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What is a cross-claim?


Section 8. Cross-claim. — A cross-claim is any claim by one party against a co-party arising out of the transaction or occurrence that is the subject matter either of the original action or of a counterclaim therein. Such cross-claim may include a claim that the party against whom it is asserted is or may be liable to the cross-claimant for all or part of a claim asserted in the action against the cross-claimant. (Rule 6, Rules of Court)


What is a cross-claim?

A cross-claim is any claim by one party against a co-party arising out of the transaction or occurrence that is the subject matter either of the original action or of a counterclaim therein. The cross-claim may include a claim that the party against whom it is asserted is liable or maybe liable to the cross-claimant for all or part of a claim asserted in the action against the cross-claimant (Sec. 8, Rule 6, Rules of Court).

While a counterclaim is asserted by a defending party against a claimant, a cross-claim is asserted by a defending party against a co-defending party so that the latter may be held liable for the claim which the claimant seeks to recover from the cross-claimant.


Example:

A and B obtained a loan from X in the amount of 1M. A turned over all the proceeds of said loan to B. If X sues A and B for the collection of the loan, A may file a cross-claim against his co-defendant B by asserting that it is B who is the actual and true debtor and hence, should be ultimately liable for the payment of the loan.


Where must a cross-claim be set up?

A cross-claim that a defending party has at the time he files his answer shall be contained in said answer. (Sec. 8, Rule 11, Rules of Court)


What happens if the defending party fails to set up a cross-claim?

When a pleader fails to set up a counterclaim or a cross-claim through oversight, inadvertence, or excusable neglect, or when justice requires, he may, by leave of court, set up the counterclaim or cross-claim by amendment before judgment(Sec. 9, Rule 11, Rules of Court)

It has to be set up in the action because if' not set up it shall be barred (Sec. 2, Rule 9, Rules of Court)

Note however, that the cross-claim that shall be barred if not asserted is the cross-claim already existing at the time the answer is filed, not the cross-claim that may mature or may be acquired after service of the answer. As to the latter, Sec. 9 of Rule 11 declares that it may, by leave of court, be set up by way of a supplemental pleading.


When should a cross-claim be answered?

A cross-claim must be answered within ten (10) days from service (Sec. 4, Rule 11, Rules of Court).

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