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Tropical Homes v. Villaluz

The Supreme Court ruled that the trial judge gravely abused his discretion in declaring the petitioner in default for failing to appear at a pre-trial hearing, despite presenting a power of attorney authorizing their legal counsel to represent them. While the power of attorney did not explicitly mention authorizing the attorney for pre-trial matters, its terms were comprehensive enough to include that authority. The Court warned trial judges against hastily issuing default orders, as it denies litigants their right to be heard and leads to unnecessary appeals that delay other cases. Parties should only be defaulted in clear cases of obstinate refusal or neglect of court orders.

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83 views2 pages

Tropical Homes v. Villaluz

The Supreme Court ruled that the trial judge gravely abused his discretion in declaring the petitioner in default for failing to appear at a pre-trial hearing, despite presenting a power of attorney authorizing their legal counsel to represent them. While the power of attorney did not explicitly mention authorizing the attorney for pre-trial matters, its terms were comprehensive enough to include that authority. The Court warned trial judges against hastily issuing default orders, as it denies litigants their right to be heard and leads to unnecessary appeals that delay other cases. Parties should only be defaulted in clear cases of obstinate refusal or neglect of court orders.

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wuplawschool
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We take content rights seriously. If you suspect this is your content, claim it here.
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Tropical Homes v.

Villaluz
jurist

G.R. No. 40628, 24 February 1989

FACTS:

Petitioner executed a special power of attorney which expressly authorized


its counsel to appear for and in its behalf in a civil case in all circumstances
where its appearance is required and to bind it in all said instances.
Petitioner’s counsel presented said power of attorney during the scheduled
pre-trial. After reading the same, respondent judge then and there dictated
in open court an order declaring petitioner in default for failure to appear at
the pre-trial since the power of attorney the petitioner had executed in favor
of its counsel did not satisfy the requirements of Sec. 1, Rule 20 of the Rules
of Court in that no mention is made therein of the attorney’s authority to bind
his client during the pre-trial, and ordering the plaintiff therein to present its
evidence ex parte.

ISSUE:

Whether or not the power of attorney executed by the petitioner is not


sufficient since said power of attorney does not include the authority of the
attorney to bind his client at the pre-trial conference.

RULING:

Yes. The respondent judge gravely abused his discretion in declaring the
herein petitioner in default for its alleged failure to appear at the pre-trial of
the case. Although the power of attorney in question does not specifically
mention the authority of petitioner’s counsel to appear and bind the
petitioner at the pre-trial conference, the terms of said power of attorney are
comprehensive enough as to include the authority to appear for the
petitioner at the pre-trial conference.

Once more, the Court admonishes trial judges against issuing precipitate
orders of default as these have the effect of denying a litigant the chance to
be heard, and in order to prevent needless litigations in the appellate courts
where time is needed for more important or complicated cases. While there
are instances when a party may be properly defaulted, these should be the
exception rather than the rule, and should be allowed only in clear cases of
obstinate refusal or inordinate neglect to comply with the orders of the
court. Absent such a showing, a party must be given every reasonable
opportunity to present his side and to refute the evidence of the adverse
party in deference to due process of law.

*Case digest by Krishianne Louise C. Labiano, JD – 4, Andres Bonifacio


College, SY 2019 – 2020

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