1

RULE 1 (1) A civil action is one by which a party sues

Sec. 1. Title of the Rules. - These Rules shall be another for the enforcement or protection of a
known and cited as the Rules of Court. (1) right, or the prevention or redress of a wrong,
whereas, a special proceeding is a remedy by
Sec. 2. In what courts applicable. - These Rules shall which a party seeks to establish a status, a
apply in all courts, except as otherwise provided by right, or a particular fact.
the Supreme Court. (n)
(2) In a civil action, there are two (2) definite and
Classification of Cases: particular adverse parties, the party who
1. Civil Action demands a right, called a plaintiff, and the other
whom the right is sought, called a defendant.
A. Ordinary Civil actions
Whereas, in a special proceeding, while there is
B. Special Civil Actions a definite party petitioner, there is no definite
2. Special Proceedings adverse party as the proceeding is usually
considered to be against the whole world
3. Criminal Actions
Sec. 4. In what cases not applicable. - These Rules
Sec. 3. Cases governed. - These Rules shall govern shall not apply to election cases, land registration,
the procedure to be observed in actions, civil or cadastral, naturalization and insolvency
criminal, and special proceedings. proceedings, and other cases not herein provided
(a) A civil action is one by which a party sues for, except by analogy or in a suppletory character
another for the enforcement or protection of a and whenever practicable and convenient. (R143a)
right, or the prevention or redress of a wrong. [Ex. Ong Chia v. Republic, 328CCRA 749 (2000)]
(1a, R2) Sec. 5. Commencement of an action. - A civil action
is commenced by the filing of the original complaint
in court. If an additional defendant is impleaded in
Classification of Actions:
a later pleading, the action is commenced with
1. As to nature: Ordinary or Special regard to him on the date of the filing of such later
Rules 62-71 (Special) –Interpleader, Declaratory pleading, irrespective of whether the motion for its
Relief & Similar Remedies, Review of admission, if necessary, is denied by the court. (6a)
Judgments, Final Orders or Resolutions of Sec. 6. Construction. - These Rules shall be liberally
Comelec & COA, Certiorari, Prohibition, construed in order to promote their objective of
Mandamus, Quo Warranto, Expropriation, securing a just, speedy and inexpensive disposition
Foreclosure of Real Estate Mortgage, Partition, of every action and proceeding. (2a)
Forcible Entry & Unlawful Detainer, Contempt
Instances when liberal construction is proper:
All others are ordinary-
1. When they do not involve public policy
2. As to the cause or foundation: Real or
2. When they arose from an honest mistake or
Personal
unforeseen accident
Real – the issue or the subject of the suit is title
3. When they have not prejudiced the adverse
or ownership or possession or interest in a real
party
property
Personal –one founded on privity of contract or 4. When they have not deprived the court
for enforcement of a contract or recovery of of its authority
personal property.
3. As to the place of filing the action: Local or
Transitory
A local action is one which must be brought in a
particular place. A transitory action is an action
which follows the party wherever he may reside. RULE 2
4. As to the object of a civil action: Sec. 1.Ordinary civil actions, basis of. - Every
Action in Personam or Action in Rem ordinary civil action must be based on a cause of
An action in personam is directed against action. (n)
specific persons [on the basis of his personal Sec. 2. Cause of action, defined. - A cause of action
liability] and seek personal judgments, while an is the act or omission by which a party violates a
action in rem is directed against the thing or right of another. (n)
property or status of a person and seek [Swagman v. CA, 455 SCRA 175 (2005) ]
judgments with respect thereto as against the
whole world. Elements:
Action Quasi in Rem – An action against a 1) There must be right pertaining to the plaintiff
named defendant and the purpose of the 2) There is a correlative obligation of the
proceeding is to subject his property to the defendant
obligation or lien burdening it. [Attachment,
3) There is a violation of plaintiff’s right by the
foreclosure]
defendant
Classification:
4) There is damage suffered by the plaintiff.
1. Ordinary or special
Sec. 2. One suit for a single cause of action. - A
2. Real or Personal party may not institute more than one suit for a
3. Local or Transitory single cause of action. (3a)
4. In personam, in rem or quasi in rem Ex: Loan/Interest – [PBC v. Lim, 455 SCRA 175
(2005) ]
Sec. 4. Splitting a single cause of action; effect of. -
Sec. 3. A special proceeding is a remedy by which a If two or more suits are instituted on the basis of the
party seeks to establish a status, a right, or a same cause of action, the filing of one or a
particular fact. (2a, R2) judgment upon the merits in any one is available as
Distinctions: a ground for the dismissal of the others. (4a)

Effect of Splitting – Dismissal of One of them
Ground for motion to dismiss:
1. Litis Pendencia [That there is another action
pending between the same parties]
2. Res adjudicata[That the cause of action is
barred by prior judgment]
Note:
1. Applies to civil cases only
2. “3-Fold Rule”
3. Cause of action vs. remedies
Sec. 5. Joinder of causes of action. - A party may in
one pleading assert, in the alternative or otherwise,
as many causes of action as he may have against
an opposing party, subject to the following
conditions:
- Not mandatory, but permissive
- APT: Substantial Unity
- Alternative or cumulative
Conditions/Limitations:
(a) The party joining the causes of action shall
comply with the rules on joinder of parties;
- same question of fact or law.
(b) The joinder shall not include special civil actions
or actions governed by special rules;
- ordinary civil actions
(c) Where the causes of action are between the
same parties but pertain to different venues or
jurisdictions, the joinder may be allowed in the
Regional Trial Court provided one of the causes
of action falls within the jurisdiction of said court
and the venue lies therein; and
Dean’s Examples:
1. Same venue but different jurisdiction-RTC
2. Different venue and different jurisdiction-
RTC
3. Same jurisdiction [only RTC] but different
venue- either
Notes: [on the exception:
1. Does not apply if both are triable by MTCs
2. Does not apply if parties are different
Review: 1997 Bar: An action for specific
performance or, in the alternative, for
damages in the amount of P180,000.00.
(d) Where the claims in all the causes of action
are principally for recovery of money, the
aggregate amount claimed shall be the test of
jurisdiction. (5a)
(e) Misjoinder of causes of action. - Misjoinder of
causes of action is not a ground for dismissal of
an action. A misjoined cause of action may, on
motion of a party or on the initiative of the
court, be severed and proceeded with
separately. (n)
RULE 3
Sec. 1. Who may be parties; plaintiff and defendant.
- Only natural or juridical persons, or entities
authorized by law may be parties in a civil action.
The term “plaintiff” may refer to the claiming party,
the counter-claimant, the cross-claimant, or the
third (fourth, etc.)-party plaintiff.
The term “defendant” may refer to the original
defending party, the defendant in a counterclaim,
the cross-defendant, or other third (fourth, etc.)-
party defendant. (1a)
- natural
2
- juridical
- entities authorized by law
- Berman Memorial v. Chong, 458 SCRA
112[ 2005]
Sec. 2. Parties in interest. - A real party in interest is
the party who stands to be benefited or injured by
the judgment in the suit, or the party entitled to the
avails of the suit. Unless otherwise authorized by
law or these Rules, every action must be prosecuted
or defended in the name of the real party in
interest. (2a)
Republic v. Agunoy, 451 SCRA 735 (2005)
Perez – by court order awarded
Agunoy – obtained patent/OCT
Caro v. Sucaldito, 458 SCRA 595 (23005)
A and B applied for free patent. But it was awarded
to B.
X, as Attorney-in-Fact for A, plaintiff versus Y,
defendant [1998]
Correct:_____________
A, represented by his
Attorney-in-Fact X,
Plaintiff,
-versus-
YYYYYYYYYYYYY,
Defendant.
____________________
Pascual v. Pascual, 475 SCRA 268, [2005]
Sec. 3. Representatives as parties. - Where the
action is allowed to be prosecuted or defended by a
representative or someone acting in a fiduciary
capacity, the beneficiary shall be included in the
title of the case and shall be deemed to be the real
party in interest.
A representative may be a trustee of an express
trust, a guardian, an executor or administrator, or a
party authorized by law or these Rules. An agent
acting in his own name and for the benefit of an
undisclosed principal may sue or be sued without
joining the principal except when the contract
involves things belonging to the principal. (3a)
Unida v. Heirs of Urban, 460 SCRA 68, (2005) Title
“Heirs of Ambrocio Urban represented by Lucio
Cabaddu,” versus Crispina Unida and several
others. But paragraph 1 of the complaint alleged as
follows:
1. Plaintiff[, of legal age, married to Leticia Urban
and a resident of Dugo, Camalaniugan,
Cagayan, is the Authorized representative of the
heirs of Ambrocio Urban.
Manila International Airport v. Rivera Village,
471 SCRA 358
Homeowners Association, represented by the
President, representing its members.
- it is in a representative capacity as
authorized by a board resolution
- but amend so title will reflect members
Into v. Valle, 477 SCRA 159 (2005)
May the administrator who files a case in behalf
of the estate implead the estate he is
administering in a civil action?
Yes, beneficiary shall be included in the title and
shall be deemed to be the real party in interest.

