52383705 Civil Procedure the Magic Box

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CIVIL PROCEDURE Section 1. TitIe of the RuIes OTherulesofcourtareNOTpenalstatutes.Theycannotbegivenretroactiveeffect.They can,however,bemadeapplicabletocasespendingatthetimeoftheirpassageand therefore are retroactive in that sense. *The rule-making power of the Supreme Court has the following limitations: 1.Simplified and inexpensive procedure for the speedy disposition of cases; 2.Uniform for all courts of the same grade; and 3.Shall not diminish, increase, or modify substantive rights (Art V Sec 5(5)). *nthenterestofjustandexpeditiousproceedings,theSupremeCourtmaysuspendthe applicationoftheRulesofCourtandexceptacasefromitsoperationbecausetheruleswere preciselyadoptedwiththeprimaryobjectiveofenhancingfairtrialandexpeditiousjustice. (Republic vs. CA, L-31303-04, May 31, 1978) Section 2. In what courts appIicabIe All courts unless otherwise provided by the Supreme Court *These rules shall be uniformly applied to all courts provided it is applicable *Supreme Court is the Judicial Body tasked to interpret the law Section 3. Cases governed ActionCIaim Anordinary suitina courtof justice Arightpossessedbyone against another Onepartyprosecutes anotherfortheenforcement or protection of a right or the preventionorredressofa wrong Themomentsaidclaimis filedbeforeacourt,the claimisconvertedintoan action or suit APPLICABILITY: 1. CiviI Action one by which a party sues another for the enforcement or protection of a right, or the prevention or redress of a wrong (sec3[a]) 2.CriminaIActiononebywhichtheStateprosecutesapersonforanactoromission punishable by law (sec3[b]) 3.SpeciaIProceedingsremedybywhichapartyseekstoestablishastatus,rightor particular fact CIassification of Actions A. As to Nature Ordinary civiI actionSpeciaI CiviI Action Governed by ordinary rulesAlsogovernedbyordinary rulesbutSUBJECTto specificrulesprescribed (Rules 62-71) Formaldemandofone's legalrightsinacourtof justiceinthemanner prescribedbythecourtfor by the law Special features not found in ordinary civil actions *Ordinary civil action requires a cause of action *SpecialcivilactionNOTnecessarilyneedacauseofaction;butcangotocourtfor determinationof rightor protectionofa right (Ex: Declaratory relief (Rule63) Withouta cause ofaction;only to determinethevalidityofa law,etc).Special ruleswillapplyprimarily;ordinary rules will apply suppletory. (Atty. Tranquil) B. As to object Action in remAction in personamAction quasi in rem Direct against the thing itselfDirectedagainstaparticular person Directedagainstaparticular persons Jurisdiction over the person of thedefendantisNOT required Jurisdiction over the person of the defendant S required Jurisdiction over the person of thedefendantisNOT requiredaslongas jurisdictionovertheresis required Aproceedingtodetermine thestateorconditionofa thing Anactiontoimposea responsibilityorliabilityupon a person directly Aproceedingtosubjectthe interest of a named defendant overaparticularpropertyto anobligationorlien burdening it Judgmentisbindingonthe whole world Judgmentinbindingonly uponpartiesimpleadedor their successors in interest Judgmentbindingupon particular persons Ex:probateproceeding; cadastral proceeding Ex:Actionforspecific performance;actionfor breachofcontract;Actionfor sumofmoney;actionfor damagesEx:Actionforpartition;action toforecloserealestate mortgage;Actionfor accounting nooneotherthanthe defendantissoughttobe heldliable,notthewhole world Dealwiththestatus, ownershiporliabilityofa particularpropertybutwhich areintendedtooperateon thesequestionsonlyas between the particular parties The distinction is important in determining the following: 1.W/N JURSDCTONoverthepersonofthedefendantisrequired(andconsequently to determine the type of summons to be employed); and a.Jurisdictionoverthepersonofthedefendantisnecessaryforthecourtto validly try and decide a case against said defendant where the action is one in personam but NOT where the action is in rem or quasi in rem. 2.Persons upon whom judgment is binding *Anactionin personamis notnecessarilyapersonalaction. Norisa realactionnecessarilyan actionin rem. An inpersonamoranin remactionisa classificationofactionsaccording to the object of the action. A personal and real action is a classification according to foundation. t is in rem when directed against the whole world. *Anactionforejectmentisarealactionbecauseitinvolvestheissueofpossessionofreal property.tisalsohowever,anactioninpersonambecausetheactionisdirectedagainsta particular person who is sought to be held liable. *An action for the declaration of nullity of marriage is a personal action because it is not founded onrealestate.tisalsoaninremactionbecausetheissueofthestatusofapersonisone directedagainst thewholeworld. One's status isamatter that canbe setupagainstanyone in theworld.Ontheotherhand,anactionfordamagesisbothapersonalactionandactionin personam. C. As to cause ReaI ActionPersonaI ActionMixed Action Ownershiporpossessionof realpropertyisinvolved ("affectstitletoorpossession ofrealpropertyorinterest therein Rule4[1]) Personal property is sought to berecoveredorwhere damagesforbreachof contract are sought Bothrealandpersonal properties are involved RULE 1: GENERAL PROVISIONS The magic box.Page

Foundedonprivityofreal estate(i.e.therealtyoran interestthereinisthesubject matter of the action) Founded on privity of contractFounded on both Filedinthecourtwherethe propertyoranypartthereof is situated Filedinthecourtwherethe plaintifforanyofthe defendantsresides,atthe option of the plaintiff Therulesonvenueofreal actions shall govern Ex: Accion reinvindicatoriaEx:Actionforsumofmoney; Actionfordeclarationofthe nullity of marriage Ex:Accionpublicianawitha claim for damages Note: it is notenough that the actionmustdealwithreal property;itisimportantthat thematterinlitigationmust alsoinvolveanyoftheff issues:titleto,ownership, possession,partition, foreclosureofmortgageor any interest in real property Note:theplaintiffseeksthe recovery of personal property, theenforcementofacontract or the recovery of damage. Note: An action could be real as to cause and in personam as to object (e.g. action to recover a pieceof land). Anaction couldalsobe personalas to causeandin remas toobject (e.g.action for annulment of marriage). *The distinction is significant in determining the VENUE of an action.

