G.R. No. 41697 ; October 30, 1936
SEVERO JOSUE, plaintiff-appellee, vs. FAUSTO DIAZ, defendant-appellant.

FACTS

Plaintiff Severo Josue filed an action against defendant Fausto Diaz in the Court of First Instance of Ilocos Norte for recovery of parcels of land and damages. During the trial, defendant failed to appear personally. His counsel’s motion for postponement was denied, and the court proceeded to hear plaintiff’s evidence, subsequently rendering a judgment by default in favor of plaintiff. Defendant later filed a motion to set aside the default judgment, attaching a medical certificate showing he was under treatment for acute gastritis on the trial date and an affidavit indicating he had a meritorious defense.

ISSUE

Whether the trial court erred in denying defendant’s motion to set aside the default judgment.

RULING

Yes. The Supreme Court set aside the appealed judgment and remanded the case for further proceedings. Under Section 113 of the Code of Civil Procedure, a court may relieve a party from a judgment taken through *mistake, inadvertence, surprise, or excusable neglect* if the application is made within a reasonable time (not exceeding six months). The Court, citing Bank of the Philippine Islands vs. De Coster, held that where a judgment is rendered under such circumstances and the record shows a meritorious defense, the judgment should be set aside. Here, defendant’s failure to appear was due to illness (acute gastritis), a circumstance beyond his control, and he sufficiently showed a meritorious defense. Therefore, his motion should have been granted.

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