Title
Gentle Supreme Philippines, Inc. vs. Consulta
Case
G.R. No. 183182
Decision Date
Sep 1, 2010
GSP filed a collection case against CTC and its officers. Summons served via secretary; default judgment issued. SC upheld substituted service, reinstating RTC's ruling.
A

Case Digest (G.R. No. 183182)

Facts:

  • Initiation of the Case
    • Gentle Supreme Philippines, Inc. (GSP) filed a collection case on September 29, 2005, with an application for a writ of preliminary attachment against:
      • Consar Trading Corporation (CTC)
      • CTC’s president, respondent Ricardo Consulta
      • CTC’s vice-president, Norberto Sarayba
    • The complaint alleged that CTC, through Consulta and Sarayba, purchased merchandise from GSP but failed to pay for it.
  • Proceedings at the Regional Trial Court (RTC)
    • The RTC of Pasig City, Branch 68, issued a writ of preliminary attachment against the defendants after the requisite bond was filed by GSP.
    • Summons were subsequently issued by the RTC against the defendants.
  • Service of Summons
    • On October 11, 2005, the RTC’s sheriff attempted service of the summons and copies of the complaint.
      • The sheriff failed to serve any of CTC’s authorized officers or the individual defendants (Consulta and Sarayba) directly.
    • Instead, the sheriff left copies of the documents with Agnes Canave, who was identified in the return as:
      • Sarayba’s secretary and an authorized representative of both Sarayba and Consulta.
    • No answer was filed by the defendants, prompting the RTC, on November 18, 2005, to declare them in default and proceed with an ex parte evidentiary hearing.
  • Subsequent Evidence and Developments
    • After trial, the RTC ruled that because the defendants had defrauded GSP, they were solidarily liable for:
      • The value of the merchandise supplied
      • Attorney’s fees and the costs of the suit
    • The RTC subsequently issued a writ of execution on January 25, 2006, which included the attachment of a registered land owned by Consulta.
    • On June 9, 2006, Ricardo Consulta filed a petition for annulment of the RTC’s decision before the Court of Appeals (CA).
      • He argued that he discovered the suit only upon receiving a notice of sale on execution of his property.
      • He contended that the service of summons was improper, as service was effected through Canave—a person who was merely Sarayba’s secretary and not necessarily in charge of receiving such documents.
  • Communications and Admissions Indicating Knowledge of the Suit
    • Following the RTC’s decision, GSP’s subsequent evidence included:
      • A letter from CTC (signed by Sarayba) indicating a proposal for payment of the adjudged amount.
      • Postdated checks signed by both Consulta and Sarayba.
    • Additional evidence included:
      • The sheriff’s garnishment of CTC’s bank accounts on the same occasion as the service of summons.
      • An admission by Consulta that CTC was served through Canave, implying that proper notice was given.
  • Court of Appeals Decision and Subsequent Motions
    • On March 18, 2008, the CA ruled that the RTC sheriff did not properly serve summons on all defendants and remanded the case, directing the RTC to ensure valid service.
    • Both Consulta and GSP filed respective motions for reconsideration of the CA decision.
      • Consulta’s motion for partial reconsideration was denied for tardiness.
      • GSP’s motion for reconsideration was likewise denied for lack of merit.
    • The CA decision thus stood until the case reached the Supreme Court.

Issues:

  • Whether or not the service of summons on respondent Ricardo Consulta was valid, specifically:
    • Is leaving the summons with Agnes Canave—who was identified as Sarayba’s secretary and allegedly not the person formally in charge—sufficient for proper service on Consulta?
    • Does the mode of substituted service, as executed by the RTC sheriff, satisfy the requirements for establishing jurisdiction over Consulta’s person, thereby rendering the judgment valid?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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