D. As to pIace of fiIing LocaI ActionTransitory Action Mustbebroughtinaparticular placewherethesubject propertyoraportionthereofis located,unlessthereisan agreementtothecontrary (Sec4, Rule4) Dependentontheplacewhere thepartyresidesregardlessof where the causeofactionarose subject to (Sec4, Rule4) Ex:Actiontorecoverreal property Ex:Actiontorecoversumof money Note: f theaction is foundedonprivityof contract between theparties, then theactionwhether debt or covenant, is TRANSTORY. But if there is no privity of contract and the action is founded onprivityofestateonly,suchasacovenantthatrunswiththelandinthehandsoftheremote grantees,thentheactionisLOCALandmustbebroughtintheplacewhereinthelandlies (Paper Industries Corporation vs. Samson, GR No. L-30175, November 28, 1975) A personal action is 'transitory', i.e., its venue depends upon the residence of the plaintiff or the defendantattheoptionoftheplaintiff.Apersonalaction"maybecommencedandtriedwhere theplaintifforanyofthePRNCPALplaintiffsresides,orinthecaseofanon-resident defendant, where he may be found, at the election of the plaintiff (Sec2, Rule4; Bar 1994) *AnactionfortherecoveryofpossessionoftheleasedpremiseslocatedinDavaoCityandfor the payment of accrued rentals is a real action. The venue of the action is Davao City (Bar 1991) *The nature of the action is one to compel the recognition of the validity of the previous award by seekingadeclarationthatthecancellationisnullandvoid.Thevenueistheresidenceofthe plaintiff or that of the defendant at the option of the plaintiff. (Hernandez vs. DBP, 71 SCRA 290; Bar 1976; Bar 1978) (Riano pp.126-127) Actions IncapabIe of Pecuniary Estimation ndeterminingwhetheranaction isone the subjectmatterofwhichis not capableof pecuniary estimationthisCourthasadoptedthecriterionoffirstascertainingthenatureoftheprincipal actionorremedysought.fitisprimarilyfortherecoveryofasumofmoney,theclaimis consideredcapabIeofpecuniaryestimation,andwhetheritisinthemunicipaltrialcourtsorin the regional trial courts would depend on the amount of the claim. However,where thebasic issueis something other than the right torecover a sumof money or where themoney claimispurelyincidental to, oras consequence of, the principal relief sought, this Court has considered such action as cases where the subject may not be estimated in terms ofmoney,andare cognizableexclusivelyby Regional trial courts (Davaolight& Power Co. vs. Hon. Judge of RTC Davao City, Br. 8, GR No. 147058, March 10, 2006). Examples:Specific performance; Rescission; Support; Foreclosure of Mortgage; njunction, etc. Section 4. In what cases NOT appIicabIe NOT applicable in:1.Election cases; 2.Land registration/Cadastral cases; 3.Naturalization; 4.nsolvency proceedings; 5.Other cases not provided in the Rules of Court. *in these cases, it is special law which confers jurisdiction to courts Exception:theRulesofCourtareapplicabletotheabovementionedcasesbyanalogyorina suppletory character and whenever practicable and convenient. Section 5. Commencement of action A civiI action is commenced by: 1.TheFLNGOFTHECOMPLANT(whenanadditionaldefendantisimpleadedinalater pleading,theactioniscommencedwithregardtohimonthedateoffilingofsuchLATER PLEADNG); and Note: An action can be commenced by filing the complaint by registered mail. n which case, it is thedateof mailing that is consideredas thedateof filingandnot thedateof thereceipt thereof by the clerk of court. "FLNG the act of presenting the said complaint before the clerk of court (Sec2, Rule 13) OCivil actions are deemed commenced from the date of filing and docketing of the complaint, withouttakingintoaccounttheissuanceandserviceofsummons(Cabreravs.Tiano,GR No. L-17299, July 31, 1963) 2. ThePAYMENT OF DOCKET FEES (determinednotonly in theamountof the claimbutalso by the amount of damages). Note:Theamountofdamagesshouldbespecifiednotonlyinthebodyofpleadingbutalsoin the prayer. The courtmayallowthepaymentof thedeficientdocket feewithina reasonableperiodbutnot beyond the applicable prescriptive or reglementary period. Ot is not simply the filing of the complaint or appropriate initiatory pleading, but the payment of theprescribed docket fee thatvestsa trial courtwith jurisdictionof the subjectmatteror nature of the action. (Heirs of Bertuldo Hinog vs. Melicor (2005)) On SunInsurance OfficeLtd., vs. Asuncion (170SCRA274, 1989)the Supreme Courtlaid down the following rules: a.tisnotsimplythefilingofthecomplaintorappropriateinitiatorypleadingbut alsothepaymentoftheprescribeddocketfeethatvestsatrialcourtwith jurisdictionover the subject matteror natureof theaction. Where the filingof the initiatorypleadingisnotaccompaniedbypaymentofthedocketfee,thecourt mayallowpaymentofthefeewithinthereasonabletimebutinnocasebeyond the applicable prescriptive period. b.The same rule applies to permissive counterclaims, third-party claims and similar pleadingswhichshallnotbeconsideredfileduntilandunlessthefilingfee prescribed therefor is paid. c.Wherethetrialcourtacquiresjurisdictionoveraclaimbythefilingofthe appropriatepleadingandpaymentoftheprescribedfilingfee,butsubsequently, The magic box.Page

thejudgmentawardsaclaimnotspecifiedinthepleading,orifspecified,the same has been left for determination by the court, the additional filing fee therefor shall constitute a lien on the judgment. Whodeterminestheamountoffilingfees?Answer:ClerkofCourt;theclerkofcourtwhois alsothe"ex-officiosheriffwhereinallthesheriffsreporttohimandheisunderthecontrolof executivejudgewhowillconducttheraffle(cross-referencetoRule20[2]andRule141)(Atty. Tranquil) *Canyou re-file the casewhen the courtdismissed the case for insufficiency/lackof paymentof filing fees? Answer: Yes. Because the dismissal is without prejudice. Section 6. Construction GeneraI RuIe: Liberal construction *left to the discretion of the court and depends on the fact of the case: "case to case basis *HowshalltheRulesofCourtbeconstrued?Answer:TheRulesofCourtshallbeliberally construedinordertopromotetheirobjectiveofsecuringajust,speedyandinexpensive disposition of every action and proceeding (Rule 1[6]; Bar 1998) Exceptions: 1.Reglementary periods; 2.Rule on forum shopping; 3.Service of summons. OThepoweroftheSupremeCourttopromulgaterulesconcerningpleading,practice,and procedureincludesthepowertosuspendtheeffectivityofsuchrulesortoprovidean exceptionfromtheoperationofsaidrules.tiswithintheinherentpoweroftheSupreme Courttosuspenditsownrulesinaparticularcaseinordertodojustice(DeGuiavs.De Guia, GR No. 185384, April 4, 2001) Reasons which wouId warrant the suspension of the RuIes: (Riano pp.24) 1. The existence of special or compelling circumstances; 2. The merits of the case; 3.Acausenotentirelyattributabletothefaultornegligenceofthepartyfavoredbythe suspension of rules; 4. A lack of any showing that the review sought is merely frivolous and dilatory; and 5.Theotherpartywillnotbeunjustlyprejudicedthereby(Sarmientovs.Zaratan,GRNo. 167471, February 5, 2007) CIVIL ACTIONS Ordinary CiviI Actions Section 1. Ordinary CiviI Actions, basis of Every ordinary civil action must be based on a cause of action. Section 2. Cause of Action, Defined Cause of Action - the act or omission by which a party violates the right of another. Requisites of a Cause of Action: 1. LEGAL RGHT of the plaintiff. 2. CORRELATVE OBLGATON of the defendant to respect plaintiff's right; and 3. Act or omission of the defendant in VOLATON of the plaintiff's legal right. Injury is the illegal invasion of a legal right while damage is the loss, hurt, or harm which results from the injury. Right of Action Right of a person to bring and prosecute action to obtain judgment. Requisites of a Right of Action: 1. There must be a GOOD CAUSE (the existence of a cause of action); 2. A compliance with all the CONDTONS PRECEDENT to the bringing of the action; and 4Matterswhichmustbe compliedwith beforea causeofactionarises = complianceof the same must be alleged in the pleading 4Examples:Promissorynotemustbedueanddemandable;incasesofunlawful detainer there must be first a DEMAND to vacate; unless suit is based on expiration, wherein notice and demand are not required. 3. The action must be instituted by the PROPER PARTY. Cause of ActionRight of Action Delictorwrongfulactor omissioncommittedbythe defendantinviolationofthe primary rights of the plaintiff Remedialrightorrighttorelief grantedbylawtoapartyto instituteanactionagainsta personwhohascommitteda delict or wrong against him The reason for the actionTheremedyormeansafforded or the consequent relief Theformalstatementofthe operativefactsthatgivesrise to remedial right Theremedialrightgiventoa personbecauseofthe occurrence of the alleged facts Amatterofprocedureand dependsonthepleadingsfiled by the parties Amatterofrightanddepends on substantive law Notaffectedbyaffirmative defenses(fraud,prescription, estoppels, etc) Affected by affirmative defenses STATES NO cause of actionLACK of cause of action "Failstostateacauseof action (Atty. Tranquil) Failureto"establishacauseof action Whentheplaintifffailsto allegeanessentialelementof the case There is sufficiencyofallegation buttheevidencespresenteddo not prove the cause of action Beforeresponsivepleadingis filed; before beginning of trial Only after the plaintiff has rested its case ReIiefRemedySubject Matter Theredress,protection, awardorcoercivemeasure whichtheplaintiffpraysthe court to render inhis favoras consequenceofthedelict committed by the defendant Theprocedureorappropriate legalformofreliefofaction whichmaybeavailedofby theplaintiffasthemeansto obtain the desired relief Thethingwrongfulact, contractorpropertywhichis directlyinvolvedintheaction, concerningwhichthewrong hasbeendoneandwith respecttowhichthe controversy has arisen Section 3. One suit for a singIe cause of action A party may not institute more than one suit for a single cause of action Section 4. SpIitting a singIe cause of action, effect of SpIittingofcauseofactionistheactofdividingasingleorindivisiblecauseofactioninto several parts or claims and bringing several actions thereon. t is NOT ALLOWED. Purpose: To avoid the ff: 1.Multiplicity of suits; 2.Conflicting decisions; 3.Unnecessary vexation and harassment of defendants; and 4.Operatesasaninstrumentofharassment,andgeneratesunnecessaryexpensesto the parties. OApplies NOT only to complaints but also to counterclaims and cross-claims RULE 2: CAUSE OF ACTION The magic box.Page

OTo illustrate: (Riano, pp.108) An action for forcible entry should include not only the plea for restorationofpossession butalso claims fordamagesarisingoutof the forcibleentry. The claimfordamagescannotbefilesseparately.(ProgressiveDevelopmentCorp.,Inc.vs. CA, 301 SCRA 637) OAbankcannotfileacivilactionagainstthedebtorforthecollectionofthedebtandthen subsequently file an action to foreclose the mortgage. This would be splitting a single cause of action. (Danao vs. CA, 154 SCRA 446; Bar 1999) OAn action for annulment of the sale of certain shares of stock should include a claim for the recovery of dividends which have accrued on the shares (Bar 1996).

