SC issues new rules to expedite procedures in first level courts

To provide for a more efficient and expedited procedure for both summary procedure and small claims cases before the first level courts, the Supreme Court (SC) En Banc approved the Rules on Expedited Procedures in First Level Courts (new Rules), effectively amending the 1991 Revised Rule on Summary Procedure and 2016 Revised Rules on Small Claims Cases, at its deliberation on Tuesday, March 1, 2022.

In a report posted by the Public Information Office of the SC (SC-PIO) in the SC’s website, the new Rules recalibrates, reconciles, and harmonizes the coverage of the rules in both summary procedure and small claims cases with Republic Act (RA) No. 11576.

RA 11576, which took effect on August 19, 2021 following 10 days after its publication in the Official Gazette on August 4, 2021, expanded the jurisdictional amount cognizable by the first level courts to ₱2,000,000.00 for money claims.

Amendments to the Revised Rule on Summary Procedure

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

1. forcible entry and unlawful detainer cases;
2. civil actions and complaints for damages where the claims do not exceed ₱2,000,000.00;
3. cases for enforcement of barangay amicable settlement agreements and arbitration award where the money claim exceeds ₱1,000,000.00;
4. cases solely for the revival of judgment of any first level court; and
5. the civil aspect of violations of Batas Pambansa Blg. 22 (BP 22), if no criminal action has been instituted. Provisions on the evidentiary nature of pleadings, filing and service, and pre-trial from the 2019 Amendments have likewise been adopted, unless inconsistent.
   

With respect to criminal cases, the penalty threshold was increased to imprisonment not exceeding one year, or a fine not exceeding ₱50,000.00, or both, and a fine not exceeding ₱150,000.00 for offenses involving damage to property through criminal negligence.

The arraignment and pre-trial will be scheduled and conducted Friday mornings only in accordance with the Revised Guidelines for Continuous Trial of Criminal Cases.

The procedure of appeal has been simplified.

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 Rule on Small Claims

The threshold amount in small claims cases is now ₱1,000,000.00, 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.

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 ₱1,000,000.00 are included.

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 a case is dismissed without prejudice for failure to serve summons, it may now be re-filed with a reduced filing fee within one year from notice of dismissal.

The Small Claims Forms were revised with the inclusion of translations in Filipino for ease of use. Likewise, mobile phone calls, SMS, or instant messaging software applications are now recognized modes of service of notices.

The period to set the hearing was increased to 60 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 30 days.

The hearing will still be for one day, with the judgment to be rendered strictly within 24 hours from its termination.

The judgment shall be final, executory and unappealable.

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

The SC-PIO report added that the new Rules shall be prospective in application. This means that 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 new Rules will take effect after its required publication in two newspapers of general circulation.