Clave Cilla

380
380 SUPREME COURT REPORTS

ANNOTATED
VOL. 19, FEBRUARY 18, 1967 379
Clavecilla Radio System vs. Antillon, et al.
Clavecilla Radio System vs. Antillon,
et al.
ration in the inferior court is based on tort,
it should be filed in the place where the
No. L-22238. February 18, 1967. corporation has its principal office, not in
the place where it has its branch office. To
CLAVECILLA RADIO SYSTEM, allow an action against a corporation to be
petitioner and appellant, vs. HON. instituted in any place where a corporate
AGUSTIN ANTILLON, as City Judge entity has its branch offices would create
of the Municipal Court of Cagayan de confusion and work untold inconvenience to
Oro City and NEW CAGAYAN the corporation.
GROCERY, respondents and
Same; When provision, “may be served
appellees.
with summons”, applies.—The phrase “may
be served with summons” in section 1, Rule
Corporation Law; Domicile of a 4 of the Revised Rules of Court does not
corporation.—The residence of a corporation apply when the defendant resides in the
is the place where its principal office is Philippines, for, in such a case, he may be
established. It can be sued in that place, not sued only in the municipality of his
in the place where its branch office is residence, regardless of the place where he
located. may be found and served with summons.
Actions; Venue; Venue of a tort action Same; Plaintiff may not choose venue of
against a, corporation in inferior court.— action.—The laying of the venue of an
Where the action filed against a corpo- action is not left to plaintiff’s caprice
because the matter is regulated by the “NECAGRO
Rules of Court. CAGAYANDEORO (CLAVECILLA)
APPEAL from an order of dismissal REURTEL WASHED NOT AVAILABLE

rendered by the Court of First REFINED TWENTY FIFTY IF
Instance of Misamis Oriental. AGREEABLE SHALL SHIP LATER REPLY
POHANG"
The facts are stated in the opinion of
the Court. The Cagayan de Oro branch office
B.C. Padua for petitioner and having received the said message
appellant. omitted, in delivering the same to the
Pablo S. Reyes for respondents New Cagayan Grocery, the word
and appellees, “NOT" between the words
381
REGALA, J;:
This is an appeal from an order of the VOL. 19, FEBRUARY 18, 1967 381
Court of First Instance of Misamis
Oriental dismissing the petition of the Clavecilla Radio System vs. Antillon,
Clavecilla Radio System to prohibit et al.
the City Judge of Cagayan de Oro from
taking cognizance of Civil Case No. “WASHED" and “AVAILABLE," thus
1048 for damages. changing entirely the contents and
It appears that on June 22, 1963, purport of the same and causing the
the New Cagayan Grocery filed a said addressee to suffer damages. After
complaint against the Clavecilla Radio service of summons, the Clavecilla
System alleging, in effect, that on Radio System filed a motion to dismiss
March 12, 1963, the following message, the complaint on the grounds that it
addressed to the former, was filed at states no cause of action and that the
the latter’s Bacolod Branch Office for venue is improperly laid. The New
transmittal thru its branch office at Cagayan Grocery interposed an
Cagayan de Oro: opposition to which the Clavecilla
Radio System filed its rejoinder.
Thereafter, the City Judge, on It is clear that the case for damages
September 18, 1963, denied the motion filed with the city court is based upon
to dismiss for lack of merit and set the tort and not upon a written contract.
case for hearing. Section 1 of Rule 4 of the New Rules of
Hence, the Clavecilla Radio System Court, governing venue of actions in
filed a petition for prohibition with inferior courts, provides in its
preliminary injunction with the Court paragraph (b) (3) that when “the action
of First Instance praying that the City is not upon a written contract, then in
Judge, Honorable Agustin Antillon, be the municipality where the defendant
enjoined from further proceeding with or any of the defendants resides or may
the case on the ground of improper be served with summons.” (Italics
venue. The respondents filed a motion supplied)
to dismiss the petition but this was Settled is the principle in
opposed by the petitioner. Later, the corporation law that the residence of a
motion was submitted for resolution on corporation is the place where its
the pleadings. principal office is established. Since it
In dismissing the case, the lower is not disputed that the Clavecilla
court held that the Clavecilla Radio Radio System has its principal office in
System may be sued either in Manila Manila, it
where it has its principal office or in
382
Cagayan de Oro City where it may be
served, as in fact it was served, with
summons through the Manager of its 382 SUPREME COURT REPORTS
branch office in said city. In other ANNOTATED
words, the court upheld the authority
Clavecilla Radio System vs. Antillon,
of the city court to take cognizance of
et al.
the case.
In appealing, the Clavecilla Radio
System contends that the suit against follows that the suit against it may
it should be filed in Manila where it properly be filed in the City of Manila.
holds its principal office. The appellee maintain, however,
that with the filing of the action in
Cagayan de Oro City, venue was Santos, et al., supra, that the laying of
properly laid on the principle that the the venue of an action is not left to
appellant may also be served with plaintiff s caprice because the matter is
summons in that city where it regulated by the Rules of Court.
maintains a branch office. This Court Applying the provision of the Rules of
has already held in the case of Cohen Court, the venue in this case was
vs. Benguet Commercial Co., Ltd., 34 improperly laid.
Phil. 526; that the term “may be served The order appealed from is
with summons” does not apply when therefore reversed, but without
the defendant resides in the prejudice to the filing of the action in
Philippines for, in such case, he may be which the venue shall be laid properly.
sued only in the municipality of his With costs against the respondents-
residence, regardless of the place appellees.
where he may be f ound and served
with summons. As any other Concepcion, C.J., Reyes, J.B.L.,
corporation, the Clavecilla Radio Dizon, Makalintal, Bengzon, J.P.,
System maintains a residence which is Zaldivar, Sanchez and Castro, JJ.,
Manila in this case, and a person can concur.
have only one residence at a time (See
Order reversed.
Alcantara vs. Secretary of the Interior,
61 Phil. 459; Evangelista vs. Santos, Notes.—For purposes of venue, the
86 Phil. 387), The fact that it term “residence” is synonymous with
maintains branch offices in some parts “domicile” (Evangelista vs. Santos, 86
of the country does not mean that it Phil. 386, 393; Corre vs. Corre, 100
can be sued in any of these places. To Phil. 321).
allow an action to be instituted in any “When the law creating or
place where a corporate entity has its recognizing them, or any other
branch offices would create confusion provision does not fix the domicile of
and work untold inconvenience to the juridical per
corporation.
It is important to remember, as was 383
stated by this Court in Evangelista vs.
VOL. 19, FEBRUARY 18, 1967 383
American Insurance Co. vs. Manila
Port Service, et al.
sons, the same shall be understood to

be the place where their legal
representation is established or where
they exercise their principal functions”
(Art. 51, New Civil Code).
An action in the Court of First
Instance cannot be brought in the
province where the plaintiff and the
defendant do not reside although the
defendant may be found in that
province (Casilan vs. Tomassi, 90 Phil.
765). In one case the venue provisions
were liberally construed in favor of the
plaintiff and against the defendant
(Philippine Milling Co. vs. Court of
Appeals, 100 Phil. 566).
______________
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380

380 SUPREME COURT REPORTS

APPEAL from an order of dismissal REURTEL WASHED NOT AVAILABLE

sons, the same shall be understood to

© Copyright 2021 Central Book Supply, Inc. All rights reserved.

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