G.R. No. L-1423; January 31, 1948
Maxima Garcia Lim Toco vs. Go Fay

FACTS

The plaintiff, Maxima Garcia Lim Toco, appealed a decision from the lower court. The defendant, Go Fay, had been declared in default in the trial court. The issue presented to the Supreme Court was whether a defendant declared in default has the right to be heard or to file briefs or memoranda in the Supreme Court on appeal.

ISSUE

Whether a defendant declared in default in the lower court has the right to be heard or to file briefs or memoranda in the Supreme Court on appeal.

RULING

No. A defendant declared in default is not entitled to notice of proceedings nor does he have the right to be heard or to file briefs or memoranda on appeal. The Court held that a defaulting defendant loses his standing in court and is considered out of court. He cannot appear, adduce evidence, or be heard. This rule applies to appellate proceedings as an appeal is a continuation of the suit. The only exception is when the defaulted defendant files a motion to set aside the order of default, in which case he becomes entitled to notice of all further proceedings. The provisions of the Rules of Court (specifically Section 9, Rule 27, made applicable by Section 1, Rule 51) govern this principle, stating that no service of papers is necessary on a party in default except under the specific exception. The Court cited its prior ruling in Velez vs. Ramos and aligned with the general rule in American jurisprudence that a defaulted party cannot participate in further proceedings affecting the plaintiff’s right of action unless the default is set aside.

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