHP2,000.00) within one year from notice of dismissal.
   
7. Any amount pleaded in counterclaim in excess of One Million Pesos (PHP1,000,000.00) shall be deemed waived.
   
8. The period to set the hearing was increased to sixty (60) calendar days in small claims cases where one of the defendants reside or hold business outside the judicial region of the court. Otherwise, the hearing shall be set within thirty (30) calendar days.
   
9. The hearing will still be held in one (1) day, with the judgment to be rendered strictly within twenty-four (24) hours from its termination.
   
10. The Small Claims Forms have also been updated and improved for ease of use, with translations in Filipino.

The conduct of videoconferencing hearings using Microsoft Teams for both summary proceedings and small claims cases is allowed at any stage of the proceedings. If warranted, the first level courts may also make use of alternative platforms or instant messaging applications with video call features for their videoconferencing hearings.

The new Rules shall take effect on 11 April 2022 and shall apply prospectively. Cases currently pending before the first and second level courts will remain with and be decided by those same courts, in accordance with the applicable rules at the time of their filing.

The full text of A.M. No. 08-8-7-SC can be accessed here.