THIRD DIVISION
[G.R. No. 138777.
JOY G. TAN, petitioner, vs. SALIC B. DUMARPA, respondent.
D E C I S I O N
SANDOVAL-GUTIERREZ, J.:
Suits should as much as possible be decided on the merits and not on technicalities. In this regard, we have often admonished courts to be liberal as default judgments are frowned upon and not looked upon with favor for they may amount to a positive and considerable injustice to petitioner and the possibility of such serious consequences necessitates a careful examination of the grounds upon which petitioner asks that it be set aside.[1]
Before us is a petition
for review on certiorari[2] assailing the Judgment by Default[3] dated January 28, 1999 and the Order[4] dated May 3, 1999, both rendered by the
Regional Trial Court, Branch 9, Marawi City, Lanao del Sur in Civil Case No.
1474-97, “Salic B. Dumarpa vs. Joy Tan, doing business under the name and style
of Casa Blanca Restaurant.”
The factual antecedents
as borne by the records are:
On
The complaint alleges
that sometime in October 1992, Prosecutor Tan engaged the services of Joy G.
Tan, petitioner, as caterer for the Witness Protection Security and Benefit
Program seminar conducted on P11,632.00 in cash and P10,000.00
in PNB Check No. 33060 for her catering services. In turn, petitioner issued to Tan the
corresponding receipt dated P30,000.00 from the Department
of Justice, obtained surreptitiously from petitioner another receipt (cash
invoice no. 10887) showing his payment for the latter’s catering services for
two seminars conducted purportedly in Cotabato City and Marawi City. In support of the above criminal complaint
were affidavits of petitioner and Wilfredo C. Sotto.
Meantime, petitioner’s
affidavit denouncing respondent for malversation of government funds was
published in the Manila Standard, Manila Times, Bandera, and other newspapers
of general circulation. Respondent
claimed that such malicious publication discredited his honor and
reputation. Thus, he filed with the
Office of the City Prosecutor of Marawi City a criminal complaint for libel
against petitioner, docketed as I.S. No. 97D-0110. The City Prosecutor found probable
cause and recommended that petitioner be charged with libel in court. Respondent also filed with the Regional Trial
Court, Branch 9, Marawi City Civil Case
No. 1474-97 against her for damages with prayer for issuance of a writ of
attachment.
Subsequently, petitioner
filed in Civil Case No. 1474-97
her answer with motion to dismiss the complaint on the ground of failure to
state a cause of action. She alleged
that her affidavit against respondent was executed in good faith and without
malice. Being merely a supporting affidavit to a criminal complaint for
malversation filed by Prosecutor Tan against respondent, the same is absolutely
privileged and, therefore, not actionable.
On
“The plaintiff, having proven his claim preponderantly, judgment is hereby rendered in favor of plaintiff Salic B. Dumarpa and against defendant Joy Tan, ordering said defendant:
1. To pay unto plaintiff
Salic Dumarpa the sum of Seven Hundred Thousand (P700,000.00) Pesos as
actual and compensatory damages;
2. To pay unto plaintiff
the sum of One Million (P1,000,000.00) Pesos as moral damages; and the
further sum of P100,000.00 as attorney’s fees and costs.
SO ORDERED.”
On
On
Hence, petitioner, on June 1, 1999, directly filed with this Court the instant petition for review on certiorari assailing -
“1. THE PROPRIETY OF FILING RESPONDENT’S CIVIL COMPLAINT FOR DAMAGES (BASED ON AN ALLEGED LIBELOUS ACT COMMITTED BY PETITIONER WHEN SHE EXECUTED AN AFFIDAVIT BEFORE THE OFFICE OF THE CITY PROSECUTOR) EVEN BEFORE THE RESOLUTION OF THE CRIMINAL COMPLAINT FOR LIBEL .
“2. THE APPLICABILITY OF THE LAW ON PRIVILEGED COMMUNICATION ON PETITIONER’S AFFIDAVIT.”
Respondent, in his comment, contends that the instant petition should be denied, not being the proper remedy.
In Indiana Aerospace University vs. Commission on Higher Education,[6] we held:
“The remedies available to a defendant declared in default are as
follows: (a) a motion to set aside the order of default under Section 3 (b),
Rule 9 of the Rules of Court, if the default was discovered before judgment
could be rendered; (2) a motion for new
trial under Section 1(a) of Rule 37, if the default was discovered after
judgment but while appeal is still available; (3) a petition for relief under Rule 38, if judgment has become
final and executory; and (4) an appeal
from the judgment under Section 1, Rule 41, even if no petition to set aside
the order of default has been resorted to.”
Here, petitioner came to know of the Judgment by Default after it
was promulgated by the trial court while appeal was still available. In fact, she filed a motion for
reconsideration which was denied.
Thereafter, what she should have done pursuant to the Rules, was to file
with the trial court a motion for new trial or an ordinary appeal[7] with the Court of Appeals. Instead, she came directly to this Court via
the instant petition for review on
certiorari.