Sec. 4. Spouses as parties. - Husband and wife shall
sue or be sued jointly, except as provided by law.
(4a)
- Suit pertains to her exclusive property (Art. 111)
- Complete separation of property regime (Art.
144)
- Judicially decreed legal separation. (Art. 63)
Sec. 5. Minor or incompetent persons. - A minor or a
person alleged to be incompetent, may sue or be
sued, with the assistance of his father, mother,
guardian, or if he has none, a guardian ad litem.
(5a)
- Who is the real party in interest?
- If he injures you, can you sue him?
Sec. 6. Permissive joinder of parties. - All persons in
whom or against any right to relief in respect to or
arising out of the same transaction or series of
transactions is alleged to exist, whether jointly,
severally, or in the alternative, may, except as
otherwise provided in these Rules, join as plaintiffs
or be joined as defendants in one complaint, where
any question of law or fact common to all such
plaintiffs or to all such defendants may arise in the
action; but the court may make such orders as may
be just to prevent any plaintiff or defendant from
being embarrassed or put to expense in connection
with any proceedings in which he may have no
interest. (6)
1. There is a right to relief in favor of or against or
against the parties joined in respect to or arising
out of the same transaction or series of
transactions, and
2. There is a question of law or fact common to the
parties joined in the action.
Sec. 7. Compulsory joinder of indispensable parties.
- Parties in interest without whom no final
determination can be had of an action shall be
joined either as plaintiffs or defendants. (7)
Sec. 8. Necessary party. - A necessary party is one
who is not indispensable but who ought to be joined
as a party if complete relief is to be accorded as to
those already parties, or for a complete
determination or settlement of the claim subject of
the action. (8a)
3 Kinds Of Parties:
1. Indispensable party
2. Necessary party
3. Permissive party
Compulsory Paties:
1. Case for partition filed by co-owner against
other co-owners? [Ruguian v. Rugian, 9 Phil.
527]
2. Action by tenant to establish his status as such
against co-owners? [Barcelona v. CA, 280 SCRA
20 (1997)
3. Action to claim legitimacy with claim to share in
property of deceased parent, as to all children?
[Briz v. Briz, 43 Phil. 763]
4. Action against heirs to compel execution of a
deed of sale over property sold by parent?
[See Madamba v. Tumaneng, - 3/15/51]
5. Action to nullify a Torrens Title mortgaged to a
bank [as to mortgagee]? [Metrobank v. Alejo,
Sept. 10, 2001]
6. Recovery of ownership of land against A who
claims that he is just leasing it from B?
[Sanidad v. Cabotaje, 5 Phil. 204]
3
Necessary Parties:
1. An action filed by X against A on a promissory
note jointly signed by A and B, as to B?
[Quisbing v. CA, 189 SCRA 325 (1990)]
2. Case for ejectment filed by co-owner against
lessee, as to other co-owners? [Acelona v. CA,
280 SCRA 20, Art. 1088 of Civil Code?]
3. Action against driver arising from accident, as
to insurer? [Imson v. CA, 239 SCRA 58]
4. Action against property owner, as to transferee
of the property pending action? [Rule 3, Sec.
19]
Permissive Parties:
1. Action to eject a squatter, as against other
squatters?
2. An action against a surety for an unpaid loan, as
against principal?
[See Chunaco v. Tria, 63 Phil. 500 and PBC v.
Lim]
3. An action against A who is solidarily liable with
B, as to the latter? [see Quiombing]
Distinction:
1. An indispensable party is one without whom
no final determination of a controversy can be
had, whereas a necessary party is one whose
interest is distinct and divisible from the other
parties;
2. An indispensable party should be joined
under any and all conditions, whereas a
necessary party should be joined whenever
possible.
Question:
If I sue the principal, must I implead the agent?
Lagua v. Cusi, 160 SCRA 260
Sec. 9. Non-joinder of necessary parties to be
pleaded. - Whenever in any pleading in which a
claim is asserted a necessary party is not joined,
the pleader shall set forth his name, if known, and
shall state why he is omitted. Should the court find
the reason for the omission unmeritorious, it may
order the inclusion of the omitted necessary party if
jurisdiction over his person may be obtained.
The failure to comply with the order for his
inclusion, without justifiable cause, shall be deemed
a waiver of the claim against such party.
The non-inclusion of a necessary party does not
prevent the court from proceeding in the action,
and the judgment rendered therein shall be without
prejudice to the rights of such necessary party. (8a,
9a)
Sec. 10. Unwilling co-plaintiff. - If the consent of any
party who should be joined as plaintiff can not be
obtained, he may be made a defendant and the
reason therefor shall be stated in the complaint.
(10)
Sec. 11. Misjoinder and non-joinder of parties. -
Neither misjoinder nor non-joinder of parties is a
ground for dismissal of an action. Parties may be
dropped or added by order of the court on motion of
any party or on its own initiative at any stage of the
action and on such terms as are just. A claim
against a misjoined party may be severed and
proceeded with separately. (11a)
Sec 12. Class suit. - When the subject matter of the
controversy is one of common or general interest to
many persons so numerous that it is impracticable
to join all as parties, a number of them which the

