Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 2010 > November 2010 Decisions > G.R. No. 190754 : November 17, 2010 SAN PEDRO CINEPLEX PROPERTIES, INC., Petitioner, v. HEIRS OF MANUEL HUMADA ENAÑO, represented by VIRGILIO A. BOTE, Respondents.:




THIRD DIVISION

G.R. No. 190754 : November 17, 2010

SAN PEDRO CINEPLEX PROPERTIES, INC., Petitioner, v. HEIRS OF MANUEL HUMADA ENAÑO, represented by VIRGILIO A. BOTE, Respondents.

R E S O L U T I O N

CARPIO MORALES, J.:

For consideration is petitioner’s Motion for Reconsideration of the Court’s Resolution of February 15, 2010 denying outright its petition for review on certiorari for failure to sufficiently show that the Court of Appeals committed any reversible error in the challenged decision and resolution.

The antecedents, as culled from the records, are as follows:chanroblesvirtuallawlibrary

Respondents filed on August 17, 2006 a complaint for quieting of title with damages against petitioner before the Regional Trial Court (RTC) of San Pedro, Laguna, which complaint was raffled to Branch 93 thereof.

On October 20, 2006, petitioner filed a Motion to Dismiss[1]cra on the ground that the RTC did not validly acquire jurisdiction over it due to improper service of summons. It argued that, among other things, there was no observance of the rule that service of summons on a defendant-corporation must be made upon its president, general manager, corporate secretary, treasurer or in-house counsel.

Respondents contended, however, that the Officer’s Return showed that the summons addressed to petitioner was served upon and received by Jay Orpiada (Orpiada), its manager. They thus moved to declare petitioner in default for failure to file an Answer within the reglementary period.[2]cralaw

Close to 11 months after petitioner filed a Motion to Dismiss or on September 10, 2007, it filed a Motion to Withdraw [its still unresolved]cra Motion to Dismiss and to Admit Answer. On even date, the trial court denied petitioner’s motion to dismiss and, acting on the motion of respondents which they had filed after petitioner’s filing of the Motion to Dismiss, declared petitioner in default.

Petitioner challenged the trial court’s order of default via certiorari, prohibition and mandamus before the Court of Appeals.

By Decision of August 12, 2009,[3]cra the appellate court dismissed the petition, holding that, among other things, the trial court properly acquired jurisdiction over petitioner via manager Orpiada; any flaw in the service of summons was cured by petitioner’s voluntary submission to the trial court’s jurisdiction when it filed the Motion to Withdraw Motion to Dismiss and to Admit Answer; and the trial court unerringly declared petitioner in default for failure to file an Answer within the reglementary period.

Its Motion for Reconsideration having been denied by Resolution dated December 17, 2009,[4]cra petitioner sought relief from this Court via petition for review on certiorari.[5]cralaw

As reflected earlier, the Court denied outright the petition by Resolution of February 15, 2010.[6]cralaw

In the present Motion for Reconsideration,[7]cra petitioner avers that, among other things, service of summons upon Orpiada violated the rules and cannot bind it; the trial court should have been more liberal considering that it took more than 10 months to resolve petitioner’s Motion to Dismiss; and on the merits, it would have been able to establish its ownership of the property subject of the case.

In its Comment[8]cra on the Motion for Reconsideration filed in compliance with this Court’s Resolution[9]cra of August 18, 2010, respondents maintain that Orpiada is the Manager of petitioner corporation within the contemplation of Rule 14, Section 11 of the Rules of Court upon whom service of summons can be made, as in fact Orpiada had previously received, on behalf of petitioner, a document from the RTC of San Pedro, Laguna; and no Answer of petitioner had actually been filed since the trial court had denied its Urgent Motion to Withdraw Motion to Dismiss and to Admit Answer.

Replying [With Motion to Cite Respondents and their Counsel in Direct Contempt of Court]cra , [10]cra petitioner maintains that the service of summons upon Orpiada was patently defective, but more importantly, argues that respondents should be cited in contempt for submitting a forged Certification[11]cra dated May 4, 2010 allegedly signed by Acting Deputy Register of Deeds Marites C. Tamayo of the Land Registration Authority of Calamba, Laguna stating that the original copies of petitioner’s TCT Nos. T-309608, 309609 and 309610 could not be located, which certification was disowned by Atty. Tamayo herself in her letter-reply[12]cra of June 7, 2010.

