G.R. No. 72827 July 18, 1989
LUCIA EUROPA (Mother of Deceased Lucrecia Europa), petitioner, vs. HUNTER GARMENTS MFG. (PHIL.) INC. and INTERMEDIATE APPELLATE COURT, respondents.

FACTS

Petitioner Lucia Europa filed an action for damages based on quasi-delict against private respondent Hunter Garments Manufacturing (Philippines) Inc., alleging that her daughter Lucrecia, an employee, was electrocuted by a defective high-speed sewing machine assigned to her. Summons was served on the company’s production manager, Mr. Simplicio A. Garcia. The private respondent failed to file an answer, leading the trial court to declare it in default, receive evidence ex parte, and render a judgment by default awarding various damages to the petitioner. The private respondent then filed a motion for reconsideration of the judgment and a motion to admit its answer, attributing the failure to answer to the excusable negligence of a secretary who did not forward the summons. The trial court denied these motions.
On appeal, the Intermediate Appellate Court set aside the default order and judgment. It ruled that the trial court never acquired jurisdiction over the private respondent because service of summons on the production manager was improper under the Rules of Court, as he was not the “manager” authorized to receive such service for a domestic corporation. The appellate court directed the trial court to conduct further proceedings. Petitioner’s motion for reconsideration was denied, prompting this petition for certiorari.

ISSUE

The primary issue is whether the Intermediate Appellate Court erred in setting aside the default judgment, particularly in ruling on improper service of summons despite the private respondent’s subsequent voluntary submission to the trial court’s jurisdiction.

RULING

The Supreme Court granted the petition, set aside the decision of the Intermediate Appellate Court, and reinstated the trial court’s judgment with a modification increasing the death indemnity. The legal logic proceeds in two parts. First, on the jurisdictional question, the Court held that even assuming the initial service of summons on the production manager was defective, the private respondent voluntarily submitted to the jurisdiction of the trial court when it filed a motion for reconsideration of the default judgment and a motion to admit its answer. By seeking affirmative relief from the court on the merits of the case, the private respondent effectively waived any objection to the court’s jurisdiction over its person. The denial of these motions by the trial court was therefore binding.
Second, the Supreme Court proceeded to review the substantive merits of the default judgment, as the private respondent had also appealed from it. The evidence established that Lucrecia Europa died from electrocution by the respondent’s machine. The trial court’s factual findings, which the Supreme Court affirmed, demonstrated gross negligence on the part of the private respondent. The company was aware of prior incidents of machines being grounded but failed to take adequate safety measures, employing only electricians instead of a licensed engineer and showing apathy toward employee safety. In an action based on quasi-delict, all damages naturally arising from the negligent act are recoverable. The Court found the awarded damages for actual expenses, loss of income, moral damages, and attorney’s fees to be reasonable and supported by evidence, but increased the indemnity for death itself to Thirty Thousand Pesos in line with prevailing jurisprudence.