Title
Josue vs. Diaz
Case
G.R. No. 41697
Decision Date
Oct 30, 1936
Defendant's default judgment set aside due to illness, excusable neglect, and meritorious defense; case remanded for trial.
A

Case Summary (G.R. No. 41697)

Factual Background

Josue instituted the action against Diaz in the Court of First Instance of Ilocos Norte to recover specified parcels of land and damages of P1,680. Diaz filed an answer that contained a general denial and sought dismissal of the suit. When the case was called for trial, Josue appeared with counsel, but Diaz did not appear personally. Diaz’s counsel requested postponement. Counsel for Josue objected. The trial court denied the request and proceeded to hear Josue’s evidence in Diaz’s absence. Based on the evidence presented, the trial court rendered judgment declaring Josue the owner of the parcels described in the complaint.

Trial Court Proceedings

The trial court rendered its decision on December 27, 1933. On January 24, 1934, Diaz moved to set aside the judgment by default. Diaz grounded the motion on illness as the reason for his failure to appear at the trial. In support, Diaz submitted (1) a medical certificate showing that he was under treatment for acute gastritis on the date the case was called for trial, and (2) an affidavit indicating that Diaz had a meritorious defense.

Legal Framework and Applicable Rule

The Court relied on section 113 of the Code of Civil Procedure, which authorizes relief from a judgment entered against a party through mistake, inadvertence, surprise, or excusable neglect, provided the motion is filed within a reasonable time and, in any event, not more than six months after the judgment is taken. The Court also reiterated its prior construction of section 113 in Bank of the Philippine Islands vs. De Coster, 47 Phil., 594, holding that where a judgment was rendered due to mistake, inadvertence, surprise, or excusable neglect and the record shows the defendant has a meritorious defense, the judgment should be set aside with leave to answer and defend on the merits.

The Parties’ Positions on the Default Judgment

Diaz maintained that his failure to appear personally at the trial was excusable because he was ill at the time the case was called. He also claimed that he possessed a meritorious defense, as evidenced by the affidavit submitted with his motion. Josue, through his counsel, opposed the postponement request at the trial stage and, by implication, supported the maintenance of the judgment rendered on the evidence presented.

Appellate Court Reasoning

The Court held that the record showed Diaz’s non-appearance was not attributable to negligence. Instead, it found that the failure to appear resulted from a circumstance beyond Diaz’s control, namely his illness at the scheduled time of trial. The Court further found sufficient showing of a meritorious defense. Applying section 113 of the Code of Civil Procedure and the doctrine in Bank of the Philippine Islands vs. De

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