Title
Lim Bun Uan vs. Dizon
Case
G.R. No. 46549
Decision Date
Jan 29, 1940
A businessman, unaware of a hearing, sought to annul a foreclosure judgment due to lack of notice. The Supreme Court ruled in his favor, emphasizing due process and ordered a new hearing.

Case Summary (G.R. No. 46549)

Key Dates

The relevant dates in this case include:

  • November 17, 1937: The date when a hearing was held regarding the mortgage.
  • January 15, 1939: The date when Lim Bun Uan learned of the judgment against him.
  • January 25, 1939: The date when Lim Bun Uan filed a petition to declare the judgment void.

Applicable Law

The central legal provision at issue is Article 513 of the Code of Civil Procedure, which allows for the annulment of judgments when a party is not notified of judicial proceedings.

Statement of Facts

Lim Bun Uan, a businessman from Zamboanga and other southern provinces, was not notified of a court hearing scheduled for November 17, 1937, regarding the execution of a mortgage by the National Loan & Investment Board. Unaware of the proceedings, he only discovered the adverse judgment upon arriving in Manila on January 15, 1939. Subsequently, he filed a petition on January 25, 1939, seeking to annul the judgment based on his lack of notification.

Legal Arguments

In his petition, Lim Bun Uan asserted that he was deprived of his right to be heard, as he had responded to the complaint but was not present at the hearing. He contested that this lack of notification was not due to any excusable mistake or negligence. He requested that the judgment issued on November 17, 1937, be declared null and that a new hearing be granted to allow him to present his evidence, which he believed could materially alter the outcome of the case.

Response from the Respondent

The National Loan & Investment Board countered the petition by stating that a writ of execution had been issued on August 15, 1938, and that the mortgaged property was sold at a public auction on October 14, 1938. They contended that the sale had been confirmed by the court on December 2, 1938, establishing that Lim Bun Uan was aware of the proceedings and therefore could not claim a lack of notification.

Court's Ruling

The court ruled in favor of Lim Bun Uan, declaring the judgment of November 17, 1937, null and void. The court stated that Lim Bun Uan had not received proper notice, thus denying him the opportunity to contest the suit effectively. The court emphasized that the hearing conducted in his absence was akin to a default judgment and that there was no justifiable reason for missing the notification, leading to the annulment of the judgment.

Dissenting Opinion

Justice Moran dissented, arguing that the remedy under Article 513 was not appropriate since Lim Bun Uan had a

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