Remedies against SpIitting a SingIe Cause of Action 1. Motion to dismiss on the ground of: a. Litis pendentia (Rule16, Sec1[e]); or b. Res Judicata (Rule16, Sec1[f]) 2. An answer alleging either as affirmative defense (Rule16, Sec6) Note:tneednotbethesecondactionfilesthatshouldbedismissed.Thephraseologyofthe presentrule(Sec4,Rule2)nolongerconfinesthedismissaltothesecondaction.Astowhich actionshouldbedismissedwoulddependuponjudicialdiscretionandtheprevailing circumstances of the case. (Riano, pp. 114) RuIes Determining the SingIeness of a Cause of Action GeneraIRuIe:Acontractembracesonlyonecauseofactionevenifitcontainsseveral stipulations Exception: A contract to do several things at several times is divisible, and judgment for a single breachofacontinuingcontractisnotabartoasuitforasubsequentbreach.(e.g.promissory note payable in several installments so long as there is no acceleration clause) Exception to the exception: Allobligations which have maturedatthe timeof the suit must be integrated as one cause of action in one complaint, and those not so included would be barred. DoctrineofAnticipatoryBreach:An&NQ&ALIFIEDandPOSITIVEREF&SALtoperforma contract,thoughtheperformancethereofisnotyetdue,may,iftherenunciationgoesintothe wholecontract,betreatedasacompletebreachwhichwillentitletheinjuredpartytobringhis action at once. (Blossom & Co. vs. Manila Gas Corp., 55 Phil 226 (1930)) *Theruleagainstsplittingofacauseofactionappliesonlywheretheactionisbetweenthe same parties. (Itogon Suoc Mines vs. SIW&, GR No. L-24189, August 30, 1968) Section 5. Joinder of causes of action Joinder of causes of action is purely PERMSSVE. The plaintiff can always file separate actions for each cause of action. Requisites for Joinder of Causes of Action 1.The party joining the causes of action must comply with the rules on joinder of parties: Note:The following are the ELEMENTS FOR A JONDER OF PARTES (Sec6, Rule3): a.Arighttoreliefinrespecttoorarisingoutofthesametransactionorseriesof transactions; and b.A common question of law or fact. 2.The joinder shall not include special civil actions or actions governed by special rules; 3.Where the causes of action are between the same parties but pertain to different venues or jurisdictions, jurisdiction is with the Regional Trial Court, provided that: a.One of the causes of action falls within the jurisdiction of the RTC; and b.The venue lies thereon. 4.Wheretheclaimsinthecausesofactionareprincipallyforrecoveryofmoney,the aggregate amount claimed shall be the test of jurisdiction (Totality Rule). Restrictions on the joinder of causes of action: 1.Jurisdiction; 2.Venue; and 3.Joinder of parties. TotaIity ruIe under BP 129 (Sec33[1]) Wherethereareseveralclaimsorcausesofactionsbetweenthesameordifferentparties, embodied in the same complaint, the amount of the demand shall be the totality of the claims in allcausesofaction,irrespectiveofwhetherthecausesofactionaroseoutofthesameor different transaction. *Totality rule only applies for sums of money (Atty. Tranquil) *Ex:AborrowedmoneyfromB.AalsodeliveredgoodstoB.AborrowedB'scarandnever returned.A,whoseunderaconstructionbusiness,toconstructB'shouse,butAneverdid. Question: How may cause/s of action? Can we join? Does totality rule apply? Answer: You can joincausesofactionwithoutlimitationastohowmanyinthealternativeorotherwise.(Atty. Tranquil) Note: We will follow the totality rule in BP 129 because it is elementary in statutory construction that in case of conflict, substantive law prevails over procedural laws. SpIitting of Cause of ActionJoinder of Causes of Action There is a single cause of actionContemplates several causes of action PROHBTEDENCOURAGED tcausesmultiplicityofsuitsanddouble vexation on the part of the defendant tminimizesmultiplicityofsuitsand inconvenience on the parties Section 6. Misjoinder of Causes of Action Notagroundfordismissalofanaction.Amisjoinedcauseofactionmaybeseveredand proceeded with separately. ThereisNOsanctionagainstnon-joinderofseparatecausesofactionsinceaplaintiffneeds only a single cause of action to maintain an action. Section 1. Who may be parties; pIaintiff and defendant Requirements for a person to be a party to a civiI action 1.He must be either: a.A natural person; b.A juridical person; i.The State and its political subdivisions; ii.Othercorporations,institutionsandentitiesforpublicinterestor purpose, created by law; and iii.Corporations, partnershipsandassociations for privateinterestor purposetowhichthelawgrantsajuridicalpersonality,separate anddistinctfromthatofeachshareholder,partnerormember. (Art.44 of the Civil Code; Riano pp.211) c.An entity authorized by law. 2.He must have the legal capacity to sue; and 3.He must be the real party in interest *Oneneednotbeanaturalorajuridicalpersontobeapartytoacivilaction.Aslongasan entityisauthorizedbylawtobeaparty,suchentitymaysue,besuedorboth.Anexample wouldbeSec15,Rule3,"Whentwoormorepersonsnotorganizedasanentitywithjuridical personalityenterintoatransaction,theymaybesuedunderthenamebywhichtheyare generally or commonly known. (Riano, pp. 179) Note: Entities authorized by law to be parties to a suit include: 1.The estate of a deceased person; 2.A political party incorporated under Act 1459 (now BP Blg. 68, Corporation Code); RULE 3: PARTIES TO CIVIL ACTIONS The magic box.Page