However, in the interest of justice, we consider the instant petition, pro hac vice, a petition for certiorari under Rule 65 of the 1997 Rules of Civil Procedure, as amended. It appears prima facie from petitioner’s allegations that the trial court committed grave abuse of discretion in rendering the Judgment by Default. If such allegations are true and the trial court’s fatal error remains uncorrected, then petitioner will suffer great injustice.
Indeed, where as here, there is a strong showing that grave miscarriage of justice would result from the strict application of the Rules, we will not hesitate to relax the same in the interest of substantial justice.[8]
In Cusi-Hernandez vs. Diaz,[9] this Court, speaking through Mr. Justice Artemio V. Panganiban, held that “cases should be determined on the merits, after full opportunity to all parties for ventilation of their causes and defenses, rather than on technicality or some procedural imperfections. In that way, the ends of justice would be served better.”
In fact, “procedural rules are created not to hinder or delay but to facilitate and promote the administration of justice. It is far better to dispose of the case on the merits which is a primordial end rather than on a technicality, if it be the case that may result in injustice.”[10]
In Paras vs. Baldado[11] and Alberto vs. Court of Appeals,[12] we ruled that “(w)hat should guide judicial action is the principle that a party-litigant is to be given the fullest opportunity to establish the merits of his complaint or defense rather than for him to lose life, liberty, honor or property on technicalities. x x x (T)he rules of procedure should be viewed as mere tools designed to facilitate the attainment of justice. Their strict and rigid application, which would result in technicalities that tend to frustrate rather than promote substantial justice, must always be eschewed.”
We thus resolve the basic issue of whether or not the trial judge committed grave abuse of discretion in rendering the Judgment by Default.
It may be recalled that in denying petitioner’s motion for
reconsideration of the Judgment by Default, the trial court held that
petitioner failed to specify (a) its findings not supported by evidence and (b)
its erroneous conclusion of law.
Actually, the issue being raised by petitioner in her motion is that she
and her counsel were not duly notified of the pre-trial on
Had the trial court set the motion for hearing and gave petitioner
a chance to prove her allegation, it could have determined whether she was
indeed notified or not of the pre-trial set on
Verily, by denying petitioner’s motion for reconsideration on the wrong ground that it is pro forma and by declaring her as in default and allowing respondent to present his evidence ex parte, the trial court deprived petitioner of her right to due process, i.e., the fundamental rule that a person be accorded an opportunity to be heard.[13] To allow a trial to proceed against petitioner who could not present her defenses apparently for lack of notice, is a denial of her right to be heard, our most basic understanding of due process. We stress that the essence of due process is simply an opportunity to seek a reconsideration of the assailed action or ruling, such as the trial court’s Order denying petitioner’s motion for reconsideration and its Judgment by Default. The trial court denied petitioner this opportunity.
We, therefore, hold that the said Order and Judgment by Default are tainted with a capricious, arbitrary and whimsical exercise of power. Clearly, the trial judge committed grave abuse of discretion.
WHEREFORE, the instant
petition, considered as one for certiorari,
is GRANTED. The Judgment by Default dated January
28, 1999 and the Order dated May 3, 1999 are SET ASIDE. The Regional
Trial Court, Branch 9, Marawi City, Lanao del Sur is ordered to hear
Civil Case No. 1474-97 on the merits with deliberate dispatch.
SO ORDERED.
Panganiban, (Chairman),
[1] See Diaz vs. Diaz, G.R. No. 135885, April 28, 2000, 331 SCRA 302, 322-323, citing Gerales vs. Court of Appeals, 218 SCRA 638 (1993) and Montinola, Jr. vs. Republic Planters Bank, 161 SCRA 45 (1988).
[2] Pursuant to Section 2 (c), Rule 41 of the 1997 Rules of Civil Procedure, as amended, which provides:
“Sec. 2. Modes of appeal. – x x x
x x x
(c) Appeal by certiorari. - In all cases where only questions of law are raised or involved, the appeal shall be to the Supreme Court by petition for review on certiorari in accordance with Rule 45.”
[3] Annex “F”, Petition, Rollo at 28-34.
[4] Annex “H”, id. at 13-14.
[5] Otherwise known as the Anti-Graft and Corrupt Practices Act.
[6]
G.R. No. 139371,
[7]
See Umandap vs. Sabio, Jr.,
G.R. No. 140244,
[8] Coronel vs. Hon. Aniano A. Desierto, G.R. No. 149022, April 8, 2003 at 9, citing People vs. Flores, 336 Phil. 58 (1997).
[9]
G.R. No. 140436,
[10] AFP Mutual Benefit Association vs. Court of Appeals, G.R. No. 126745, July 26, 1999, 311 SCRA 143, 157, citing Udan vs. Amon, 23 SCRA 837 (1968) and Medrano & Associates, Inc. vs. Roxas & Co., 183 SCRA 580 (1990).
[11]
G.R. No. 140713,
[12] G.R. No. 119088, June 30, 2000, 334 SCRA 756.
[13] City Government of Makati City vs. Civil Service Commission, G.R. No. 131392, February 6, 2002, 376 SCRA 248.