Title
Supreme Court
Lazaro vs. Rural Bank of Francisco Balagtas , Inc.
Case
G.R. No. 139895
Decision Date
Aug 15, 2003
Cipriano Lazaro failed to repay a loan, leading to default judgments in two cases due to improper service claims. SC upheld rulings, citing lack of ordinary remedies and proper summons.

Case Summary (G.R. No. 133575)

Relevant Proceedings

Lazaro obtained a loan from RFBI and subsequently failed to make payments by March 12, 1984. The bank filed a civil suit against him, which was docketed as Civil Case No. 7355-M in the RTC of Malolos, Bulacan. Lazaro was summoned at an address that was not his actual residence, leading to his default in the proceedings. Consequently, the RTC ruled in favor of RFBI on May 5, 1985, awarding the bank monetary judgment and attorney’s fees.

Further Legal Actions

In 1988, RFBI instituted another suit against Lazaro, registered as Civil Case No. 2856-V-88 in the RTC of Valenzuela City, once again using an incorrect address for service of summons. Lazaro again failed to file a responsive pleading and was declared in default. The RTC ruled in favor of the bank on August 19, 1988, instructing Lazaro to surrender property documents to RFBI, leading to further enforcement actions.

Annulment Petition

On April 29, 1999, Lazaro filed a petition for annulment of the judgments from the prior cases, alleging fraud and misrepresentation due to the incorrect address listed in RFBI's complaints. He claimed that this misrepresentation denied him due process, rendering the judgments void ab initio.

Court of Appeals' Decision

The Court of Appeals denied Lazaro's petition on June 15, 1999, noting his failure to justify why he did not pursue available remedies such as a new trial or appeal. The appellate court found no evidence of fraud related to the misstatement of his address, citing that he owned the property at the given address and would have likely received correspondence there.

Prescription of Action

Additionally, the Court pointed out that Lazaro's annulment action was time-barred, as he failed to file within four years of discovering the alleged fraud, which he claimed began in 1985 but only petitioned for annulment in 1999.

Issues Raised

The key issues in this case include whether Lazaro adequately alleged that the necessary ordinary remedies were unavailable and whether there were valid grounds for annulment due to lack of jurisdiction through improper service of summons.

Analysis of Jurisdiction

Lazaro contended that service of summons was invalid since it was not delivered to his actual residence. The court addressed the validity of the summons, stating that person

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