Jay Erwin V. Balabag, CPA

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Filing a small claims case in Bacolod City can be an effective way to resolve disputes involving money without going through the lengthy and expensive process of regular court litigation. However, before heading straight to court, one important step that parties must usually observe is barangay conciliation.

What is a Small Claims Case?

A small claims case is a judicial process where money claims for One Million Pesos or less are heard by the Metropolitan Trial Courts (MeTCs), Municipal Trial Courts in Cities (MTCCs), Municipal Trial Courts (MTCs) and Municipal Circuit Trial Courts (MCTCs).

Examples include:

1. Money owed under any of the following:
   • Lease Contracts
   • Loan and Other Credit Accommodations
   • Service Contracts
   • Sale of personal property (excluding the recovery of personal property unless it is the subject of a compromise agreement).
2. The enforcement of a barangay amicable settlement or an arbitration award involving a money claim, not exceeding One Million Pesos (P1,000,000.00), if within six (6) months, from the date of the settlement or date of receipt of the award or from the date the obligation stipulated or adjudged in the arbitration award becomes due and demandable, no execution has been enforced by the Barangay, pursuant to the Local Government Code.

Small claims cases are designed to be simple, fast, and inexpensive, with no need for lawyers to represent the parties in hearings.

Necessity of Barangay Conciliation Before Filing

Before filing a small claims case in Bacolod City, it is important to determine whether the dispute first needs to undergo barangay conciliation under the Katarungang Pambarangay Law.

Barangay conciliation is a mandatory prerequisite in certain disputes. The law requires parties who reside in the same city or municipality to first bring their complaint before the Barangay for mediation and possible settlement.

When is Barangay Conciliation Required?

Civil disputes and criminal offense punishable by imprisonment not exceeding one year or a fine not exceeding P5,000.00 are subject to amicable settlement under the Katarungang Pambarangay Law when parties involved are individuals who are residing in the same city or municipality.

When is Barangay Conciliation NOT Required?

Sec 408 of the LGC enumerates the instance that is not subject to amicable settlement:

1. Where one party is the government or any subdivision or instrumentality thereof
2. Where one party is a public officer or employee and the dispute relates to the per
3. Offenses punishable by imprisonment exceeding one year or a fine P5,000.00
4. Offenses where no private party or individual is offended (like traffic violations, jaywalking, vagrancy, sidewalk vending, mendicancy, and prostitution)
5. Where the dispute involves real properties located in different cities or municipalities, unless the parties thereto agree to submit their differences to amicable settlement by an appropriate lupon.
6. Disputes involving parties who actually reside in barangays of different cities or municipalities, except where such barangay units adjoin each other and the parties thereto agree to submit their differences to amicable settlement by the appropriate lupon
7. Such other classes of disputes which the President of the Philippines may determine in the interest of justice or upon the recommendation of the Secretary of Justice

Failure to comply with barangay conciliation, when required, may result in the dismissal of the small claims case for being premature. Thus, before filing in the Bacolod City small claims court, ensure barangay mediation has been attempted.

Where to File a Small Claims Case in Bacolod City

After securing a Certificate to File Action from the barangay (if conciliation fails), you may proceed to file your small claims case with the Municipal Trial Court in Cities (MTCC) of Bacolod City.

The court will set a hearing date, and both parties must personally appear. Since no lawyers are allowed to represent clients during small claims hearings, parties must prepare their evidence, receipts, contracts, or any documents to support their claim.

Why Consult a Bacolod Lawyer?

Although the process is designed to be lawyer-free inside the courtroom, consulting a Bacolod lawyer online or in-person beforehand can be helpful.

A lawyer can:

• Assess whether barangay conciliation is necessary in your case.
• Help prepare the Statement of Claim and supporting evidence.
• Guide you through possible defenses and outcomes.

Filing a small claims case in Bacolod City is a practical way to recover money owed without the complexity of full-blown litigation. However, the requirement of barangay conciliation is a crucial step that should not be overlooked. By seeking the guidance of a Bacolod lawyer, you can ensure compliance with procedural rules and increase your chances of a successful claim.*