Dear PAO,

I have heard about the small claims procedure in civil cases, which supposedly covers claims not exceeding P1 million. I would like to know if I can file a claim under this procedure to recover my diamond, valued at P500,000. Such a claim arose from a contract of sale.

Nikka

Dear Nikka,

The answer to your question is no. To elucidate this point, allow me to lead your attention with the pertinent provisions of AM 08-8-7-SC, dated March 1, 2022, otherwise known as the Rules on Expedited Procedures in the First Level Courts. Succinctly, Section 1 of Rule I of the afore-mentioned Rules dictates its coverage, viz.:

“xxx xxx xxx

“(2) Small Claims Cases, as defined hereunder, where the claim does not exceed One Million Pesos (P1,000,000.00), exclusive of interest and costs.

“A ‘small claim’ is an action that is purely civil in nature where the claim or relief raised by the plaintiff is solely for the payment or reimbursement of a sum of money. It excludes actions seeking other claims or reliefs aside from payment or reimbursement of a sum of money and those coupled with provisional remedies.

“The claim or demand may be:

“(a) For money owed under any of the following:

“1. Contract of Lease;

“2. Contract of Loan and other credit accommodations;

“3. Contract of Services; or

“4. Contract of Sale of personal property, excluding the recovery of the personal property, unless it is made the subject of a compromise agreement between the parties. (Emphasis and underscoring supplied)

In connection with the foregoing, you are correct that small claim cases, as defined by existing rules, refer to actions that are purely civil in nature where the claim or relief raised by the plaintiff is solely for the payment or reimbursement of a sum of money not exceeding P1 million, exclusive of interest and costs.

For money owed, the same may be premised upon either a contract of lease, loan, services, or even a contract of sale of personal property such as a diamond.

Be that as it may, although the rules include a contract of sale such as the one referred to in your query — it is equally true that the rules exclude from its coverage claim for recovery of personal property.

In your question, albeit your claim allegedly arose from a contract of sale involving a diamond which is considered personal property pursuant to Article 416 of the New Civil Code of the Philippines, it is important to note that your prayer is for the recovery of such diamond and not for the money owed pursuant to the contract of sale.

It is worth reiterating that the rules exclude actions seeking other claims or reliefs aside from payment or reimbursement of a sum of money. Thus, a claim to recover the diamond cannot be pursued through the procedure for small claims cases but through regular civil procedure.

We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]