Venue

United Alloy Philippines Corporation v. UCPB, Van Der Sluis et al

775 SCRA 147

Facts:
United Alloy (UniAlloy) leased from United Coconut Planters Bank (UCPB). The lease
contract provides that any legal action arising therefrom should be brought exclusively in the
proper courts of Makati City. Later, however, UniAlloy filed a case in the Regional Trial Court of
Cagayan De Oro against UCPB, Van Der Sluis et al. Van Der Sluis, UniAlloy’s Chairman, moved to
dismiss the case based on improper venue, inter alia. The trial court granted the motion and
dismissed the case. The Court of Appeals affirmed it. Thus the petition.

Issue:

Is venue improperly laid?

Ruling:

Yes, venue is improperly laid.

Under the Rules of Court and case law, generally, personal actions must be commenced
and tried, at the election of the plaintiff, where:
(1) The plaintiff or any of the principal plaintiffs resides,
(2) The defendant or any of the principal defendants resides, or
(3) In the case of a resident defendant, where he may be found;

Nevertheless, the parties may agree in writing to limit the venue of future actions be-
tween them to a specified place.

Here, the lease contract provides that any legal action arising therefrom should be
brought exclusively in the proper courts of Makati City. However, UniAlloy filed its case in Ca-
gayan de Oro.