Title
Spouses Bembo vs. Court of Appeals
Case
G.R. No. 116845
Decision Date
Nov 29, 1995
Spouses Bembo sued Pangasinan Development Bank; trial court declared bank in default for missing pretrial. SC upheld default, ruling notice was sufficient and counsel's neglect inexcusable.
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Case Summary (G.R. No. 116845)

Pretrial Conference Proceedings

Originally, a pretrial conference was scheduled for September 1, 1993; however, this was postponed to October 1, 1993, to accommodate an amendment to the petitioners' complaint. Subsequently, the October pretrial date was also rescheduled to October 27, 1993, due to the counsel for the petitioners undergoing a medical examination in Metro Manila. On October 27, 1993, no pretrial occurred as the presiding judge, Hon. Erna Falloran Aliposa, was in Manila for a World Law Conference.

Default Declaration by the Trial Court

On November 9, 1993, Judge Aliposa issued an order for a pretrial hearing on December 6, 1993, at 2:00 PM, directing that the parties and their counsels be notified. However, there was an issue regarding notification, as it appeared that only the counsels received notice, and not the parties themselves. During the scheduled pretrial conference on December 6, 1993, as neither the private respondent nor its counsel was present, Judge Deodoro J. Sison declared the private respondent in default upon a motion from the petitioners and allowed them to present evidence ex parte on December 27, 1993.

Motion for Reconsideration and Court of Appeals Involvement

Subsequently, the private respondent filed a motion for reconsideration, explaining its absence due to a belief that the pretrial conference had been postponed. The counsel claimed that Judge Aliposa had indicated that adjustments would be made to the schedule and, therefore, did not appear at the pretrial conference, advising the bank's representative not to appear for the same reason. The motion for reconsideration was denied; thus, the private respondent petitioned the Court of Appeals for certiorari.

Court of Appeals' Rationale

The Court of Appeals found merit in the private respondent’s petition, emphasizing that the notice sent did not meet the required standards outlined in prior cases, specifically citing issues from Pineda v. Court of Appeals and Patalinhug v. Peralta regarding notification processes. The appellate court also expressed a preference to avoid judgments by default and found the defense of the private respondent to be prima facie meritorious, leading to the reversal of the default declaration.

Petitioners' Arguments Against the Appeal Court's Decision

The petitioners contended that the appellate court erroneously held that adequate notice of the pretrial conference had not been provided, arguing that the term "hearing" in the trial court’s order encompassed the pretrial purpose and that the private respondent had enough knowledge about the pretrial con

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