REPUBLIC OF THE PHILIPPINES

SIXTH JUDICIAL REGION

REGIONAL TRIAL COURT OF BACOLOD
BRANCH 44
-uwu-

CHING HONG GI/ GLORIOUS

HARDWARE,
Plaintiff,
-versus- CIVIL CASE NO. 21-420619
For: Collection of Sum of
Money with Damages
With prayer for issuance of writ of preliminary attachment

SPS. OSCAR AND MARIA SUYO,

Defendant.
x-----------------------------------------------x

SPS. OSCAR AND MARIA SUYO,

Third-Party Plaintiff,
-versus-

RAUL REYES
Third-Party Defendant.
x-----------------------------------------------x
THIRD-PARTY COMPLAINT

COMES NOW, Third-Party Plaintiff, through the undersigned

counsels, and with leave of this Honorable Court to file this Third-
Party Complaint, most respectfully aver that:
1. The Plaintiff Ching Hong Gi (GLORIOUS), of legal age, Filipino,
with residence and postal address at Fleurdeliz Street, Purok
Mabinuligon, Barangay Mansilingan, Bacolod City, and may be
served with orders, notices, and other court processes of the
Honorable Court through the address of his counsel as indicated
below;

Page 1 of 16 Third-Party Complaint Against Raul Reyes

 Explain who Raul Reyes is

2. The Third-party Plaintiffs are Oscar and Maria Suyo (SPOUSES

SUYO), both of legal age, Filipino citizens, with residence and
postal address at Gardenia Street, Purok Paghidaet, Barangay
Mansilingan, Bacolod City. They may be served with orders,
notices, and other court processes of the Honorable Court
through the address of their counsels as indicated below;

3. The Third-party Defendant is Raul Reyes (REYES), of legal age,

married, Filipino citizen, with residence and postal address at
Broken Hearts Boulevard, 21st Floor of Zadbouy Building,
Lacson Street, Bacolod City where he may be served with orders,
notices, and other court processes of the Honorable Court;

4. GLORIOUS in Civil Case No. 21-420619, pending before this

Honorable Court, filed a complaint against the herein SPOUSES
SUYO, and a copy of said complaint is herewith attached (Annex
A) and made integral part thereof;

5. GLORIOUS alleges that the SPOUSES SUYO owe them

P7,000,000.00 on account of a promissory note issued by Oscar
Suyo;

6. The origins of this obligation arose from an alleged ordering on

credit by the SPOUSES SUYO and not settling them upon the
maturity of a promissory note issued by Oscar Suyo;

7. That GLORIOUS failed to take into account the obligations and

responsibilities arising from the Contract of Engagement (Annex
B) which they themselves are a party of;

8. That GLORIOUS had failed to observe that certain provisions of

the contract of engagement: releases the SPOUSES SUYO from
liability; solely and directly makes REYES liable for certain
orders made; and legally makes GLORIOUS acknowledge the
liability of REYES.

Page 2 of 16 Third-Party Complaint Against Raul Reyes

 CAUSES OF ACTION

NECESSITY OF BRINGING THE THIRD-PARTY DEFENDANT

9. Section 11, Rule 6 of the Rules of Court provides:

Sec. 11. Third (fourth, etc.)-party complaint. – A third (fourth,

etc.) – party complaint is a claim that a defending party may,
with leave of court, file against a person not a party to the
action, called the third (fourth, etc.) – party defendant, for
contribution, indemnity, subrogation or any other relief, in
respect of his opponent’s claim.

10. In Atlantic Coast Line R. Company v. United States Fidelity &

Guaranty Co.1, the Court ruled that a defendant may implead
another as Third-Party Defendant (a) on an allegation of liability
of the latter to the defendant for contribution, indemnity,
subrogation or any other relief; (b) on the ground of direct
liability of the Third-Party Defendant to the plaintiff; or (c) the
liability of the Third-Party Defendant to both the plaintiff and
the defendant.

ON THE DIRECT LIABILITY OF THE THIRD-PARTY

DEFENDANT TO THE PLAINTIFF

11. REYES exceeded his scope when he placed additional orders

beyond his allowed credit-limit under the credit-line of the
SPOUSES SUYO without the prior authorization as stipulated in
the Contract of Engagement.