court finds to be sufficiently numerous and
representative as to fully protect the interests of all
concerned may sue or defend for the benefit of all.
Any party in interest shall have the right to
intervene to protect his individual interest. (12a)
Requisites:
1. The subject matter of the controversy is one of
common or general interest to many persons;
and
2. They are so numerous that it
impracticable to join all as parties.
3. The object of the suit is to obtain relief for or
against numerous persons as a group, not as
separate distinct individuals.]
4. There is only one cause of action]
Allowed:
1. Borlaza v. Polistico, 47 Phil. 345 [1925]
2. Association v. Talisay-Silay, 88 SCRA 294 (1979)
3. Oposa v. Factoran, 224 SCRA 792 [1993]
Disallowed:
1. Sulo ng Bayan v. Araneta, 72 SCRA 377 (1976)
[but see MIA v. Rivera Village]
2. Berses v. Villanueva, 25 Phil. 473 (1913)
3. Newsweek v. IAC, 142 SCRA 171 (1974)
4. Re: Request… Dona Paz, 159 SCRA
(1988)
Liana’s Supermarket v. NLRC, 257 SCRA 186 (1996):
National Labor Union filed a case in behalf of some
200 members under Art. 242 of the Labor Code.
- it is a representative suit under Sec. 3, not a
class suit.
Representative v. Class Suit:
1. In class suit there is only one cause of action
belonging to many persons, but in a
representative suit there are many causes of
action pertaining separately to several people;
2. In a class suit, only the names of those
representing the class appear in the title, but in
a representative suit all the names of the
beneficiaries must be included in the title.
3. In a class suit, those representing the “class”
must be real-real parties in interest, but in a
representative suit, they representative chosen
need not be a real party in interest.
Class suit and Permissive joinder:
In a class suit there is only one single right of action
pertaining to numerous parties, but in a
representative suit there are many, distinct
separate rights arising from the same transaction or
series of transaction and there are common
questions of law or fact
Derivative Suit – A suit brought in behalf of
numerous stockholders of a corporation to
perpetually enjoin or nullify what is claimed to be a
breach of trust or an ultra vires act of the
company’s board of directors.
Sec. 13. Alternative defendants. - Where the
plaintiff is uncertain against who of several persons
he is entitled to relief, he may join any or all of them
as defendants in the alternative, although a right to
relief against one may be inconsistent with a right
of relief against the other. (13a)
Sec. 14. Unknown identity or name of defendant. -
Whenever the identity or name of a defendant is
4
unknown, he may be sued as the unknown owner,
heir, devisee, or by such other designation as the
case may require; when his identity or true name is
discovered, the pleading must be amended
accordingly. (14)
Sec. 15. Entity without juridical personality as
defendant.
When two or more persons not organized as an
entity with juridical personality enter into a
is transaction, they may be sued under the name by
which they are generally known or commonly
known.
In the answer of such defendants, the names and
addresses of the persons composing said entity
must all be revealed. (15a)
Sec. 16. Death of a party; duty of counsel. -
Whenever a party to a pending action dies, and the
claim is not thereby extinguished, it shall be the
duty of his counsel to inform the court within thirty
(30) days after such death of the fact thereof, and
to give the name and address of his legal
representative or representatives. Failure of
counsel to comply with this duty shall be a ground
for disciplinary action.
The heirs of the deceased may be allowed to be
substituted for the deceased, without requiring the
appointment of an executor or administrator and
the court may appoint a guardian ad litem for the
minor heirs.
The court shall forthwith order said legal
623 representative or representatives to appear and be
substituted within a period of thirty (30) days from
notice.
If no legal representative is named by the counsel
for the deceased party, or if the one so named shall
fail to appear within the specified period, the court
may order the opposing party, within a specified
time, to procure the appointment of an executor or
administrator for the estate of the deceased and the
latter shall immediately appear for and on behalf of
the deceased. The court charges in procuring such
appointment, if defrayed by the opposing party,
may be recovered as costs.
Sec, 20. Action on contractual money claims. -
When the action is for recovery of money arising
from contract, express or implied, and the
defendant dies before entry of final judgment in the
court in which the action was pending at the time of
such death, it shall not be dismissed but shall
instead be allowed to continue until entry of final
judgment. A favorable judgment obtained by the
plaintiff therein shall be enforced in the manner
especially provided in these Rules for prosecuting
claims against the estate of a deceased person.
(21a)
1. Why inform the court and why are you
penalized for failure?
2. Who are the “legal representatives”?
a. Heirs of the deceased
b. If nobody is named, or he fails to appear,
executor or administrator appointed upon
motion of adverse party.
Poe, Jr. vs. Macapagal-Arroyo, 454 SCRA 142
(2005)
Sec. 16, Rule 3, cannot apply because public office
is not property and not transmissible upon death.
Effect of Death:
A. Action that do not survive- Dismissed
[purely personal: legal separation, annulment,
support] [Action to claim legitimacy? Art. 173,
FC] [illegitimate filiation?]

B. Action that survive [all others] [Recover
real/personal proper, damages for injury to
person or property- Rule 87, Sec. 1]
C. Contractual money claims
a. f plaintiff dies, substitution [Sec. 16]
b. f defendant dies:
i. Before entry of final judgment
- substitution [continue and if plaintiff
wins, claim against estate]
ii. After entry of final judgment
- claim against estate [execution is
pursued against estate ]
2. All other cases – substitution
Effect if no proper substitution is made:
1. If court is informed, but no substitution is
made, judgment is void [Villegas v. CA, 271
SCRA 148 (1997)
2. If court is not informed, judgment is valid
[Heirs of Regoso v. CA, 211 SCRA 348
(1992)
Sec. 17. Death or separation of a party who is a
public officer. - When a public officer is a party in an
action in his official capacity and during its
pendency dies, resigns, or otherwise ceases to hold
office, the action may be continued and maintained
by or against his successor if, within thirty (30) days
after the successor holds office or such time as may
be granted by the court, it is satisfactorily shown to
the court by any party that there is a substantial
need for continuing or maintaining it and that the
successor adopts or continues or threatens to adopt
or continue the action of his predecessor. Before a
substitution is made, the party or officer to be
affected, unless expressly assenting thereto, shall
be given reasonable notice of the application
therefor and accorded an opportunity to be heard.
(18a)
Sec. 18. Incompetency or incapacity. - If a party
becomes incompetent or incapacitated, the court,
upon motion with notice, may allow the action to be
continued by or against the incompetent or
incapacitated person assisted by his legal guardian
or guardian ad litem. (19a)
Sec. 19. Transfer of interest. - In case of any
transfer of interest, the action may be continued by
or against the original party, unless the court upon
motion directs the person to whom the interest is
transferred to be substituted in the action or joined
with the original party. (20)
Sec. 21. Indigent party. - A party may be authorized
to litigate his action, claim or defense as an indigent
if the court, upon an ex parte application and
hearing, is satisfied that the party is one who has no
money or property sufficient and available for food,
shelter and basic necessities for himself and his
family.
Such authority shall include an exemption from
payment of docket fee and other lawful fees, and of
transcripts of stenographic notes which the court
may order to be furnished him. The amount of the
docket and other lawful fees which the indigent was
exempted from paying shall be a lien on any
judgment rendered in the case favorable to the
indigent, unless the court otherwise provides.
Any adverse party may contest the grant of such
authority at any time before judgment is rendered
by the trial court. If the court should determine
after hearing that the party declared as indigent is
in fact a person with sufficient income or property,
the proper docket and other lawful fees shall be
assessed and collected by the clerk of court. If
payment is not made within the time fixed by the
court, execution shall issue or the payment thereof,
5
without prejudice to such other sanctions as the
court may impose. (22a)
Sec. 22. Notice to the Solicitor General. - In any
action involving the validity of any treaty, law,
ordinance, executive order, rules or regulations, the
court, in its discretion, may require the appearance
of the Solicitor General who may be heard in person
or through a representative duly designated by him.
(23a)
RULE 4
Sec 1. Venue of real actions. - Actions affecting
title to or possession of real property, or interest
therein, shall be commenced and tried in the proper
court which has jurisdiction over the area wherein
the real property involved, or a portion thereof, is
situated.
Forcible entry and detainer actions shall be
commenced and tried in the municipal trial court of
the municipality or city wherein the real property
involved, or a portion thereof, is situated. (1[a],
2[a]a)
Real – those involving title to or possession of real
property. Examples:
1. Partition
2. Expropriation
3. Foreclosure of mortgage
4. Recovery of possession
5. Forcible entry and unlawful detainer
Sec. 2. Venue of personal actions. - All other
actions may be commenced and tried where the
plaintiff or any of the principal plaintiffs resides, or
where the defendant or any of the principal
defendants resides, or in the case of a non-resident
defendant, where he may be found, at the election
of the plaintiff. (2[b]a)
Personal actions: all others [recovery of personal
property, the enforcement of a contract , recovery
of damages]
A. Resident defendants – plaintiff’s choice
1. Where plaintiff/s or any of them resides
2. Where defendant/s or any of them resides
B. Non-resident defendants –plaintiff’s choice
1. Where plaintiff/s or any of them resides
2. Where defendant may be found
What if the action is mixed? [alternative or
combined relief]
1. Rescission of contract and recovery of
possession and damages? Sps. Decena v. Sps.
Pequero, 454 SCRA 672 (2005)
2. Specific performance [compel sale of land] and
damages [La Tondena]
Test: primary object of the suit or the principal
claim [See Rule 2, Sec. 5. Joinder of causes]
3. Action to annul a loan contract and its
accessory mortgage contract
Chua v. Total Office Products, 471 SCRA 500
( 2005)
Personal or real?
Meaning of Resides: “residence”
1. As to individuals - Saludo v. American Express,
487 SCRA 462 (2006) “personal, actual or
physical habitation”

