MICHAEL C.

PAYUMO
REMEDIAL LAW

1. What is an actionable document?

Whenever an action or defense is based upon a written instrument of document.

2. Is the Progress Billing an Actionable Document? If yes, what is the implication as to B?

If not, explain why.
The Progress Billing is an actionable document. The implication as to B is that the latter is
bound by the agreement stated in the Progress Billing, whereby A will be paid by B according
to a pre-defined schedule that is dependent on the extent of construction progress which
they referred to a “Progress Billing”.

3. Will your answer be the same if A attached to his complaint the Construction Agreement
instead? Explain.

No. My answer will not be the same if A attached to his complaint the Construction
Agreement instead.

Under the Construction Agreement, A, for P50 Million as consideration, will construct B’s
building on a land owned by B located in Baguio City.

Construction Agreement only provide details on the alleged transactions. This document
need not be attached to or stated in the complaint as it is only evidentiary in nature.

4. Upon receipt of the Summons on September 15, 2023, B went to you to seek legal advice.
He intends to deny any liability, whatsoever, in favor of A. He denies the existence of any
valid contract between them. What kind of denial should he make? Draft a sample denial for
B.

B should make a general denial. Because B here, the defendant alleges having no knowledge
or information sufficient to form a belief.
REPUBLIC OF THE PHILIPPINES)
CITY OF BAGUIO ) S.S.
x-------------------------------------x

AFFIDAVIT OF DENIAL

I, _B_, of legal age, Filipino, (single/married/widow) and a resident of

_San Fernando La Union_, after having been duly sworn to in accordance
with law, depose and state:

1. That I was born on ________________ in

__________________________;

2. That I established my permanent residence in San Fernando La Union,

Philippines;

3. That on _January 5, 2023, while on vacation in Baguio City, A and I

entered into a Construction Agreement whereby A, for P50 Million as
consideration, will construct my building on a land which I owned located in
Baguio City. Under the terms of our agreement, the building should be
completed and turned over to me on July 30, 2023;

4. That I hereby unequivocally deny the existence of any valid contract.

5. That I also declare under oath any liability from A;

6. That I am executing this Affidavit to attest to the foregoing facts and to

deny absolutely and entirely the existence of a valid contract for all
legal intents and purposes.

IN WITNESS WHEREOF, I hereby affixed my signature

this ___________________ in Baguio City, Benguet Province, Philippines.

____________________
Affiant

SUBCRIBED AND SWORN TO before me this _____________ in

______________, Philippines, affiant exhibiting to me his/her competent
evidence of identity by way of ______________ issued at _____________
on ______________.
Doc. No. _____;
Page No. _____;
Book No. _____;
Series of 2013.

5. If B tells you that while he admits the existence the Construction Agreement between him
and A, but he now claims to have paid A in full for his services. What kind of denial should B
make? Draft a sample denial for B.

B should make a specific denial.

REPUBLIC OF THE PHILIPPINES)

CITY OF BAGUIO ) S.S.
x-------------------------------------x

AFFIDAVIT OF DENIAL

I, _B_, of legal age, Filipino, (single/married/widow) and a resident of

_San Fernando La Union_, after having been duly sworn to in accordance
with law, depose and state:

1. That I was born on ________________ in

__________________________;

2. That I established my permanent residence in San Fernando La Union,

Philippines;

3. That on _January 5, 2023, while on vacation in Baguio City, A and I

entered into a Construction Agreement whereby A, for P50 Million as
consideration, will construct my building on a land which I owned located in
Baguio City. Under the terms of our agreement, the building should be
completed and turned over to me on July 30, 2023;
4. That I hereby unequivocally deny that we executed a schedule of payment
whereby A will be paid according to a pre-defined schedule that is dependent
on the extent of construction progress which was referred to as a “Progress
Billing”.

5. That I also declare under oath the denial of execution of the Progress
Billing as the basis of my liability;

6. That the only basis of our contract was the Construction Agreement
nothing more nothing less; and

7. That I am executing this Affidavit to attest to the foregoing facts and to

deny absolutely and entirely the existence of Progress Billing agreement for
all legal intents and purposes.

IN WITNESS WHEREOF, I hereby affixed my signature

this ___________________ in Baguio City, Benguet Province, Philippines.

____________________
Affiant

SUBCRIBED AND SWORN TO before me this _____________ in

______________, Philippines, affiant exhibiting to me his/her competent
evidence of identity by way of ______________ issued at _____________
on ______________.

Doc. No. _____;

Page No. _____;
Book No. _____;
Series of 2013.

6. This time, B claims that A also owes him P10 Million which he borrowed to put up his
construction company in 2022. B asks you if he must bring up this claim against A in the
collection complaint A filed against him? If not, explain why. If yes, illustrate how B can raise
this claim against A.

Yes. B may also bring up his claim against A in the collection complaint filed by A against him
provided that he paid for the corresponding docket fees for such claim. Because B’s claim is a
permissive counterclaim. Permissive counterclaim does not arise out of or is not necessarily
 connected with the subject matter of the opposing party’s claim. Hence B should pay first
the corresponding docket fees for the 10Million claim.

7. Impressed with your responses to his questions, B now wants your legal services as his
counsel in the complaint filed by A against him. He now asks you to draft his Answer and for
him to fully understand, he asks you to identify all the parts of the Answer and briefly discuss
each of them. Write down all the parts of B’s Answer and briefly discuss each.

