GR 121662 1999 (Digest)
G.R. No. 121662 July 6, 1999
VLASON ENTERPRISES CORPORATION, petitioner, vs. COURT OF APPEALS and DURAPROOF SERVICES, represented by its General Manager, Cesar Urbino Sr., respondents.
FACTS
Private Respondent Duraproof Services filed a Petition for Certiorari, Prohibition and Mandamus in the Regional Trial Court (RTC) of Manila to enforce its salvor’s lien over the vessel M/V Star Ace and its cargo, which had been seized and later forfeited by the Bureau of Customs. The Petition was later amended to include Petitioner Vlason Enterprises Corporation as a respondent. The amended Petitions contained no specific allegations or prayers for relief against Vlason. Summons for the amended Petition was served on Vlason’s president, Vicente Angliongto, through his secretary, Betty Bebero. Private respondent moved to declare several respondents, including Vlason, in default. The trial court’s records show no action on these motions. Subsequently, the trial court declared specific respondents in default in an Order dated January 23, 1991; Vlason was not among those declared in default. During an ex parte presentation of evidence, private respondent’s general manager testified against several respondents, including Vlason, alleging that Vlason, through intimidation and harassment, caused delays and damages. The RTC later rendered a decision. Vlason challenged the proceedings via certiorari in the Court of Appeals, which granted the petitions and nullified the assailed orders, effectively upholding the RTC decision. Vlason elevated the case to the Supreme Court.
ISSUE
The primary issues involve the propriety of the service of summons on Vlason and the validity of the default judgment against it, including whether a default judgment can affect a party not declared in default and whether such a judgment can grant relief not prayed for in the complaint.
RULING
The Supreme Court granted the petition. The service of summons on Vlason’s president through his secretary was invalid, as service on a domestic corporation must be made on its president, managing partner, general manager, corporate secretary, treasurer, or in-house counsel. A secretary is not among those authorized to receive summons. Consequently, the trial court did not acquire jurisdiction over Vlason. Furthermore, Vlason was never declared in default by the trial court in any of its orders. A default judgment against several defendants cannot affect the rights of a defendant who was never declared in default. Even assuming a valid default, the judgment was void as to Vlason because the amended Petitions contained no allegation or prayer for relief against it. A judgment by default cannot award relief not specifically sought in the complaint. The Court of Appeals’ decision was set aside, and the RTC’s decision was declared null and void as to Vlason Enterprises Corporation.