12. SPOUSES SUYO respectfully submit that the claims of

GLORIOUS in CIVIL CASE NO 21-420619 amounting to
P3,000,000.00, constituting a part of the claim, are unauthorized.
The Contract of Engagement states that:
xxx
The Hardware undertakes to inform the Client of every in-excess
orders made by the Contractor using the Client’s credit-line.

Atlantic Coast Line R. Company v. United States Fidelity & Guaranty Co., 52 F.Supp. 177 (1943).
1

Page 3 of 16 Third-Party Complaint Against Raul Reyes

 The Hardware shall in no situation release the ordered materials
in excess of the allowed credit-limit, except when the Client gives their
approval.
Every approved transaction made in excess of the allowed
credit-limit without the Client’s approval is deemed as
unauthorized and made beyond the scope of the Contractor’s
authority to utilize the Client’s credit-line with the Hardware.
In the event that the Hardware releases materials related to
transactions not approved by the Client, the Hardware acknowledges
the Client’s exclusion from liability and shall make the Contractor
solely liable for every unauthorized transaction.
xxx
By virtue of this provision, the Third-party Defendant IS HELD
DIRECTLY LIABLE for whatever transactions he makes outside
the scope of authority given to him.

13. The acts of REYES is in direct contravention with what was

required of him under the contract. Any obligation incurred in
excess of the said limit makes REYES personally liable. As such,
the SPOUSES SUYO cannot be faulted nor should be held
answerable for the unauthorized acts of REYES.

14. Further, to show causality to the original case initiated by

GLORIOUS against the SPOUSES SUYO, at the time of the
transactions that had transpired between GLORIOUS and
REYES it was without the knowledge nor the approval of the
SPOUSES SUYO. Therefore, it is REYES that should be ordered
to pay GLORIOUS for ordering materials in excess of what was
allowed for by the Contract of Engagement.

15. In Capayas v. Court of First Instance2, the Court made following

tests: (1) whether it arises out of the same transaction on which
the plaintiff’s claim is based; or whether the third-party claim,
although arising out of another or different contract or
transaction, is connected with the plaintiff’s claim; (2) whether
the Third-Party Defendant would be liable to the plaintiff or to
the defendant for all or part of the plaintiff’s claim against the
original defendant, although the Third-Party Defendant’s

2
Capayas v. Court of First Instance of Albay, 77 Phil. 181 (1946).

Page 4 of 16 Third-Party Complaint Against Raul Reyes

 liability arises out of another transaction; and (3) whether the
Third-Party Defendant may assert any defenses which the Third-
Party Plaintiff has or may have to the plaintiff’s claim.

16. The test laid out by the Court in the case of Capayas3, is satisfied.
The third-party claim in this case which arose from the contract
of engagement is connected with the claim of GLORIOUS
because GLORIOUS is wrongfully suing the SPOUSES SUYO
based on the liability incurred by REYES after he had made
unauthorized transactions with GLORIOUS.

17. As stated in the Contract of Engagement, despite being a

separate contract, no further orders should have been allowed to
be placed without the authorization from the SPOUSES SUYO.
There exists a causal connection between the claim of
GLORIOUS in his complaint and, by virtue of the release from
liability of the SPOUSES SUYO, the claim against REYES.

ON THE RELEASE OF LIABILITY OF THE THIRD-PARTY

PLAINTIFFS AS AGAINST THE CLAIMS OF PLAINTIFF

18. With regard GLORIOUS’ other claim amounting to

P4,000,000.00, the SPOUSES SUYO respectfully submit that it
was already paid to REYES.

19. As per the contract, the issuance of an acknowledgement receipt

(Annex C) releases the SPOUSES SUYO from any liability. This
in turn would make REYES directly and solely liable to
GLORIOUS.

