Republic of the Philippines REGIONAL TRIAL COURT 11th Judicial Region Branch ____, Davao City

BONIFACIO CRUZ Plaintiff, -versusAURELIO LARA, doing business under the name of ULTRA Speed Machine Shop and As Metal Products Defendant. Civil Case No. 243 For: Damages, Attorneys Fees and Other Reliefs

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ANSWER WITH AFFIRMATIVE DEFENSES

COMES NOW, the Defendant AURELIO LARA, through the undersigned Counsel and to the Honorable Court most respectfully states that:

ADMISSIONS AND DENIALS 1. Paragraphs 2, 3 and 4 of the Complaint are admitted; 2. The allegations stated in paragraphs 1 and 5 are specifically DENIED for lack of knowledge or information sufficient to form a belief as to the truth thereof; 3. The allegation in paragraph 6 is denied for lack of information or knowledge sufficient to form a reasonable belief thereof; 4. The allegations in paragraph 7 and 8 that a service repair contract was entered into and between the defendant and plaintiff and that the vehicle was received by virtue of the contract are denied the truth being that stated in the affirmative and special defenses hereunder;

5. The allegation in paragraph 9 is denied the truth being that stated in the affirmative and special defenses hereunder; 6. The allegation in paragraph 10 is denied for lack of information or knowledge sufficient to form a reasonable belief; 7. With respect to the allegations in paragraphs 11 and 12 in that a police report was made and a photograph of the accident was taken, are admitted, subject however to the affirmative and special defenses stated hereunder; 8. The allegations in paragraphs 13, 14, 15 and 16 are denied for lack of information or knowledge sufficient to form a reasonable belief thereof; 9. The allegations in paragraph 17 and 18 are denied the truth being that stated in the affirmative and special defenses stated hereunder; 10. The allegations in paragraphs 19 and 20 are denied for lack of knowledge or information sufficient to form a reasonable belief thereof;

AFFIRMATIVE AND SPECIAL DEFENSES

11. The complaint filed by PLAINTIFF failed to state a cause of action thereby rendering it dismissible outright;

No breach of contract 12. That effective December 25, 2011, Aurelio Laxa, the driver of As Metal Products was no longer an employee of the DEFENDANT (as evidenced by the Notice of Termination of Employment Contract posted in the main office of defendant and is hereto attached as Annex 1 and the publishers affidavit that a publication of said notice was made and hereto attached as Annex 2); 13. The alleged service repair contract and receipt of vehicle by ULTRA Speed Machine Shop and As Metal Products was entered into ONLY by Plaintiff Bonifacio Cruz and Aurelio Laxa and NOT by Defendant Aurelio Lara as shown by Annex A of the Complaint;

14. Defendant Aurelio Lara had no knowledge that the subject vehicle was delivered to his shop for repair on December 29, 2011 as no such delivery was entered into at his shops Daily Records which encodes all the services rendered and transactions entered into by ULTRA Speed Machine Shop and As Metal Products to its customers (attached is a copy of the entry for December 29, 2011 on the Daily Records as Annex 3); 15. Neither did the Defendant had any knowledge that the subject vehicle was brought for repair as no such vehicle was seen in the shops premises from December 29, 2011 up to January 2, 2012 when the accident happened nor was an alleged repair of the same was recorded in the shops daily report and inventory (photocopy thereof is attached herewith as Annex 4; 16. The signing of Aurelio Laxa of the aforesaid service repair was without any legal authority and is thus illegal and clearly did not bind the Defendant Owner. It was incumbent upon Plaintiff Bonifacio Cruz to have ascertained the identity of Aurelio Laxa and his capacity to enter into such Service repair contract; 17. Defendant Aurelio Lara did not have any legal possession of the vehicle nor bound itself to be accountable for any and all incidents that may occur while the said vehicle is in their custody; 18. Thus, Defendant cannot be held liable for Breach of Contract as Defendant never became a party to the said Service Repair Contract;

No liability for Quasi-Delict 19. The use of Aurelio Laxa of the subject vehicle was without the consent or knowledge of Defendant Aurelio Lara; 20. As no contract was entered into by Defendant and Plaintiff, Defendant was not duty bound to exercise the utmost diligence of a very cautious person on the care of a vehicle surrendered for repair. Thus, defendant could not be held answerable for any actual damages caused by the accident; 21. After a painstaking review of the Complaint, it is apparent from the allegations therein that it seeks to charge Defendant liable as the employer of Aurelio Laxa for the latters liability for Quasi-delict.

