Counterclaims: compulsory or permissive

A counterclaim is any claim which a defending party may have against an opposing party. (Rule 6, Sec. 6)

What is a compulsory counterclaim?

[1] This is one which, being cognizable by the regular courts of justice,
[2] arises out of or is connected with the transaction or occurrence constituting the subject matter of the opposing party’s claim and
[3] does not require for its adjudication the presence of third parties of whom the court cannot acquire jurisdiction.
[4] Such a counterclaim must be within the jurisdiction of the court both as to the amount and the nature thereof,
[5] Except that in an original action before the Regional Trial Court, the counterclaim may be considered compulsory regardless of the amount (Rule 6, Sec. 7), meaning its amount need not be under RTC's jurisdiction.

Examples of counterclaims are:

[1] Damages claimed to have been suffered as a consequence of the action;
[2] A claim for attorney’s fees; and
[3] In a possessory action, the defendant’s claim of ownership.What is a permissive counterclaim?

[1] One which is not barred even if not set up and which has NO LOGICAL RELATION with the transaction or occurrence that is the subject matter of the opposing party’s claim, or
[2] Even when there is such a connection, the court has no jurisdiction to entertain the claim or it requires for its adjudication the presence of third persons of whom the court cannot acquire jurisdiction (National Marketing Corp. vs. Federation of United Namarco Distributors, Inc., 49 SCRA 248 [1973]).

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