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DIONISIO
FACTS:
Plaintiff filed a lawsuit against the defendant in the municipal court of Makati,
Rizal, on January 22, 1972, seeking payment of P 2,100 plus a 12% annual penalty and
P 751.30 as attorney's fees and litigation expenses. The amount of P 2,100 is the
amount of association dues assessed on the defendant's lot as a member of the
plaintiff's association. On February 16, 1972, the defendant filed an answer in which he
refuted all of the allegations in the complaint and asserted the following special
defenses: 1) There is no privity of contract between the plaintiff and the defendant; 2) the
collection of alleged dues from its members is in reality an unlawful exercise of the
power of taxation that is beyond the plaintiff's corporate power; 3) the amount sought to
be collected is unreasonable and oppressive; and 4) the assessment of the dues upon
the defendant insofar as he has not voluntarily affiliated with plaintiff is illegal, immoral,
and contrary to the plaintiff's corporate power. As a result, the defendant files a
counterclaim for P 2,000 for attorney's fees and expenses of litigation.
ISSUE:
RULING: