G.R. No. L-62445 August 31, 1983
ATM TRUCKING INCORPORATED, petitioner, vs. JUDGE FELIPE V. BUENCAMINO, Court of First Instance of Pampanga; VICTORIA VDA. DE SANTOS, DR. ERNESTO P. SANTOS, EDUARDO P. SANTOS and PRICILA SANTOS VIRAY, respondents.

FACTS

The heirs of Dr. Librado Santos filed a damages suit against ATM Trucking Incorporated after he was killed in a vehicular accident involving the corporation’s overturned truck. Summons for the complaint was served upon Elsa Soza, a clerk mistakenly believed by the sheriff to be the corporate secretary. Due to the corporation’s failure to answer, the trial court declared it in default, heard the plaintiffs’ evidence ex parte, and rendered a judgment ordering ATM Trucking to pay substantial damages.
ATM Trucking subsequently filed a petition for relief from judgment, arguing invalid service of summons and meritorious defenses. The trial court initially granted relief, setting aside the default judgment and allowing the corporation to file an answer, wherein it alleged the accident was caused by the negligence of the doctor’s own driver. However, upon the plaintiffs’ motion for reconsideration, the court reversed itself. It reasoned that no corporate officer held office at the addressed location, the general manager was often out, and Elsa Soza could be considered an “agent” for service of summons.

ISSUE

Whether the service of summons upon a mere clerk constituted valid service upon the corporation, thereby rendering the subsequent default judgment valid and precluding relief.

RULING

The Supreme Court ruled that the service of summons was invalid and that the trial court gravely abused its discretion in denying relief from the default judgment. The legal logic is anchored on strict compliance with procedural rules governing service upon domestic corporations. Under Section 13, Rule 14 of the Rules of Court, service may only be made on the president, manager, secretary, cashier, agent, or any director. The Court emphasized that Elsa Soza, a mere clerk, did not fall within any of these enumerated statutory categories. She could not be deemed a statutory “agent” as she lacked the representative capacity and integration with the corporation necessary to ensure the summons would reach corporate attention.
The purpose of the rule is to make it reasonably certain the corporation receives actual and prompt notice of the suit. Service on a low-ranking employee does not satisfy this purpose, as such a person lacks the duty and authority to act on legal papers. Citing precedent, the Court held service on a mere clerk or housemaid is insufficient. Consequently, the default judgment was void for having been rendered without jurisdiction over the defendant corporation, constituting a denial of due process. Fundamental fairness mandates that ATM Trucking be given its day in court to present its defenses. The order denying relief was reversed, and the trial court was directed to proceed with the case.