Title
Tan vs. Kaakbay Fice Corp.
Case
G.R. No. 146595
Decision Date
Jun 20, 2003
Petitioner disputes usurious interest rates and falsified deed; Supreme Court rules counterclaim compulsory, no filing fees required.

Case Summary (G.R. No. 146595)

Relevant Background Facts

In late 1995, petitioner Tan obtained a loan of P4,000,000 from Kaakbay Finance Corporation, with the stipulation that the interest would be 12% per annum. However, Tan claimed he was later charged a substantially higher interest rate which he alleged was usurious. Tan also disputed the legitimacy of a Deed of Sale Under Pacto de Retro allegedly signed by him and his wife and claimed that it was notarized fraudulently. By January 2000, he filed a complaint seeking to declare the promissory notes and the Deed of Sale null and void, citing allegations of unnatural and exorbitant interest rates.

Procedural History

Tan filed his complaint with the Regional Trial Court (RTC) in Calamba, Laguna. The RTC ruled in favor of the respondents regarding the nature of their counterclaims. Tan's application for a Temporary Restraining Order was agreed to be withdrawn by both parties, with a stipulation from the respondents to hold registration of the Deed of Sale until the case was resolved. Respondents then filed their answer with a counterclaim, which Tan contested, arguing that it required docket fees as it was a permissive counterclaim.

Legal Issues Presented

The primary legal issue in this case revolves around whether the counterclaims filed by the respondents are compulsory or permissive. Tan argued that the counterclaims should be deemed permissive, while the respondents contended that they were compulsory, thus not necessitating the payment of filing fees. Tan posited that the nature of his claims about the alleged usurious rates and the validity of the promissory notes contradicted the basis of the respondents' counterclaims.

Judicial Reasoning

The Supreme Court examined the standards for determining if a counterclaim is compulsory, namely that it arises from the same transaction as the original action and involves the same evidence. The Court upheld the appellate court's findings, establishing that there was a logical connection between Tan's allegations regarding the validity of the co

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