2013 Remedial Law, Q1

Alfie Bravo filed with the Regional Trial Court of Caloocan, a complaint for a sum of money against Charlie Delta. The claim is for Php1.5Million. The complaint alleges that Charlie borrowed the amount from Alfie and duly executed a promissory note as evidence of the loan. Charlie’s office secretary, Esther, received the summons at Charlie’s office.
Charlie failed to file an answer within the required period, and Alfie moved to declare Charlie in default and to be allowed to present evidence ex parte. Ten days later, Charlie filed his verified answer, raising the defense of full payment with interest.
I(A) Was there proper and valid service of summons on Charlie? (3%)
I(B) If declared in default, what can Charlie do to obtain relief? (4%)

Quick check

When is substituted service of summons on a defendant's secretary valid in an action in personam?

What is the legal effect of improper service of summons on a defendant who does not voluntarily appear?

What must a defaulted defendant show in a verified motion to set aside an order of default under Rule 9?

What should the trial court do if a defendant files an answer after the deadline but before being declared in default?

What is the proper appellate remedy for a defendant against whom a default judgment has been rendered by the RTC?

Learn more about these topics

1. Substituted Service Validity
Under Rule 14 of the Rules of Court, service of summons in an action in personam must primarily be effected through personal service upon the defendant. Substituted service, such as leaving a copy of the summons at the defendant's office with a competent person in charge like a secretary, is extraordinary and permissible only after demonstrating that personal service could not be effected despite diligent efforts. Failure to establish the impossibility of personal service renders the substituted service invalid, preventing the trial court from acquiring jurisdiction over the person of the defendant.

2. Relief From Default
Under Rule 9, Section 3(b) of the Rules of Court, a party declared in default may file a motion under oath to set aside the order of default at any time after notice thereof and before judgment. The motion must demonstrate that the failure to answer was due to fraud, accident, mistake, or excusable negligence, and that the defendant has a meritorious defense. If a judgment by default has already been rendered, the defaulted defendant may file a motion for new trial, an ordinary appeal, or a petition for relief from judgment depending on the status of the judgment.

3. Admission of Answer
Under Philippine civil procedure jurisprudence, courts look upon default orders with disfavor, preferring to resolve cases on the merits rather than on technicalities. When a defendant files a verified answer after the expiration of the reglementary period but before being formally declared in default by the court, the trial court should admit the belated answer. Because the motion to declare in default had not yet been granted when the answer raising full payment was submitted, declaring the defendant in default constitutes grave abuse of discretion.

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