REPUBLIC OF THE PHILIPPINES

NATIONAL CAPITAL JUDICIAL REGION

REGIONAL TRIAL COURT
__________, Manila

ABC,
Plaintiff,
- versus - Civil Case No. 123456
For: Sum of Money
XYZ,
Defendant.
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ANSWER WITH
COMPULSORY COUNTERCLAIM
COMES NOW, defendant XYZ, through the undersigned
counsels and unto this Honorable Court, most respectfully avers
that:

ADMISSIONS AND DENIALS

1. Defendant specifically denies the allegations in
paragraph 1 of the Complaint for lack of knowledge and/or
information sufficient to form a belief as to the truth or falsity
thereof and for reasons stated in the special and affirmative
defenses discussed below.
2. Defendant admits the allegations in paragraph 2 of the
Complaint but only insofar as they relate to its juridical
personality.
3. Defendant admits the allegations in paragraphs 3, 3.1,
4 & 4.1 of the Complaint insofar as the existence of the Credit
Agreement is concerned. However, it denies the rest of the
allegations for lack of knowledge and information sufficient to
form a belief as to the truth or falsity thereof and for reasons
stated in the special and affirmative defenses discussed below.
4. Defendant admits the allegations in paragraphs 5, 5.1
& 5.2 of the Complaint insofar as the existence of the demand
letters is concerned. However, it denies the rest of the allegations
for lack of knowledge and information sufficient to form a belief as
to the truth or falsity thereof and for reasons stated in the special
and affirmative defenses discussed below.
5. Defendant specifically denies the allegations in
paragraph 6 of the Complaint for lack of knowledge and/or
information sufficient to form a belief as to the truth or falsity
thereof and for reasons stated in the special and affirmative
defenses discussed below.
6. Defendant admits the allegations in paragraphs 7, 7.1, 8
& 8.1 of the Complaint again only insofar as the existence of the
demand letters is concerned, however, it denies the rest of the
allegations for lack of knowledge and information sufficient to form a
belief as to the truth thereof and for reasons stated in the special
and affirmative defenses discussed below.

7. Defendant specifically denies the allegations in paragraphs

9, 10 & 11 of the Complaint for lack of knowledge and/or
information sufficient to form a belief as to the truth or falsity thereof
and for reasons stated in the special and affirmative defenses
discussed below.

SPECIAL AND AFFIRMATIVE DEFENSES

By way of special and affirmative defenses, answering
defendant hereby repleads and incorporates all the foregoing
averments insofar as they may be relevant and further states the
following:

8. The instant Complaint should be dismissed by reason or on

account of prescription of plaintiff’s claim and/or on due to fraud,
violation of the provisions of the statute of limitation, due to laches
on the part of the plaintiff, release and/or waiver, prior payment,
illegality of the claim, non-compliance with or violation of the statute
of frauds, estoppel on the part of the plaintiff, former recovery or
payment of plaintiff’s claim and/or due to plaintiff’s own
outstanding/unpaid obligation with the herein defendant.

9. The instant Complaint should also be dismissed outright for

failing to state a valid cause of action and/or for obvious lack of
cause of action as against herein defendant. In this case, plaintiff
seeks to hold liable the herein defendant for sum of money
amounting to Php10,000,000.00 supposedly consisting of unpaid
fees and charges for services allegedly rendered by the plaintiff to
said defendant. However, plaintiff’s bare and general allegations as
to defendant’s liability deserves, to say the least, scant
consideration given that herein answering defendant never engaged
the services of plaintiff which purportedly resulted to said claims. In
addition, plaintiff failed to state with particularity how said obligation
was incurred by herein defendant.

10. Defendant is not liable to plaintiff’s claim as what is stated

in its Complaint. The truth of the matter is that per email message
dated 25 December 2018 sent by plaintiff’s very own Rodrigo
Trump (President ABC), to defendant’s Donald Duterte (President
of XYZ), the latter’s outstanding obligation, if there is any, is only in
the amount of Php5,000,000.00 as shown in the attached copy of
summary of ABC’s Aging of Receivables hereto marked as Annex
“A” and made an integral part hereof.
 COMPULSORY COUNTERCLAIMS
By way of compulsory counterclaims, answering defendant
hereby repleads and incorporates all the foregoing averments insofar
as they may be relevant and further posit the following, to wit:

11. The instant Complaint and the amount plaintiff is claiming

is clearly unfounded, the same having been hastily and
indiscriminately filed against herein defendant. Accordingly, it is but
just and equitable that herein defendant should be properly
compensated and recover from the plaintiff the attorney’s fees and
litigation expenses it incurred and would be incurring in the amount
of at least Php1,000,000.00 as a result of or in connection with the
filing of this clearly baseless complaint against them.

12. Further, to serve as an example to other entities who may

have the similar inclination as herein plaintiff and as a
deterrent to its apparent bad faith in
unreasonably and indiscriminately filing the instant Complaint,
plaintiff should be made to pay to herein answering defendant the
amount of at least Php1,000,000.00 as and by way of exemplary
damages.

PRAYER
PREMISES CONSIDERED, herein defendant most respectfully
prays of this Honorable Court that judgment be rendered ordering
the following:

1. DISMISSING the Complaint for utter lack of merit;

2. On the compulsory counterclaim, ordering the plaintiff to

PAY herein answering defendant the amount of not less
than Php1,000,000.00 as and by way of attorney’s fees
and expenses of litigation;

3. Ordering plaintiff to pay herein answering defendants

Php1,000,000.00 as and by way of exemplary
damages; and

4. Ordering the plaintiff to pay the costs of suit.

Other reliefs just and equitable under the premises are likewise
prayed for.