Posted by: Elmer Brabante | October 1, 2009

Pilipino Telephone Corporation vs. Tecson


Pilipino Telephone Corporation vs. Tecson

G.R. No. 156966

7 May 2004

FACTS:     Mr. Tecson applied for six cellular phone subscriptions with Pilipino Telephone Corporation (PILTEL). The applications were approved and covered by six mobiline service agreements, all of which provides: “Venue of all suits arising from this Agreement or any other suit directly or indirectly arising from the relationship between PILTEL and subscriber shall be in the proper courts of Makati, Metro Manila. Subscriber hereby expressly waives any other venues.”

Mr. Tecson filed with the RTC, Iligan City, Lanao Del Norte, a complaint against petitioner for a “Sum of Money and Damages.” PILTEL moved for the dismissal of the complaint on the ground of improper venue.

ISSUE:     Whether or not the complaint was filed in the wrong venue.

HELD:    Section 4, Rule 4, of the Revised Rules of Civil Procedure allows the parties to agree and stipulate in writing, before the filing of an action, on the exclusive venue of any litigation between them. Such an agreement would be valid and binding provided that the stipulation on the chosen venue is exclusive in nature or in intent, that it is expressed in writing by the parties thereto, and that it is entered into before the filing of the suit.

The provision contained in paragraph 22 of the “Mobile Service Agreement,” a standard contract made out by petitioner PILTEL to its subscribers, apparently accepted and signed by respondent, states that the venue of all suits arising from the agreement, or any other suit directly or indirectly arising from the relationship between PILTEL and subscriber, “shall be in the proper courts of Makati, Metro Manila.” The added stipulation that the subscriber “expressly waives any other venue” should indicate, clearly enough, the intent of the parties to consider the venue stipulation as being preclusive in character.

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