3.A registered labor union (Sec 243, PD 442, Labor Code), with respect to its property; 4.Corporation by estoppel; and 5.Dissolved Corporation (within 3 years after its dissolution). (Riano pp.212) *AstopropertiesoftheRomanCatholicChurch,theArchbishopofthediocesetowhichthey belong may be a party (Versoza vs. Fernandez, GR No. L-25254, Nov. 22, 1926). Lack of LegaI Capacity to SueLack of LegaI PersonaIity to Sue treferstoplaintiff'sgeneraldisability to sue, such as on account of minority, insanity,incompetence,lackof juridicalpersonalityoranyother general disqualifications of a party. TheplaintiffisNOTtherealpartyin interest tcanbeagroundforamotionto dismissonthegroundoflackoflegal capacity to sue tcanbeusedasagroundfora motiontodismissbasedonthefact thatthecomplaint,ontheface thereof, states no cause of action. PIaintiff one having an interest in the matter of the action or in obtaining the relief demanded. Thetermmayrefertotheclaimingparty,thecounter-claimant,thecross-claimant,orthethird (fourth, etc.) - party plaintiff. Defendantoneclaiminganinterestinthecontroversyorthesubjectthereofadversetothe plaintiff. The term defendant may include: 1.Anunwillingplaintifforonewhoshouldbejoinedasplaintiffbutrefusestogivehis consent thereto (Sec10, Rule3)2. The original plaintiff becoming a defendant to original defendant's counterclaim; or 3.Onenecessarytoacompletedeterminationorsettlementofthequestionsinvolved therein. *npleadingcapacitytosueorbesued,thefactsshowingsuchcapacitymustbeaverred.For example,ifapersonisinarepresentativecapacity,suchcapacitymustbeaverredinthe complaint. (Atty. Tranquil) Section 2. Parties in Interest ReaI party in interest thepartywho stands tobe benefitedor injured bythe judgmentinthe suit or the party entitled to the avails of the suit. Note:Tobearealparty-in-interest,theinterestmustbe'real',whichisapresentsubstantial interestasdistinguishedfromamereexpectancyorafuture,contingentsubordinateor consequentialinterest.nOposavs.Factoran(GRNo.101083,1993),minorsrepresentedby their parents were held as real parties in interest to file an action to annul timber licenses issued by the State under the ff principles: a.nter-generational responsibility; b.nter-generational justice; c.The right of the Filipinos to a balanced and healthful ecology; and d.Minors represent themselves and the generation to come. IndispensabIe partiesNecessary parties Mustbejoinedunderanyandall conditions,theirpresencebeinga sinequanonfortheexerciseof judicial power Shouldbejoinedwheneverpossible, theactioncanproceedevenintheir absence Novalidjudgmentifindispensable party is not joined The case may be determined in court butthejudgmentthereinwillnot resolvetheentirecontroversyifa necessary party is not joined Theyarethosewithsuchaninterest inthecontroversythatafinal determinationwouldnecessarily affecttheirrightssothatthecourt Theyarethosewhosepresenceis necessarytoadjudicatethewhole controversybutwhoseinterestsare sofarseparablethatafinaldecree cannotproceedwithouttheir presence can be made in their absence without affecting them OSec2, Rule 3 of the Rules of Court requires that an action must be brought 3 the 3ame but notnecessarilybythe real party in interest.n fact,the practiceis foranattorney in fact to bring the action, e.g., to file the complaint in the name of the plaintiff. (Tuason vs. Bolanos, 95 Phil 06 (1954)). OOnlyparties toa contractmay sue. However,abeneficiaryofa stipulation pour autruimay demand its fulfillment. CIassification of Parties in Interest 1.IndispensabIepartiesthosewithoutwhomnofinaldeterminationcanbehadofan action(mustbejoinedunderallconditions).Thejoinderofindispensablepartiesis mandatory.ApersonisNOTanindispensableparty,however,ifhisinterestinthe controversy or subject matter is separable from the interest of the other parties. *llustration:AfiledanactionagainstB,driverofthetruck,C,ownerofsaidtruck,andD, insurerofthetruck,fordamageswhenthetruckrammedhiscar.A&Denteredintoa compromiseagreementuponanamountlowerthanthatsueduponbyAagainstall3 defendants.Accordingly,thecourtdismissedthecaseagainstD.B&Cmovedtodismiss thecaseagainstthemonthegroundthat,beingindispensablepartiesunderacommon causeofaction,non-inclusionofDwouldnotmakethecaseprosper.Arethedefendants indispensableparties?Howwouldyouresolvethemotion?Answer:Themotionshould bedenied.B&CareNOTindispensablepartiesinrelationtoDandviceversa.Thecause of action against B&C is based on quasi delicts or culpa aquiliana while the cause of action against Dis basedon the contractofinsurance. AdismissalofthecaseagainstDwillnot affect the case against B&C. (Riano pp. 221; Bar 1996) 2.Necessarypartiesthosewhoarenotindispensablebutoughttobejoinedaspartiesif completereliefistobeaccordedastothosealreadypartiesorforacomplete determination or settlement of the claim subject of the action (may or may not be joined). Effectofa justified failureto impleada necessaryparty doesNOT prevent the court from proceedingintheaction,andthejudgmentrenderedthereinshallbewithoutprejudiceto the rights of such necessary party. (Riano pp. 227; Bar 1998) *When courtmayorderjoinderofa necessary party?answer: f the reason given forthe non-joinderofthenecessarypartyisfoundbythecourttobeunmeritorious,itmayorder thepleader tojoin theomittedparty if jurisdictionover his person may beobtained. Failure to comply with the order of the court, without justifiable cause, shall be deemed a waiver of the claim against such party. (Sec9, Rule3) (Riano pp.227; Bar 1998) 3.Representativepartiesthoseactinginfiduciarycapacitysuchastrustees,guardians, executors,oradministrators.Thebeneficiaryshallbeincludedinthetitleofthecaseand shall be deemed to be real party in interest. 4.Pro forma parties those who are required to be joined as co-parties in suits by or against another as may be provided by the applicable substantive law or procedural rule such as in the case of spouses under Section4. 5.Quasi parties those in whose behalf a class or representative suit is brought. Doing Business in the PhiIippines NOT Doing Business in the PhiIippines With a IicenseCorporationcanSUE beforePhilippinecourts onanytransaction (AgilentTech.vs. Integrated Silicon (2004)) No need for license to sue before Philippine Courts on an SOLATED TRANSACTON, or on a cause of action entirely independent of any business transaction Without a IicenseCorporationcannotsue before Philippine Courts. The magic box.Page

Philippinecitizenorentity thatCONTRACTEDwith theforeigncorporation maybeESTOPPEDfrom challengingitspersonality inasuitbroughtbefore Philippine Courts Section 3. Representatives as parties The beneficiary shall be included in the title of the case and shall be deemed to be the real party in interest. AREPRESENTATVEmaybeatrusteeofanexpresstrust,aguardian,anexecutoror administrator, or a party authorized by law or these Rules. Anagentactinginhisownnameandforthebenefitofanundisclosedprincipalmaysueorbe suedwithoutjoiningtheprincipalEXCEPTwhenthecontractinvolvesthingsbelongingtothe principal. Section 4. Spouses as parties GeneraI RuIe: Sue or be sued jointly. Exception: 1.Judicial separation; 2.Separation of at least 1 year; 3.Separation of property agreed upon in the marriage settlement; 4.Administration of all the property in the marriage has been transferred to the wife; 5.Litigation is between husband and wife; 6.Suit concerns her paraphernal property; 7.Action is upon the civil liability arising from a criminal offense; 8.Litigationisincidentaltotheprofession,occupationorbusinessinwhichsheis engaged; 9.Civil action referred to in Articles 25 to 35 of the Civil Code; or 10.Quasi-delict 11.By reason of one's personal misconduct (Atty. Tranquil) Section 5. Minor or Incompetent Persons AsuitmaybebroughtbyoragainstaminororincompetentbutwiththeASSSTANCEofhis parents or his guardian. A person NEED NOT be judicially declared incompetent, it being sufficient that his incompetency be ALLEGED in the corresponding pleadings. Section 6. Permissive joinder of parties Permissive Joinder The rule on permissive joinder of parties is that they can be joined in one single complaint or may themselves maintain or be sued in separate suits. Requisites of Permissive Joinder of Parties: 1.RighttoreliefarisesoutoftheSAMETRANSACTONorSERESOF TRANSACTONS; 2.ThereisaQUESTONOFLAWORFACTCOMMONtoalltheplaintiffsor defendants; and 3.SuchjoinderisNOTotherwisePRESCRBEDbytheprovisionsoftheruleson jurisdiction and venue. SeriesoftransactionsSeparatetransactionswhicharedirectlyconnectedwiththesame subject matter of the suit. Section 7. CompuIsory joinder of indispensabIe parties OPartiesininterestwithoutwhomnofinaldeterminationcanbehadofanactionshallbe joined either as plaintiffs or defendants. OTheabsenceofanindispensablepartyrendersallsubsequentactuationsofthecourtnull andvoid forwantofauthority toact notonlyas to theabsent parties butevenas to those present. OWheneveritappearstothecourtinthecourseoftheproceedingthatanindispensable partyhasnotbeenjoined,itisthedutyofthecourttostopthetrialandtoorderthe inclusionof such party. Where the courtorders theplaintiff toamend its complaintwithina certainperiodoftimeinordertoimpleadaspartydefendantsonewhoisindispensable, plaintiff's refusal to comply is a ground for dismissal of the complaint.OThecourtsaidthatnon-joinderofindispensablepartiesisNOTagroundforthedismissal ofanaction. Atany stageofa judicial proceedingand/orat such timesasare just,parties maybeaddedon themotionofapartyoron theinitiativeofthetribunal concerned. f the plaintiff refusestoimpleadanindispensableparty despitetheorderof the court, that court may dismiss the complaint for the plaintiff's failure to comply with the order. (Riano pp. 223) Section 8. Necessary party OA necessarypartyisnot indispensable totheaction. A final determinationofthe case can behadamongthepartiesalreadyimpleadedwhereanecessarypartyforsomejustifiable reason, is not joined. But a necessary party "ought to be joined as a party if complete relief is to be accorded as to those already parties. (Riano pp. 224) OAlsocalledPROPERPARTESthosewhosepresenceisnecessarytoadjudicatethe WHOLE controversy, but those interests are so far separable that final decree can be made intheirabsencewithoutaffectingthem(Quisimbingvs.CA,GRNo.93335,Sept.13, 1990). JointDebtorsndispensablepartyinasuitagainsthimbutnecessarypartyinasuitagainst his co-debtor SoIidarydebtornasuitbroughtbyacreditoragainstonesolidarydebtortheothersolidary debtor is NETHER indispensable nor a necessary party. Section 9. Non-Joinder of necessary parties to be pIeaded Duty of a pIeader whenever a necessary party is not joined or impIeaded: 1.State the name of the necessary party, if known; and 2.State why said necessary party is omitted in the pleading. OShouldthecourtfindthereasonfortheomissionUNMERTOROUS,itmayorderthe inclusionoftheomittednecessarypartyifjurisdictionoverhispersonmaybeobtainedby orderingplaintifftofileanamendedcomplaintimpleadingthenecessarypartythereinas co-defendant. Note:Thefailuretocomplywiththecourt'sordertoincludeorjoinanecessarypartywithout justifiable cause shall be deemed a waiver of the claim against such party. Section 10. UnwiIIing co-pIaintiff Of the consent of any party who should be joined as plaintiff cannot be obtained, he may be made a defendant and the reason therefore shall be stated in the complaint. O"Defendant as an unwilling co-plaintiff; no damages against him can be had; included only for purposes to have a completerelief for the case (Atty. Tranquil) Section 11. Misjoinder and non-joinder of parties OApartyisMSJONEDwhenheismadeapartytotheactionalthoughheshouldnotbe impleaded. OApartyisNOTJONEDwhenheissupposedtobejoinedbutisnotimpleadedinthe action. ONeithermisjoindernornon-joinderofpartiesisagroundfordismissaloftheaction. (Exception: Section 7, Rule 3) The magic box.Page

