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Allied Bank vs CA and BPI

ALLIED BANKING CORPORATION, petitioner, vs. COURT OF APPEALS and BANK OF THE PHILIPPINE ISLANDS, INC., respondents.

G.R. No. 123871 | 1998-08-31

D E C I S I O N

PANGANIBAN, J.:

As a general rule, a trial court that has established jurisdiction over the main action also acquires jurisdiction over a third-party complaint, even if it could not have done so had the latter been filed as an independent action. This rule, however, does not apply to banks that have agreed to submit their disputes over check clearings to arbitration under the rules of the Philippine Clearing House Corporation. In that event, primary recourse should be to the PCHC Arbitration Committee, without prejudice to an appeal to the trial courts. In other words, without first resorting to the PCHC, the third-party...