Case Summary (G.R. No. 136021)
Municipal Trial Court Proceedings
The MTC received the complaint but effected substituted service through respondent’s brother, Oscar Layno, after learning respondent was out of the country. On May 17, 1999 the court ordered respondent to vacate the 68 sq m, pay P1,000 monthly rent, actual damages of P20,000, attorney’s fees of P15,000, exemplary damages of P20,000, and costs. Respondent did not appeal.
Jurisdiction and Service of Process Issue
Respondent, upon return from Oslo, Norway, filed in the RTC an action to annul the MTC decision for lack of personal jurisdiction, contending substituted service on her brother was improper because she leased the property to a third party and her brother was neither resident nor authorized to accept service.
Regional Trial Court Annulment Proceedings
The RTC found no valid service of summons on respondent, declared the MTC decision null and void for lack of jurisdiction over her person and over subject matter, and awarded respondent P50,000 each for actual, moral, and exemplary damages, P50,000 attorney’s fees, and costs.
Court of Appeals’ Ruling
The CA treated the forcible entry action as quasi in rem, requiring extraterritorial service under Rule 14, Sections 15–16, with leave of court. It held that petitioner failed to comply with any prescribed mode of service, so the MTC never acquired personal jurisdiction, and it affirmed the RTC decision with modifications.
Supreme Court’s Characterization of the Action
The Court held that forcible entry under Rule 70 is a real action in personam—seeking to enforce the defendant’s obligation to vacate, restore possession, and pay compensation—and not quasi in rem. Jurisdiction over the person is essential and acquired through valid service of summons as prescribed by Rule 14.
Requirements for Valid Substituted Service
Rule 14, Section 7 authorizes substituted service when personal service is impracticable, by leaving copies of the summons at the defendant’s residence with a person of suitable age and discretion residing there. Strict compliance is required; proof of service must detail the circumstances to vindicate due process.
Analysis of Service in This Case
The Sheriff’s return me
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Procedural History
- Petition for review on certiorari under Rule 45 filed by Filomena Domagas before the Supreme Court
- CA decision in CA-G.R. CV No. 73995 affirmed the RTC’s annulment of the MTC decision in Civil Case No. 879
- RTC of Dagupan City, Branch 44, Civil Case No. 2000-0244-D declared the MTC decision null and void for lack of jurisdiction
Antecedent Facts
- Petitioner is the registered owner of a parcel covered by OCT No. P-30980 (827 sq. m.) in Barangay Buenlag, Calasiao, Pangasinan
- On January 9, 1999, respondent allegedly gained entry by force, strategy, and stealth, excavated a 68-sq. m. portion, and erected a fence
- Petitioner filed a forcible entry complaint on February 19, 1999 before the MTC of Calasiao seeking recovery of possession and damages
MTC Proceedings and Judgment
- Summons and complaint not personally served; Sheriff left copies with respondent’s brother, Oscar Layno, on April 5, 1999
- On May 17, 1999, MTC rendered judgment ordering:
- Vacatur of the 68-sq. m. portion
- Monthly rent of ₱1,000.00
- Actual damages of ₱20,000.00
- Attorney’s fees of ₱15,000.00
- Exemplary damages of ₱20,000.00
- Costs of suit
RTC Annulment Petition and Ruling
- Respondent filed on August 16, 2000 for annulment of MTC decision
- Ground: improper service of summons and complaint; MTC lacked jurisdiction over her person
- Evidence by respondent:
- Passport copy showing she was in Oslo as of February 1999
- Lease contract (Nov. 24, 1997–Nov. 24, 2000) over her house to Eduardo Gonzales
- Affidavits of respondent, her brother Oscar, and lessee Gonzales
- Petitioner’s counter-evidence: deed of sale (1992), real estate mo