Note:Objectionstodefectsinpartiesshouldbemadeattheearliestopportunity(e.g.,the momentsuchdefectbecomesapparent)byamotiontostrikethenamesoftheparties impleaded. Objections to misjoinder cannot be raised for the first time on appeal. OThe non-joinder of an indispensable or a necessary party is not by itself ipso facto a ground forthedismissaloftheaction.Thecourtshouldorderthejoinderofsuchpartyandnon-compliance with the said order would be a ground to the dismissal of the action.Otisthenon-compliance(ofcourtorder)whichisthegroundfordismissal;thisdoesnot involve question of jurisdiction, thus not a ground for dismissal. (Atty. Tranquil) OAny claim against a misjoined party may be severed and proceeded with separately. Section 12. CIass suit CIasssuitAnactionwhereoneormoremaysueforthebenefitofallimplyingthatifthe parties are numerous and it is impracticable to bring them to court one or more may sue for their benefit. Note: Anactiondoes NOT becomea class suitmerely becauseitis designatedas suchin the pleadings. Whether the suit is or is not a class suit depends upon the attending facts. Requisites of a cIass suit: 1.SUBJECT MATTER of the controversy is one of common or GENERAL NTEREST to many persons; *AclasssuitdoesNOTrequirea"COMMONALTYofinterestinthequestions involved in the suit. What is required is a common or GENERAL interest in the subject matterofthelitigation.The"subjectmatteroftheactionismeantthephysical,the thingsrealor personal, themoney, lands, chattels,and the like, in relation to the suit whichisprosecutedandnotthedelictorwrongcommittedbythedefendant.(Riano pp. 237) 2.ThepartiesaffectedaresoNUMEROUSthatitisimpracticabletojointhemallas parties; 3.PartiesbringingtheclasssuitareSUFFCENTLYNUMEROUSAND REPRESENTATVEoftheclassandcanfullyprotecttheinterestsofallconcerned; and 4.ThecomplaintmustspecificallystatethatthesameisbeingbroughtNBEHALFof others with whom the parties share a common interest or for the benefit of all. Note: A taxpayer's suit or a stockholder's derivative suit is in the nature of a class suit, although subjecttotheotherrequisitesofthecorrespondinggoverninglawespeciallyontheissueof locus standi. OAnypartyin interest shall havethe rightto intervene toprotecthis individual interest. (This is an instance when a person may intervene as a matter of right.) CIass suitPermissive Joinder of parties Thereisonesingleaction pertainingtonumerous persons (There is a community of interests) Therearemultiplecausesof actionseparatelybelongingto several persons OThere is no class suit in an action filed by 400 residents initiated through a former mayor, to recover damages sustained due to their exposure to toxic wastes and fumes emitted by the cooking gas plant of a corporation located in the town. Each of the plaintiffs has a separate and distinct injury not shared by other members of the class. Each supposed plaintiff has to provehisowninjury.Thereisnocommonorgeneralinterestintheinjuriesallegedly suffered by the members of the class (Bar 1994). OThereisnoclasssuitinanactionfordamagesfiledbytherelativesofthefatalitiesina planecrash.ThereisNOcommonorgeneralinterestintheinjuriesordeathofall passengersintheplane.Eachhasadistinctandseparateinterestwhichmustbeproven individually (Bar 1991). ODistinguish a derivative suit from a class suit. Answer: A derivative suit is a corporate law concept which is filed by a stockholder in behalf of the corporation to protect the interests of the latter and is asserted because of the failure of the board of directors to act in protection of the corporation. Whilea class suit isa procedural deviceavailedof bypersons havinga commonorgeneralinterestinasubjectmatterandissonumerousthatitwouldbe impracticable to join all of them. (Bar 2005) Ot is the court which determines who shall represent even though they can be named. (Atty. Tranquil) Osclasssuitapplicabletodefendants?Answer:Yes.Therecanbeclasssuitof defendants (Atty. Tranquil) Ofinterestistoprotectthe'community'ofBancalthereisclasssuit;whileifinterestis differentsuchasonefamilyishavinginterestagainstdefendantforasthma,etcthereis NO common or general interest, thus no class suit. Another example is when employees is claimingforallowancethereisnoclasssuitbecauseofexistenceofdiversifiedinterest such as some of employees are rank and file, some are contractual, etc. (Atty. Tranquil) Section 13. AIternative Defendants OWheretheplaintiffisuncertainagainstwhoofseveralpersonsheisentitledtorelief,he mayjoinanyorallof them in thealternative,althougha rightto reliefagainstonemaybe inconsistent with a right to relief against the other. OToillustrate:(1)AssumethatMr.X,apedestrianwasinjuredinthecollisionoftwo vehicles.Hesufferedinjuriesbutdoesnotknowwithcertaintywhichvehiclecausedthe mishap.WhatshouldMr.Xdoifhewantstosue?Heshouldsuethevehicle drivers/owners in the alternative.O(2)PsentsomegoodstoDpursuanttoacontract.ThegoodsweredeliveredtoE,the knownagentofD.DdidnotpayP.Dcontendsthathehasnotreceivedthegoods.P claimsotherwiseandinsiststhatDhadreceivedthegoods.ShouldPsueDorshouldhe sue E? P should sue both but in the alternative. (Riano pp. 228) Section 14. Unknown identity or name of defendant Requisites: 1.There is a DEFENDANT; 2.His identity or name is UNKNOWN; 3.FCTTOUS NAME may be used because of ignorance of defendant's true name and said ignorance is alleged in the complaint; 4.dentifyingDESCRPTONmaybeused;suedasunknownowner,heir,devisee,or other designation; 5.AMENDMENT to the pleading when identity of true name is discovered; and 6.Defendant is the DEFENDANT BENG SUED not a mere additional defendant. Note:Serviceofsummonsupondefendantswhoseidentityisunknownmaybemadeby publicationinanewspaperofgeneralcirculation(sec14,Rule14).Theactionmusthoweverbe convertedintoanactioninremorquasiinrembyattachingthedefendant'spropertyinthe Philippines. Section 15. Entity without juridicaI personaIity as defendant Requisites: 1.There are two or more persons NOT ORGANZED AS A JURDCAL ENTTY; 2.They enter into a TRANSACTON; and 3.AwrongorDELCTiscommittedagainstathirdpersoninthecourseofsuch transaction. Note: Personsassociated inanentitywithout juridical personality may be sued under thename by which they are generally or commonly known, but they cannot sue under such name. OTheserviceofsummonsmaybeeffecteduponallthedefendantsbyservinguponanyof them,ORuponthepersoninchargeoftheofficeorplaceofbusinessmaintainedunder such name (Sec8, Rule14). On the answer of such defendant, the names and addresses of the persons composing said entity must all be revealed. The magic box.Page 8

