03/01/23 Rules 4-8

D. Venue of Actions: real actions, personal actions (Rule 4)

Q: In jurisdiction in criminal cases, venue is jurisdictional. How do you explain that?

A: If you file it in a place other where the crime is committed, the case is dismissible since jurisdiction is
authority of the court to hear and decide a case.

ILLUSTRATION:

A murdered B in Makati. The heirs of B files a complaint to the office of the prosecutor and upon finding
probable cause, the prosecutor files an information with the RTC of Makati since the crime was committed
in Makati. Here, the heirs of B becomes a private complainant and the plaintiff becomes the State.

Note: When asked about jurisdiction, answer is always a court/tribunal. When asked about venue,
answer is always a place.

Jurisdiction vs. Venue

J – authority to hear and decide a case

V – the place where such authority is exercised

J – conferred by law

V – can be agreed upon

J – can never be waived

V – waivable

J – creates a relationship between the court and the parties

V – creates a relationship between the plaintiff and the defendant

General Rule in Venue, where case is filed: (Sec. 4, Rule 4)

1. Venue that a specific rule or law provides;

Example:
a. Guardianship – petition must be filed at the residence of the ward. If he is not a resident, it
must be filed where he has property.
b. Depositions before action pending appeal (Rule 24) – must be filed at the residence of the
respondent.
c. Quo Warranto (Rule 66) - must be filed at the residence of the respondent unless filed by
the Solicitor General where it should be filed in Manila.

NOTE: You cannot agree otherwise when venue is stipulated by law.

2. In the absence of law providing venue, case should be filed where the parties have validly agreed
in writing before the filing of the action on the exclusive venue thereof (Pacific Consultants vs.
Schonfeld, 2007).

Purpose of venue stipulation: for the convenience of the parties.

 NOTE: If venue agreed upon will inconvenience a party, the venue is not mandatory but merely
directory.

NOTE: only distinguish if action is real or personal when Section 4, Rule 4 does not apply.

Requirements for agreement on venue to be binding; Schonfeld Doctrine

For venue stipulations to be binding upon the parties it must be couched in terms of exclusivity.

Rational: The meaning of shall as used here should not be construed as mandatory
since venue stipulations are fundamentally for the convenience of the parties. If it will
inconvenience them, venue is not binding. It is only when terms of agreement are
couched in exclusivity.

If the intention of the parties were to restrict venue, there must be accompanying language clearly and
categorically expressing their purpose and design that actions between them be litigated only at the place
named by them.

In the instant case, no restrictive words like "only," "solely," "exclusively in this court," "in no other
court save —“, “particularly," "nowhere else but/except —," or words of equal import were stated
in the contract. Thus, i cannot be said that the court of arbitration in London is an exclusive venue
to bring forth any complaint arising out of the employment contract. (Pacific Consultants vs.
Schonfeld, 2007)

NOTE: A simple word “shall” is not binding. A stronger wording such as “at no other place except
for Manila” or “only at Quezon City”.

PACIFIC CONSULTANTS VS. SCHONFELD

Summary:

NOTE: You can no longer file a Motion to Dismiss due to improper venue because it is waivable.

Q: What are not waivable?

A: 1) jurisdiction, 2) litis pendentia, and 3) res judicata. Lack of cause of action is no longer a
ground because you have to allege it in your affirmative defenses or else waived.

Q: What if Section 4, Rule 4 does not apply, where is the venue?

A: It depends on the nature of the action.

VENUE OF REAL ACTIONS

VENUE OF PERSONAL ACTIONS

Q: Annulment of marriage. Respondent is in QC. The wife who will file the case is employed in Saudi
Arabia. Can the case be file at Saudi Arabia where the plaintiff resides?

A: No. Since the court in Saudi Arabia has no jurisdiction over the case.

BPI SAVINGS BANK VS. SPS. YUJUICO

Deficiency judgment is a personal action. The venue of a personal action is the place 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, for which reason the action is
considered a transitory one.

CASES:

Pacific Consultants International Asia vs. Schonfeld

Biaco vs. Countryside Rural Bank

BPI Savings Bank vs. Sps. Yujuico

Planters Development vs. Ramos

E. Summary Procedure vs. Small Claims Suit (Rule 5)

In the ROC there is what you call regular procedure, summary procedure, and small claims.

