Practice question
A derivative plaintiff and defendant privately sign a compromise and claim it necessarily ends the corporate action without court approval. Which Rule8 provision matters?
- Section2 forbids that discontinuance or compromise without court approval
- Any private signature automatically terminates the case
- Only the amount of the settlement controls
- The corporate claim belongs exclusively to the plaintiff personally
- Every settlement must be rejected regardless of merits
Legal references
- IRPIC Rule8 Sections1–2, official SupremeCourt codification p1951: https://elibrary.judiciary.gov.ph/assets/pdf/journals/Collation_and_Codification_of_SC_Issuance_DIGITAL.pdf
- Tan v. Suntay, GR260170, May19 2025, main resolution: https://lawphil.net/judjuris/juri2025/may2025/gr_260170_2025.html
Answer this question in flashcards to review your response and continue practicing.