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ALDAY VS. FGU INSURANCE CORP.

FACTS: FGU filed a complaint w/ the RTC of Makati alleging that Alday owed it unliquidated cash advances, unremitted cost of premiums & other charges. Alday filed her answer & by way of counterclaim, asserted her right for commissions & bonuses plus attorneys fees, moral & exemplary damages. FGU filed a motion to dismiss. Alday asked the trial court to declare the counterclaim as exempt from payment of the docket fees since it is compulsory. The trial court granted FGUs motion to dismiss & denied Aldays motion for reconsideration. CA affirmed. ISSUE: W/N Aldays counterclaim is compulsory RULING: Permissive. A test to determine whether a counterclaim is compulsory or permissive are: 1) Are the issues of fact &law raised by the claim & counterclaim largely the same? 2) Would res judicata bar a subsequent suit on defendants claim absent the compulsory counterclaim rule? 3) Will substantially the same evidence support or refute plaintiffs claim & defendants counterclaim? 4) Is there any logical relation between the claim & counterclaim? Another test is the compelling test of compulsoriness w/c requires a logical relation between the claim & counterclaim, that is, where conducting separate trials of the respective claims of the parties would entail a substantial duplication of effort & time by the parties & the court.