Agent's authority to file suits

The power to collect and receive payments on behalf of the principal is an ordinary act of administration covered by the general powers of an agent.[1] On the other hand, the filing of suits is an act of strict dominion.Under Article 1878 (15) of the Civil Code, a duly appointed agent has no power to exercise any act of strict dominion on behalf of the principal unless authorized by a special power of attorney. An agent's authority to file suit cannot be inferred from his authority to collect or receive payments; the grant of special powers cannot be presumed from the grant of general powers. Moreover, the authority to exercise special powers must be duly established by evidence, even though it need not be in writing.[2]

[1] Civil Code, Art. 1877.

[2] Home Insurance, Co. v. United States Lines Co., G.R. No. L-25593, November 15, 1967.

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