Title
Korea Exchange Bank vs. Gonzales
Case
G.R. No. 142286-87
Decision Date
Apr 15, 2005
PHDI accused KEB and Aum of fraud over unauthorized loan withdrawals. Jurisdiction, forum shopping, and counterclaim requirements were contested, leading to Supreme Court rulings favoring KEB.

Case Digest (G.R. No. 142286-87)
Expanded Legal Reasoning Model

Facts:

Corporate Background and Loan Agreement:

  • Phi-Han Development, Inc. (PHDI) is a domestic corporation engaged in real estate, with Teodoro de Mesa, Antusa de Mesa Magno, and Lourdes de Mesa Mendoza as original incorporators and board members.
  • Jae Il Aum, a Korean national, served as PHDI's president, while Lourdes Mendoza was the corporate secretary and treasurer.
  • On September 5, 1996, PHDI, along with Teodoro de Mesa, Antusa Magno, and Lourdes Mendoza, filed a complaint against Jae Il Aum and Korea Exchange Bank (KEB) in the Regional Trial Court (RTC) of Guagua, Pampanga.
  • The plaintiffs alleged that KEB granted PHDI a loan of US$500,000.00, which was deposited in two accounts (Dollar Account No. 5311000486 and Peso Account No. 5311000487) with KEB. The only authorized signatories for withdrawals were Jae Il Aum and Lourdes Mendoza.
  • Jae Il Aum allegedly withdrew US$160,000.00 by forging Lourdes Mendoza's signature, leaving a balance of US$163,000.00. The plaintiffs claimed KEB connived with Jae Il Aum in the unauthorized withdrawals and failed to account for or return the funds, constituting large-scale estafa.

Legal Proceedings:

  • KEB filed a Motion to Dismiss the complaint, arguing that the case fell under the exclusive jurisdiction of the Securities and Exchange Commission (SEC). The RTC denied the motion, and KEB's subsequent motion for reconsideration was also denied.
  • KEB filed a petition for certiorari and prohibition with the Court of Appeals (CA), which dismissed the petition. KEB then filed a petition for review with the Supreme Court.
  • Meanwhile, KEB filed a separate complaint against PHDI and its incorporators for sum of money and reformation of a real estate mortgage, alleging that PHDI failed to repay the US$500,000.00 loan. The case was docketed as Civil Case No. G-3119.
  • PHDI, et al., filed a motion to dismiss KEB's complaint, alleging forum shopping, but the RTC denied the motion.
  • PHDI, et al., filed an answer with counterclaims, denying liability and alleging that Jae Il Aum and KEB deceived them into securing the loan. They sought set-off of the US$160,000.00 withdrawn by Jae Il Aum against the US$500,000.00 loan and claimed moral and exemplary damages.
  • KEB moved to dismiss the counterclaims for failure to attach a certification of non-forum shopping, but the RTC denied the motion.
  • KEB filed a petition for certiorari with the CA, challenging the RTC's orders.

Issues:

  • Whether the RTC had jurisdiction over the complaint filed by PHDI, et al., against KEB and Jae Il Aum.
  • Whether KEB's complaint for sum of money and reformation of the real estate mortgage constituted forum shopping.
  • Whether PHDI, et al.'s counterclaims in Civil Case No. G-3119 required a certification of non-forum shopping.
  • Whether the counterclaims for set-off and damages were compulsory or permissive.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

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