Q: Where is there no uniformity in procedure?

A: General Rule: The rules of evidence shall be the same in all courts and in all trials and hearings.
(Rule 128, Section 2)

Exception:
When otherwise provided by law or these rules, such as those enumerated under Rule 1, Sec. 4 of the
Rules of Court (ROC): (NICOLE)
1. Election cases;
2. Land registration cases;
3. Cadastral cases;
4. Naturalization proceedings;
5. Insolvency proceedings; and
6. Other cases not herein provided for by law.

Summary Procedure vs. Small Claims (AM No. 08-8-7-SC)

SP – Php. 2 million and below (Php. 2 million and one centavo is regular procedure)

Salient points on Summary Procedure

1. It applies only on the lower courts;

2. It is without trial;

Q: What about judgment? Is is judgment on the merits?

A: Yes since there are no oppositors thus all the parties are given the opportunity to present
their side.

3. There are prohibited pleadings; and

Q: Is demurrer a prohibited pleading in summary procedure?

A: No since it is for the purpose of expediting proceedings like the summary procedure.

4. Prescriptive periods are shorter.

 Period to answer in summary procedure – same as in regular procedure. It is no longer 10
days from summons rather 30 days. Rational is that Section 6, Rule 7 also applies to
Summary Procedure.

Actions covered by the Rules on Summary Procedure: (AM 08-8-7)

1. Forcible entry and unlawful detainer

2. Civil actions and complaints for damages where claims do not exceed Php. 2,000,000
3. Cases for enforcement of barangay conciliation proceedings where the money claim exceeds
Php. 1,000,000
4. Cases solely for the revival of judgment of any first level court
5. The civil aspect of violations of BP 22, if no criminal action has been instituted
6. Actions for revival of judgment (Section 6, Rule 39 – execution by motion and action)

NOTE: Not all actions not capable of pecuniary estimation are under the RTC. When one
revived a judgment of the MTC, the action shall be governed by the rules of summary
procedure.

SC – Php. 1 million and below (only on Civil Cases, specifically Contract of Loans)

Joinder of Claims

- don’t confuse with joinder of causes of action. It’s not several cases that you lodge together;
- only applies to small claims and not summary procedure;

Q: On joinder of claims under small claims, will you apply the totality rule where jurisdiction is
based on total amount?

A: No. You cannot go beyond Php. 1 million. This is also true for summary procedure where
you can’t go beyond Php. 2 million.

Exception for Php. 2 million threshold for Summary Procedure: unlawful detainer
and forcible entry. The amount of unpaid rentals is immaterial, it will always be governed
by rules on summary procedure.

1. What are their salient characteristics?

2. How to determine if the case is summary or under small claim?

3. OCA 45-2019: increased amount of small claims to P400,000

AL Ang Network Inc vs. Mondejar

4. AM No. 08-8-7-SC: Expedited Procedures in the First Level Courts Effective (April 11, 2022)

III. RULE 6: Kinds of Pleadings (Sections 1-13)

Parties: Plaintiff, Defendant, Co-defendant, and Intervenor

Plaintiff:

1. Complaint,
2. Reply (if there is an answer attached to an actionable document),
3. Answer to the counterclaim (when the counterclaim is permissive), and
 NOTE: No need to answer a compulsory counterclaim because it is deemed controverted.

4. Counter-counterclaim (against the defendant and/or the third-party defendant).

ILLUSTRATION:

A----------------> B (Complaint)

A----------------> B (Reply)

A----------------> B (Answer to Permissive Counterclaim)

A----------------> B/X (Counter-Counterclaim)

Defendant:

1. Answer to the complaint,

2. Counterclaim, and
3. Rejoinder (new)

ILLUSTRATION:

B----------------> A (Answer to the complaint)

B----------------> A (Counterclaim)

Q: How to draw a line representing crossclaim?

A: A vs. B and C (There can be no crossclaim if the defendant is only one)

B------------->C (Crossclaim)

C------------->B (Answer to crossclaim)

C------------->B (Crossclaim)

B------------->C (Answer to crossclaim)

Q: What does B-------------->D represent?