22. However, it is well-settled that an injured party shall only have recourse against the servant as well as the employer for whom, at the time of the incident, the servant was performing an act in furtherance of the interest and for the benefit of the employer. Hence, since Aurelio Laxa was no longer an employee when the accident happened and was not acting in furtherance of the interest of his employer Defendant Aurelio Lara, Defendant cannot possibly incur any liability for the formers conduct nor for any payment of actual, moral, exemplary damages as well as attorneys fees and expenses for litigation; By way of Counterclaim 23. Due to the malicious filing of this instant suit, Defendants have hired the services of the undersigned counsel for an agreed amount of Philippine Pesos: Five Hundred Thousand (PHP 500,000.00) and have suffered sleepless nights and besmirched reputation which when quantified in monetary terms is in the amount of Philippine Pesos: Five Hundred Thousand (PHP 500,000.00)

PRAYER WHEREFORE, in view of the foregoing, Defendant most respectfully prays for the dismissal of the complaint and the award of counterclaim. Other reliefs are likewise prayed for. February 25, 2013. Davao City, Philippines.

VERIFICATION/CERTIFICATION

I, AURELIO LARA, of legal age, Filipino, after having been duly sworn to in accordance with law, hereby depose and say, that: I have caused the preparation of the said Answer with Affirmative Defenses and Counterclaim; I have read, and know the contents thereof; the allegations therein are true and correct of my own knowledge and belief; In connection with the Counterclaim, I certify to the truth and the following facts and undertakings: a) The defendant has not commenced any other action or proceedings involving the same issues in the Supreme Court, the Court of Appeals or any other tribunal or agency; b) To the best of my knowledge, no such action or proceedings is pending in the Supreme Court, the Court of Appeals, or any other tribunal or agency; c) If I should thereafter learn that a similar action or proceeding is pending in the Supreme Court, the Court of Appeals, or any other tribunal or agency, I undertake to report that fact within five (5) days therefrom. IN WITNESS WHEREOF, I have hereunto set my hand this 25th day of February 2013 at Davao City, Philippines.

AURELIO LARA Affiant SUBSCRIBED AND SWORN TO before me on the date and in the place above-written, with affiant exhibiting to me his Community Tax Certificate No. 6981031 issued on January 13, 2013 at Davao City and Drivers License No. L02-06-21147403 issued by LTO Davao, to expire on July 7, 2014. I hereby certify that I have personally examined the affiant and am convinced that he executed and fully understood the contents of the foregoing affidavit.

ATTY. RESCI ANGELLI RIZADA

Doc No.: 31 Page No.: 7 Book No.: I Series of 2013 Roll No. 64336 PTR No. 558899; 01-02-13;D.C. IBP Life Member Roll 453778 MCLE Compliance No. III-986655; 01-09-2012 Issued at Davao City

PADLAN ONTAL RIZADA and TAGUIBAO LAW OFFICES Pryce Tower, J.P. Laurel Avenue, Davao City, Philippines. E-mail: portlawoffices@gmail.com Telephone number: 082-296-1234 Counsel For Aurelio Lara

GLAIZA MAY PADLAN

Roll No. 64338 PTR No. 123456; 01-02-13; D.C. IBP Life Member Roll 445789 MCLE Compliance No. III-897656; 01-10-2012 MCLE Compliance No. III-335512; 01-11-2012 Issued at Davao City Issued at Davao City

BENEDICT ONTAL Roll No. 64337 PTR No. 249755; 01-03-13; D.C. IBP Life Member Roll 890786

RESCI ANGELLI RIZADA

ANGIELI KIM TAGUIBAO

Roll No. 64336 Roll No. 64335 PTR No. 558899; 01-02-13;D.C. PTR No. 224906; 01-02-13;D.C. IBP Life Member Roll 453778 IBP Life Member Roll 341099 MCLE Compliance No. III-986655; 01-09-2012MCLE Compliance No.III-789980;01-10-2012 Issued at Davao City Issued at Davao City

Doc. No. : 30 Page No.: 6 Book : I Series of 2013

Copy Furnished: ATTY. RAYMUND CHRISTIAN ONG-ABRANTES CABADING, CARRILLO, PAGUIDOPON, TAN, ONG-ABRANTES CCPTO Law Firm Suite 203, LandCo Bldg. , Bajada Street, Davao City

Explanation: A Copy of this document was served through registered mail due to lack of material time and personnel.