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 (Phil.) Inc. after her daughter, Lucrecia, an employee, was electrocuted by a high-speed sewing machine at work. 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, hear evidence ex parte, and render a judgment by default awarding various damages to the petitioner.
The private respondent filed a motion for reconsideration of the default judgment and a motion to admit its answer, attributing the failure to file on time 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, ruling that the trial court never acquired jurisdiction because summons was improperly served upon the production manager, who was not the “manager” authorized under the Rules of Court to receive summons for a domestic corporation.
ISSUE
The core issue is whether the Intermediate Appellate Court erred in nullifying the default judgment based on improper service of summons, and whether the default judgment on the merits was substantively correct.
RULING
The Supreme Court granted the petition, reversed the Appellate Court’s decision, and reinstated the trial court’s judgment with a modification increasing the death indemnity. The legal logic is twofold. First, on jurisdiction, the Court held that even assuming the initial service on the production manager was defective, the private respondent voluntarily submitted to the trial court’s jurisdiction when it filed its motion for reconsideration of the default judgment and motion to admit answer. By seeking affirmative relief from the court on the merits of its defense, it waived any objection to the jurisdiction over its person.
Second, on the merits of the default judgment, the Supreme Court conducted a review and found the award proper. The evidence established that Lucrecia Europa died from electrocution by the company’s machine. The trial court’s factual findings, which the Supreme Court affirmed, detailed the company’s gross negligence: it was aware of prior incidents of machines being grounded, employed inadequate electrical maintenance staff, and showed apathy toward employee safety. In an action based on quasi-delict, all damages flowing naturally 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 but increased the indemnity for death itself to Thirty Thousand Pesos (P30,000.00) in line with prevailing jurisprudence.