2. As to Corporations - Hyatt Elevators v. Goldstar,
473 SCRA 705 [2005] [stated in Articles of
incorporation]
Sec. 3. Venue of actions against nonresidents. - If
any of the defendants does not reside and is not
found in the Philippines, and the action affects the
personal status of the plaintiff, or any property of
said defendant located in the Philippines, the action
may be commenced and tried in the court of the
place where the plaintiff resides, or where the
property or any portion thereof is situated or found,
(2[c]a)
Sec. 3: Requisites:
1. Does not reside in the Philippines
2. Is not found in the Philippines
Applies only to: [in rem/quasi-en rem
1. Actions affecting personal status of plaintiff, or
2. Property of defendant located on the Philippines
Rule on Venue:
1. Where plaintiff resides
2. Where property/portion is found
Sec. 4. When Rule not applicable. - This Rule shall
not apply -
a) In those cases where a specific rule or law
provides otherwise; or
b) Where the parties have validly agreed in writing
before the filing of the action on the exclusive
venue thereof. (3a, 5a)
Questions:
1. When is agreement on venue exclusive?
2. Can you change venue of real property actions
through agreement?
3. Can you agree on venue even after filing?
4. What is the status of Sweetlines v. Teves, 83
SCRA 361?
PBC v. Lim, 455 SCRA 175 (2005)
Will agreement bind the surety?
Venue vs. Jurisdiction:
Nocum v. Tan, 470 SCRA 639 [2005]
RULE 5
SECTION 1. Uniform procedure. — The procedure in
the Municipal Trial Courts shall be the same as in
the Regional Trial Courts, except (a) where a
particular provision expressly or impliedly applies
only to either of said courts, or (b) in civil cases
governed by the Rule on Summary Procedure. (n)
Topics:
1. Rule of Procedure for Small Claims
2. Rule on Summary Procedure
3. Katarungang Pambarangay Law
RULE OF PROCEDURE FOR SMALL CLAIMS CASES
Effective: Oct. 1, 2008 for pilot courts designated
by the Supreme Court as such
SECTION 1. Title. — This Rule shall be known as
“The Rule of Procedure for Small Claims Cases.”
SECTION 2. Meaning of terms. — The term
"Municipal Trial Courts" as used in these Rules shall
6
include Metropolitan Trial Courts, Municipal Trial
Courts in Cities, Municipal Trial Courts, and
Municipal Circuit Trial Courts. (1a)
SEC. 2. Scope. — This Rule shall govern the
procedure in actions before the Metropolitan Trial
Courts, Municipal Trial Courts in Cities, Municipal
Trial Courts and Municipal Circuit Trial Courts for
payment of money where the value of the claim
does not exceed One Hundred Thousand Pesos
(P100,000.00) exclusive of interest and costs.
[Sec. 3. – Definition of Terms]
SEC. 4. Applicability. — The Metropolitan Trial
Courts, Municipal Trial Courts in Cities, Municipal
Trial Courts, and Municipal Circuit Trial Courts shall
apply this Rule in all actions which are: (a) purely
civil in nature where the claim or relief prayed for
by the plaintiff is solely for payment or
reimbursement of sum of money, and (b) the civil
aspect of criminal actions, either filed before the
institution of the criminal action, or reserved upon
the filing of the criminal action in court, pursuant to
Rule 111 of the Revised Rules Of Criminal
Procedure.
These claims or demands may be:
(a) For money owed under any of the following:
1. Contract of Lease;
2. Contract of Loan;
3. Contract of Services;
4. Contract of Sale; or
5. Contract of Mortgage;
(b) For damages arising from any of the following:
1. Fault or negligence;
2. Quasi-contract; or
3. Contract;
(c) The enforcement of a barangay amicable
settlement or an arbitration award involving a
money claim covered by this Rule pursuant to
Sec. 417 of Republic Act 7160, otherwise known
as the Local Government Code of 1991.
SEC. 5. Commencement of Small Claims Action. — A
small claims action is commenced by filing with the
court an accomplished and verified Statement of
Claim (Form 1-SCC) in duplicate, accompanied by a
Certification of Non-forum Shopping (Form 1-A,
SCC), 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
which was not attached to or submitted together
with the Claim, unless good cause is shown for the
admission of additional evidence.
No formal pleading, other than the Statement of
Claim described in this Rule, is necessary to initiate
a small claims action.
SEC. 6. Joinder of Claims. — Plaintiff may join in a
single statement of claim one or more separate
small claims against a defendant provided that the
total amount claimed, exclusive of interest and
costs, does not exceed P100,000.00.
[Sec. 7. Requirement on Affidavits]
SEC. 8. Payment of Filing Fees. — The plaintiff shall
pay the docket and other legal fees prescribed
under Rule 141 of the Revised Rules of Court,
unless allowed to litigate as an indigent.
A claim filed with a motion to sue as indigent (Form
6-SCC) shall be referred to the Executive Judge for
immediate action in case of multi-sala courts, or to
the Presiding Judge of the court hearing the small
claims case.

