Davao Light and Power Co Inc. Vs CA

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DAVAO LIGHT & POWER CO., INC. v.

CA
G.R. No. 111685 August 20, 2001

FACTS:
Petitioner in here filed a complaint for damages in the amount of 11M before the RTC
of Cebu against respondent Francisco Tesorero. Private respondent filed a Motion to
Dismiss on the ground of improper venue, hence the complaint was dismissed. The
trial court ruled that the plaintiff being a private corporation undoubtedly Banilad,
Cebu City is the plaintiff’s principal place of business as alleged in the complaint and
which for purposes of venue is considered as its residence.

However, in the said motion to dismiss, it is alleged that the principal office of plaintiff
is at 163-165 Reyes Street, Davao City, as borne out by the Contract of Lease and
another Contract of Lease of Generating Equipment executed by the plaintiff with the
NAPOCOR. This then bars the plaintiff from denying the same. The Court is of the
opinion that the principal office of plaintiff is at Davao City which for purposes of
venue is the residence of plaintiff.

Hence, the case should be filed in Davao City.


Petitioner’s motion for reconsideration was denied.
Aggrieved, petitioner appealed to CA but was denied, hence elevated to SC.

ISSUE:
Whether or not venue was proper.

HELD:
Yes. The venue, Cebu City, was proper.
It cannot be disputed that petitioner’s principal office is in Cebu City, per its amended
articles of incorporation and by-laws. An action for damages being a personal action,
venue is determined pursuant to Rule 4, section 2 of the Rules of Court, to wit:

Venue of personal actions. — All other actions may be commenced and tried
where the plaintiff or any of the principal plaintiffs resides, or where the
defendant or any of the principal defendants resides, or in the case of a non-
resident defendant where he may be found, at the election of the plaintiff.

Private respondent is not a party to any of the contracts presented. He is a complete


stranger to the covenants executed between petitioner and NAPOCOR, despite his
protestations that he is privy thereto.

The Court is not persuaded by his argument that the allegation or representation
made by petitioner in either the complaints or answers it filed in several civil cases
that its residence is in Davao City should estop it from filing the damage suit before
the Cebu courts. Besides there is no showing that private respondent is a party in
those civil cases or that he relied on such representation by petitioner.

Petition is granted and appealed decision is reversed and set aside.

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