GeneraIRuIe:Allmembersofanassociationofnaturalpersonsnotorganizedasajuridical entity are to be made parties to a suit. Exceptions: 1.When the partiesare sonumerous that itis impracticable to bring themall before the court; 2.When twoor more personsassociated inanybusiness, transact such business under a common name, or 3.Co-ownership. INSTANCES WHERE SUBSTITUTION OF PARTIES IS PROPER 1.Death of a party; (Section 16) 2.ncompetency or incapacity of a party; (Section 18) 3.Transfer of interest; (Section 19) or4.Action on contractual money claims. (Section 20) Section 16. Death of party; duty of counseI ThisprovisionapplieswheretheclaimisNOTtherebyextinguishedasincasesinvolving property and property rights such as: 1.Recovery of real and personal property against the estate; 2.Enforcement of liens on such properties; and 3.Recover for an injury to person or property by reason of tort or delict committed by the deceased. Duty of the counseI upon the death of cIient: 1.To inform the court of his client's death within 30 days after such death; and O30 days counted from the FACT (actuallydied)of deathof the client NOT on the knowledge of the counsel (Atty. Tranquil) 2.To take steps necessary to safeguard the decedent's interest. Onthiscase,theheirswillbesubstitutedforthedeceasedORifnolegalrepresentativeis namedthenthecourtwillordertheopposingpartytoprocuretheappointmentofan executororadministratorfortheestateofthedeceased.ncaseofminorheirs,thecourt may appoint a guardian ad litem for them. OThesubstitutedefendantneednotbesummoned.TheORDEROFSUBSTTUTONshall beserveduponthepartiessubstitutedforthecourttoacquirejurisdictionoverthe substitute party. (Bar 1999) Ofthereisnoticeofdeath,thecourtshouldawaitappointmentoflegalrepresentative; otherwise, subsequent proceedings are void. Note:ftheactiondoesnotsurvive(likepurelypersonalactionsofsupport,annulmentof marriageandlegalseparation),thecourtshallsimplydismissthecase.Substitutionwillnotbe required. OThepersonwhodieshereisANYPARTY,whethertheplaintifforthedefendant(Atty. Tranquil) Section 17. Death or separation of a party who is a pubIic officer Requisites: 1.Public officer is a PARTY TO AN ACTON in his official capacity; 2.Duringthependencyoftheaction,heeitherDES,RESGNS,orOTHERWSE CEASES to hold office; 3.tissatisfactorilyshowntothecourtbyanyparty,within30daysafterthesuccessor takesoffice,thatthereisaSUBSTANTALNEEDforcontinuingormaintainingthe action; 4.ThatthesuccessorADOPTSORCONTNUESorTHREATENSTOADOPTOR CONTNUE the action of his predecessor; and 5.The party or officer affected has been given REASONABLE NOTCE of the application therefore and accorded an opportunity to be heard. Section 18. Incompetency or Incapacity ncaseapartybecomesincompetentorincapacitated,theactionsurvivesandmaybe continuedbyoragainsttheincompetentorincapacitatedpersonASSSTEDbyhislegal guardian or guardian ad litem, who is his legal representative. Section 19. Transfer of Interest Note: The transferof interest refers toa transferthatoccurs duringthependencyof theaction. Thetransferorwouldnolongerbetherealpartyininterestifthetransferismadebeforethe commencement of the suit. GeneraIruIe:Theruledoesnotconsiderthetransfereeanindispensableparty.Hence,the action may proceed without the need to implead him. Exception: When the substitution by or joinder of the transferee is ordered by the court. A transferee pendente lite: 1.Standsinexactlythesamepositionasitspredecessor-in-interest,theoriginal defendant; and 2.Boundbytheproceedingshadinthecasebeforethepropertywastransferredtoit, even if not formally included as a defendant. ThecasewillbedismissediftheinterestofplaintiffistransferredtodefendantUNLESSthere are severalplaintiffs, in which case, the remaining plaintiffs can processedwith theirown cause of action. Section 20. Action on contractuaI money cIaims Requisites: 1.TheactionmustprimarilybefortheRECOVERYOFMONEY,DEBT,orNTEREST thereon; 2.The claim subject of the action arose from a CONTRACT, express or implied, entered into by the decedent in his lifetime or the liability for which had been assumed by or is imputable to him; and 3.DefendantdiesBEFORETHEENTRYOFFNALJUDGMENTinthecourtinwhich the action was pending. Note:Thedeathofthedefendantwillnotresultinthedismissaloftheaction.Thedeceased shall be substituted by his legal representatives in the manner provided for in Section 16 of Rule 3 and the action continues until the entry of final judgment. OHowever,executionshallnotissueinfavorofthewinningparty.tshouldbefiledasa claim against the ESTATE of the decedent without need of proving the claim. OThe claim here would be against the 'estate' of the defendant ODamages is different from sum of money (Atty. Tranquil) Section 21. Indigent party Indigentonewhohasnomoneyorpropertysufficientandavailableforfood,shelter,and basic necessities. He need not be a pauper to entitle him to litigate in forma pauperis. OWhiletheauthoritytolitigateasanindigentpartymaybegranteduponanexparte applicationandhearing,itmaybecontestedbytheadversepartyatanytimebefore judgment is rendered. Of one is authorized to litigate as an indigent, such authority shall include: 1.An exemption from the payment of docket fees; and 2.An exemption from the payment of transcript of stenographic notes. Ondigent will only pay when there is a favorable judgment in his favor (Atty. Tranquil) Section 22. Notice to the SoIicitor GeneraI nanyactioninvolvingthevalidityofanytreaty,law,ordinance,executiveorder,presidential decree, rules or regulation The magic box.Page 9

Venuetheplaceoftrialorgeographicallocationinwhichanactionorproceedingshouldbe brought.ncivilcases,itrelatesonlytotheplaceofthesuitandNOTtothejurisdictionofthe court (Manila Railroad Co. vs. Atty. General, 20 Phil 523; Riano pp. 201) VenueJurisdiction Placewheretheactionis instituted Power of the court to hear and decide a case May be waivedJurisdiction over the subject matter over thenatureoftheactionisconferredby law and cannot be waived ProceduralSubstantive Maybechangedbythewritten agreement of the parties Cannot be the subject of the agreement of the parties Notagroundforamotuproprio dismissal(EXCEPTinsummary procedure) Ground for a motu proprio dismissal The ruIe on VENUE IS NOT APPLICABLE in cases: 1.Whereaspecificruleorlawprovidesotherwise(e.g.anactionfordamagesarising from libel); or 2.The parties have validly agreed in writing before the filing of the action in the exclusive venue thereof (Section 4). How venue is determined: (Riano pp. 203) 1.Determine the NATURE of the action whether PERSONAL or REAL; 2.Actions for damagesandactions to collecta sumof moneymust be filed ineither the residenceoftheplaintiffortheresidenceofthedefendantattheelectionofthe plaintiff. Such are personal actions. (Bar 1998) 3.Actions to recoverownershipof realpropertyare realactionsandmust be filed in the placewheretherealpropertyislocated.Actionsforunlawfuldetainer,forcibleentry andaccionpublicianaarerealactionsandmustbelikewisefiledintheplacewhere the subject property is situated. (Bar 1991; Bar 1987) Ollustration: (1) A,a residentof Quezon City, sued B, residentof Makati Citybefore RTCof QuezonCityforthereconveyanceoftwoparcelsoflandsituatedinTarlacandNueva Ecija, respectively. May A action prosper? (2) Assuming that the action was for foreclosure ofmortgageofthesameparcelsofland,whatisthepropervenuefortheaction? Answers:(1)TheactionwillNOTprosperbecausethevenuewasimproperlylaid.An actionforreconveyanceisarealaction,thesubjectmatterthereofbeinginterestinreal action. The venue of a real action is the place where the real property is located, i.e., Tarlac and Nueva Ecija. (2) The venue is also the place where the property mortgaged is situated. An action for foreclosure is a real action. (Riano pp. 204; Bar 2008) Requisites for venue to be excIusive: 1.A valid WRTTEN agreement; 2.Executed by the parties BEFORE the filing of the action; and 3.EXCLUSVE nature of the venue. OThevenuestipulationmustclearlyindicate,throughqualifyingandrestrictivewords,that thepartiesdeliberatelyintendedtoexcludecausesoractionsfromtheoperationofthe ordinarypermissiverulesonvenue,andthattheyintendedcontractuallytodesignatea specificvenuetotheexclusionofanyothercourtalsocompetentandaccessibletothe partiesundertheordinaryrulesonthevenueofactions.(PhilippineBankingCorporation vs. Tensuan (1993)) Ontheabsenceofqualifyingorrestrictivewords,venuestipulationismerelyPERMSSVE andNOTexclusive,meaningthatthestipulatedvenueisNADDTONtothevenue provided for in the rules (Polytrade Corp vs. Blanco, GR No. L-27033 (1969)). OWhenthestipulationastovenueinapassengerticketofavesselwouldbecontraryto publicpolicyofmakingcourtsaccessibletoallwhomayhaveneedoftheirservice,the stipulationisvoidandunenforceable(SweerLinesvs.Teves,GRNo.28324,May19, 1972) Examples of qualifying or restrictive words: O"only O"solely O"exclusively in this court O"in no other court save " O"particularly O"nowhere else but/except (Riano pp. 207) Note:WhentheactionisNOlongerbasedontheagreementbutontheTORTOUSACTof sending collection telegrams despite the fact that the obligation had already been paid, venue is no longer based on the written stipulation but at the ELECTON OF THE PLANTFF as fixed by law. Section 1. Venue of ReaI Actions OThe venue is the place where the real property or any portion thereof is located. Of property is located at the boundaries of two places: File case in either place at the option of the plaintiff. f case involves two properties located in two different places: 1.fthepropertiesaretheobjectoftheSAMEtransaction,fileitinANYofthetwo places; or 2.f theyare the subjectsof two DSTNCT transactions, SEPARATEactions shouldbe filed in each place UNLESS property joined. Section 2. Venue of PersonaI Actions ORESDENCEshouldbeviewedorunderstoodinitspopularsense,meaningthepersonal, actual, or physical habitation of a person, actual residence or place of abode (Raymond vs. CA, 166 SCRA 50 (1988)). Venue of Personal actions: 1.Where the plaintiff or any of the PRNCPAL plaintiffs resides; 2.Where the defendant or any of the PRNCPAL defendants resides; or 3.n the case of a non-resident defendant, the action may be brought in the place where HE MAY BE FOUND. Note: ALL AT THE ELECTON OF THE PLANTFF. Means of waiving venue: 1.Failure to object via motion to dismiss; 2.Affirmative relied sought in the court where the case is filed; 3.Affirmative defense in an answer; 4.Voluntary submission to the court where the case is filed; or 5.Laches Section 3. Venue of actions against non-residents 1.NON-RESDENT FOUND N THE PHLPPNES a.Personal actions where the plaintiff resides; b.Real actions where the property is located. 2.NON-RESDENTNOTFOUNDNTHEPHLPPNESanactionmaybefiledonly when the case involves: a.Personal status of plaintiff where plaintiff resides; b.AnypropertyofsaiddefendantlocatedinthePhilippineswherethe property or any portion thereof is situated or found. The Supreme Court has the power to order a change of venue to prevent miscarriage of justice. RULE 4: VENUE OF ACTIONS The magic box.Page

