Conflicts case digest Corp. & Contract

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CLAVECILLA Radio System v. Hon. Agustin Antillon Facts: 1.New Cagayan Grocery (NECAGRO) filed a complaint for damages against Clavecilla Radio system. They alleged that Clavecilla omitted the word ―NOT‖ in the letter addressed to NECAGRO for transmittal at Clavecilla Cagayande Oro Branch. 2.NECAGRO alleged that the omission of the word ―not‖ between the word WASHED and  AVAILABLE altered the contents of the same causing them to suffer from damages. 3.Clavecilla filed a motion to dismiss on the ground of failure to state a cause of action and improper venue. 4.City Judge of CDO denied the MTD. Clavecilla filed a petition for prohibition with preliminary Injunction with the CFIpraying that the City Judge be enjoined from furthe r proceeding with the case because of improper venue. 5.CFI  – dismissed the case and held that Clavecilla may be sued either in Manila (principal office) or in CDO (branchoffice). 6.Clavecilla appealed to the SC contending that the suit against it should be filed in Manila where it holds its principaloffice. Issue:WON the present case against Clavecilla should be filed in Manila where it holds its principal office. Held:YES It is clear that the case from damages is based upon a written contract. Under par. (b)(3) Sec. 1 Rule 4 of the New Rules of Court, when an action is not upon a written contract then the case should be filed in the municipality where the defendant or any of the defendant resides or maybe served upon with summons. In corpo. Law, the residence of the corporation is the place whe re the principal office is established. Since Clavecilla’s  

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