Dear Atty. Gab,

Musta Atty! I hope this letter finds you well. My name is Juan Dela Cruz, and I am writing to you because I find myself in a very confusing and stressful legal situation. About six months ago, I was sued by a former business partner, Mr. Alfonso Lim, regarding a disputed loan agreement related to a small property we were planning to develop in Cavite. The amount involved is quite significant, around P850,000.00.

I received the summons and complaint (Civil Case No. 12345-CV) properly. My lawyer at the time, Atty. Reyes, filed a motion for extension to file the answer, which the court granted, giving us until July 15th. However, just before the deadline, Atty. Reyes informed me he had to withdraw from the case due to personal health reasons. He filed his motion to withdraw, but I wasn’t sure if the court had approved it yet.

Honestly, I was overwhelmed with finding a new lawyer and dealing with some family issues that came up unexpectedly around the same time. It took me longer than I expected to find new counsel. By the time I hired Atty. Fernandez in late August, we found out that Mr. Lim’s lawyer had already filed a motion to declare me in default, and the court granted it in early September because no answer was filed by the July 15 deadline.

Atty. Fernandez immediately filed a motion to lift the default order and attached my answer, explaining the situation with my previous lawyer and my personal difficulties. However, the court denied our motion, stating our reasons didn’t constitute excusable negligence. Now, Mr. Lim presented his evidence unopposed, and I’m worried a judgment will be issued against me without me ever getting a chance to present my side. I believe I have a strong defense as part of the loan was already paid, and the interest claimed is incorrect. What can I do now? Was the court right to declare me in default just like that?

Thank you for any guidance you can provide, Atty. Gab.

Respectfully yours,
Juan Dela Cruz

Dear Juan Dela Cruz,

Thank you for reaching out. I understand the anxiety and confusion you must be feeling after being declared in default and having your motion to lift the order denied. Dealing with court procedures, deadlines, and changes in legal representation can indeed be overwhelming.

In Philippine civil procedure, failing to file an Answer within the prescribed period can lead to a defendant being declared in default. This means the court may proceed to render judgment based solely on the plaintiff’s complaint and evidence, without considering the defendant’s defense. While there are remedies available, lifting an order of default is not automatic and requires satisfying specific legal conditions.

Navigating Procedural Deadlines: The Impact of Default

The Rules of Court provide a specific timeframe within which a defendant must respond to a complaint. Generally, the defendant is required to file an answer within fifteen (15) days after service of summons, although the court may grant extensions upon motion.

When a defendant fails to file an Answer within the allowed period, the claiming party can file a motion asking the court to declare the defending party in default. If the court grants this motion, it proceeds based on the plaintiff’s submissions. The court will require the plaintiff to present evidence supporting their claims ex parte (meaning, without the participation of the defaulted defendant). Afterwards, the court will render judgment based on the evidence presented.

The primary consequence of being declared in default is losing the standing in court to participate in the proceedings. You, as the defendant, lose the right to present evidence, object to the plaintiff’s evidence, or cross-examine witnesses. Essentially, the court proceeds under the assumption that you do not contest the claims against you.

However, the Rules provide a remedy. A party declared in default may seek relief by filing a motion under oath to set aside the order of default. This must be done anytime after receiving notice of the default order but before judgment is rendered. Crucially, this motion must demonstrate two things:

“A party declared in default may at any time after notice thereof and before judgment file a motion under oath to set aside the order of default upon proper showing that his failure to answer was due to fraud, accident, mistake or excusable negligence and that he has a meritorious defense. In such case, the order of default may be set aside on such terms and conditions as the judge may impose in the interest of justice.” (Rule 9, Section 3(b), 1997 Rules of Civil Procedure)

Both elements – the reason for the failure to answer and the existence of a meritorious defense – must be proven. The term “excusable negligence” is key here. It doesn’t cover just any oversight or difficulty. Jurisprudence clarifies what constitutes excusable negligence:

“Negligence, to be ‘excusable,’ must be one which ordinary diligence and prudence could not have guarded against.”

This means the circumstances preventing you from filing the Answer must have been reasonably unforeseeable or unavoidable despite exercising due care. Personal difficulties or the time taken to find a new lawyer, while understandable from a personal perspective, are often not considered legally sufficient to constitute excusable negligence, especially if there was a significant delay. Courts expect litigants to be vigilant in managing their cases and meeting deadlines.

Furthermore, the withdrawal of your former counsel, Atty. Reyes, does not automatically excuse the failure to file the Answer on time. While his withdrawal might have complicated matters, the responsibility to ensure compliance with court deadlines ultimately rests with you, the litigant. You are expected to act promptly to secure new representation or request further extensions from the court if necessary, clearly explaining the grounds.

The requirement of a “meritorious defense” is equally important. It’s not enough to have a valid reason for the delay; you must also show, typically through an affidavit accompanying the motion, that you have a valid and substantial defense to the claim against you. This involves presenting facts that, if proven true, would likely change the outcome of the case.

“The motion [to lift the order of default] must be accompanied by an Affidavit of Merit stating therein that their failure to [a]nswer was due to fraud, accident, mistake or excusable negligence and that they have a good and meritorious defense as required in Rule 9, Section 3 (b) of the 1997 Rules of Civil Procedure.”

In your situation, the court likely found that the combined circumstances – the withdrawal of counsel and your personal difficulties – did not rise to the level of excusable negligence, especially given the time that lapsed before your new counsel acted. While you believe you have a meritorious defense regarding payments made and incorrect interest, the failure to meet the first requirement (excusable negligence) was likely the reason for the denial.

Practical Advice for Your Situation

• Assess Appeal Options: Since the motion to lift the default order was denied, and assuming a judgment based on the ex parte evidence has been or will soon be rendered, discuss with Atty. Fernandez the possibility of appealing the judgment itself. An appeal might argue that the trial court erred in declaring you in default or in denying the motion to lift the default order, though the standard for reversal is high.
• Review the Denial Order: Carefully examine the court’s order denying your motion to lift default. Understanding the specific reasons cited by the judge is crucial for planning any further action, such as an appeal.
• Gather Strong Evidence for Meritorious Defense: Continue gathering all documents (receipts, bank transfers, communications) that prove your partial payments and contest the interest claimed by Mr. Lim. While you couldn’t present this in the trial court due to the default, it will be vital if an appeal is pursued or if other remedies are explored.
• Understand the Limits of ‘Excusable Negligence’: Recognize that courts strictly interpret ‘excusable negligence’. Personal issues or delays in hiring counsel, without extraordinary circumstances, generally do not suffice. This understanding is important for managing expectations regarding appeals.
• Act Swiftly: Legal remedies, especially appeals, have strict deadlines. Ensure you and Atty. Fernandez act promptly once the judgment is received.
• Consider the Finality of Judgment: If the period to appeal lapses without action, the judgment becomes final and executory, making it much harder to challenge.
• Future Vigilance: Moving forward, always prioritize court deadlines and maintain constant communication with your counsel to prevent similar issues.

Dealing with a default order is challenging, particularly when you believe you have a valid defense. While the rules seem strict, they are designed to ensure the orderly and timely progression of cases. Your next steps should be carefully planned with Atty. Fernandez, focusing on any available remedies against the potential adverse judgment.

Hope this helps!

Sincerely,
Atty. Gabriel Ablola

For more specific legal assistance related to your situation, please contact me through gaboogle.com or via email at connect@gaboogle.com.

Disclaimer: This correspondence is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please schedule a formal consultation.