Republic of the Philippines REGIONAL TRIAL COURT

10TH Judicial Region

Branch
Cagayan de Oro City

XXXXX,
Plaintiff,
Civil Case No.
‐ versus For: Sum of Money
YYYYY,
Defendant.
x ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ x

ANSWER
(With COUNTERCLAIM)

DEFENDANT, through counsel, by way of answer to plaintiff’s complaint,

respectfully states that:
Admissions/Denials

1. He admits the allegations in paragraph 2 of the Complaint regarding his personal

circumstances;

2. He is without knowledge or information to form a belief as to the truth

of the allegations in paragraphs 1, 4, 5, and 6 of the Complaint;

3. He specifically denies each and every material allegation in paragraph 3 of the

Complaint, since such allegations are maliciously false and meant only to unjustly
enrich Plaintiff at Defendant’s expense. The truth is the principal obligation amounts
to only Six Hundred Thousand Pesos (P600,000.00), but due to unconscionable
interests, excessive penalties and other charges, Defendant was deceived into signing
a receipt that showed, as Defendant much later on learned, the aggregate amount of
indebtedness to be Nine Hundred Thousand Pesos (P900,000.00), inclusive of the
unconscionable interests, excessive penalties, and other charges;

Special and Affirmative Defenses

4. The complaint does not state a cause of action and is a sham pleading;

4.1 On or about June 28, 2005, Defendants incurred an indebtedness of Three

Hundred Fifty Thousand Pesos (P350,000.00) with Plaintiff;

4.2 Due to a close and long relationship with Plaintiff, Defendant was deceived
into signing a receipt which he thought contained only a reasonable rate of
interest per Defendant’s oral agreement with Plaintiff;

4.3 Upon securing a copy of the receipt much later, Defendant discovered to his
utter surprise that the rate of interest indicated on the receipt is five (5%)
percent per month, or sixty (60%) percent per annum;

4.4 Defendants were perplexed that their indebtedness continued to increase

despite the fact that they had already paid Plaintiff the following amounts:
 P150,000.00 on July 12, 2005 and P250,000.00 on September 8, 2008, more
than the principal obligation of P350,000.00. [Photocopies of payment receipts
are hereto attached as Annexes “A” to “A‐9” and are made an integral part of
this Answer.]
Counterclaim

5. Defendant additionally submits that he is entitled to relief arising from the filing of
this malicious and baseless suit, as follows:

5.1 Moral Damages amounting to Fifty Thousand Pesos (P50,000.00) because his
name and reputation were besmirched by this malicious and baseless suit.

5.2 Despite full payment by Defendant of the principal obligation, Plaintiff has
instituted the instant malicious suit which compelled Defendant to engage the
services of counsel, in order to protect Defendant’s interests, for an agreed
professional fee of P200,000.00, plus an appearance fee of P5,000.00 per
hearing.

5.3 Defendants also incurred other litigation expenses in the sum of P 50,000.00.
For all of said fees and litigation expenses, Plaintiff should be adjudged liable
to Defendant.

WHEREFORE, Defendant respectfully prays that judgment be rendered in his favor

by dismissing the Complaint and granting defendant's counterclaim by awarding
defendant: (a) Fifty Thousand Pesos (P50,000.00) as Moral Damages, and (b) Two
Hundred Thousand Pesos (P200,000.00) plus Five Thousand Pesos (P5,000.00) for every
hearing attended by Defendant’s counsel as Attorney's Fees.

Other just and equitable reliefs are prayed for. Quezon City for Muntinlupa City,
October 11, 2007.
Cagayan de Oro City, July 5, 2008.

ZZZZZ
Counsel for Defendant
Ternate Bldg, Carmen,
Cagayan de Oro CIty
Attorney’s Roll No. 35748
IBP No. 23875‐01/03/08 Mis Or. PTR No. 453321‐01/03/08 CDO
MCLE Compliance No. II‐0005676‐Nov. 17, 2007

Copy furnished through personal service: