Dear IBP Davao,
Ma’am good day, mangayo lang ko advice. Naa’y nakautang sa akoa ug 60k. Mag one (1) year na wala gihapun ko nabayaran. Nag atubang na mi sa barangay last August 2020. Gisaadan ko niya na December 30, 2020 siya mubayad. Pero hangtod karon wala gihapon bisan piso iyang gibayad sa akoa. Naa mi pinirmahan sa barangay. Unsa angay nga proseso akong himuon? Salamat sa tubag maam and Godbless.
-Lady Creditor
Ma’am good day. I would like to seek advice. A person borrowed money from me in the amount of sixty thousand pesos (Php 60,000.00). One year lapsed but still no payment was made. We were able to temporarily settle our issues in the barangay last August 2020 as that person promised that he will pay on December 30, 2020. However, up to present, he did not pay a single centavo despite the agreement we executed in the barangay. What should I do? Thank you and God bless.
Hello Lady Creditor,
Under Republic Act (RA) 7610 or the Local Government Code of 1991, it provides a method for parties to settle their disputes without having to go to court. As evidently provided under Section 408 of the Local Government Code (LGC), the lupon of each barangay has the power to bring together parties actually residing in the same city or municipality for amicable settlement of all disputes, save those exceptions mentioned therein. An amicable settlement appropriately reached before the barangay has a binding effect and it may thereafter be enforced. As stated under the LGC:
“SECTION 416. The amicable settlement and arbitration award shall have the force and effect of a final judgment of a court upon the expiration of ten (10) days from the date thereof, unless repudiation of the settlement has been made or a petition to nullify the award has been filed before the proper city or municipal court.
SECTION 417. The amicable settlement and arbitration award may be enforced by execution by the lupon within six (6) months from the date of settlement. After the lapse of such time, the settlement may be enforced by action in the appropriate city or municipal court.”
In the case of Miguel vs. Montanez (G.R. No. 191336; January 25, 2012):
“Thus, under Section 417 of the Local Government Code,19 such amicable settlement or arbitration award may be enforced by execution by the Barangay Lupon within six (6) months from the date of settlement, or by filing an action to enforce such settlement in the appropriate city or municipal court, if beyond the six-month period.
x x x
It must be emphasized, however, that enforcement by execution of the amicable settlement, either under the first or the second remedy, is only applicable if the contracting parties have not repudiated such settlement within ten (10) days from the date thereof in accordance with Section 416 of the Local Government Code. If the amicable settlement is repudiated by one party, either expressly or implicitly, the other party has two options, namely, to enforce the compromise in accordance with the Local Government Code or Rules of Court as the case may be, or to consider it rescinded and insist upon his original demand. This is in accord with Article 2041 of the Civil Code, which qualifies the broad application of Article 2037, viz:
If one of the parties fails or refuses to abide by the compromise, the other party may either enforce the compromise or regard it as rescinded and insist upon his original demand.”
Six months had already lapsed from the date of settlement in the barangay. Hence, the settlement may be enforced by action in the proper court. Consequently, since your claim for payment of money is sixty thousand pesos, your action should be instituted in accordance with the Rules of Procedure for Small Claims Cases. Small Claims are claims where the value of the claim does not exceed Four Hundred Thousand Pesos (P400,000.00) exclusive of interest and costs, for Metropolitan Trial Courts (MeTCs) Three Hundred Thousan Pesos (P300,000.00), exclusive of interest and costs, for Municipal Trial Courts (MTCs), Municipal Trial Courts in Cities (MTCCs), and Municipal Circuit Trial Courts (MCTCs).
As to the commencement of the small claims action against the debtor, the same my be done by filing before the small claims court of the place where you or your debtor resides an accomplished and verified Statement of Claim in duplicate, accompanied by a Certification of Non-forum Shopping, and two 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. Upon filing of the complaint, you shall be required to pay the docket and other legal fees, unless you are allowed to litigate as an indigent.
If the court finds no ground for the dismissal of your claim, it will issue Summons, ordering the defendant to submit a verified response to your claim, issue a notice to both parties, directing them to appear before it on a specific date and time for hearing, with a warning that no unjustified postponement shall be allowed.
IBP Davao Corner is a weekly column of Integrated Bar of the Philippines- Davao Chapter, giving legal advice to the public as part of its legal aid program. The above legal opinion is based solely on the appreciation of the facts and problem given and stated above. The opinion may vary when other facts, circumstances, and situations are stated. You may send your comments and questions to ibpdavao@gmail.com.
