Republic V Central Surety

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Republic v.

Central Surety
25 SCRA 641

Facts: Republic of the Philippines filed an action against Central Surety for forfeiture of
the bond it issued when Po Kee Kam, a defendant in CID proceedings failed to appear.
The Surety filed a TPC vs. Po Kee Kam on ground that the latter executed an indemnity
agreement in favor of the surety. The TC dismissed the TPC on the ground that the 3rd
party claim is only 6,000.
Held: A Thid Party Complaint is an ancillary suit w/c depends on the jurisdiction of the
court over the main action. Jurisdiction over the main action embraces all the
incidental matters arising therefr. or connected therew/, otherwise there would be split
jurisdiction. The TPC is a continuation of the main action the purpose of w/c is to seek
contribution or any other relief in resp. to opponents claim. Thus, regardless of LOJ over
the amount in TPC, when ct. has jurisdxn. over main action, it has jurisdxn. over the
TPC.
In TPC, the defendant sue in capacity he is being sued w/ resp. to pltf. claim in the main
action. the def. cannot compel the pltf. to implead the third party def. There must also
be privity of contract in relation to the property in litigation.
TEST: there must be a showing that such third party is or might be liable to the def. or
pltf. for all or part of the claim vs. the def.
WON it arises out of the same transaction on w/c pltfs claim is based. ( CAVEAT)
The ct. must wait before the 3rd party def. files his answer before proceeding to trial
since before the answer, the case is not yet ready for trials as issues have not yet been
joined.
Remedies when denied

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