If the motion is granted by the Executive Judge, the
case shall be raffled off or assigned to the court
designated to hear small claims cases. If the motion
is denied, the plaintiff shall be given five (5) days
within which to pay the docket fees, otherwise, the
case shall be dismissed without prejudice. In no
case shall a party, even if declared an indigent, be
exempt from the payment of the P1,000.00 fee for
service of summons and processes in civil cases.
SEC. 9. Dismissal of the Claim. — After the court
determines that the case falls under this Rule, it
may, from an examination of the allegations of the
Statement of Claim and such evidence attached
thereto, by itself, dismiss the case outright on any
of the grounds apparent from the Claim for the
dismissal of a civil action.
SEC. 10. Summons and Notice of Hearing. — If no
ground for dismissal is found, the court shall
forthwith issue Summons (Form 2-SCC) on the day
of receipt of the Statement of Claim, directing the
defendant to submit a verified Response.
The court shall also issue a Notice (Form 4-SCC) 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,
as provided in Section 19 of this Rule.
The summons and notice to be served on the
defendant shall be accompanied by a copy of the
Statement of Claim and documents submitted by
plaintiff, and a copy of the Response (Form 3-SCC)
to be accomplished by the defendant. The Notice
shall contain an express prohibition against the
filing of a motion to dismiss or any other motion
under Section 14 of this Rule.
SEC. 11. Response. — The defendant shall file with
the court and serve on the plaintiff a duly
accomplished and verified Response within a non-
extendible period of ten (10) days from receipt of
summons. The Response shall be accompanied by
certified photocopies of documents, as well as
affidavits of witnesses and other evidence in
support thereof. No evidence shall be allowed
during the hearing which was not attached to or
submitted together with the Response, unless good
cause is shown for the admission of additional
evidence.
SEC. 12. Effect of Failure to File Response. — Should
the defendant fail to file his Response within the
required period, the court by itself shall render
judgment as may be warranted by the facts alleged
in the Statement of Claim limited to what is prayed
for. The court however, may, in its discretion,
reduce the amount of damages for being excessive
or unconscionable.
SEC. 13. Counterclaims Within the Coverage of this
Rule. — If at the time the action is commenced, the
defendant possesses a claim against the plaintiff
that
(a) is within the coverage of this Rule, exclusive of
interest and costs;
(b) arises out of the same transaction or event that
is the subject matter of the plaintiff’s claim;
(c) does not require for its adjudication the joinder
of third parties; and
(d) is not the subject of another pending action, the
claim shall be filed as a counterclaim in the
Response; otherwise, the defendant shall be
barred from suit on the counterclaim.
The defendant may also elect to file a counterclaim
against the plaintiff that does not arise out of the
same transaction or occurrence, provided that the
amount and nature thereof are within the coverage
of this Rule and the prescribed docket and other
legal fees are paid.
7
SEC. 14. Prohibited Pleadings and Motions. — The
following pleadings, motions, or petitions shall not
be allowed in the cases covered by this Rule:
(a) Motion to dismiss the complaint except on the
ground of lack of jurisdiction;
(b) Motion for a bill of particulars;
(c) Motion for new trial, or for reconsideration of a
judgment, or for reopening of trial;
(d) Petition for relief from judgment;
(e) Motion for extension of time to file pleadings,
affidavits, or any other paper;
(f) Memoranda;
(g) Petition for certiorari, mandamus, or prohibition
against any interlocutory order issued by the
court;
(h) Motion to declare the defendant in default;
(i) Dilatory motions for postponement;
(j) Reply;
(k) Third-party complaints; and
(l) Interventions.
SEC. 15. Availability of Forms; Assistance by Court
Personnel. — The Clerk of Court or other court
personnel shall provide such assistance as may be
requested by a plaintiff or a defendant regarding
the availability of forms and other information about
the coverage, requirements as well as procedure for
small claims cases.
SEC. 16. Appearance. — The parties shall appear at
the designated date of hearing personally or
through a representative authorized under a Special
Power of Attorney (Form 5-SCC) to enter into an
amicable settlement, to submit to Judicial Dispute
Resolution (JDR) and to enter into stipulations or
admissions of facts and of documentary exhibits.
SEC. 17. Appearance of Attorneys Not Allowed. —
No attorney shall appear in behalf of or represent a
party at the hearing, unless the attorney is the
plaintiff or defendant.
If the court determines that a party cannot properly
present his/her claim or defense and needs
assistance, the court may, in its discretion, allow
another individual who is not an attorney to assist
that party upon the latter’s consent.
SEC. 18. Non-appearance of Parties. — Failure of the
plaintiff to appear shall be cause for the dismissal of
the claim without prejudice. The defendant who
appears shall be entitled to judgment on a
permissive counterclaim.
Failure of the defendant to appear shall have the
same effect as failure to file a Response under
Section 12 of this Rule.
This shall not apply where one of two or more
defendants who are sued under a common cause of
action and have pleaded a common defense
appears at the hearing.
Failure of both parties to appear shall cause the
dismissal with prejudice of both the claim and
counterclaim.
SEC. 19. Postponement When Allowed. — A request
for postponement of a hearing may be granted only
upon proof of the physical inability of the party to
appear before the court on the scheduled date and
time. A party may avail of only one (1)
postponement.
SEC. 20. Duty of the Court. — At the beginning of
the court session, the judge shall read aloud a short
statement explaining the nature, purpose and the
rule of procedure of small claims cases.
SEC. 21. Judicial Dispute Resolution. — At the
hearing, the judge shall conduct Judicial Dispute

