1997 RULES OF CIVIL PROCEDURE AS AMENDED (RULES 1 – 71, RULES OF COURT)

PER RESOLUTION OF THE SUPREME COURT IN

BAR MATTER NO. 809 ADOPTED IN BAGUIO CITY ON
APRIL 8, 1997

SEC. 5. Defenses.— Defenses may either be negative or affirmative.

(a) A negative defense is the specific denial of the material fact or facts alleged in the pleading of the
claimant essential to his cause or causes of action.

(b) An affirmative defense is an allegation of a new matter which, while hypothetically admitting the
material allegations in the pleading of the claimant, would nevertheless prevent or bar recovery by
him. The affirmative defenses include fraud, statute of limitations, release, payment, illegality, statute
of frauds, estoppel, former recovery, discharge in bankruptcy, and any other matter by way of
confession and avoidance. (5a)

SEC. 6. Counterclaim.— A counterclaim is any claim which a defending party may have against an
opposing party. (6a)

SEC. 7. Compulsory counterclaim.— A compulsory counterclaim is one which, being cognizable by the
regular courts of justice, arises out of or is connected with the transaction or occurrence constituting
the subject matter of the opposing party’s claim and does not require for its adjudication the presence
of third parties of whom the court cannot acquire jurisdiction. Such a counterclaim must be within the
jurisdiction of the court both as to the amount and the nature thereof, except that in an original action
before the Regional Trial Court, the counterclaim may be considered compulsory regardless of the
amount. (n)

SEC. 8. Cross-claim.— A cross-claim is any claim by one party against a co-party arising out of the
transaction or occurrence that is the subject matter either of the original action or of a counterclaim
therein. Such cross-claim may include a claim that the party against whom it is asserted is or may be
liable to the cross-claimant for all or part of a claim asserted in the action against the cross-claimant.
(7)

SEC. 9. Counter-counterclaims and counter-cross-claims.— A counterclaim may be asserted against an

original counter-claimant.

A cross-claim may also be filed against an original cross-claimant. (n)

SEC. 10. Reply.— A reply is a pleading, the office or function of which is to deny, or allege facts in
denial or avoidance of new matters alleged by way of defense in the answer and thereby join or make
issue as to such new matters. If a party does not file such reply, all the new matters alleged in the
answer are deemed controverted.

If the plaintiff wishes to interpose any claims arising out of the new matters so alleged, such claims
shall be set forth in an amended or supplemental complaint. (11)

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. (12a)

SEC. 12. Bringing new parties.— When the presence of parties other than those to the original action
is required for the granting of complete relief in the determination of a counterclaim or cross-claim,
the court shall order them to be brought in as defendants, if jurisdiction over them can be obtained.
(14)

SEC. 13. Answer to third (fourth, etc.)— party complaint— A third (fourth, etc.) — party defendant
may allege in his answer his defenses, counterclaims or cross-claims, including such defenses that the
third (fourth, etc.) —party plaintiff may have against the original plaintiffs claim. In proper cases, he
may also assert a counterclaim against the original plaintiff in respect of the latter’s claim against the
third-party plaintiff. (n)