LIM TECK CHUAN VS.

UY 752 SCRA 268

KEY DOCTRINE: The dismissal of the complaint does not necessarily result to the dismissal of
the counterclaim.

Facts:
Respondents, including the plaintiff, filed for joint dismissal of the case. It was granted by the
RTC, dismissing also the petitioners counterclaim and cross-claim.

The Court ruled that petitioners preference to have his counterclaim prosecuted in the same
action is valid and in accordance with Section 2, Rule 17 of the Rules of Court.

Issue: Whether or not the dismissal of the complaint in a main case will result to the dismissal
of the counterclaim in the same action.

Held:
A dismissal of an action is different from a mere dismissal of the complaint. Since only the
complaint and not the action is dismissed, the defendant in spite of said dismissal may still
prosecute his counterclaim in the same action.

Mary Michelle Ong