Resolution (JDR) through mediation, conciliation,
early neutral evaluation, or any other mode of JDR.
Any settlement (Form 7-SCC) or resolution (Form 8-
SCC) of the dispute shall be reduced into writing,
signed by the parties and submitted to the court for
approval (Form 12-SCC).
SEC. 22. Failure of JDR. — If JDR fails and the parties
agree in writing (Form 10-SCC) that the hearing of
the case shall be presided over by the judge who
conducted the JDR, the hearing shall so proceed in
an informal and expeditious manner and terminated
within one (1) day.
Absent such agreement, (a) in case of a multi-sala
court, the case shall, on the same day, be
transmitted (Form 11-SCC) to the Office of the Clerk
of Court for immediate referral by the Executive
Judge to the pairing judge for hearing and decision
within five (5) working days from referral; and (b) in
case of a single sala court, the pairing judge shall
hear and decide the case in the court of origin
within five (5) working days from referral by the JDR
judge.
SEC. 23. Decision.—After the hearing, the court
shall render its decision on the same day, based on
the facts established by the evidence (Form 13-
SCC). The decision shall immediately be entered by
the Clerk of Court in the court docket for civil cases
and a copy thereof forthwith served on the parties.
The decision shall be final and unappealable.
SEC. 24. Execution. — If the decision is rendered in
favor of the plaintiff, execution shall issue upon
motion (Form 9-SCC).
SEC. 25. Applicability of the Rules of Civil Procedure.
— The Rules of Civil Procedure shall apply
suppletorily insofar as they are not inconsistent with
this Rule.
The 1991 Revised Rule on Summary Procedure
Section 1. Scope. — This rule shall govern the
summary procedure in the Metropolitan Trial Courts,
the Municipal Trial Courts in Cities, the Municipal
Trial Courts, and the Municipal Circuit Trial Courts in
the following cases falling within their jurisdiction:
A. Civil Cases:
(1) All cases of forcible entry and unlawful detainer,
irrespective of the amount of damages or
unpaid rentals sought to be recovered. Where
attorney's fees are awarded, the same shall not
exceed twenty thousand pesos (P20,000.00).
(2) All other cases, except probate proceedings,
where the total amount of the plaintiff's claim
does not exceed one hundred thousand pesos
(P100,000.00) or, two hundred thousand pesos
(P200,000.00) in Metropolitan Manila, exclusive
of interest and costs."
[As amended by A.M. No. 02-11-09-SC.
November 12, 2002 to take effect on November
25, 2002]
[?????????????????]
Sec. 2. Determination of applicability. —
Upon the filing of a civil or criminal action, the court
shall issue an order declaring whether or not the
case shall be governed by this Rule A patently
erroneous determination to avoid the application of
the Rule on Summary Procedure is a ground for
disciplinary action.
Sec. 3. Pleadings. —
A. Pleadings allowed. — The only pleadings
allowed to be filed are the complaints,
compulsory counterclaims and cross-claims'
pleaded in the answer, and the answers thereto.
B. Verifications. — All pleadings shall be verified.
Sec. 4. Duty of court. — After the court determines
that the case falls under summary procedure, it
8
may, from an examination of the allegations therein
and such evidence as may be attached thereto,
dismiss the case outright on any of the grounds
apparent therefrom for the dismissal of a civil
action. If no ground for dismissal is found it shall
forthwith issue summons which shall state that the
summary procedure under this Rule shall apply.
Sec. 5. Answer. — Within ten (10) days from
service of summons, the defendant shall file his
answer to the complaint and serve a copy thereof
on the plaintiff. Affirmative and negative defenses
not pleaded therein shall be deemed waived, except
for lack of jurisdiction over the subject matter.
Cross-claims and compulsory counterclaims not
asserted in the answer shall be considered barred.
The answer to counterclaims or cross-claims shall
be filed and served within ten (10) days from
service of the answer in which they are pleaded.
Sec. 6. Effect of Failure to File Answer – Should the
defendant fail to answer the complaint within the
period above provided, the court, motu proprio, or
on motion of the plaintiff, shall render judgment as
may be warranted by the facts alleged in the
complaint and limited to what is prayed for therein;
provided, however, that the court may in ts
discretion reduce the amount of damages and
attorney’s fees claimed for being excessive or
otherwise unconscionable.
Sec. 7. Preliminary conference; appearance of
parties. — Not later than thirty (30) days after the
last answer is filed, a preliminary conference shall
be held. The rules on pre-trial in ordinary cases shall
be applicable to the preliminary conference unless
inconsistent with the provisions of this Rule.
The failure of the plaintiff to appear in the
preliminary conference shall be a cause for the
dismissal of his complaint. The defendant who
appears in the absence of the plaintiff shall be
entitled to judgment on his counterclaim in
accordance with Section 6 hereof. All cross-claims
shall be dismissed.
If a sole defendant shall fail to appear, the plaintiff
shall be entitled to judgment in accordance with
Section 6 hereof. This Rule shall not apply where
one of two or more defendants sued under a
common cause of action who had pleaded a
common defense shall appear at the preliminary
conference.
Sec. 8. Record of preliminary conference. — Within
five (5) days after the termination of the preliminary
conference, the court shall issue an order stating
the matters taken up therein, including but not
limited to:
(a) Whether the parties have arrived at an
amicable settlement, and if so, the terms
thereof;
(b) The stipulations or admissions entered into
by the parties;
(c) Whether, on the basis of the pleadings and the
stipulations and admissions made by the
parties, judgment may be rendered without the
need of further proceedings, in which event the
judgment shall be rendered within thirty (30)
days from issuance of the order;
(d) A clear specification of material facts which
remain controverted; and
(e) Such other matters intended to expedite the
disposition of the case.
Sec. 9. Submission of affidavits and position
papers. — Within ten (10) days from receipt of the
order mentioned in the next preceding section, the
parties shall submit the affidavits of their witnesses
and other evidence on the factual issues defined in

the order, together with their position papers
setting forth the law and the facts relied upon by
them.
Sec. 10. Rendition of judgment. — Within thirty (30)
days after receipt of the last affidavits and position
papers, or the expiration of the period for filing the
same, the court shall render judgment.
However should the court find it necessary to clarify
certain material facts, it may, during the said
period, issue an order specifying the matters to be
clarified, and require the parties to submit affidavits
or other evidence on the said matters within ten
(10) days from receipt of said order. Judgment shall
be rendered within fifteen (15) days after the
receipt of the last clarificatory affidavits, or the
expiration of the period for filing the same.
The court shall not resort to the clarificatory
procedure to gain time for the rendition of the
judgment from receipt of said order. Judgment shall
be rendered within fifteen (15) days after the
receipt of the last clarificatory affidavits, or the
expiration of the period for filing the same.
The court shall not resort to the clarificatory
procedure to gain time for the rendition of the
judgment.
[Rural Bank v. Maniwang, 232 SCRA 414]
COMMON PROVISIONS
Sec. 18. Referral to Lupon. — Cases requiring
referral to the Lupon for conciliation under the
provisions of Presidential Decree No. 1508 where
there is no showing of compliance with such
requirement, shall be dismissed without prejudice
and may be revived only after such requirement
shall have been complied with. This provision shall
not apply to criminal cases where the accused was
arrested without a warrant.
Banares v. Balising, 328 SCRA 26 (2000):
How is a case reinstated or revived if it was
dismissed for lack of referral to the Lupon?
- Within 15 days – by mere Motion
- After 15 days – by re-filing
Sec. 19. Prohibited pleadings and motions. — The
following pleadings, motions or petitions shall not
be allowed in the cases covered by this Rule:
(a) Motion to dismiss the complaint or to quash
the complaint or information except on the
ground of lack of jurisdiction over the subject
matter, or failure to comply with the preceding
section;
[See Zamora v. Izquierdo, 443 SCRA 24 (2004]
Olivas v. Flor, 161 SCRA 393 – a motion to
dismiss AFTER Answer is not prohibited
(b) Motion for a bill of particulars;
(c) Motion for new trial, or for reconsideration of a
judgment, or for opening of trial;
(d) Petition for relief from judgment;
(e) Motion for extension of time to file
pleadings, affidavits or any other paper;
(f) Memoranda;
(g) Petition for certiorari, mandamus, or
prohibition against any interlocutory order
issued by the court;
(h) Motion to declare the defendant in default;
(i) Dilatory motions for postponement;
(j) Reply;
(k) Third party complaints;
9
(l) Interventions.
Lucas v. Fabros, 324 SCRA 1 (2000):
A motion for reconsideration of an order of dismissal
is not prohibited. What is prohibited is a motion for
reconsideration of a judgment on the merits.
Jakihaca v. Aquino, 181 SCRA 67:
A motion for reconsideration of a judgment in the
RTC is allowed even if the case was tried by the
MTC under the Summary Procedure.
Sec. 20. Affidavits. — The affidavits required to be
submitted under this Rule shall state only facts of
direct personal knowledge of the affiants which are
admissible in evidence, and shall show their
competence to testify to the matters stated therein.
A violation of this requirement may subject the
party or the counsel who submits the same to
disciplinary action, and shall be cause to expunge
the inadmissible affidavit or portion thereof from
the record.
Sec. 21. Appeal. — The judgment or final
order shall be appealable to the appropriate
regional trial court which shall decide the same in
accordance with Section 22 of Batas Pambansa Blg.
129. The decision of the regional trial court in civil
cases governed by this Rule, including forcible entry
and unlawful detainer, shall be immediately
executory, without prejudice to a further appeal
that may be taken therefrom. Section 10 of Rule 70
shall be deemed repealed.
Katarungang Pambarangay:
RA 7160
Purpose: Prevent clogging of court dockets
Ground for dismissal:
1. Royales v. IAC, 470 SCRA 438 – prematurity,
lack of cause of action, not jurisdiction
2. Berba v. Pablo, 474 SCRA 868 – failure to
exhaust administrative remedies
- subject to waiver by failure to raise
Civil Cases:
SECTION 408. Subject Matter for Amicable
Settlement; Exception Thereto. — The lupon of each
barangay shall have authority to bring together the
parties actually residing in the same city or
municipality for amicable settlement of all disputes
except:
(a) Where one party is the government, or any
subdivision or instrumentality thereof;
(b) Where one party is a public officer or employee,
and the dispute relates to the performance of
his official functions;
(c) Offenses punishable by imprisonment
exceeding one (1) year or a fine exceeding Five
thousand pesos (P5,000.00);
(d) Offenses where there is no private offended
party;
(e) 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;
[Vercide v. Hernandez, 330 SCR 49 (2000)
(f) 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 an
appropriate lupon;
 10
(g) Such other classes of disputes which the
President may determine in the interest of RULE 6
Justice or upon the recommendation of the
Secretary of Justice. Sec. 1. Pleadings defined. - Pleadings are the
written statements of the respective claims and
The court in which non-criminal cases not falling defenses of the parties submitted to the court for
within the authority of the lupon under this Code appropriate judgment. (1a)
are filed may, at any time before trial motu propio
refer the case to the lupon concerned for amicable Sec. 2. Pleadings allowed. - The claims of a party
settlement. are asserted in a complaint, counterclaim, cross-
claim, third (fourth, etc.)-party complaint, or
+ Boromeo v. Pogoy, 126 SCRA 217 complaint-in-intervention.
SECTION 409. Venue. — The defenses of a party are alleged in the answer to
(a) Disputes between persons actually residing in the pleading asserting a claim against him.
the same barangay shall be brought for An answer may be responded to by a reply.(n)
amicable settlement before the lupon of said
barangay. Pleadings allowed:
(b) Those involving actual residents of different Claimant’s side: Defending side:
barangays within the same city or municipality 1. Complaint 1. Answer
shall be brought in the barangay where the
2. Counter-claim [2. As rebuttal to a
respondent or any of the respondents actually
resides, at the election of the complainant. 3. Cross-claim counter-counter-
(c) All disputes involving real property or any 4. 3rd-Party complaint, etc. Claim:] Reply
interest therein shall be brought in the 5. Complaint-in-intervention
barangay where the real property or the larger
portion thereof is situated. [6. As rebuttal:] Reply

