Title
Ang vs. Chinatrust Commercial Bank Corp.
Case
G.R. No. 200693
Decision Date
Apr 18, 2016
Chinatrust sued Nation Petroleum and individuals for $458,614.84. Summons served improperly; only Ricky Ang validly served. SC dismissed case against most defendants for invalid service, upheld case against Ricky Ang.

Case Digest (G.R. No. 200693)
Expanded Legal Reasoning Model

Facts:

  • Case Background
    • The petition for review on certiorari seeks to reverse the Court of Appeals’ decisions dated April 29, 2011, and January 30, 2012, arising from the RTC’s handling of Civil Case No. 06-872.
    • The case involves multiple parties:
      • Petitioners – Nena C. Ang; Spouses Renato C. Ang and Pauline Ang; Spouses Guillermo Sy and Alison Ang‑Sy; Nelson C. Ang; Ricky C. Ang; and Melinda C. Ang.
      • Respondents – Chinatrust (Philippines) Commercial Bank Corporation and The Asian Debt Fund, Ltd. (ADF), the latter having substituted for Chinatrust.
  • Initiation and Service of the Summons
    • On October 11, 2006, Chinatrust initiated a money claim of US $458,614.84 against Nation Petroleum Corporation and the petitioners by filing a complaint before the RTC.
    • The RTC issued summonses, indicating:
      • Nation Petroleum’s address (with two branch addresses provided).
      • The individual defendants’ address at the 39th Floor, Yuchengco Tower, RCBC Plaza, Makati City.
    • Execution of Service
      • On October 30, 2006, process server Joseph R. Dela Cruz and assisting sheriff Robert V. Alejo attempted personal service at the defendants’ office in the morning.
      • The only individual served personally during this attempt was Ricky Ang, who acknowledged receipt despite refusing to sign the summons.
      • Later in the afternoon, after efforts to locate the remaining defendants outside their office were frustrated by being denied access, substituted service was effected by leaving copies with Charlotte Magpayo, who acted as corporate secretary and property supply custodian.
    • Subsequent Proceedings
      • On November 21, 2006, the defendants filed a Special Appearance with a Motion to Dismiss for lack of jurisdiction, arguing three main points:
        • Service on Nation Petroleum was defective because it was made on a property supply custodian rather than a corporate officer with express authority.
ii. The individual defendants were not properly served due to improper substituted service. iii. The process server’s documentation did not sufficiently demonstrate the impossibility of personal service.
  • The RTC, on May 17, 2007, denied the Motion to Dismiss by ruling that:
    • Nation Petroleum’s corporate secretary (Melinda Ang) had authorized Charlotte Magpayo to receive the summons for the limited purpose of service.
ii. Ricky Ang was validly served by acknowledging receipt even though he refused to sign the original.
  • Developments in the Court of Appeals
    • On June 22, 2007, the petitioners challenged the RTC’s jurisdiction in a petition for certiorari before the Court of Appeals (CA-G.R. SP No. 99391).
    • ADF, having been substituted for Chinatrust on March 9, 2010, joined the proceedings.
    • On April 29, 2011, the CA affirmed the RTC’s decision regarding substituted service for the individual defendants but dismissed the case against Nation Petroleum, holding that the RTC failed to acquire jurisdiction over Nation due to noncompliance with the exclusive list of corporate officers authorized to receive summons.
  • The Present Petition
    • Filed on April 4, 2012 by the individual defendants, now petitioners, contesting the lower court determinations regarding the validity of service.
    • Petitioners’ Arguments
      • The Officer’s return did not adequately show the impossibility of personal service.
ii. Charlotte Magpayo, being a property supply custodian, is not a competent person in charge of the business. iii. Failure to strictly adhere to the requirements for substituted service renders the service void.
  • Respondents’ (ADF’s) Position
    • Argued that the issues of impossibility of personal service and the diligence of the efforts were factual matters not subject to review on certiorari.
ii. Claimed that the service was justified since the petitioners’ staff prevented the process server from entering the premises, and that Ricky Ang was personally served.

Issues:

  • Jurisdiction and Validity of Service
    • Whether the Regional Trial Court validly acquired jurisdiction over the petitioners through the service of summons.
    • Whether the service on Nation Petroleum Corporation was proper, considering that the summons was served through a property supply custodian and not on a corporate officer legally authorized to receive the summons.
  • Validity of Substituted Service
    • Whether the process server’s substituted service, as evidenced by the Officer’s return, complied with the strict statutory requirements under Rule 14, Section 8 of the Rules of Court.
    • Whether the requisite demonstration of the impossibility of personal service was met by the process server’s two attempts, both made on the same day, without additional attempts at other locations or dates.
  • Specific Service on the Individual Defendants
    • Whether personal service on Ricky Ang was properly effected, notwithstanding his refusal to sign the original copy of the summons.
    • Whether the substituted service applied to the remaining individual petitioners satisfied the requirements of due process.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)
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