OThecourtmayNOTmotupropriodismissacomplaintonthegroundofimpropervenue.AnEXCEPTONisprovidedinSection4oftheRuleonSummaryProcedure.(Dacuycoy vs. IAC, 195 SCRA 641 (1991)) Section 4. When ruIe NOT appIicabIe The rule on venue is inapplicable in cases: 1.Whereaspecificruleorlawprovidesotherwise(i.e.anactionfordamagesarising from libel); or 2.Thepartieshavevalidlyagreedinwritingbeforethefilingoftheactiononthe exclusive venue thereof (Sec4) Section 1. Uniform Procedure The procedure in the MTC shall be the same as in the RTC, EXCEPT: 1.Where a particular provision expressly or impliedly applies only to either of said courts; or 2.n civil cases governed by the rule on Summary Procedure Section 2. Meaning of Terms UNIFORM PROCEDURE IN TRIAL COURTS (Atty. Tranquil) SUMMARY PROCEDURE IN CIVIL CASES Prohibited PIeadings / Motions under the RuIe on Summary Procedure 1.MotiontodismissthecomplaintortoquashthecomplaintorinformationEXCEPTonthe groundoflackofjurisdictionoverthesubjectmatterorfailuretocomplywithpriorbarangay conciliation (referral to the Lupon); 2. Motion for bill of particulars; 3. Motion for a new trial or for reconsideration of a judgment or for reopening of trial; 4. Petition for relief from judgment; 5. Motion for extension of time to file pleadings, affidavits, or any other paper; 6. Memorandum; 7.Petitionforcertiorari,mandamus,orprohibitionagainstanyinterlocutoryorderissuedbythe court; 8. Motion to declare defendant in default; RULE 5: UNIFORM PROCEDURE IN TRIAL COURTS Filing of verified complaint with the MTC Court may summon the defendant Court may dismiss the case outright f plaintiff fails to appear in preliminary conference, complaint may be dismissed. Defendant entitle to decision based on his counterclaim. All cross-claim dismissed f defendant fails to answer in 10 days the court motu proprio or on plaintiffs own motion, may render judgment based on facts alleged in the complaint w/o prejudice to Rule 9 Sec 3(c) W/in 10 days from receipt of summons, defendant answers incorporating compulsory counterclaims or cross-claims & serves a copy on plaintiff Answer to counterclaim and cross-claim w/in 10 days Preliminary conference w/in 30 days after last answer is filed W/in 5 days after conference, court issues record of preliminary conference W/in 10 days from receipt of order submission by the parties of affidavits and position papers Rendition of judgment w/in 30 days from receipt of last affidavit or w/in 15 days after last clarificatory paper f sole defendant fails to appear, plaintiff entitled to judgment based on complaint and what is proved therein Metro Manila: Exceeding 100k RTC -ORDNARY Metro Manila: Not exceeding 100k MTC -ORDNARY -SUMMARY Summary: Not exceeding 200k Not exceeding 100k -SMALL CLAMS COMPLANT ---------------- Pre Trial 15 days ANSWER MTD can file extension *Fail to file an answer: can ask motion to declare in default - SAME - COMPLANT ----------- Preliminary Conference 10 days ANSWER MTD cannot file extension *Fail to file an answer: cannot ask motion for default - Can file a complaint; but there is a prescribed form - s there an answer? YES. Given to the defendant & there is still a form The magic box.Page

9. Dilatory motions for postponement; 10. Reply; 11. Third party complaints; or 12. nterventions. OThe filing of a prohibited pleading will not suspend the period to file an answer or to appeal. OAlthough a motion to dismiss is a prohibited pleading, its filing after the answer had already beensubmitteddoesnotconstituteapleadingprohibitedbythesummaryrules.Whatthe rulesproscribeisamotiontodismissthatwouldstoptherunningoftheperiodtofilean answer and cause undue delay. (Heirs of Olivas vs. Flor, 161 SCRA 393 (1988)) OAmotiontodismissmaybetreatedasananswer(Rosalesvs.CA,GRNo.137566,Feb. 28, 2001) Note: Whileamotionto declarethedefendant in defaultis prohibited bythe ruleson summary procedure,theplaintiffmayneverthelessfileaMOTONTORENDERJUDGMENTasmaybe warranted when the defendant fails to file an answer. OTheissuanceof thepre-trialorder isan importantpartof the summaryprocedurebecause itisitsreceiptbythepartiesthatbeginstheten-dayperiodtosubmittheaffidavitsand other evidence. TRIAL PROCEDURE IN CIVIL CASES Notestimonialevidenceisrequirednorcross-examinationofwitnessesallowed.Allthatis required is that within 10 days from receipt by the parties of the court's pre-trial order, they shall submit: 1.The affidavits of their witnesses; and 2.Otherevidenceonthe factual issues set forth in the pre-trialorder, togetherwith their position papers setting forth the law and the facts relied upon by them. OJudgmentsofinferiorcourtsincasesgovernedbysummaryprocedureareappealableto the RTC OThedecisionoftheRTC(onappeal)incivilcasesunderthisrule,includingejectment casesisMMEDATELYEXECUTORYwithoutprejudicetoafurtherappealthatmaybe takenNote:PleaserefertothespeciallawsonthesalientfeaturesoftheRulesonSummary Procedure Katarungang Pambarangay Law (Title One, Book , RA 7160) No complaint petition, action, or proceeding involving any matter within the authority of the lupon shallbefiledorinstituteddirectlyincourtoranyothergovernmentofficeforadjudication, UNLESS: 1.TherehasbeenCONFRONTATONBETWEENTHEPARTESbeforethelupon chairman or pangkat; and 2.ThatnoconciliationorsettlementhasbeenreachedORunlessthesettlementhas been repudiated by the parties thereto. GeneraI RuIe: f thereis no referral to thelupon priorto the filingof the casein court,the court should dismiss the case without prejudice Exception: Accused has been arrested Cases NOT covered by the Katarungang Pambarangay Law (SUBSTANTIVE Exceptions): 1.Where one party is the government or any subdivision or instrumentality thereof; 2.Whereonepartyisapublicofficeroremployee,andthedisputerelatestothe performance of his official functions; 3.Offensespunishablebyimprisonmentexceeding1yearorafineexceeding P5,000.00; 4.Offenses where there is no private offended party (e.g. genocide); 5.Wherethedisputeinvolvesrealpropertieslocatedindifferentcitiesormunicipalities UNLESSthepartiestheretoagreetosubmittheirdifferencestoamicablesettlement by an appropriate lupon; 6.Disputesinvolvingpartieswhoactuallyresideinbarangaysofdifferentcitiesor municipalities, EXCEPT: a.Where such barangay units adjoin each other; and b.Thepartiestheretoagreeto submit theirdifferences toamicable settlement by an appropriate lupon; 7.SuchotherclassesofdisputeswhichthePresidentmaydetermineintheinterestof justice; 8.Where one of the parties is a juridical entity.