(d) Those arising at the workplace where the

contending parties are employed or at the Sec. 3. Complaint. - The complaint is the pleading
institution where such parties are enrolled for alleging the plaintiff’s cause or causes of action.
study, shall be brought in the barangay where The names and residences of the plaintiff and
such workplace or institution is located. defendant must be stated in the complaint. (3a)
Sec. 410 ©.- While the dispute is under mediation, Contents:
conciliation or arbitration, the prescriptive periods 1. Cause of action
for offenses and cause of action under existing laws
shall be interrupted upon filing of the complaint with 2. Names and residence of parties
the punong barangay. The prescriptive periods Rule: It must contain ultimate facts, or essential
shall resume upon receipt by the complainant of the facts constituting plaintiff’s cause of action.
complaint or the certificate of repudiation or of the
Must exclude:
certification to file action issued by the lupon or
pangkat secretary: Provided, however, That such 1. Evidentiary facts
interruption shall not exceed 60 days from the filing 2. Conclusions of law
of the complaint with the punong barangay.
Sec. 412 (b). The parties may go directly to court in
the following instances: Sec. 4. Answer. - An answer is a pleading in which a
defending party sets forth his defenses. (4a)
(1) Where actions are coupled with provisional
remedies such as preliminary injunction, Sec. 5. Defenses - Defenses may either be negative
delivery of personal property, and support or affirmative.
pendente lite; and (a) A negative defense is the special denial of
(2) Where the action may otherwise be barred by the material fact or facts alleged in the pleading
the statute of limitations. of the claimant essential to his cause or causes
of action.
Sec. 415. – In all katarungang pambarangay
proceedings, the parties must appear in person (b) An affirmative defense is an allegation of a new
without the assistance of counsel or representative, matter which, while hypothetically admitting the
except for minors and incompetents who may be material allegations in the pleading of the
assisted by their next-of-kin who are not lawyers. claimant, would nevertheless prevent or bar
recovery by him. The affirmative defenses
Sec. 416. The amicable settlement and arbitration include fraud, statute of limitations, release,
award shall have the force and effect of a final payment, illegality, statute of frauds, estoppel,
judgment of a court upon the expiration of 10 days former recovery, discharge in bankruptcy, and
from the date thereof, unless repudiation of the any other matter by way of confession and
settlement has been made or a petition to nullify avoidance.
the award has been filed before the proper city or
municipal court. Negative Defense: Specific denial – 2 ways
However, this provision shall not apply to court 1. specifying allegations the truth of which he does
cases settled by the lupon under the last paragraph not admit
of Sec. 408 of this Code, in which case the 2. stating that he has no knowledge or information
compromise settlement agreed upon be submitted
to the court and upon approval thereof, have the
force and effect of a judgment of said court. Affirmative Defense: allegation of new matter
which would prevent or bar recovery:
Sec. 417. Execution.- The amicable settlement or
arbitration award may be enforced by the lupon 1. Fraud 6. Statute of fraud
within 6 months from the date of the settlement. 2. Prescription 7. estoppel
After the lapse of such time, the settlement may be
enforced by action in the appropriate city or 3. Release 8. Former recovery
municipal court. [???????] 4. Payment 9. Discharge in bankruptcy
5. Illegality 10. Any other…