A: Third-party complaint

D------------->B (Answer to the third-party complaint)

NOTE: There can still be counter-complaint)

Q: If B impleads X, what would the B----------------->X represent?

A: Fourth-party complaint

X------------->B (Answer to the fourth-party complaint)

 NOTE: There can still be counter-complaint)

REJOINDER

Q: When is a rejoinder needed?

A: When reply is anchored on an actionable document that is only when a rejoinder is necessary.

Q: Why?

A: Because the answer is anchored on an actionable document. If you don’t file a reply the
authenticity and due execution is admitted.

NOTE: Connect reply and rejoinder with Sections 7 and 8, Rule 8 (provision on actionable documents).
Importance of these sections are lessened by Section 6, Rule 7 because whether they are actionable or
not, they should be attached to the pleadings because they form part of the content of pleadings.

NOTE: If you do not answer an allegation based on actionable document, what is deemed admitted is
only the authenticity and due execution of the document.

Q: What does the authenticity and due execution of the document cover?

A: It simply means that “the party whose signature it bears admits that he signed it or that it was
signed by another for him with his authority, that at the time it was signed it was in words and
figures exactly as set out in the pleading of the party relying on it, that the document was
delivered, and that any formal requisites required by law, such as a seal, an acknowledgment, or
revenue stamp, which it lacks, are waived by him (Benguet Exploration Inc vs. CA)

NOTE: The authenticity and due execution does not include everything. It is limited only
to four areas: (1) that it was signed, (2) that it was delivered, (3) It is in the same form as
it was made, and (4) there are no alterations or changes. (Benguet Exploration Inc vs.
CA)

COMPLAINT

ANSWER and DEFENSES

Q: What does answer to the complaint consists of?

A: Contains defenses

Q: How many kinds of Defenses?

A: Two – negative and affirmative defenses

Q: Three kinds of negative defenses:

A: These are:

1. Denial
2. Lack of knowledge sufficient to form and belief
3. Negative Pregnant
Q: How do you do a specific denial?

A: How made:
1. Specify each material allegation of fact the truth of which a party does not admit, and whenever
practicable, set forth the substance of the matters upon which he relies to support his denial (Specific
Absolute Denial);
2. Specify so much of the averment as is true and material, and deny the remainder (Partial Specific
Denial); or,
3. State defendant’s lack of knowledge or information sufficient to form a belief as to the truth of a material
averment made in the complaint (Specific Denial by Disavowal of Knowledge) (Rule 8, Sec. 10).

ILLUSTRATION:

Q: Defendant owes me Php. 10,000. Deny that.

A: I specifically deny the par. 24 of the complaint because the truth being the matter that the Php. 10,000
is a gift from the plaintiff.

Q: What is a Negative Pregnant?

A: A defense is considered a negative pregnant when it contains a denial pregnant with an admission of
the substantial facts alleged in the pleading. Where a fact is alleged with qualifying or modifying language
and the words of the allegation as so qualified or modified are literally denied, it has been held that the
qualifying circumstances alone are denied while the fact itself is admitted (Republic vs. Sandiganbayan,
2003)

REPUBLIC VS. SANDIGANBAYAN

Summary: The Marcoses were charged for stealing US$356 million from the government and
depositing it in Swiss Bank accounts. Imelda’s answer to the specific allegation was “the funds
involved were lawfully acquired”. This was found by the Court to be a negative pregnant and an
acknowledgement on the part of Imelda of the existence of the said deposits.

NOTE: Negative pregnant cannot exist if it is a simple declarative statement. In a negative

pregnant what is being denied is the qualifier and not the allegation itself. When an allegation is
qualified and you denied the qualifier, you are in effect admitting the principal.

ILLUSTRATION

a. B owes me Php. 100,000 – Simple declarative statement. No negative pregnant.

b. B owes me Php. 100,000 when he was still in highschool; Answer: I do not owe B Php.
100,000 when he was still in highschool – This is negative pregnant because it means you
really owe A but not when you were in highschool.

