Title
Spouses Bembo vs. Court of Appeals
Case
G.R. No. 116845
Decision Date
Nov 29, 1995
Spouses Bembo sued Pangasinan Development Bank; trial court declared bank in default for missing pretrial. SC upheld default, ruling notice was sufficient and counsel's neglect inexcusable.
A

Case Digest (G.R. No. 116845)

Facts:

  • Background of the Case
    • Petitioners, Ricardo and Nicolasa Bembo, filed a petition for declaratory relief in the Regional Trial Court (Branch 41) at Dagupan City.
    • The petition involved the declaration of default of the private respondent, Pangasinan Development Bank, due to its nonappearance at the pretrial conference.
  • Chronology of Pretrial Scheduling and Proceedings
    • The pretrial conference was originally scheduled on September 1, 1993, but was reset on October 1, 1993 to allow the petitioners to amend their complaint.
    • The October 1, 1993 conference was again postponed due to the petitioners’ counsel needing to undergo a medical examination in Metro Manila, resulting in a new schedule of October 27, 1993.
    • The October 27, 1993 pretrial did not materialize as the presiding judge, Hon. Erna Falloran Aliposa, was in Manila attending a World Law Conference.
  • The December 6, 1993 Pretrial Conference
    • On November 9, 1993, Judge Aliposa issued an order setting “the hearing of this case” for December 6, 1993, at 2 o’clock in the afternoon.
      • The order directed the clerk of court to notify the parties and their counsels; however, it appears that only the counsel received the notice, while the parties did not.
      • The notice referred to the proceeding as a “hearing,” which later became a point of contention regarding whether it should have explicitly been termed a "pretrial."
    • During the pretrial on December 6, 1993, private respondent and its counsel were absent, prompting Judge Deodoro J. Sison to declare the private respondent in default.
      • The trial court authorized the petitioners to present their evidence ex parte on December 27, 1993.
  • Private Respondent’s Motion and Arguments
    • Private respondent filed a motion for reconsideration, with counsel explaining the absence based on instructions given by Judge Aliposa.
      • On December 3, 1993, counsel was informed by Judge Aliposa that a new date would be set because she had been detailed to the RTC of Makati.
      • Counsel, having other court obligations and relying on the judge’s information, advised his client that personal appearance on December 6 was unnecessary.
    • Counsel characterized their nonappearance as resulting from excusable neglect, supported by his rendition of events and the lack of direct notice to the respondent.
    • The motion for reconsideration was denied by the trial court.
  • Procedural Posture and Appellate Decision
    • Subsequent to the denial of the motion for reconsideration, the private respondent petitioned for certiorari before the Court of Appeals.
    • The Court of Appeals’ Third Division set aside the trial court’s order declaring default, emphasizing:
      • The failure to send proper notice of the pretrial directly to the parties, referencing decisions such as Pineda v. Court of Appeals and Patalinhug v. Peralta.
      • The notice sent on November 9, 1993 was for a “hearing” and not explicitly a “pretrial.”
    • The appellate court noted the policy to discourage judgments by default, particularly given that the private respondent’s defense appeared prima facie meritorious.
  • Petitioners’ Contention
    • Petitioners argued that the default order was proper because:
      • The order of the trial court referred to a “hearing,” and no copy of the order was served directly on the parties.
      • Private respondent’s counsel’s failure to appear was not due to a lack of notice but was a matter of excusable neglect on his part.
    • They further contended that due to the actual knowledge of the pretrial by both counsel and the private respondent, the technical defect in the notice was immaterial.

Issues:

  • Whether the trial court properly declared the private respondent in default despite the alleged defect in notice delivery.
    • Did the fact that notice was sent only to counsel—referring ambiguously to a “hearing” rather than a “pretrial” conference—invalidate the default declaration?
    • Should the actual knowledge of the pretrial by both parties and counsel override the technical defect in the notice?
  • Whether the private respondent’s counsel’s absence constituted excusable neglect given the information relayed by Judge Aliposa.
    • Could the reliance on the judge’s assurance regarding a rescheduled pretrial justify the nonappearance on December 6, 1993?
    • Is the counsel’s failure to attend, while other scheduling adjustments were in process, sufficient to merit annulment of the default order by the appellate court?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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