G.R. No. L-72147, December 1, 1987
Wang Laboratories, Inc. vs. The Honorable Rafael T. Mendoza, et al.

FACTS

Petitioner Wang Laboratories, Inc., a foreign corporation based in the United States, sells its computer products in the Philippines through its exclusive distributor, EXXBYTE Technologies Corporation, a domestic entity. Respondent Angara Concepcion Regala & Cruz Law Offices (ACCRALAW) entered into a contract with EXXBYTE for the acquisition and installation of a Wang computer system. A subsequent contract for software development was not implemented. ACCRALAW filed a complaint for breach of contract with damages against Wang Laboratories before the Regional Trial Court (RTC) of Makati.
Wang Laboratories filed a Motion to Dismiss primarily on the ground of lack of jurisdiction over its person due to improper service of summons, arguing it was not doing business in the Philippines and EXXBYTE was not its agent for service. During the pendency of this motion, Wang Laboratories actively participated in proceedings by filing motions for depositions, extensions of time, and other affirmative reliefs. The RTC, in its assailed order, denied the motion to dismiss, ruling that Wang Laboratories had voluntarily submitted to the court’s jurisdiction and granting ACCRALAW’s motion for leave to effect extraterritorial service of summons.

ISSUE

Whether the respondent Regional Trial Court acquired jurisdiction over the person of the petitioner, a foreign corporation.

RULING

Yes, the RTC acquired jurisdiction. The Supreme Court ruled that a foreign corporation not engaged in business in the Philippines may still be sued in Philippine courts for acts done against persons in the Philippines. More critically, the Court found that Wang Laboratories had voluntarily submitted to the RTC’s jurisdiction. Jurisprudence holds that an appearance for any purpose other than solely to object to the court’s jurisdiction over one’s person constitutes a voluntary submission and waives any defect in the service of summons.
The Court examined Wang Laboratories’ pleadings and actions before the RTC and concluded they went beyond a special appearance to challenge jurisdiction. By filing motions seeking affirmative reliefs—such as for authority to take depositions, for extensions of time to file pleadings, and to hold proceedings in abeyance—petitioner invoked the court’s authority on matters related to the merits of the case. This active participation for purposes other than contesting jurisdiction estopped Wang Laboratories from claiming the court lacked power over its person. Consequently, the grant of leave for extraterritorial service became moot, as jurisdiction had already been acquired through voluntary appearance. The petition was dismissed for lack of merit.