After a considered hard look at the case, the Court finds petitioner’s Motion for Reconsideration impressed with merit.

In view of petitioner’s prayer for the remand of the case to the trial court which amounts to submission to the trial court’s jurisdiction, the Court finds it unnecessary to dwell on the issue of service of summons.

What is crucial is the trial court’s assailed declaration of default.

Petitioner correctly points out that the rule is that a defendant's answer should be admitted where it is filed before a declaration of default and no prejudice is caused to the plaintiff. Indeed, where the answer is filed beyond the reglementary period but before the defendant is declared in default and there is no showing that defendant intends to delay the case, the answer should be admitted.[13]cralaw

In the case at bar, it is inconsequential that the trial court declared petitioner in default on the same day that petitioner filed its Answer. As reflected above, the trial court slept on petitioner’s Motion to Dismiss for almost a year, just as it also slept on respondents’ Motion to Declare petitioner in Default. It was only when petitioner filed a Motion to Withdraw Motion to Dismiss and to Admit Answer that it denied the Motion to Dismiss, and acted on/granted respondents’ Motion to Declare petitioner in Default. This is procedurally unsound.

The policy of the law is to have every litigant's case tried on the merits as much as possible. Hence, judgments by default are frowned upon. A case is best decided when all contending parties are able to ventilate their respective claims, present their arguments and adduce evidence in support thereof. The parties are thus given the chance to be heard fully and the demands of due process are subserved. Moreover, it is only amidst such an atmosphere that accurate factual findings and correct legal conclusions can be reached by the courts.[14]cralaw

WHEREFORE, petitioner’s Motion for Reconsideration is GRANTED. The Court’s Resolution of February 15, 2010 is set aside and the case is remanded to the court of origin, the Regional Trial Court of San Pedro, Laguna, Branch 93, which is directed to admit petitioner’s Answer and to thereafter take appropriate action with dispatch on the case.

SO ORDERED.

CONCHITA CARPIO MORALES
Associate Justice

WE CONCUR:chanroblesvirtuallawlibrary

ARTURO D. BRION
Associate Justice

LUCAS P. BERSAMIN
Associate Justice

MARTIN S. VILLARAMA, JR.
Associate Justice

MARIA LOURDES P.A. SERENO
Associate Justice

ATTESTATION

I attest that the conclusions in the above Resolution were reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division.

CONCHITA CARPIO MORALES
Chairperson

CERTIFICATION

Pursuant to Section 13, Article VIII of the Constitution, and the Division Chairperson’s Attestation, I certify that the conclusions in the above Resolution had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division.

RENATO C. CORONA
Chief Justice

 


cralaw Endnotes:

[1]cra Rollo, pp. 62-67.

[2]cra Id. at 28-29.

[3]cra Id. at 27-36; penned by Associate Justice Japar B. Dimaampao, with the concurrence of Associate Justices Magdangal M. De Leon and Sixto C. Marella , Jr..

[4]cra Id. at 38-39.

[5]cra Id. at 3-25.

[6]cra Id. at 42.

[7]cra Id. at 44-61.

[8]cra Id. at 185-199.

[9]cra Id. at 184.

[10]cra Id. at 201-214.

[11]cra Id. at 219

[12]cra Id. at 220-221.

[13]cra Sablas v. Sablas, G.R. No. 144568, July 3, 2007, 526 SCRA 292, 298.

[14]cra Id. at 299.




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  • G.R. No. 189326 : November 24, 2010 PEOPLE OF THE PHILIPPINES, Appellee, v. FRANCISCO RELOS, SR., Appellant.

  • G.R. No. 189239 : November 24, 2010 SPOUSES LETICIA & JOSE ERVIN ABAD, SPS. ROSARIO AND ERWIN COLLANTES, SPS. RICARDO AND FELITA ANN, SPS. ELSIE AND ROGER LAS PIÑAS, LINDA LAYDA, RESTITUTO MARIANO, SPS. ARNOLD AND MIRIAM MERCINES, SPS. LUCITA AND WENCESLAO A. RAPACON, SPS. ROMEO AND EMILYN HULLEZA, LUZ MIPANTAO, SPS. HELEN AND ANTHONY TEVES, MARLENE TUAZON, SPS. ZALDO AND MIA SALES, SPS. JOSEFINA AND JOEL YBERA, SPS. LINDA AND JESSIE CABATUAN, SPS. WILMA AND MARIO ANDRADA, SPS. RAYMUNDO AND ARSENIA LELIS, FREDY AND SUSANA PILONEO, Petitioners, v. FIL-HOMES REALTY and DEVELOPMENT CORPORATION and MAGDIWANG REALTY CORPORATION, Respondents.

