Mr. E is my neighbor here in Taguig City (Metro Manila), and he owns a house on a certain lot. He mortgaged the property to me, and we called that agreement “sanla-tira.” We agreed that I will give him P150,000.00, and possess his house for two years. After two years, Mr. E will return the money, and I will surrender the possession of the house to him.
But now, the problem is Mr. E has mortgaged the same property to another person who would want to evict me from it. I do not want any trouble so I prefer that he would just pay me back my money, and I would vacate the house in favor of that fellow who would like to possess it. What should I do to collect the amount of P150,000.00 from Mr. E?
In order to collect the amount of P150,000.00, you can file a collection case pursuant to the rules of procedure for small claims that can be filed before the Municipal Trial Court of appropriate jurisdiction.
This is in consonance with Section 5, A. M. No. 08-8-7-SC, Rules of Procedure for Small Claims, which states, “The Metropolitan Trial Courts, Municipal, Trial Courts in Cities, Municipal Trial Courts and Municipal Circuit Trial Courts shall apply this rule in all actions that are purely civil in nature where the claim or relief prayed for by the plaintiff is solely for payment or reimbursement of sum of money.”
The claim or demand may be for money owed under any of the following: contract of lease, loan, services, sale or mortgage; for liquidated damages arising from contracts; or for enforcement of a barangay (village) amicable settlement or an arbitration award involving a money claim covered by this rule pursuant to Sec. 417 of Republic Act 7160, or The Local Government Code of 1991.
A small claims action is commenced by filing with the court an accomplished and verified Statement of Claim in duplicate, accompanied by a Certification Against Forum Shopping, Splitting a Single Cause of Action and Multiplicity of Suits and two (2) duly certified photocopies of the actionable document/s subject of the claim, as well as the affidavits of witnesses and other evidence to support the claim. No evidence shall be allowed during the hearing that was not attached to or submitted together with the Statement of Claim, unless good cause is shown for the admission of additional evidence (Section 6, Ibid.).
Again, we find it necessary to mention that this opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when the facts are changed or elaborated.
We hope that we were able to enlighten you on the matter.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to email@example.com