20. The pertinent portion of the Contract of Engagement reads:

xxx

Every order placed by the Contractor in excess of the allowed

credit-limit using the Client’s credit-line is to be reported to the Client.
The Client shall then decide whether to approve the order made.
If the Client decides to approve the said order, he shall inform the
Hardware that he has approved the said order. The Hardware shall then

3
Supra

Page 5 of 16 Third-Party Complaint Against Raul Reyes

 approve the transaction and release the materials ordered by the
Contractor.
The Client shall give the necessary amount to the Contractor in
order for him to pay the Hardware.
The Client shall then issue an acknowledgment receipt to
the Contractor indicating that the Client has paid the
Contractor the necessary amount to cover the in-excess transaction
and that the Contractor undertakes to deliver the money to the
Hardware to pay-off the transaction.
This acknowledgment receipt serves to exclude the Client
from liability in the event that the Contractor does not comply with
his obligation to deliver the payment to the Hardware.
That in the event that the Contractor does not comply with his
obligations, the Hardware undertakes to make the Contractor solely
liable and acknowledges the exclusion of the Client from liability
regarding the transaction.

xxx

By virtue of this provision the Third-Party Plaintiffs ARE

RELEASED FROM ANY LIABILITY that arises in connection
to the transaction.

THIRD-PARTY PLAINTIFF’S EXCLUSION FROM LIABILITY BY

VIRTUE OF THE PLAINTIFF’S FAILURE TO COMPLY WITH ITS
OBLIGATIONS

21. As regards to the failure of GLORIOUS in complying with its

responsibility, the contract states that:
xxx
In the event that the Hardware releases materials related to
transactions not approved by the Client, the Hardware
acknowledges the Client’s exclusion from liability and shall
make the Contractor solely liable for every unauthorized
transaction.
xxx
By virtue of this provision, GLORIOUS had undertaken to make
the Contractor, SOLELY LIABLE for the approval of
unauthorized transactions and had acknowledged the
EXCLUSION FROM LIABILITY of the SPOUSES SUYO;

Page 6 of 16 Third-Party Complaint Against Raul Reyes

CONTRACTS ARE THE LAW BETWEEN PARTIES

22. The Civil Code provides

Art. 1159. Obligations arising from contracts have the force

of law between the contracting parties and should be complied
with in good faith.

Because of the actions done by REYES which resulted in going

beyond his responsibilities in the Contract of Engagement and
that which resulted in breach of said contract, he is liable to
whatever liability that arises from the unauthorized transactions
with GLORIOUS. GLORIOUS must also bear the costs of
whatever materials they had released because of the
unauthorized orders as they had also, by virtue of the same
contract, had undertaken to make REYES liable and not the
SPOUSES SUYO.

ALLEGATIONS IN SUPPORT FOR THE ISSUANCE OF WRIT OF

PRELIMINARY ATTACHMENT
The SPOUSES SUYO re-pleads all the foregoing averments by way of
reference and in so far as they are relevant to its application for the
issuance of a writ of Preliminary Attachment;
23. A sufficient cause of action exists against the Third-Party
Defendant;

24. The Rules of Court provides that:

Rule 57. Sec 1. – Grounds upon which attachment may issue.
xxx

(a) In an action for the recovery of a specified amount of money

xxx, on a cause of action arising from xxx contract xxx against
a party who is about to depart from the Philippines with
intent to defraud his creditors;

xxx

25. REYES is liable to GLORIOUS by virtue of the Contract of

Engagement. Furthermore, the SPOUSES SUYO have a
reasonable belief that REYES, who is in the process of separating

Page 7 of 16 Third-Party Complaint Against Raul Reyes

 from his wife, is an expected flight risk with the intention to hide
his properties from his creditors or alienate the same.

26. There is no sufficient security for the claim sought to be enforced

by the present action;

27. The amount due to GLORIOUS in the original case is

P7,000,000.00, excluding legal fees and other charges as of to date
for which amount, an order of attachment is being sought above
all legal counterclaims against REYES;

28. SPOUSES SUYO is ready and willing to give a bond to be fixed

by this Honorable Court, executed to REYES, to answer for all
costs which may be adjudged to the latter, and all damages
which REYES may sustain by reason of the attachment prayed
for, if the court shall finally adjudge that SPOUSES SUYO is truly
the one liable in the original case;
In support of the foregoing allegations, the SPOUSES SUYO has
attached hereto their affidavit.

