Title
David vs. Gutierrez-Fruelda
Case
G.R. No. 170427
Decision Date
Jan 30, 2009
Petitioner declared in default for failing to timely answer; SC upheld RTC, citing procedural noncompliance and voluntary appearance curing defective summons.
procedural requirements
meritorious defense
denial of motion

Case Summary (G.R. No. 170427)

Factual Background

Private respondents alleged that Roberto R. David had fraudulently exceeded a special power of attorney by converting agricultural lands for residential, commercial and industrial purposes, by registering some lands in his name, by mortgaging others, by failing to remit and account for proceeds of transactions involving those lands, and by absconding. Initial personal service of summons failed because the petitioner was abroad. The RTC authorized service by publication. Sixty days elapsed after the last publication and private respondents moved to have petitioner declared in default.

Trial Court Proceedings

After the motion to declare default, Roberto R. David filed a motion for a fifteen-day extension to file his Answer on July 14, 2005, and opposed the default motion. The RTC declared petitioner in default in its Order of July 15, 2005, noting that the period to answer had lapsed on May 19, 2005, and denied the requested extension. Petitioner moved thereafter to lift the order of default and again sought a fifteen-day extension. In its September 21, 2005 Order, the RTC denied the motion to lift the default and set the case for pre-trial and for ex-parte presentation of evidence as to petitioner. The RTC reasoned that the motion to lift default failed to comply with Section 3(b), Rule 9 because it was not under oath, lacked an affidavit of merit, and contained no allegation that the failure to answer was due to fraud, accident, mistake or excusable negligence.

Issues Presented

The principal issue presented to the Supreme Court was whether the RTC committed grave abuse of discretion in denying Roberto R. David’s motion to lift the order of default and in sustaining the declaration of default.

The Parties' Contentions

Roberto R. David contended that the RTC gravely abused its discretion by denying the lifting of the default order because service by publication was defective, alleging that registry receipts were improperly relied upon in lieu of proof of mailing, and because the RTC failed to specify a reasonable period of not less than sixty days under Section 15, Rule 14 for extraterritorial service. He further argued that the RTC erred in applying Section 3(b), Rule 9 when it denied relief for mere technical noncompliance. Private respondents countered that the RTC acted properly. They maintained that the motion to lift default did not comply with the requisites of Section 3(b), Rule 9 because it was not under oath, contained no allegation of fraud, accident, mistake or excusable negligence, and lacked an affidavit showing a meritorious defense.

Legal Standards on Default and Available Remedies

The Court recited the available remedies for a party declared in default under the Rules of Court. A party declared in default may, before judgment, file a motion under oath to set aside the order of default upon proper showing that the failure to answer was due to fraud, accident, mistake or excusable negligence and that a meritorious defense exists, pursuant to Section 3(b), Rule 9. If judgment has been rendered but is not yet final and executory, the defendant may move for new trial under Rule 37. If the judgment is already final and executory, the defendant may seek relief under Rule 38. The defendant may also appeal the judgment under Rule 41. A petition for certiorari is available when the trial court improperly or with grave abuse of discretion declared a party in default.

Supreme Court's Analysis on Service and Waiver

The Court observed that Roberto R. David invoked the RTC’s jurisdiction by filing motions seeking affirmative relief, including extensions and lifting of default. The Court held that a defendant’s voluntary appearance is equivalent to service of summons under Rule 14, Sec. 20 and that such appearance cured any alleged defect in service by publication. The Court relied on its precedents that a defendant who seeks affirmative relief from the court thereby waives objections to service or want of process. Accordingly, the asserted defects in publication service did not entitle petitioner to relief from default.

Supreme Court's Analysis on Compliance with Section 3(b), Rule 9

The Court examined the motion to lift default and found noncompliance with Section 3(b), Rule 9. The motion was not under oath. It did not allege that failure to file an Answer resulted from fraud, accident, mistake or excusable negligence. The motion contained only general statements that defaults are disfavored, that petitioner should be allowed to present evidence in the interest of substantial justice, and that he had meritorious defenses; it did not specify the nature of those defenses nor the evidence petitioner intended to present. The Court reiterated that motions to set aside default must make the statutory showing and be supported by an affidavit of merit when required. Because petitioner failed to satisfy these requirements, the RTC did not commit grave abuse of discretion in denying the motion.

Procedural Deficiencies in the Petition and Jurisdictional Note

The Court further noted procedural deficiencies in the petition for certiorari. Roberto R. David failed to attach to the petition a copy of the motion to lift the order of default as required by Section 3, Rule 46, and su

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