Comes Now Defendant B, by counsel and unto this Honorable Court, respectfully states and
avers that:

1. Defendant admits the allegations contained in paragraph 1 of the Complaint regarding

the construction agreement entered into by the Plaintiff and the Defendant.
2. Defendant strongly denies the allegations contained in paragraph 3 of the complaint.
Insofar as Progress Billing is concerned, and the execution of scheduled of payment, the
defendant specifically denies such agreement.
3. That the Plaintiff owes 10 million to the defendant which he borrowed to put up his
construction company in 2022. And that the same is due and demandable.
4. The docket fees insofar as the 10 million has ben paid by the defendant.

8. B is claiming that his brother C, is actually the owner of the building constructed by A, only
that C asked him to execute the agreement with A because C is based in Cebu City. B now
asks you if he can implead C. If you respond in the affirmative, explain how and what
pleading will you file. If you answer in the negative, explain why.

Yes. B can implead C. C is a necessary party, he is one who is not indispensable but who
ought to be joined as a party if complete relief is to be accorded as to those already parties,
of for a complete determination or settlement of the claim subject of the action.

B may file a permissive joinder of parties, All persons in whom or against whom any right to
relief in respect to or arising out of the same transaction or series of transactions is alleged
to exist, whether jointly, severally, or in the alternative, may, except as otherwise provided in
these Rules, join as plaintiffs or be joined as defendants in one complaint, where any
question of law or fact common to all such plaintiffs or to all such defendants may arise in
the action; but the court may make such orders as may be just to prevent any plaintiff or
defendant from being embarrassed or put to expense in connection with any proceedings in
which he may have no interest.

9. Out of curiosity, B asks you if he can file a motion to dismiss instead. What will your answer
be? If yes, on what ground or grounds? If not, explain fully.

No B cannot file a motion to dismiss. Because under the Revised Rules of Court, a motion to
dismiss is a prohibited pleading except when it raises any of the following grounds: (1) the
court’s lack of jurisdiction over the subject matter of the claim; (2) the pendency of another
action between the same parties for the same cause; and (3) the cause of action is barred by
a prior judgment or by the statute of limitations. Which is not available in the present case.
10. B is undecided between filing a Motion to Dismiss and filing his Answer and asks you to draft
first a Motion to Dismiss. Draft it.

COMES NOW the Respondent, _B_ Inc., through the undersigned counsel, appearing
especially and solely for this purpose, and to this Honorable Court, most respectfully moves
for the dismissal of the Complaint on the following ground that THE HONORABLE COURT
HAS NOT ACQUIRED JURISDICTION OVER THE PERSON OF THE DEFENDING PARTY.

11. B finally decided to file his Answer, when should he file it?
Yes.
12. After filing B’s Answer, he went back to you showing to you the Official Receipts issued by A
for the payments he made prior to the filing of A’s complaint and wants you to present them
as part of his defense. He asks you if he can amend his Answer or submit a supplemental
Answer instead. What will your advice be? Explain.

B may submit supplemental pleadings. Upon motion of B the court may, upon reasonable
notice and upon such terms are just, permit him to serve a supplemental pleading setting
forth transactions, occurrence or events which have happened since the date of the pleading
sought to be supplemented.

13. Are pleadings required by the rules to be verified? If not, explain. If yes, identify the
pleadings that must be verified.

As a general rule, a pleading need not be verified, unless there is a law or rule specifically
requiring the same.

Examples of pleadings that require verification are:

(1) All pleadings filed in civil cases under the 1991 Revised Rules on Summary Procedure;
(2) petition for review from the Regional Trial Court to the Supreme Court raising only
questions of law under Rule 41, Section 2;
(3) petition for review of the decision of the Regional Trial Court to the Court of Appeals
under Rule 42, Section 1;
(4) petition for review from quasi-judicial bodies to the Court of Appeals under Rule 43,
Section 5;
(5) petition for review before the Supreme Court under Rule 45, Section 1;
(6) petition for annulment of judgments or final orders and resolutions under Rule 47,
Section 4;
(7) complaint for injunction under Rule 58, Section 4;
(8) application for preliminary injunction or temporary restraining order under Rule 58,
Section 4;
(9) application for appointment of a receiver under Rule 59, Section 1;
(10) application for support pendente lite under Rule 61, Section 1;
 (11) petition for certiorari against the judgments, final orders or resolutions of constitutional
commissions under Rule 64, Section 2;
(12) petition for certiorari, prohibition, and mandamus under Rule 65, Sections 1 to 3;
(13) petition for quo warranto under Rule 66, Section 1;
(14) complaint for expropriation under Rule 67, Section 1;
(15) petition for indirect contempt under Rule 71, Section 4, all from the 1997 Rules of
Court;
(16) all complaints or petitions involving intra-corporate controversies under the Interim
Rules of Procedure on Intra-Corporate Controversies;
(17) complaint or petition for rehabilitation and suspension of payment under the Interim
Rules on Corporate Rehabilitation; and
(18) petition for declaration of absolute nullity of void marriages and annulment of voidable
marriages as well as petition for summary proceedings under the Family Code.

14. Is motion a pleading?

No. Motion is defined as an application for relief other than by a pleading as provided in the
Rules of Court.

15. Are motions required by the rules to be verified? If not, explain. If yes, identify the motions
that must be verified.

Not all motions need to be verified. When a motion that contain facts that are not in the
court record, the same shall require verification to be admitted by the court.

Verified motions are sworn and notarized documents used in court proceedings and supply
facts outside of the record.

A motion is verified when a verification, a signed and notarized statement in which a witness
swears that the facts presented in the motion are true, is part of the motion that contains
facts that are not in the court record.