Rules 13 to 15 (Audio recording of codal provisions)

 

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Rules 10 to 12 (Audio recording of codal provisions)

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Rules 7 to 9 (Audio recording of codal provisions)

 

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Rules 4 to 6 (Audio recording of codal provisions)

 

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Rules 1 to 3 (Audio recording of codal provisions)

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RULES ON DEFAULT

Rules on default are found in Rule 9 Section 3 of the 2019 Amendments to the Rules on Civil Procedure.

A party defendant is required to file an Answer within 30 days from service of summons, according to Rule 11, Section 1. This is unless the court provides for a different period. The period to file Answer is within 60 days from service of summons if the defendant is a foreign private juridical entity, and the summons was served on the government official designated by law to receive it.

If the defendant does not file an answer within this period, the plaintiff must file a motion to declare the defendant in default. Note that the court cannot issue an order of default on its own or motu proprio, without such a motion.

What are the requirements before the court can issue an order declaring the defendant in default?

1. The plaintiff must file a motion.
2. The motion must show that the Defendant did not file an Answer within the requisite period.
3. The motion must be accompanied by a notice to the defendant.

Why must there be a notice to the defendant? Because under Rule 15, Section 5 number 13, a motion to declare the defendant in default is a litigious motion. It is will affect the substantial rights of the defendant, so he/she must be accorded procedural process, meaning the opportunity to be heard. This means that the defendant has the opportunity to file an opposition within 5 calendar days from receipt.

Besides, the court has the discretion to set the motion for hearing. The court will have 15 days to resolve the motion to declare in default, and this is counted either from the date the court receives the opposition filed by the defendant or upon the expiration of the 5-day period for filing an opposition.

We said that the motion must also prove that the defendant failed to file an answer within the required period. What kind of proof is required? The plaintiff can attach the summons showing the date the defendant received the same, and state in his motion that despite the lapse of the period, an answer has not been filed. This will be evident from the case records.

When the court is satisfied that these requirements are both present, it will now issue an order declaring the defendant in default.

What will the court do then? It may do one of two things, according to Section 3 of Rule 9. 

1. The court may proceed to render judgment, granting the plaintiff the relief supported by his complaint. 
2. The court may require the plaintiff to present evidence ex parte, meaning without the presence of the defendant. The rules provide that reception of evidence may be delegated to the clerk of court. Note that what is delegated is only the reception of evidence. The judge will himself render the decision.

When the court issues an order of default, what does this mean for the defendant?

The defendant will not be allowed to participate in the trial. However, he is entitled to receive notices of the proceedings, so he will know what is happening to the case.

Are there remedies that the defendant can avail of in default situations? 

Yes. The remedies depend on the stage of the proceedings in which he learns that he has been declared in default, or whether a default judgment has already been issued.

1. If the defendant receives the motion to declare him in default, he can file an opposition within 5 days from receipt, according to the rule on litigious motions.

2. If there is already an Order of default (no judgment yet), he can file a motion to lift the order of default. There are 3 requirements:

a) The motion must be under oath

b) He must show that his failure to file an answer is due to fraud, accident, mistake or excusable negligence

c) He has a meritorious defense, which is shown in an Affidavit of Merit.

The judge may set aside the default order on just terms.

3. If there is already a Decision, and it is still within the 15-day period to appeal

a. He may file a motion for new trial within 15 days from receipt of the Decision on the ground of fraud, accident, mistake or excusable neglect

b. He may also file a motion for reconsideration if his ground is that the decision is not supported by the evidence, the decision is contrary to law, or the award of damages is excessive.

c. He may also file an appeal.

4. If he received the Decision beyond the 15 day period to appeal, he can file a petition for relief from judgment under Rule 38 as long as it is within the necessary period, that is within 60 days from notice and within 6 months from entry of judgment.

5. In extraordinary cases, he can file an Action to Annul the decision under Rule 47, by filing a case with the Court of Appeals invoking extrinsic fraud or lack of jurisdiction as grounds.

6. If the Order of default was issued with grave abuse of discretion amounting to lack or excess of jurisdiction, he can file a petition for certiorari under Rule 65 within 60 days from receipt of the order of default.

Note that you have to distinguish between default order and default judgment. A default order is issued pursuant to the Plaintiff’s motion, before evidence is received. A default judgment is issued after the court considers the plaintiff’s evidence.

Note also that these rules apply to permissive counterclaims in which the plaintiff becomes the defendant on the counterclaim and is required to file an answer within the reglementary period. Also to third-party complaints.

Suppose there are several defendants, some of whom file an answer while others are in default, what will the court do?

The court shall try the case against all upon the answers thus filed and render judgment upon the evidence presented.

If a defendant has been declared in default, and the plaintiff was able to present evidence showing that he is entitled to an award much more than what is prayed for in the complaint, can the judge grant such an award?

