Title
Ang vs. Chinatrust Commercial Bank Corp.
Case
G.R. No. 200693
Decision Date
Apr 18, 2016
Chinatrust sued Nation Petroleum and individuals for $458,614.84. Summons served improperly; only Ricky Ang validly served. SC dismissed case against most defendants for invalid service, upheld case against Ricky Ang.

Case Summary (G.R. No. 127383)

Background of the Case

On October 11, 2006, Chinatrust filed a complaint against Nation Petroleum Corporation and the individual petitioners, seeking a money claim along with a writ of preliminary attachment before the Regional Trial Court (RTC) of Makati City, which was designated as Civil Case No. 06-872. Summonses were issued the following day and attempted service occurred subsequently, with the process server encountering difficulties in executing personal service.

Service of Summons

On October 30, 2006, service attempts were made at the defendants' workplace. The process server reported serving summons through Ricky Ang and later through Charlotte Magpayo, who was a corporate secretary, but the service was disputed based on claims that proper jurisdiction was not established. The petitioners contended that the substituted service was void due to non-compliance with the requisite provisions of the Rules of Court.

Regional Trial Court's Ruling

On May 17, 2007, the RTC denied the motion to dismiss filed by the defendants, holding that the corporate secretary authorized Magpayo to receive summons. It also deemed that Ricky Ang was validly served. The RTC concluded that the process server's actions were warranted due to the failure to serve the other defendants directly.

Appeal to the Court of Appeals

The petitioners appealed to the Court of Appeals (CA), challenging the RTC's findings concerning jurisdiction over Nation Petroleum Corporation and the individual petitioners. While the CA affirmed the RTC's order regarding the individual petitioners, it dismissed the case against Nation, citing insufficient evidence regarding the authority of Magpayo to receive the summons effectively.

Arguments of the Petitioners

The petitioners argued that the process server failed to establish impossibility for personal service and that Magpayo was not a competent person authorized to receive summons. They asserted that the requirements for substituted service were not followed, rendering the service invalid.

Position of The Asian Debt Fund

The Asian Debt Fund maintained that the issues regarding the service of summons should not be addressed under a petition for review on certiorari, framing them as factual questions. They reiterated that the presence of Magpayo constituted a valid substituted service due to the impossibility of personal service.

Supreme Court's Ruling

The Supreme Court partially granted the petition. It held that jurisdiction over a party is acquired through valid service of summons or voluntary appearance, highlighting the necessity of making diligent efforts for personal service. It was determined that the attempts for personal service were inadequate as only two attempts were made on the same day, failing to satisfy the minimal requirements outlined in prior jurisprudence.

Requirements for Substituted Ser

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