Thecourtmay,atanytimebeforetrial,motuproprioreferthecaseconcernedtotheluponfor amicable settlement, non criminal cases not falling within the authority of the latter; or Whilethedisputeisundermediation,conciliation,orarbitration,theprescriptiveperiodsfor offensesandcauseofactionundertheexistinglawsshallbeinterrupteduponfilingorthe complaint with the punong barangay. Such interruption shall not exceed 60 days from the time of the filing of the complaint with the punong barangay. The parties may go directIy to the court in the ff instances (PROCEDURAL Exceptions): 1.Where the accused is under police custody or detention; 2.Wherethepersonhasotherwisebeendeprivedofpersonallibertycallingforhabeas corpus proceeding; 3.Wheretheactionsarecoupledwithprovisionalremediessuchaspreliminary injunction, attachment, delivery of personal property, and support pendente lite; 4.Where the action may otherwise be barred by the statute of limitations; 5.Labor disputes (Montoya vs. Escayo, GR No. 82211-12, March 21, 1989) 6.AnyclassofdisputewhichthePresidentmaydetermineintheinterestofjusticeor upon recommendation of the secretary of Justice; 7.CARL disputes; 8.Disputes involving the traditions of indigenous cultural community; 9.Actionstoannuljudgmentuponcompromise(Sanchezvs.Tupaz,GRNo.76690, February 21, 1988) ThepartiesmayatanystageoftheproceedingAGREENWRTNGtohavethematterin disputeDECDEDbytheARBTRATONbyeithertheLUPONGBARANGAYorPANGKAT.n such case arbitrational hearings shall follow the order of adjudicative trials. Thesettlementandarbitrationagreementmayberepudiatedonthegroundthatconsentis vitiatedbyfraud,violence,orintimidation.Suchrepudiationshallbesufficientbasisforthe issuanceofthecertificationforfilingacomplaintincourtoranygovernmentofficefor adjudication. (10 days to repudiate) RuIes on Venue under the Katarungang Pambarangay Law 1.Disputesbetweenresidentsofthesamebarangayshallbebroughtforsettlement before lupon of said barangay. 2.Residentsofdifferentbarangaysswithinthesamecityormunicipalityinthe barangay where the respondent or any of the respondents reside at the election of the complainant 3.Disputes involving realpropertyorany interest therein where realpropertyor larger portion thereof is situated 4.Disputesarisingatthe WORKPLACEwherethecontendingpartiesareemployedor attheNSTTUTONwheresuchpartiesareenrolledforstudyinthebarangay where such workplace or institution located The magic box.Page

PROCEDURE IN REGIONAL TRIAL COURTS Section 1. PIeadings defined PIeadingsthewrittenstatementoftherespectiveclaimsanddefensesoftheparties submitted to the court for appropriated judgment Note: A motion to dismiss is not a pleading PIeadingMotion The purpose is to submit a claim or defense for appropriate judgment The purpose is to apply for an order NOT included in the judgment May be initiatoryCANNOT be initiatory as they are always made in a case already filed in court Always filed before judgmentMay be filed even after judgment Only 9 kinds of pleading are allowed by the rules Many kinds of motion are allowed Must be written May be oral when made in open court or in the course of a hearing or trial Note:However,therearemotionsthatactuallyseekjudgmentlikeamotionforjudgmenton pleadings (Rule 34) and motion for summary judgment (Rule 35). Section 2. PIeadings aIIowed 1.Complaint; 2.Counterclaim; 3.Cross-claim; 4.Third-party complaint; 5.Complaint-in-intervention; 6.Answer; 7.Reply; 8.Counter-counterclaim; and 9.Counter-cross-claim. The enumeration is NOT exclusive. Section 3. CompIaint CompIaint-Thepleadingallegingtheplaintiff'scauseorcausesofaction.tshouldcontaina concisestatementoftheultimatefactsconstitutingtheplaintiff'scauseofaction,NOT evidentiary facts or legal conclusions. UItimate Facts Essential facts constituting the plaintiff's cause of action. A fact is essential if it cannot be stricken out without leaving the statement of the cause of action insufficient. Test of Sufficiency of the Facts aIIeged in the CompIaint: Determine whether upon the averment of facts, a valid judgment may be properly rendered. What are NOT uItimate facts: 1.Evidentiary or immaterial facts; 2.Legalconclusions,conclusionsorinferencesoffactsnotstated,orincorrect inferences or conclusions from facts stated; 3.Thedetailsofprobativematterorparticularsofevidence,statementsoflaw, inferences and arguments; or 4.An allegation that a contract is valid or void is a mere conclusion of law. Section 4. Answer AnswerThepleadingwherethedefendantsetsforthhisaffirmativeornegativedefense.t may likewise be the response to a counterclaim on a cross claim. Section 5. Defenses Kinds of Defenses that may be set forth in the answer: 1.Affirmativedefenses-Allegationofanewmatterwhich,whilehypothetically admittingthematerialallegationsinthepleadingoftheclaimant,wouldnevertheless preventorbarrecoverybyhim.Affirmativedefensesincludefraud,prescription, release payment, and any other matter by way of confession and avoidance. 2.NegativedefensesSpecificdenialofthematerialfactsorfactsallegedinthe pleading of the claimant essential to his cause of action. Insufficient DeniaI or DeniaI Amounting to Admissions: 1.General denial; and 2.Denial in the form of a negative pregnant. OA NEGATVEPREGNANT, thatis,a denialpregnantwith theadmissionof the substantial factsinthepleadingrespondedtowhicharenotsquarelydenied.tis,ineffect,an admission of the averment it is directed to. (Philamgen vs. Sweet Lines, Inc. (1992)) Section 6. CountercIaim CountercIaim - Any claim which a defending party may have against an opposing party. Nature of CountercIaim: A counterclaim is in the nature of a cross complaint. Although it may be alleged in the answer, it isnotpartoftheanswer.Uponitsfiling,thesameproceedingsarehadasintheoriginal complaint. For this reason, it must be answered within ten (10) days from service. Section 7. CompuIsory CountercIaim AcounterclaimbeforetheMTCmustbewithinthejurisdictionofsaidcourt,bothastothe amount and nature thereof. Counterclaims may either be: 1.Compulsory; or 2.Permissive Note:nanoriginalactionbeforetheRTC,thecounterclaimmaybeconsideredcompulsory regardless of the amount (Section 7, Rule 6). OfacounterclaimisfiledintheMTCinexcessofitsjurisdictionalamount,theexcessis considered waived. (Agustin vs. Bacalan, 135 SCRA 340 (1985)) OTheremedywhereacounterclaimisbeyondthejurisdictionoftheMTCistosetoffthe claimsandfileaseparateactiontocollectthebalance.(Calovs.AjaxInternational22 SCRA 996 (1968)) Compulsory CounterclaimPermissive Counterclaim Onewhicharisesoutoforis NECESSARLYCONNECTEDwith thetransactionoroccurrencethatis thesubjectmatteroftheopposing party's claim tdoesnotariseoutofnorisit necessarilyconnectedwiththe subject matter of the opposing party's claim tdoesNOTrequireforits adjudicationthepresenceofthird partiesofwhomthecourtcannot acquire jurisdiction tmayrequireforitsadjudicationthe presenceofthirdpartiesoverwhom the court cannot acquire jurisdiction t is barred if not set up in the actiont isNOT barredeven if not setup in the action Need not be answered; NO defaultMustbeanswered.Otherwise,the defendant can be declared in default OAplaintiffwhofailsorchoosesnottoansweracompulsorycounterclaimmaynotbe declared in default because the issues raised in the counterclaim are deemed automatically joined by the allegations of the complaint. (Gojo vs Goyola, 35 SCRA 557 (1970)) RULE 6: KINDS OF PLEADINGS The magic box.Page

Requisites of a compuIsory countercIaim: 1.tmustariseoutof,orbenecessarilyconnectedwith,thetransactionoroccurrence that is the SUBJECT MATTER of the opposing party's claim; 2.t does NOT REQURE for itsadjudication thepresenceof THRD PARTESof whom the court cannot acquire jurisdiction; and 3.t must be WTHN THE JURSDCTON of the court. GeneraI RuIe: A compulsory counterclaim not set up in the answer is deemed barred. Exception: f it is a counterclaim which either matured or was acquired by party after serving his answer.nthiscase,itmaybepleadedbyfilingasupplementalanswerorpleadingbefore judgment (Section 9, Rule 11). Note:Thefilingofamotiontodismissandthesettingupofacompulsorycounterclaimare incompatibleremedies.ntheeventthatadefendingpartyhasaroundfordismissalanda compulsory counterclaim