EVIDENCE TO BE PRESENTED
29. Defendants will the following witnesses, namely:
20.1. Mr. Oscar Suyo, to prove that:
Type text here
a. He entered into a contract of engagement with Raul
Reyes and petitioner Glorious;
b. To explain the scope and limitations of the rights and
obligations contained in the contract with regard Raul
Reyes’ work as contractor and the necessary obligations of
petitioner;
c. That he paid P 4,000,000.000 to Raul Reyes when he
received the call of petitioner and issued an
acknowledgment receipt;
Attached herein is Mr. Suyo’s judicial affidavit (Annex D)

20.2. Mrs. Maria Suyo, to prove that:

Page 8 of 16 Third-Party Complaint Against Raul Reyes

 a. The existence of the credit system in petitioner’s
hardware and the how the system usually worked and
how it changed after the entry of Raul Reyes as contractor;
b. The fact that Raul Reyes is experiencing marital
problems and that is planning to move abroad so that he
can move on from the heartbreak that his wife has caused
him.
Attached herein is Mrs. Suyo’s judicial affidavit (Annex E)

20.3 Mrs. Cristine Reyes, to prove:

a. The fact of the existence of legal separation proceedings
between her and Third-Party Defendant Raul Reyes.
b. The fact that her husband has displayed intentions to
migrate abroad in order to start a new life.
Attached herein is Mrs. Christine Reyes’ affidavit (Annex F)

30. The Documentary Evidence to be presented are the following:

a. The Contract of Engagement between Spouses Suyo, Raul

Reyes, and Petitioner Glorious Hardware;
b. The acknowledgment receipt issued to Raul Reyes.

PRAYER
WHEREFORE, premises considered, it is respectfully prayed
unto this Honorable Court that, after hearing, judgment be rendered
as follows:
1. That in case the Spouses Suyo is adjudged liable to pay the
plaintiff, Ching Hong Gi, in Civil Case No. 21-420619, an order
be issued ordering the Raul Reyes to indemnify whatever is
paid by the Spouses Suyo to the Plaintiff by virtue of the
contract of engagement.;

2. An order of attachment be immediately issued by this

Honorable Court, requiring the sheriff to attach properties of
the Third-party Defendant which are not exempt from
execution or so much thereof as may be sufficient to satisfy the
Plaintiff’s demand which is in the total amount of
P7,000,000.000, and after hearing;

Page 9 of 16 Third-Party Complaint Against Raul Reyes

 3. Judgment be rendered ordering the Third-party defendant to
pay Plaintiff the P4,000,000.00, representing the amount of the
transaction and P3,000,000.000 representing the amount of the
unauthorized orders made on account of the Third-party
Plaintiffs credit-line with Plaintiff;

4. Ordering the Third-party defendants to pay the cost of suit.

Such other reliefs and remedies as may be deemed just and
equitable under the premises are likewise prayed for.

Bacolod, September 20, 2021.

VAAPE Law Offices

Counsel for the Defendants
6th Lacson Street
2nd Floor Unicron Building
Bacolod City, Negros Occidental

Page 10 of 16 Third-Party Complaint Against Raul Reyes

By:

MICHAEL P. VILLAGRACIA
IBP Lifetime No. 049192, May 4, 2021, Bacolod City
PTR No. 860982 - May 9, 2021, Bacolod City
Roll No. 420120
MCLE Exemption No. VI-0042012, May 10, 2021
villagracia.michael.p@gmail.com
09684516141

STEFAN PAX D. A ALQUIZA

IBP Lifetime No. 69230/ May 8, 2021/ Bacolod City
2021
PTR No. 400291/ 4-11-2018/ Bacolod City
Roll No. 29993
MCLE Exemption No. VI-0024766/May 12, 2021
pax.d.alquiza@gmail.com
09214355724

ORLY JOHN P. APELO

IBP Lifetime No. 70234, June 1, 2021, Davao City
PTR No. 823021 - June 7, 2021, Davao City
Roll No. 222292
MCLE Exemption No. VI-0042013, June 10, 2021
oj.apelo@gmail.com
09159533037

Page 11 of 16 Third-Party Complaint Against Raul Reyes

 EXPLANATION
A copy of the foregoing Motion was served by registered mail
only, it being impracticable to serve the same personally due to
quarantine protocols set by the government.
Copy furnished:

The Clerk of Court

Regional Trial Court – Branch 44
Bacolod City

JOHN EMMER S. GAMO

GAMO AND ASSOCIATES LAW OFFICE
08 Mahogany Lane, Macadam Rd.,
Brgy. Villamonte, Bacolod City

RAUL REYES
Broken Hearts Boulevard
21st Floor of Zadbouy Building
Lacson Street, Bacolod City

