Title
Carson Realty and Management Corp. vs. Red Robin Security Agency
Case
G.R. No. 225035
Decision Date
Feb 8, 2017
Petitioner challenged default judgment, arguing improper summons service; Court ruled voluntary appearance via extension request conferred jurisdiction, validating substituted service and default.
summons
jurisdiction
default
A

Case Summary (G.R. No. 246419)

Petitioner, Respondent and Procedural Posture

Petitioner sought relief by way of a petition for review under Rule 45 of the Rules of Court to annul the Court of Appeals (CA) Decision and Resolution that affirmed the RTC’s declaration of Carson in default and allowance of ex parte presentation of evidence by respondent Santos.

Applicable Law and Constitutional Basis

Governing statutory and procedural provisions invoked: Rule 14 (Sections 11 and 20) and Rule 9 (Section 3) of the Rules of Court (service of summons, voluntary appearance), Rule 65 (certiorari), Rule 45 (petition for review), and the standards for substituted service as explicated in Manotoc v. Court of Appeals and related jurisprudence. The decision is grounded on the 1987 Philippine Constitution as the applicable constitutional frame.

Nature of the Dispute and Primary Contentions

Central legal contention: whether the RTC acquired personal jurisdiction over Carson and whether the RTC properly declared Carson in default. Carson contends service was improper because summons were not served on officers or personnel authorized under Section 11, Rule 14. Respondent Santos maintains service was valid (substituted service left with an employee competent to receive process) and alternatively contends Carson voluntarily submitted to jurisdiction by seeking an extension to file a responsive pleading.

Factual Antecedents (Service and Appearances)

  • Complaint filed by Santos on March 23, 2007. Officer’s Return of April 12, 2007 reported service of summons dated April 11, 2007 upon “corporate secretary” Precilla S. Serrano at Carson’s Ortigas office.
  • Atty. Roxas filed an Appearance and Motion (April 25, 2007) acknowledging receipt and seeking 15 days from April 27, 2007 to file responsive pleading; RTC granted extension (May 3, 2007).
  • Instead of filing an answer, Roxas moved to dismiss for alleged improper service. RTC denied motion and ordered issuance of alias summons.
  • Multiple service attempts followed (including alias summonses dated September 24, 2007 and September 9, 2008). Officer’s Return dated October 28, 2008 documents attempts on October 2, 16, 27 and 28, 2008 to serve identified officers; on final attempt substituted service was made by leaving the alias summons with receptionist Lorie/Loreta Fernandez, who allegedly refused to acknowledge receipt and later manifested intention to return the documents.
  • RTC initially found service improper and denied a motion to declare default, but later, after Santos filed a second Motion to Declare Defendant in Default, the RTC declared Carson in default and allowed Santos to present evidence ex parte (Order dated June 29, 2009).
  • Carson’s motions to set aside the default and for reconsideration were denied; Carson filed a certiorari petition with the CA, which denied relief and found jurisdiction properly acquired; CA denied reconsideration, prompting the Rule 45 petition.

Court of Appeals’ Ruling (as summarized)

The CA affirmed the RTC’s orders. It held that (1) Carson voluntarily submitted to the RTC’s jurisdiction when its counsel filed an appearance and sought additional time to file a responsive pleading (an affirmative relief); and (2) alternatively, the substituted service effected on Fernandez satisfied the requirements for substituted service because the process server made several diligent attempts to effect personal service and Fernandez was a competent person in charge to receive process. The CA therefore upheld the declaration of default.

Legal Standards for Substituted Service (Manotoc and Related Precedents)

Manotoc and subsequent jurisprudence set out requirements for valid substituted service in actions in personam: (1) demonstration of impossibility of prompt personal service within a reasonable time (courts have accepted up to about one month as reasonable in many contexts); (2) specific detailed narration in the sheriff’s/processor’s Return of the efforts made (dates, times, inquiries, attempts); and (3) service upon a person of suitable age and discretion at the residence, or a competent person in charge at the office/regular place of business (a person able to understand the importance of the summons and to notify the principal). Jurisprudence allows for substantial compliance with these requirements where circumstances — including deliberate avoidance by the defendant — justify less-than-strict literal compliance (see Sagana and Macasaet).

Doctrine of Voluntary Submission and Special Appearance Exception

Section 20, Rule 14 provides that a defendant’s voluntary appearance is equivalent to service of summons. Jurisprudence treats motions seeking affirmative relief (e.g., motion for extension of time to file an answer) as constituting voluntary submission to jurisdiction unless the appearance is expressly made special or conditional to challenge jurisdiction. Failure to make an unequivocal special appearance or to promptly assert lack of jurisdiction by a defendant precludes later challenge based on lack of proper service.

Application of the Standards to the Present Facts

  • Substituted service: The Officer’s Return dated October 28, 2008 shows repeated attempts on at least four occasions to serve identified corporate officers before resorting to substituted service on Fernandez. The Return records dates and circumstances of the attempts and the eventual leaving of process with a company employee who refused to acknowledge receipt. The CA found that these facts demonstrated diligent effort and a deliberate scheme by Carson to avoid personal service. Under Manotoc and Sagana, the documented multiple attempts and the circumstan

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