G.R. No. L-6648 - Victorias Planters Association, Inc. vs. Victorias Milling Co., Inc.

Case Digest (G.R. No. L-6648)
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Facts:

Background and Initiation of the Case

The case title is BAC Manufacturing and Sales Corporation v. Court of Appeals and Wynnner Garments Manufacturing, Inc.
Petitioner (BAC Manufacturing), as assignee of certain rights from BOFTEX LIMITED, initiated a complaint against private respondent (Wynnner Garments) in the Regional Trial Court of Makati (Civil Case No. 15095) on October 9, 1986.
The complaint involved contracts for ladies’ shorts, denim pants, and men’s trousers executed by BOFTEX LIMITED and the respondent on various dates in 1985.
Embedded in the complaint was a request for the issuance of a writ of preliminary attachment, supported by the affidavit of the general manager of the petitioner.

Procedural History in the Trial Court

A writ of preliminary attachment was issued on October 10, 1986.
Despite the issuance of the writ, neither the summons and copy of the complaint nor any alternative proper service was effected on the private respondent before or at the time of the levy.
Events surrounding service and prosecution:

On August 11, 1987, the trial court ordered the petitioner to actively prosecute the case or face dismissal for failure to prosecute.
On September 8, 1987, petitioner filed a Request for Alias Summons, and on September 10, 1987, the court clerk issued an Alias Summons.

On December 7, 1987, Deputy Sheriff Ruben S. Nequinto levied attachment on forty machineries of the private respondent based on a Notice of Levy.

Actions and Pleadings of the Private Respondent

On February 16, 1988, private respondent filed a motion to dismiss the complaint and dissolve the attachment, basing its argument on:

The lack of proper service of summons and copies of the complaint.
The petitioner’s failure to diligently prosecute the case, constituting an unreasonable delay over a period extending from October 1986.

On March 17, 1988, the trial court denied the motion to dismiss and ordered the private respondent to file its answer.
On May 20, 1988, the trial court denied the respondent’s motion for reconsideration of its previous order.
Subsequently, on June 6, 1988, private respondent filed its Answer With Counterclaim, wherein it pleaded:

That the complaint be dismissed for lack of merit.
That the writ of attachment be discharged with attached properties returned.
A counterclaim for moral and exemplary damages, attorney’s fees, and litigation expenses.

Petition for Annulment and Subsequent Appeals

Private respondent petitioned to annul the trial court’s orders (of March 17 and May 20, 1988) on the ground that:

The trial court did not acquire jurisdiction over it due to non-service of summons.
The petitioner’s failure to serve summons for an extended period amounted to a failure to prosecute.

The petition was referred to the Court of Appeals and docketed as C.A.-G.R. SP No. 15647.
The respondent Court of Appeals sustained the arguments of private respondent and ordered:

The nullification of previous orders related to service and attachment.
The dismissal of the petitioner’s complaint for failure to prosecute.

Petitioner later filed a motion for reconsideration and eventually a petition for certiorari, contending that:

Private respondent’s filing of an answer should be deemed as a voluntary appearance and consequently a waiver of the service requirement.
The delay in service was attributable to the respondent’s fraudulent concealment of its principal office address.

Points Raised by the Petitioner on Appeal

Argued that the filing of the answer constituted a sufficient act of voluntary appearance under Section 23 of Rule 14 of the Rules of Court.
Contended that the delay in serving the summons was not entirely attributable to its inaction but was exacerbated by the private respondent’s deliberate concealment.
Asserted that dismissing the case on technical grounds, especially where a meritorious claim exists and issues are joined by the answer, would be inequitable.

Analysis by the Court of Appeals and the Supreme Court

The Court of Appeals and subsequently the Supreme Court agreed that:

The trial court did not acquire jurisdiction over the private respondent due to the lack of proper service.
Merely filing an answer does not operate as a waiver of the service of summons if such service has not been effectuated.

It was emphasized that the failure to prosecute actively over an extended period (more than three years) was a sufficient ground for dismissal.
The attachment, being an ancillary remedy, is null and void if the court lacks jurisdiction over the defendant.

Issues:

Whether the trial court acquired jurisdiction over the private respondent given that summons and a copy of the complaint were never properly served.

Examination of the effect of non-service of summons on the court’s jurisdiction.
Consideration of whether filing an answer constitutes a waiver of the service requirement.

Whether the petitioner’s inaction in serving the summons for an extended period constitutes failure to prosecute.

Evaluation of the reasonable time allowed for prosecution under the Rules of Court.
Comparison with established cases on dismissal for failure to prosecute.

Whether the attachment of the private respondent’s property is valid without proper jurisdiction.

Analysis of the ancillary nature of attachment.
The impact of jurisdictional defects on the validity of the attachment proceedings.

Ruling:

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Ratio:

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Doctrine:

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Case Digest (G.R. No. L-6648)
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