  • G.R. No. 183699 : November 24, 2010 PEOPLE OF THE PHILIPPINES, Appellee, v. ROSALIE COLILAP BAÑAGA, Appellant.

  • G.R. No. 188412 : November 22, 2010 CITIBANK, N.A., Petitioner, v. ATTY. ERNESTO S. DINOPOL, Respondent.

  • G.R. No. 188051 : November 22, 2010 ASIA UNITED BANK, Petitioner, v. GOODLAND COMPANY, INC., Respondent.

  • G.R. No. 173428 : November 22, 2010 FROILAN DEJURAS , Petitioner, v. HON. RENE C. VILLA, in his official capacity as Secretary of Agrarian Reform; the BUREAU OF AGRARIAN LEGAL ASSISTANCE, the CENTER FOR LAND USE AND POLICY PLANNING INSTITUTE, the DEPARTMENT OF AGRARIAN REFORM ADJUDICATION BOARD, all of the Department of Agrarian Reform; CONCHITA DELFINO; ANTHONY DELFINO; ARTEMIO ALON; and SM PRIME HOLDINGS, INC., Respondents.

  • G.R. No. 165676 : November 22, 2010 JOSE MENDOZA, cralaw* Petitioner, v. NARCISO GERMINO and BENIGNO GERMINO, Respondents.

  • G.R. No. 150284 : November 22, 2010 SPOUSES ELISEO SEVILLA and ERNA SEVILLA, Petitioners, v. HON. COURT OF APPEALS and PATRICIA VILLAREAL, for herself and in behalf of her children, TRICIA and CLAIRE HOPE VILLAREAL, Respondents.

  • G.R. No. 183868 : November 22, 2010 COMMISSIONER OF CUSTOMS, Petitioner, v. MARINA SALES, INC., Respondent.

  • G.R. No. 172605 : November 22, 2010 PEOPLE OF THE PHILIPPINES , Appellee, v. EVANGELINE LASCANO y VELARDE, Appellant.

  • G.R. No. 185616 : November 24, 2010 THE PEOPLE OF THE PHILIPPINES, Appellee, v. ARNEL MACAFE y NABONG, Appellant.

  • G.R. No. 181858 : November 24, 2010 KEPCO PHILIPPINES CORPORATION, Petitioner, v. Commissioner of Internal Revenue, Respondent.

  • G.R. No. 176260 : November 24, 2010 LUCIA BARRAMEDA VDA. DE BALLESTEROS, Petitioner, v. RURAL BANK OF CANAMAN INC., represented by its Liquidator, the philippine deposit insurance corporation, Respondent.

  • G.R. No. 175887 : November 24, 2010 HEIRS OF THE LATE NESTOR TRIA, Petitioners, v. ATTY. EPIFANIA OBIAS, Respondent.

  • G.R. No. 173339 : November 24, 2010 LEDESCO DEVELOPMENT CORPORATION, Petitioner, v. WORLDWIDE STANDARD INTERNATIONAL REALTY, INC., Respondent.

  • G.R. No. 160933 : November 24, 2010 NICEAS M. BELONGILOT, Petitioner, v. ROLANDO S. CUA, ROEL ERIC C. GARCIA, LORENZO R. REYES, AUGUSTO P. QUIJANO, IANELA G. JUSI-BARRANTES and SALVADOR P. RAMOS, Respondents.

  • G.R. No. 157479 : November 24, 2010 PHILIP TURNER and ELNORA TURNER, Petitioners, v. LORENZO SHIPPING CORPORATION, Respondent.

  • A.M. No. P-10-2781 (Formerly OCA IPI No. 02-1419-P) : November 24, 2010 PASTOR C. PINLAC, Complainant, v. OSCAR T. LLAMAS, Cash Clerk II, Regional Trial Court, Office of the Clerk of Court, San Carlos City, Pangasinan, Respondent.

  • G.R. No. 173815 : November 24, 2010 MILWAUKEE INDUSTRIES CORPORATION, Petitioner, v. COURT OF TAX APPEALS and COMMISSIONER OF INTERNAL REVENUE, Respondents.