“Hypothetical admission of facts in complaint”
Compensation?
Novation
Fraud? [actionable document]
Lack of consideration?
Force and intimidation? [actionable document]
Contract is null and void?
Sec. 6. Counterclaim. - A counterclaim is any claim
which a defending party may have against an
opposing party. (6a)
Sec. 7. Compulsory counterclaim. - A compulsory
counterclaim is one which being cognizable by the
regular courts of justice, arises out of or is
connected with the transaction or occurrence
constituting the subject matter of the opposing
party’s claim and does not require for its
adjudication the presence of third parties of whom
the court cannot acquire jurisdiction. Such a
counterclaim must be within the jurisdiction of the
court both as to the amount and the nature thereof,
except that in an original action before the Regional
Trial Court, the counterclaim may be considered
compulsory regardless of the amount. (n)
Questions:
1. Can I file a counter-claim against plaintiff his
obligation against me incurred in another
capacity? [De Borja v. De Borja, 101 Phil. 911]
2. Can I file a counterclaim against only one, not
all, the plaintiffs? Against one defendant…?
3. Is a counter-claim an affirmative defense?
Requisites:
(1) It must be cognizable by the regular courts of
justice; [De los Santos v. Sarmiento, 519 SCRA
62 (2007)]
(2) It arises out of or is connected with the
transaction or occurrence constituting the
subject matter of the opposing party’s claim.
[causes of action (Rule 2, Sec. 5)]
Dean’s Examples: [transaction or occurrence]
1. Reckless imprudence
2. Recovery of possession, improvement
Largely same issue of fact and law, logical relation
between complaint and counterclaim, same
evidence
Attorney’s fees? Tiu v. Bautista, 103 SCRA 388
See also Chavez v. Sandiganbayan, 193 SCRA 282
Nature of No. 2 requisite- Barred/compulsoriness
(1) It does not require for its adjudication the
presence of third parties of whom the court
cannot acquire jurisdiction.
(2) That a counterclaim must be within the
jurisdiction of the court both as to the amount
and the nature thereof except that in an original
action before the RTC, the counterclaim may be
considered compulsory regardless of the
amount. [
Questions:
1. What is the effect if I raise a counter-claim
beyond the jurisdiction of the court? Agustin v.
Bacalan, 135 SCRA 340]
2. Suppose you sued me for damage amount to
P100,000. I raise a counter-claim of P150,000.
Can the court entertain it?
11
3. You sued me for P500,000. I raised a counter-
claim of P50,000. Can the court entertain?
(5) A compulsory counterclaim or a cross-claim that
a defending party has at the time he files his
answer shall be contained therein.
Questions:
1. What is the effect if one requisite is missing?
2. What is the effect of failure raise a compulsory
counterclaim?
3. When is counter-claim permissive?
Permissive v. compulsory:
1. Permissive counterclaim does not arise out of or
is not necessarily connected with the
transaction or occurrence that is the subject
matter of the opposing party’s claim;
2. If not set up as a counterclaim, it is not barred.
3. Can a counter-claim be different in kind or
nature than main claim? [partition/ejectment -
damage)
4. Can a counter-claimant ask for a greater
amount than what is contained in the main
claim? [sovereign immunity aspect]
Sec. 8. Cross-claim. - A cross-claim is any claim by
one party against a co-party arising out of the
transaction or occurrence that is the subject matter
of the original action or of a counterclaim therein.
Such cross-claim may include a claim that the party
against whom it is asserted is or may be liable to
the cross-claimant for all or part of a claim asserted
in the action against the cross-claimant. (7)
Dean’s Example:
Action by X against A and B, principal and surety.
B, as surety or co-debtor can sue A.
Ruiz vs. CA, 212 SCRA 660: A cross claim cannot
exist independent of the main case.
What of a counter-claim?
Questions:
1. Are all cross-claims compulsory?
[Sec. 2, Rule 9]
2. At the commencement of a suit, can 2 plaintiffs
file a cross-claim against each other?
3. Distinctions? [1999 Bar, No. 7]
1997, No. 2: B and C borrowed P400,000 from A.
The promissory note was executed by B and C in a
joint and several capacity. B, who received the
money from A, gave C P200,000. C, in turn, loaned
P100,000 out of the P200,000 he received to D.
1. In an action filed by A against B and C, can B file
a cross claim against C for the amount of
P200,000?
2. Can C file a 3rd party complaint against D for
the amount of P100,000?
Sec. 9. Counter-counterclaims and counter-cross-
claims.- A counterclaim may be asserted against an
original counter-claimant.
A cross-claim may also be filed against an original
cross-claimant.
Sec. 10. Reply. - A reply is a pleading the
office or function of which is to deny or allege facts
in denial or avoidance of new matters alleged by
way of defense in the answer and thereby join or
make issue as to such new matters. If a party does
not file such reply, all the new matters alleged in
the answer are deemed controverted.

If the plaintiff wishes to interpose any claims arising
out of the new matters so alleged, such claims shall
be set forth in an amended or supplemental
complaint. (11)
Questions:
1. When is a reply mandatory? [Veluz v. CA, 345
SCRA 756 (2000)]
2. If the answer contains a counter-claim or cross-
claim, must one file a reply? Rule 11, Sec. 4
12
5. If the complaint and third-party complaint are
dismissed, but only the original plaintiff appeals,
will third party plaintiff be benefitted? Go v. CA,
100 SCRA 549 (1980)
1996, No. 6:
A assembles an owner-type jeep for B who in turn
rents it to X. Due to faulty brakes, X figures in a
vehicular accident causing him severe injuries. X
files an action for damages against A and B.

Sec. 11. Third, (fourth, etc.)-party complaint. May B file a 3rd party complaint against A for
- A third (fourth, etc.)-party complaint is a claim that indemnity? Explain.
a defending party may, with leave of court, file
against a person not a party to the action, called Sec. 12. Bringing new parties. - When the
the third (fourth, etc.)-party defendant, for presence of parties other than those to the original
contribution, indemnity, subrogation or any other action is required for the granting of complete relief
relief in respect of his opponent’s claim. (12a) in the determination of a counterclaim or cross-
Purpose: To avoid multiplicity of suits. Must be claim, the court shall order them to be brought in as
related. defendants, if jurisdiction over them can be
But it is discretionary on the court. Leave has to be obtained.
obtained. Sec. 13. Answer to third (fourth, etc.) party
Asian Construction v. CA, 458 SCRA 750 (2005) complaint. - A third (fourth, etc.)-party defendant
may allege in his answer his defenses,
A filed cases B for sum of money for unpaid rentals. counterclaims or cross-claims, including such
B admitted unpaid amount but filed a 3rd party defenses that the third (fourth, etc.)-party plaintiff
complaint against X. [subrogation, indemnity, may have against the original plaintiff in respect of
contribution, etc…] the latter’s claim against the third-party plaintiff. (n)
Tests for Valid 3rd-Party claim:
1. If it arises out of the same transaction on which
plaintiff’s claim is based.
2. If the third-party’s claim, although arising out of
another contract or transaction is connected
with plaintiff’s claim.
3. If the third party defendant would be liable to
plaintiff’s claim against the original defendant
although the third party defendant’s liability
arises out of another transaction.
4. The third party defendant may assert any
defense which the third party plaintiff has or
may have against plaintiff’s claim.
Counter- vs. Cross vs. 3rd Party claim
1. A cross-claim is against a co-party
A counter-claim is against an opposing party
A third -party claim is against a stranger to the
action.
2. A cross claim must arise out of the same
transaction…
A counter-claim may or may not arise out of the
same transaction…
A third-party claim must be in respect to an
opponent’s claim
Grounds:
1. Contribution
2. Indemnity
3. Subrogation
4. Any other relief
Questions:
1. Can a plaintiff file a 3rd party complaint?
2. Can a 3rd party complaint beyond the
jurisdiction of the court be admitted?
Republic v. Central, 25 SCRA 641(1968) [?]
3. Can a 3rd party complaint be objected to on
the ground of improper venue?
Eastern v. Cui, 105 SCRA 622
4. Can a defendant be absolved and the third
party defendant be held liable for all of
plaintiff’s [original] claim? Samala v. Victor, 170
SCRA 459 (1989)