Case Digest (G.R. No. 55630)
Facts:
On April 11, 1980, Chiu Eng Hua filed a complaint for specific performance and damages against Imperial Insurance, Inc., represented by its Cagayan de Oro Branch Manager Bernardito R. Pulvera, in the Court of First Instance of Misamis Oriental (Civil Case No. 7072). Upon receipt of summons, petitioner timely filed an answer with counterclaim. The case was set for pre-trial on August 5, 1980, and both parties and their counsel were duly notified. At the conference, Atty. Arturo A. Magallanes presented a special power of attorney executed by Pulvera on July 31, 1980, authorizing him to appear for the insurer and enter into an amicable settlement. The presiding judge refused to recognize this authority, declared petitioner in default in an order dated August 5, 1980, and set the reception of evidence for the private respondent on August 12, 1980. Petitioner moved to set aside the default on August 27, 1980, alleging good-faith reliance on the power of attorney and meritorious defenCase Digest (G.R. No. 55630)
Facts:
- Background of the Litigation
- Private respondent Chiu Eng Hua filed on April 11, 1980 in the CFI of Misamis Oriental (Civil Case No. 7072) a complaint for specific performance and damages against Imperial Insurance, Inc., represented by its Cagayan de Oro Branch Manager Bernardito R. Pulvera.
- Petitioner received summons and timely filed an answer with counterclaim.
- Pre-trial Proceedings and Declaration of Default
- The pre-trial was set on August 5, 1980. Petitioner, through Atty. Arturo A. Magallanes, presented a special power of attorney executed July 31, 1980 by Pulvera authorizing appearance, amicable settlement and other necessary acts.
- The trial judge refused to accept the power of attorney, declared petitioner in default in an order dated August 5, 1980, and scheduled reception of evidence for private respondent on August 12, 1980.
- Motions to Annul Default and Their Denial
- On August 21, 1980 petitioner moved to set aside the default order, asserting a meritorious defense, liberal construction of the Rules, and imminent submission of the board authorization. The motion was denied on August 27, 1980.
- Petitioner filed a motion for reconsideration on grounds of implied authority of its regional manager and prior court practice; this was denied on October 17, 1980.
- Analogous Authorizations in Other Cases
- In Civil Case No. 6316 (Heirs of Ruiz Dosdos vs. Andres Tan et al., 1979), the same judge accepted a June 20, 1979 special power of attorney by Pulvera in favor of another manager, approved a compromise and rendered judgment on November 27, 1979.
- In Civil Case No. 2899 (Gil Ecleo vs. Lydia Sacal et al., Surigao del Norte, 1980), Pulvera’s December 9, 1980 power of attorney to Atty. Magallanes led to an approved compromise on January 13, 1981.
Issues:
- Whether the trial judge acted without or in excess of jurisdiction and in grave abuse of discretion by refusing to recognize the special power of attorney and declaring petitioner in default.
- Whether the special power of attorney executed by the regional branch manager sufficed to confer authority to appear, negotiate settlement and perform pre-trial acts on behalf of the corporate petitioner.
- Whether the Rules of Court mandate liberal construction to prevent denial of substantial justice over technical defects.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)