Title
Supreme Court
Cruz-Agana vs. Santiago-Lagman
Case
G.R. No. 139018
Decision Date
Apr 11, 2005
Petitioner sought annulment of title, contested counterclaim dismissal for lack of non-forum shopping certificate; SC ruled compulsory counterclaims exempt.

Case Summary (G.R. No. 139018)

Relevant Dates

The decision being evaluated was issued on April 11, 2005. The proceedings originated from actions taken in March and May of 1999, with the trial court's orders dated March 11, 1999; May 25, 1999; and June 4, 1999.

Applicable Law

The decisions in this case are anchored in the 1987 Philippine Constitution, particularly in its provisions regarding the jurisdiction of courts and the rules concerning pleading, practice, and procedure.

Antecedent Facts

On March 18, 1996, the petitioner initiated a complaint for annulment of title and sought a preliminary mandatory injunction against the respondent. She asserted her claim as the sole heir of Teodorico Cruz and maintained ownership of a lot covered by Transfer Certificate of Title No. T-3907, which she alleged was fraudulently sold to Eugenio Lopez, Jr. and subsequently transferred to the respondent. The case was assigned to the Regional Trial Court and numbered Civil Case No. 210-M-96.

The respondent responded with an Answer, including a compulsory counterclaim. The petitioner subsequently moved to dismiss this counterclaim due to the absence of a certificate of non-forum shopping, which led to an initial Order on March 11, 1999, denying her motion. However, following a reconsideration request and further arguments surrounding Supreme Court Administrative Circular No. 04-94, the trial court dismissed the counterclaim on May 25, 1999. On June 4, 1999, the trial court reversed this order, reinstating the respondent's counterclaim.

The Trial Court's Ruling

The trial court maintained that the respondent's counterclaim was compulsory and determined that the requirement for a certificate of non-forum shopping does not extend to compulsory counterclaims. The court asserted its inherent power to amend and control its decisions to align with legal parameters, particularly emphasizing the need to avoid injustice stemming from previous errors.

The Issue

The principal issue before the Supreme Court was whether the trial court had committed grave abuse of discretion by refusing to dismiss the respondent's counterclaim.

The Ruling of the Court

The Supreme Court found the petition to be without merit, reaffirming the established ruling in the previous case of Santo Tomas University Hospital v. Surla, which clarified that compulsory counterclaims do not require a certificate of non-forum shopping. The Court highlighted the distinction between compulsory and permissive counterclaims, emphasizing that compulsory counterclaims derive from the same transaction or occurrence as the plaintiff's compla

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