2008 Bar: Does the RTC have jurisdiction over Ramon‘s counterclaims, and if so, does he have to pay docket fees therefor? (3%)

2008 Bar: Fe filed a suit for collection of P387,000 against Ramon in the RTC of Davao City. Aside from alleging payment as a defense, Ramon in his answer set up counterclaims for P100,000 as damages and P30,000 as attorney‘s fees as a result of the baseless filing of the complaint, as well as for P250,000 as the balance of the purchase price of the 30 units of air conditioners he sold to Fe.

Does the RTC have jurisdiction over Ramon‘s counterclaims, and if so, does he have to pay docket fees therefor? (3%)
Yes, the RTC has jurisdiction over Ramon's counterclaims.

Applying the totality rule which sums up the total amount of claims of the parties, the RTC has jurisdiction over the counter-claims. Under BP 129 as amended, actions whose demand or claim exceed 300,000 pesos outside Metro Manila are within the jurisdiction of the RTC. Here, the amount claimed by Fe is 387,000 pesos, which is clearly beyond the previously-mentioned jurisdictional amount.

Party, yes, Ramon has to pay docket fees.

As held by the Supreme Court, unlike in the case of compulsory counterclaims, a defendant who raises a permissive counterclaim must first pay docket fees before the court can validly acquire jurisdiction over it. One compelling test of whether one is compulsory is the logical relation between the claim alleged in the complaint and that in the counterclaim.

Here, Ramon does not have to pay docket fees for his compulsory counterclaims. Ramon is, however, liable for docket fees only on his permissive counterclaim for the balance of the purchase price of 30 units of air conditioners in the sum of P250,000, as it neither arises out of nor is it connected with the transaction or occurrence constituting Fe‘s claim (Alday vs. FGU Insurance Corp.; Bayer Phil., Inc. vs. CA).