VALDEZ VS. DABON

Summary: Amorous relationship of CA Clerk of Court. Nelson Valdez, the husband f Sonia
Valdez, filed an administrative complaint for disbarment against Atty. Antolin Dabon, a division
clerk of the CA for allegedly carrying an adulterous relationship with Nelson’s wife which was
made possible allegedly by sexual assaults and maintained through threat and intimidation. Atty.
Dabon said in his denial that he didn’t assert intimidation and that the allegations were just pure
fabrication to malign his name and honor.
Q: What is affirmative defense?

A: is an allegation of a new matter, which, while hypothetically admitting the material allegations in the
pleading would nevertheless prevent or bar recovery by him or her. (Rule 6, Sec. 5)

Example: Payment – B owes me Php. 100,000. B answers “bayad na yan”. That’s an affirmative
defense.

Q: Under the amended rules of 2019, affirmative defenses is maintained. But in addition to affirmative
defenses may mga dinagdag pa. Is it in the nature of affirmative defense? Hindi ba they used to be
residual prerogatives under Section 1 of Rule 9? Why are they now affirmative defenses? Will that fall in
the nature of affirmative defenses where there is a hypothetical admission?

A: No. That meaning is not exclusive anymore of an affirmative defense. An affirmative defense now has
become more extensive. Because lack of jurisdiction, res judicata, litis pendentia, and lack of cause of
action is already an affirmative defense So the original meaning of affirmative defense as a hypothetical
admission is no longer applicable to all affirmative defenses.

Q: Why was it expanded?

A: Because under the present system the court can immediately resolve the cases even without going
into trial.

COUNTERCLAIM

Nature: Not part of the answer since counterclaims are the complaints of the defendant against the
plaintiff. (don’t confuse with the answer – counterclaim is a separate and distinct pleading from the
answer)

Q: What does a counterclaim contain?

A: A complaint stating the defendant’s cause of action against the plaintiff

Q: When does the cause of action arise?

A: A permissive counterclaim arises from a separate cause of action. While a compulsory counterclaim
arises from the plaintiff’s cause of action.

Assigned for Rules 1-5 – ALDAY VS. FGU (Permissive Counterclaim)

Summary: Here there were two kinds of counterclaims interposed by the defendant and in fact, LGU
wanted dismissal of the counterclaim for failure to pay docket fees. The SC held that what is required
for docket fees are only permissive counterclaim and considering that Alday interposed two kinds of
counterclaims, permissive for bonuses and compulsory for damages, only the permissive is
dismissible. The compulsory is not because it does not require payment of docket fees. However,
claim for bonuses is separate and distinct from unpaid remittance thus it involves a
permissive counterclaim which requires payment of docket fees.

NOTE: Payment of docket fees is only required for permissive counterclaim.

 ALBA VS. MALAPAJO (Compulsory Counterclaim)

Summary: Here, petitioner seeks to recover the subject property by assailing the validity of the deed
of sale on the subject property which he allegedly executed in favor of respondents Malapajo on the
ground of forgery. Respondents counterclaimed that, in case the deed of sale is declared null and
void, they be paid damages as well as the loan petitioner obtained from them plus the agreed monthly
interest which was covered by a real estate mortgage on the subject property executed by petitioner
in favor of respondents. This case involves a compulsory counterclaim because the complaint
of the defendant (for damages and for reimbursement of petitioner’s loan) arises from the
cause of action of the Plaintiff.

NOTE: Moral and exemplary damages arises from the complaint. Had the plaintiff not filed the
complaint, the defendant would not have suffered moral and exemplary damages.

Test to determine whether a counterclaim is compulsory or not:

1. Are the issues of fact or law raised by the claim and the counterclaim largely the same?
2. Would res judicata bar a subsequent suit on defendant’s claim absent the compulsory
counterclaim rule?
3. Will substantially the same evidence support or refute plaintiff’s claim as well as the
defendant’s counter claim? and,
4. Is there any logical relation between the claim and the counterclaim? (Arturo C. Alba, Jr. vs.
Raymund Malapajao, 2016)

Assigned for Rules 1-5 – SY-VARGAS VS. ESTATE OF OGSOS (mentioned)

Q: The rule says that a counterclaim must be in the jurisdiction of the court in amount and nature. How
will you illustrate that?

ILLUSTRATION OF IN AMOUNT:

Q: A files a case against B for a sum of money in the amount of Php. 2.5 million and then B interposes a
counterclaim in the amount of Php. 1.5 million, may the RTC take cognizance of that claim?