  • [G.R. No. 180914 : November 24, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. DOMINGO DOMINGUEZ, JR., ALIAS "SANDY," ACCUSED-APPELLANT.

  • [G.R. No. 184599 : November 24, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. TEDDY BATOON Y MIGUEL AND MELCHOR BATOON Y MIGUEL, ACCUSED-APPELLANTS.

  • [G.R. No. 185766 : November 23, 2010] CIVIL SERVICE COMMISSION, PETITIONER, VS. COURT OF APPEALS AND PHILIPPINE CHARITY SWEEPSTAKES OFFICE, RESPONDENTS. [G.R. No. 185767] CIVIL SERVICE COMMISSION, PETITIONER, VS. COURT OF APPEALS AND PHILIPPINE CHARITY SWEEPSTAKES OFFICE, RESPONDENTS.

  • [A.M. No. P-09-2603 (Formerly A.M. No. 08-7-221-MeTC) : November 23, 2010] RE: HABITUAL ABSENTEEISM OF MR. NELSON G. MARCOS, SHERIFF III, METROPOLITAN TRIAL COURT, OFFICE OF THE CLERK OF COURT, CALOOCAN CITY.

  • [G.R. No. 166566 : November 23, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. WENCESLAO DERI y BENITEZ, ACCUSED-APPELLANT.

  • [A.M. No. MTJ-08-1719] : November 23, 2010] ATTY. ARNOLD B. LUGARES, COMPLAINANT, VS. JUDGE LIZABETH GUTIERREZ-TORRES, METROPOLITAN TRIAL COURT, BRANCH 60, MANDALUYONG CITY, RESPONDENT. [A.M. NO. MTJ-08-1722A.M. No. MTJ-08-1719] JOSE MARIA J. SEMBRANO, COMPLAINANT, VS. JUDGE LIZABETH GUTIERREZ-TORRES, PRESIDING JUDGE METROPOLITAN TRIAL COURT, BRANCH 60, MANDALUYONG CITY, RESPONDENT. [ A.M. NO. MTJ-08-1723A.M. No. MTJ-08-1719 ] MARCELINO LANGCAP, COMPLAINANT, VS. JUDGE LIZABETH GUTIERREZ-TORRES, PRESIDING JUDGE METROPOLITAN TRIAL COURT, BRANCH 60, MANDALUYONG CITY, RESPONDENT.

  • [A.M. No. P-06-2225 (Formerly OCA IPI No. 04-2027-P), November 23, 2010] BERNALETTE L. RAMOS, COMPLAINANT, VS. SUSAN A. LIMETA, LEGAL RESEARCHER, RESPONDENT.

  • [A.M. No. P-06-2211 (Formerly A.M. No. 06-5-175-MTC) : November 23, 2010] OFFICE OF THE COURT ADMINISTRATOR, COMPLAINANT, VS. MS. ROSEBUEN B. VILLETA, CLERK OF COURT II, MUNICIPAL TRIAL COURT, OTON, ILOILO, RESPONDENT.

  • [G.R. No. 148269 : November 22, 2010] PRESIDENTIAL AD HOC FACT-FINDING COMMITTEE ON BEHEST LOANS THRU THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT, REPRESENTED BY ATTY. ORLANDO L. SALVADOR, PETITIONER, VS. HON. ANIANO DESIERTO, IN HIS CAPACITY AS OMBUDSMAN, ULPIANO TABASONDRA, ENRIQUE M. HERBOSA, ZOSIMO C. MALABANAN, ARSENIO S. LOPEZ, ROMEO V. REYES, NILO ROA, HERADEO GUBALLA, FLORITA T. SHOTWELL, BENIGNO DEL RIO, JUAN F. TRIVIÑO, SALVADOR B. ZAMORA II, AND JOHN DOES, RESPONDENTS.

  • [G.R. No. 179898 : November 22, 2010] MAUNLAD HOMES, INC., N.C. PULUMBARIT, INC., N.C.P. LEASING CORPORATION, AND NEMENCIO C. PULUMBARIT, SR., PETITIONERS, VS. UNION BANK OF THE PHILIPPINES AND JULIE C. GO, RESPONDENTS.

  • [G.R. No. 150318 : November 22, 2010] PHILIPPINE TRUST COMPANY (ALSO KNOWN AS PHILTRUST BANK), PETITIONER, VS. HON. COURT OF APPEALS AND FORFOM DEVELOPMENT CORPORATION, RESPONDENTS.