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[JDesabelle]
CASE SUMMARY:
DOCTRINE:
FACTS
Respondent FGU Insurance filed a complaint with RTC against petitioner
Evangeline Alday
o Alday owed FGU P114k (unliquidated cash advances, unremitted costs of
premiums and other charges she incurred in the course of her work FGUs
insurance agent)
Alday filed her answer and counterclaim
o Asserted her right for the payment of
P104k (direct commissions, profit commissions and contingent bonuses
earned from 1986)
P500k (accumulated premium reserves)
o Also prayed for attorney's fees, litigation expenses, moral damages and
exemplary damages
FGU filed a "Motion to Strike Out Answer With Compulsory Counterclaim And To
Declare Defendant In Default" because Alday's answer was allegedly filed out of
time.
RTC denied motion. MR denied.
FGU filed a motion to dismiss Alday 's counterclaim
o RTC never acquired jurisdiction because of Aldays non-payment of
docket fees
Alday asked RTC to declare her counterclaim as exempt from payment of
docket fees since it (counterclaim) is compulsory and that FGU be declared
in default for having failed to answer such counterclaim.
RTC granted FGUs MTD, and consequently, denied Aldays motion. Aldays
MR denied.
o Aldays counterclaim merely permissive in nature
o Aldays failure to pay docket fees prevented RTC from acquiring jurisdiction over
the same
CA sustained RTCs decision. MR denied.
o The allegations in Aldays answer show that her counterclaim is not compulsory
That, indeed, FGU's cause of action which is not supported by any document
other than the self-serving 'Statement of Account'
That it should be noted that the cause of action of FGU is not the
enforcement of the Special Agent's Contract but the alleged 'cash
accountabilities
A careful analysis of FGU's complaint will show that its cause of action is
not for specific performance or enforcement of the Special Agent's Contract
rather, it is for the payment of the alleged cash accountabilities
o To support the heading "Compulsory Counterclaim" in her answer and give the
impression that the counterclaim is compulsory Alday alleged that FGU has
unjustifiably failed to remit to defendant despite repeated demands in violation
of their contract
o Thus, while on one hand Alday alleged that FGU's cause of action had nothing to
do with the Special Agent's Contract, on the other hand, she claimed that FGU
violated said contract which gave rise to her cause of action.
Hence, present petition.
o Alday:
FGU is estopped from questioning her non-payment of docket fees because it
did not raise this issue when it filed its motion (Motion to Strike out Answer
With Compulsory Counterclaim And To Declare Defendant In Default") with
RTC
FGU assailed RTCs jurisdiction 9 months after receiving her answer
RTC should have declared FGU in default for having failed to answer her
counterclaim
o FGU: questions the jurisdiction of the CA over the appeal filed by Alday
PROCEDURE SUMMARY
Action Decision
Respondent FGU filed a complaint with
the RTC against petitioner Alday
Alday filed her answer and counterclaim
FGU filed a "Motion to Strike Out
Answer With Compulsory Counterclaim
And To Declare Defendant In Default" RTC denied motion. MR denied.
because Alday's answer was allegedly
filed out of time.
FGU filed a motion to dismiss Alday 's
RTC granted FGUs MTD.
counterclaim
Alday asked RTC to declare her
counterclaim as exempt from payment
of docket fees since it is compulsory
RTC denied Aldays motion. MR denied
and that FGU be declared in default for
having failed to answer such
counterclaim.
Alday appealed to CA CA sustained RTCs decision. MR denied.
CA decision MODIFIED.
Petitioners counterclaim REINSTATED.
Present petition
RTC ORDERED to require Petitioner to
pay prescribed docket fees
ISSUE/RATIO
1. W/N FGU is estopped from questioning Aldays non-payment of docket fees. NO
[CivPro] | [Pleadings Counterclaim and cross-claim] 3
[JDesabelle]
2. W/N FGU is estopped from questioning CAs jurisdiction over Aldays appeal. YES
a. Although the lack of jurisdiction of a court may be raised at any stage of the
action, a party may be estopped from raising such questions if he has actively
taken part in the very proceedings
b. In this case, FGU actively took part in the proceedings before CA by filing its
appellee's brief. It also failed to object to CAs jurisdiction during the entire
duration of the proceedings.
4. W/N RTC should have declared FGU in default for having failed to answer
Aldays counterclaim. NO
a. With regard to the permissive counterclaim, there is no need to file an
answer until Alday has paid the prescribed docket fees for only then shall
the court acquire jurisdiction over such claim
b. With regard to the compulsory counterclaim, there is no need to file an
answer since it is inseparable from the claims of FGU
ii. If FGU were to answer, it would merely result in FGU pleading the same
facts raised in its complaint
DECISION
CA decision MODIFIED.
Petitioners counterclaim REINSTATED.
RTC ORDERED to require Petitioner to pay prescribed docket fees for her
counterclaim after ascertaining that the applicable prescriptive period has not
yet set in