REPUBLIC OF THE PHILIPPINES

REGIONAL TRIAL COURT

7th Judicial Region
Branch ____
Cebu City
X INCORPORATED,
Plaintiff
-versus-

CIVIL CASE NO.____________

Y CORPORATION, RD And AY,

Respondent.
x----------------------------------------------------/

ANSWER WITH COUNTERCLAIM

Respondents, through the undersigned counsel, most respectfully
file their Answer in response to the Complaint of the Plaintiff and
interpose as well as their counterclaim against the latter, to wit:
1. Defendants admit pars. 1 to 5.
2. Defendants admit par. 6 that one of the respondents,
particularly Y Corporation, is a technical support service provider but
deny the rest for lack knowledge or information sufficient to form a
belief as to the truth thereof.

3. Par. 7 is admitted.
4. Defendants admit that portion of par. 8 that it received a
purchase order of AS5350 CISCO Router with the specifications
agreed upon and the amount of P694,551.40 as the total
consideration, but deny the rest for lack of knowledge or information
sufficient to form a belief as to the truth thereof.
5. Pars. 9, and 10 are denied for lack knowledge or information
sufficient to form a belief as to the truth thereof.
6. Defendants admit that portion of par. 11 that the plaintiff
corporation provided a service unit of AS5300 for its temporary use
prior to the delivery of the actual purchased unit, but deny the rest for
lack knowledge or information sufficient to form a belief as to the truth
thereof.
7. Defendants admit that portion of par. 12 that X Corporation
canceled the contract but deny that it was without valid reason, the
truth of the matter is later discussed in the counterclaim hereunder.
8. The allegations in pars. 13, 14 and 15 are denied the truth of
them will be stated in the counter claim hereunder.
9. Defendants admit that portion in par. 16 that Y Corporation
ignored the demand letters but deny that it was in bad faith and that
there was a breach of contract, the truth of it will be discussed in the
counterclaim hereunder.
10. Pars. 17 to 20 are denied truth being that stated in the
counterclaim hereunder

COUNTERCLAIM
11. The complaint filed by the plaintiff is but a malicious lawsuit
calculated to harass the Defendants, not to mention its lack of cause
of action thereby rendering it dismissible outright.
12. The reality of them is that one of the defendants, Y
Corporation, asked for a quotation particularly for an AS5350 SISCO
Router, of which subsequent purchase, it later approved. But prior to
the delivery of the unit, the corporations current router encountered
problems temporarily disrupting its operations.
13. Plaintiff Corporation failed to deliver the specific purchased
unit and so for the meantime it provided an AS53500 unit, which is
apparently different from the unit originally agreed upon.
14. That

after

installing

the

unit

(AS53500),

it

likewise

encountered technical problems which worsened the current situation

of the Defendant Corporation, hampering its operations and thereby
incurring financial losses,operation costs, and substantial loss of
clienteles assessed in the amount of P5,000,000.00.
15. That Defendant Corporation canceled the contract after failure
to deliver the unit purchased. Thereby, refuting any presence of a
perfected contract of sale.
16. The Defendants are aware that a corporation is not as a rule
entitled to moral damages, being not a natural person. However, it
may be entitled to such if its reputation is besmirched. This exception
finds application in this case in view of the unfounded, baseless and
malicious complaint filed by the plaintiff solely intended to debase the

good reputation of the Defendants, for which he should be assessed

the amount of P2,000,000.00 by way of moral damages.
17. Additionally, plaintiff should be assessed attorneys fees in the
amount of P300,000.00 as the Defendants were forced to litigate and
incurred expenses to protect its rights and interest and secure the
services of counsel.
RELIEF
WHEREFORE, defendants, Y CORPORATION, RD And AY,
respectfully prays that the complaint be dismissed for lack of cause of
action and thereby order the plaintiffs to pay defendants:
a) Actual damages in the amount of P5,000,000.00;
b) Moral damages in the amount of P2,000,000.00; and
c) Attorneys fees in the amount of P300,000.00
Other reliefs just and equitable are likewise prayed for.
Cebu City, August 14, 2014.
Atty. PEDRO PENDUKO
Roll of Attorneys No. 123
IBP No. 12345, 1/02/03, C.C.
PTR No. 456789, 5/06/03, C.C.
MCLE Compliance No. III 5456423, 10/12/02

VERIFICATION
I, RD, of legal age, after having been duly sworn to in accordance
with law, depose and say:
That I am the President of Y Corporation, one of the defendants in
the above-entitled case and caused this Answer with Counterclaim to
be prepared; that I have read and understood its contents which are
true and correct of my own personal knowledge and/or based on
authentic records.
The Secretarys Certificate authorizing me to sign this Verification
is hereto attached.
IN WITNESS WHEREOF, I have hereunto set my hands this 13th
day of August, 2014 in Cebu City.
Signed.
RD
SUBSCRIBED AND SWORN to before me in Cebu City this 13th
day of August, defendant exhibiting to me his Social Security System
Identification Card No. 5361656.

Atty. PEDRO PENDUKO

Notary Public
Until December 31, 2014
PTR No. 456789, 5/06/03, C.C.
Roll of Attorneys No. 123
TIN 135-655-360-123
IBP No. 12345, 1/02/03, C.C.
Doc. No. 103;
Page No. 17;
Book No. 3;
Series of 2014.