Title
Sahagun vs. Court of Appeals
Case
G.R. No. 78328
Decision Date
Jun 3, 1991
Filinvest sued Abel Sahagun for fraud over a vehicle sale; property attached. Defective summons to Abel, a U.S. resident, led to jurisdictional issues. Supreme Court remanded for proper extraterritorial service.

Case Digest (G.R. No. 78328)

Facts:

Carmelita Pelaez Sahagun v. Court of Appeals, Judge Job B. Madayag, in his capacity as Presiding Judge of Branch 145, Regional Trial Court of Makati, and Filinvest Credit Corporation, G.R. No. 78328, June 03, 1991, the Supreme Court En Banc, Regalado, J., writing for the Court.

On June 25, 1982 private respondent Filinvest Credit Corporation filed Civil Case No. 46556 in the defunct Court of First Instance of Rizal (later re-docketed as Civil Case No. 3161 and assigned to Branch 145, RTC Makati) against Abel (alias Abelardo) Sahagun alleging that he caused a motor vehicle sale to be evidenced by a promissory note and chattel mortgage which Rallye Motor Co., Inc. (managed by Abel) assigned to Filinvest; when the note matured the maker failed to pay and Filinvest sued. A writ of attachment issued and was levied on a house and lot registered in Abel Sahagun’s name at No. 16 Mangga Chupoy St., Pilar Village, Las Piñas, where petitioner Carmelita Sahagun and her children resided and which she claimed to have purchased with her earnings.

The trial court, on June 2, 1983, denied Filinvest’s motion to declare Abel in default but directed service pursuant to Section 17, Rule 14, Rules of Court; on June 23, 1983 the complaint was dismissed without prejudice for Filinvest’s failure to effect extraterritorial service. Filinvest moved for reconsideration (June 23, 1983); on July 7, 1983 the court granted petitioner time to file a complaint in intervention but again denied default. Petitioner filed a complaint in intervention on July 27, 1983 but was declared in default for failing to appear at the November 25, 1983 pre-trial conference; Abel was declared in default for failing to answer, and on February 20, 1984 the court rendered judgment against Abel for P97,066.59 plus interest, liquidated damages, attorney’s fees and costs.

Petitioner obtained certiorari relief from the then Intermediate Appellate Court in AC-G.R. SP No. 05044; by decision promulgated February 27, 1985 the Intermediate Appellate Court (Mendoza, J.) granted certiorari with prohibition and set aside the trial court’s judgment and an execution order, ruling petitioner was deprived of opportunity to present evidence. Filinvest sought review in the Supreme Court in G.R. No. 70357, but that petition was denied in the Court’s July 8, 1985 resolution.

Thereafter Filinvest sought leave (Sept. 26, 1985) to effect extraterritorial service by publication; the trial court granted the motion (order dated November 15, 1985) under Section 17, Rule 14, directing publication in a newspaper of general circulation and mailing copies by registered mail to Abel’s last known address and ordering Rallye impleaded. Filinvest filed an amended complaint (Dec. 11, 1985) impleading Carmelita and Rallye; the court’s January 10, 1986 order admitted the amended complaint and directed service at a Makati address (1228‑A Antipolo Street), but publication later appeared in the Manila Evening Post for March 7, 14 and 21, 1986 with a notice that inconsistently indicated the defendant’s last known address as No. 16 Mangga Chupoy, Las Piñas.

Petitioner filed an answer on March 11, 1986. Filinvest moved (June 26, 1986) to declare unresponsive parties in default; Judge Job B. Madayag of RTC Makati (Branch 145) by order dated July 18, 1986 declared Abel in default (because he allegedly was served by publication) but did not declare Rallye in default (summons not purportedly served). Petitioner petitioned the Court of Appeals (CA-G.R. SP No. 09909) praying certiorari to annu...(Pro-only)

Issues:

  • Did the trial court acquire jurisdiction over nonresident defendant Abel Sahagun by the publication of summons in the Manila Evening Post so as to authorize his declaration in default?
  • If the publication alone was insufficient, did Filinvest’s failure to mail copies of the summons and the amended complaint by registered mail to Abel’s last known correct address render the service defectiv...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.