A: Yes. Since the RTC is a court of general jurisdiction it can take cognizance of a counterclaim below
Php. 2 million as long as long as the original complaint is for a sum exceeding Php. 2 million.

Q: A files a case against B for a sum of money in the amount of Php. 1.5 million and then B interposes a
counterclaim in the amount of Php. 2.5 million, may the MTC take cognizance of that claim?

A: No. Since the original complaint is within the jurisdiction of MTC, the said court not being a court of
general jurisdiction, the amount of the counterclaim should also be below Php. 2 million.

NOTE: The rule is that the RTC is a court of general jurisdiction.

Q: Can the MTC take cognizance of the Php. 2 million and remove the Php. 500,000?

A: No since the amount is not divisible.

ILLUSTRATION OF IN NATURE:

A files a case against B for a sum of money in the amount of Php. 2.5 million and then B interposes a
counterclaim in the amount of Php. 2.2 million because of unpaid wages since B is an employee of A. The
counterclaim must be dismissed since a complaint involving ER-EE relationship is under the exclusive
jurisdiction of the NLRC.

Other examples:

a. Counterclaim of B is based on tenancy (DARAB exclusive)

b. Counterclaim of B is based on stock (SEC exclusive)

ILLUSTRATION OF PERMISSIVE COUNTERCLAIM

Q: Example of permissive counterclaim

A: A files a case against B for a sum of money in the amount of Php. 2.5 million under a contract of loan
and then B interposes a counterclaim in the amount of Php. 3 million for unpaid rentals under a contract
of lease.

ILLUSTRATION OF THIRD-PARTY COMPLAINT

A files a case against B for a sum of money in the amount of Php. 3 million and then B files a third party
complaint against C, his insurer for the same amount anchored on an insurance contract.

Q: Purpose of third-party complaint

A: For contribution, subrogation, or indemnification (same as the crossclaim).

NOTE: A third party defendant may extend it to a fourth party complaint and the latter can further extend it
to a fifth party complain.

INTERVENOR (Rule 19)

Intervention is either:

1. Joining the plaintiff – complaint in intervention

2. Joining the defendant – answer in intervention

NOTE: Intervention requires leave of court

Q: How do you get a leave of court?

A: By filing a motion for leave of court

NOTE: Under Rule 15, whenever you file for a motion for leave the rule says that you already
need to attach the appropriate pleading. No need to wait.

NOTE: So when you want to file a third party complaint, what you file is a motion for leave to
admit third party complaint.

A. Pleadings: Complaint, Answer, Counterclaim, Crossclaim, Reply, Third-Party Complaint,

Counter-counterclaim, Rejoinder
 Compulsory vs. Permissive Counterclaim

B. Defenses: Negative, Affirmative, Negative Pregnant

CASES:

Alba vs. Malapajo

Lim Teck Chuan vs. Uy

Metrobank vs. CPR Promotions

Valdez vs. Dabon

Republic vs. Sandiganbayan

Caneland Sugar Corp vs. Alon

IV. RULE 7: Parts and Contents of a Pleading (Sections 1-6)

Q: Tell us about the parts of the pleadings:

A: The parts of a pleading are:

1. Caption
2. The Body
a. Paragraphs
b. Headings
c. Relief
d. Date
3. Signature and address
4. Verification
5. Certification against forum shopping

NOTE: The pleadings shall now contain:

1. Claims and defenses of the party;

2. Body (Sec. 2 Rule 7)
3. Evidence to be offered, specifically:
a. Names of witnesses who will be presented to prove a party’s claim or defense
b. Summary of the witnesses’ intended testimonies
c. Documentary and object Evidence in support of the allegations contained in the pleading (Rule
7, Sec. 6). (n)

Q: What did the amendment on Section 6, Rule 7 change to the Rules of court (revolutionary effects):

A: The revolutionary effects are:

1. Can no longer hide evidence since all evidence will now form as content of pleadings.

First Sarmiento Property Holdings (mentioned) – based solely from allegations and not on
evidence since the latter is a matter of trial. This will no longer hold under the amendment.
 Q: Effect of not attaching evidence
A: such evidence would no longer be admitted later on

2. Answers now has 30 days to prepare from 15 calendar days.

NOTE: Answer is the only exception for extension of time which is a prohibited pleading.
RATIONAL: Since evidentiary matters shall be submitted with the pleadings.

