Rafaelle Beatrice filed an action for recovery of the sum of ₱2.5 million against Tess in the Regional Trial Court (RTC) of Taguig City. Attached to the complaint was the promissory note, the check issued by Rafaelle Beatrice to Tess covering said amount, and a copy of the withdrawal slip of Tess from Banco de Otso- Rockwell Branch, Makati City. In her answer, Tess raised as her compulsory counterclaim the recovery of her attorney’s fees in the amount of ₱500,000 arising from the case, and a permissive counterclaim against Rafaelle Beatrice for rescission of contract of sale involving an Arturo Luz painting valued at ₱2 million. Tess paid the filing fees of her permissive counterclaim. Are the counterclaims within the jurisdiction of the RTC of Taguig City? Discuss your answer.
Suggested answer only. Not an official answer and not legal advice.
Yes, both counterclaims fall within the jurisdiction of the Regional Trial Court (RTC) of Taguig City.
Under Section 7, Rule 6 of the Rules of Court, a compulsory counterclaim before the RTC is cognizable regardless of amount. Under Section 19(1) of B.P. Blg. 129, as amended, the RTC has exclusive original jurisdiction over actions incapable of pecuniary estimation, such as contract rescission.
Here, Tess's compulsory counterclaim for attorney's fees of ₱500,000 arises from the main action and is cognizable by the RTC regardless of amount. Her permissive counterclaim for rescission of the sale contract is incapable of pecuniary estimation, falling under the RTC's exclusive original jurisdiction regardless of the painting's ₱2 million value.
Therefore, both counterclaims are within the jurisdiction of the RTC of Taguig City.
This is not an official scoring system and carries no weight with the Supreme Court or any bar review provider. It measures how much of the suggested answer's wording your response covers, not whether your reasoning is correct. For practice only.
Quick check
Are both the compulsory and permissive counterclaims within the jurisdiction of the RTC of Taguig City?
The RTC has jurisdiction over the compulsory counterclaim regardless of amount and over contract rescission as an action incapable of pecuniary estimation.
What is the jurisdictional rule regarding a compulsory counterclaim filed in an original action before the Regional Trial Court?
Under Section 7, Rule 6 of the Rules of Court, a compulsory counterclaim before the RTC is cognizable regardless of the amount.
Under Batas Pambansa Blg. 129, as amended, which court has exclusive original jurisdiction over an action for rescission of contract?
Actions for rescission of contract are incapable of pecuniary estimation and fall under the exclusive original jurisdiction of the RTC.
What procedural requirement must be satisfied for a court to acquire jurisdiction over a permissive counterclaim?
A permissive counterclaim requires an independent jurisdictional basis and the payment of prescribed docket filing fees.
Why is a claim for attorney's fees arising directly from the defense of a civil suit classified as a compulsory counterclaim?
A claim for attorney's fees resulting from the suit arises out of the main transaction and is therefore a compulsory counterclaim.
Learn more about these topics
1. Compulsory Counterclaims
Under Section 7, Rule 6 of the Rules of Court, a compulsory counterclaim is one which, arising out of or connected with the transaction or occurrence constituting the subject matter of the opposing party's claim, does not require for its adjudication the presence of third parties of whom the court cannot acquire jurisdiction. In an original action filed before the Regional Trial Court, a compulsory counterclaim is cognizable by the court regardless of the amount involved. Attorney's fees arising directly from the suit constitute a compulsory counterclaim within the jurisdiction of the court where the main complaint is pending.
2. Permissive Counterclaims
A permissive counterclaim is a claim that does not arise out of nor is it logically related to the transaction or occurrence constituting the subject matter of the opposing party's claim. Unlike a compulsory counterclaim, a permissive counterclaim requires an independent jurisdictional basis and the payment of prescribed docket fees. For the court to acquire jurisdiction over a permissive counterclaim, the claim must satisfy the jurisdictional threshold of the court where it is filed or fall within that court's exclusive subject matter jurisdiction.
3. Pecuniary Estimation
Under Section 19(1) of Batas Pambansa Blg. 129, as amended, the Regional Trial Court exercises exclusive original jurisdiction in all civil actions in which the subject of the litigation is incapable of pecuniary estimation. An action for rescission of a contract is classified under Philippine law as an action incapable of pecuniary estimation because the principal relief sought is the annulment or revocation of the legal tie, rather than the recovery of money or real property. Consequently, a permissive counterclaim for rescission falls under the exclusive original jurisdiction of the Regional Trial Court.