Page 12 of 16 Third-Party Complaint Against Raul Reyes

 VERIFICATION WITH
CERTIFICATION OF NON-FORUM SHOPPING

We, Oscar and Maria Suyo, both married, Filipinos and residents
of Gardenia Street, Purok Paghidaet, Barangay Mansilingan, Bacolod
City, Negros Occidental, under oath, depose and state:

1. That we are the Third-Party Plaintiffs in the above-entitled case;

2. That we have caused the preparation of the foregoing Third
Party Complaint;
3. That we have read and understood its contents which are true
and correct based on our own personal knowledge and based on
authentic records;
4. This initiatory pleading is not filed to harass, cause unnecessary
delay, or needlessly increase the cost of litigation;
5. The factual allegations herein have evidentiary support, or if
specifically so identified will likewise have evidentiary support
after a reasonable opportunity for discovery; and

6. We have not commenced any action or filed any claim involving

same issues in any court, tribunal or quasi-judicial agency; that
to the best of our knowledge, no such other action or claim is
pending therein; if there is such other pending action or claim, a
complete statement of the present status thereof; and if we
should learn thereafter that a same or similar action or claim has
been filed is pending, we shall report to report that fact within
five (5) calendar days therefrom to this court from notice
therefrom.

IN WITNESS WHEREOF, We have hereunto affixed our signature this

21st day of September 2021 in Bacolod City.

Oscar Suyo

Maria. Suyo

Page 13 of 16 Third-Party Complaint Against Raul Reyes

“SUBSCRIBED AND SWORN to before me this 21st day of
September 2021, affiants exhibiting to their Driver’s License Nos. F01-
89-049306 and V02-32-036912, issued at Bacolod City, Philippines
expiring on August 26, 2023 and July 25, 2023, respectively.”
WITNESS MY HAND AND NOTARIAL SEAL on the day, year,
and place first above written

Doc. No. 20
Page No. 5
Book No. XVIII
Series of 2021

*2021

2021

Page 14 of 16 Third-Party Complaint Against Raul Reyes

REPUBLIC OF THE PHILIPPINES)
IN THE CITY OF BACOLOD ) S.S.

AFFIDAVIT FOR PRELIMINARY ATTACHMENT

We, Oscar and Maria Suyo, both of legal age, married to each other,
and residing at Gardenia Street, Purok Paghidaet, Barangay
Mansilingan, Bacolod City, Negros Occidental, after being sword in
accordance with law, depose and say:

1. That we are the Third-Party Plaintiffs in the above-entitled case;

2. That we have a good and sufficient cause of action against the Third-
Party Defendant named therein;

3. That this action is one of those specifically mentioned in Sec. 1 of

Rule 57 of the Rules of Court, whereby a writ of preliminary
attachment may lawfully issue, namely:

Sec. 1 Rule 57 – Rules of Court

(a) In an action for the recovery of a specified amount of money or

damages, other than moral and exemplary, on a cause of action arising
from law, contract, quasi-contract, delict or quasi-delict against a party
who is about to depart from the Philippines with intent to defraud his
creditors.

4. That this cause of action exists by virtue of Third-Party Defendant

being an expected flight-risk in order to avoid paying creditors and
alienating his assets;

5. That the amount due to the plaintiff in the main case is the sum total
of P7,000,000.00, which represents the sum total of the Third-Party
Defendant’s liability which arose from the contract of engagement;

6. That there is no sufficient security for the claim sought to be enforced

by the present action;

7. That the amount due to the plaintiff is as much as the sum for which
an order of attachment is herein sought to be granted, above all the
legal counterclaims on the part of the defendant.

IN WITNESS WHEREOF, we affix our signatures this 21 day st

of SEPTEMBER, 2021 at Bacolod City, Philippines.

Page 15 of 16 Third-Party Complaint Against Raul Reyes

 Oscar Suyo
Affiant

Maria Suyo
Affiant

“SUBSCRIBED AND SWORN to before me this 21st day of

September 2021, affiants exhibiting to their Driver’s License Nos. F01-
89-049306 and V02-32-036912, issued at Bacolod City, Philippines
expiring on August 26, 2023 and July 25, 2023, respectively.”

WITNESS MY HAND AND NOTARIAL SEAL on the day,

year, and place first above written

Doc. No. 21
Page No. 5
Book No. XVIII
Series of 2021

Page 16 of 16 Third-Party Complaint Against Raul Reyes