3. No more filing of Motion to Dismiss. Grounds of Motion to Dismiss in Rule 16 has now been
transposed into Section 5, Rule 6 and Section 12 of Rule 8 (still 10).

Q: Why is there no more Motion to Dismiss?

A: Because the defenses are already in the answer you will file with the court.

4. Change of Section 5, Rule 10 – amendment to conform to the evidence. Before, you allege and
support it with evidence. Here, if the allegations are not supported by evidence but the evidence
already forms part of the pleadings, that issue is outside the court’s jurisdiction.

NOTE: Jurisdiction over the issues is determined by allegations in the pleadings. If no allegation,
no jurisdiction over the issue. For example, complaint of sum of money never mentioned demand
to pay, the latter is outside the jurisdiction of the court. Suppose, during the trial the plaintiff
presents demand letters but there is no allegation regarding demand such is outside the
jurisdiction of the court. Here, plaintiff’s remedy is Section 5, Rule 10.

NOW: Evidence already form part of the pleading so Section 5, Rule 10 no longer applies.

VERIFICATION AND CERTIFICATION OF NON-FORUM SHOPPING

Q: Change in verification and certification of non-forum shopping?

A: It now provides that the signing council or plaintiff should have read the contents and the allegations as
well as the authenticity of the document. It is not just an affirmation.

NOTE: Be sure that when you prepare, apat kumpleto na (Sections 4-5, Rule 7). You have to add: (1) that
you are not filing this for purposes of delay, (2) that the evidence in your pleadings were not fraudulently
acquired or secured; etc.

POWERHOUSE VS. REY

Board Resolution for a certification is no longer required for certain corporate officers: (1) Chairperson, (2)
President, (3) General Manager, (4) personnel officer, and (5) an employment specialist in a labor case.

BOARD OF INVESTMENTS VS. SR METALS (mentioned) – reiteration of Powerhouse vs. Rey

Q: What are needed apart from signature and address in any kind of pleading:

A: They are:
1. Professional Tax Receipt (PTR) Number;
2. IBP Official Receipt Number and date of issue (Bar Matter No. 287, September 26, 2000);
3. Attorney’s Roll Number (Bar Matter No. 1132, April 2, 2003); and,
4. Number and date of MCLE Certificate of Compliance/Exemption (Bar Matter No. 1922, June 3, 2008).

A. Parts: Caption, Body, Relied, Date

B. Signature and Address
C. Distinguish Verification and Certification
D. Distinguish Parts from Contents

CASES:

Alma Jose vs. Javellana

Medado vs. Heirs of Antonio Consing

COA vs. Paler

Basan vs. Coca-Cola Bottlers

Uy vs. CA

People vs. Arojado

Powerhouse vs. Rey

Board of Investments vs. SR Metals Inc

Heirs of Josefina Gabriel vs. Segundina Cebrero

RULE 8: Manner of Making Allegations in the pleadings

Q: The rule says that an allegation of fraud or mistake must be done with particularity while malice and
tender knowledge must be done with generality, what is your understanding of that?

A: Fraud and mistake must be stated with particularity because they can’t be presumed and that they are
the common denominator for the grounds of applying for preliminary attachment. That’s why under Rule
37 there is a requirement of affidavit of merits. On the other hand, malice can’t be seen so you can’t state
it with particularity.

SECTION 7 and 8: ACTIONABLE DOCUMENT

Q: What is an actionable document?

A: The basis of one’s cause of action.

Q: How do you contest?

A: By specifically denying the due execution and genuineness of the document under oath.
Q: What does specific denial must be under oath mean?

A: There must be a verification – subscribed and sworn to. (Remember pleadings need not be verified.
Only initiatory pleadings)

Q: If there is no specific denial under oath, what is the effect?

A: genuineness and due execution is deemed admitted.

Q: Exceptions: (Still need specific denial, but no longer under oath)

A: 1. If defendant or plaintiff is not party to the document, 2. There is refusal to comply

Q: New pleading added because of actionable document?

A: rejoinder