The New Cagayan Grocery filed a complaint against CRS for some irregularities in the transmission of a message which changed the context and purport causing damages. The complaint was filed in the City Court of Cagayan de Oro.

Whether the action will prosper?

No. The action was based on tort and not upon a written contract and as such, under the Rules of Court, it should be filed in the municipality where the defendant or any of the defendants resides or may be served with summons.

Settled is the principle in corporation law that the residence of a corporation is the place where the principal office is established. Since it is not disputed that CRS has its principal office in Manila, it follows that the suit against it may properly be filed in the City of Manila.

The fact that CRS maintains branch office in some parts of the country does not mean that it can be sued in any of these places. To allow such would create confusion and work untold inconveniences to the corporation.

CTO: Cesar Nickolai F. Soriano Jr.

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