No. According to the Rules, a judgment rendered against a party in default shall neither exceed the amount or be different in kind from that prayed for nor award unliquidated damages.

Are there cases when defaults are not allowed? Yes.

1. In actions for annulment of marriage
2. In actions for declaration of nullity of marriage
3. In actions for legal separation

In these cases, if the defendant fails to answer, the court shall order the Solicitor General or his or her deputized public prosecutor, to investigate whether or not a collusion between the parties exists. If there is collusion, the court will dismiss the petition. If there is no collusion, the OSG or public prosecutor shall intervene for the State to see to it that the evidence submitted is not fabricated.

Answer

The Answer is a pleading filed by the Defendant in an ordinary civil action. It is also known as a responsive pleading.

An Answer may also be filed by the Plaintiff in response to the Defendant's counterclaim. It may also be filed by a Defendant in response to a Co-Defendant's crossclaim.

Rule 6, Section 4 states: "An answer is a pleading in which a defending party sets forth his or her defenses."

There are two kinds of defenses that can be raised in an Answer: negative and affirmative defenses.

A negative defense is one that denies the allegations in the Complaint (Section 5a) while an affirmative defense is one that hypothetically admits the allegations in the Complaint but alleges new matter that would prevent recovery by the Plaintiff (Section 5b).

Section 5. Defenses. — Defenses may either be negative or affirmative.
(a) A negative defense is the specific denial of the material fact or facts alleged in the pleading of the claimant essential to his or her cause or causes of action.
(b) An affirmative defense is an allegation of a new matter which, while hypothetically admitting the material allegations in the pleading of the claimant, would nevertheless prevent or bar recovery by him or her. The affirmative defenses include fraud, statute of limitations, release, payment, illegality, statute of frauds, estoppel, former recovery, discharge in bankruptcy, and any other matter by way of confession and avoidance.

Affirmative defenses may also include grounds for the dismissal of a complaint, specifically, that the court has no jurisdiction over the subject matter, that there is another action pending between the same parties for the same cause, or that the action is barred by a prior judgment.

Negative defenses

There are three ways of alleging a negative defense, and these are found in Section 10 of Rule 8:

Section 10. Specific denial. — A defendant must specify each material allegation of fact the truth of which he or she does not admit and, whenever practicable, shall set forth the substance of the matters upon which he or she relies to support his or her denial. Where a defendant desires to deny only part of an averment, he or she shall specify so much of it as is true and material and shall deny only the remainder. Where a defendant is without knowledge or information sufficient to form a belief as to the truth of a material averment made to the complaint, he or she shall so state, and this shall have the effect of a denial.

The first way is by straight denial of an allegation in the Complaint. For example, the Complaint alleges:

3. The Defendant borrowed the sum of Php500,000 from the Plaintiff on January 15, 2022."

The Defendant can deny this outright by stating:

3. The Defendant specifically DENIES the allegation in paragraph 3 of the Complaint, the truth being that he never borrowed any amount of money from the Plaintiff on January 15, 2022 or or any other date."

The Rules of Court requires that the denial should be accompanied with a statement of the substance which Plaintiff relies on to support his denial. In other words, it is important to state what the truth is as far as he is concerned. Otherwise, his denial will be considered an admission.

To illustrate, suppose the Answer states in paragraph 3:

3. The Defendant specifically DENIES the allegations in paragraph 3 of the Complaint."

This statement will be considered an admission even if he uses the phrase "specifically denies." The reason is that it does not contain any assertion of what Defendant alleges as a fact. A general denial, and therefore an admission, will no longer require proof and cannot be contradicted unless shown to have been made with palpable mistake.

The second way is by making partial denial. Going back to the sample allegation in paragraph 3 of the Complaint, a partial denial would appear something like this:

"3. The Defendant ADMITS the allegation in paragraph 3 of the Complaint that he borrowed a sum of money from the Plaintiff on January 15, 2022 but DENIES that it was for the amount of Php500,000, the truth being that he borrowed only the sum of Php100,000."

The third way is known as "denial for disavowal of knowledge" or "denial for want to knowledge". Below are examples of allegations in the Complaint, an admission in the Answer, and a denial for want of knowledge:

Complaint:

3. The Plaintiff purchased the Toyota Wigo car of the Defendant for Php500,000 on January 15, 2021.

4. The Plaintiff insured said car with XYZ insurance company on January 17, 2021 upon payment of premium in the sum of Php30,000.

Answer:

3. The Defendant ADMITS the allegation in paragraph 3 of the Complaint.

4. The Defendant DENIES the allegation in paragraph 4 of the Complaint for lack of knowledge or information sufficient to form a belief on the truth or falsity thereof.

Note that the denial for want of knowledge is effective only if the Defendant is really not in a position to know if the allegation is true. Otherwise, the denial will be deemed an admission. In this example:

3. The Plaintiff and the Defendant entered into a contract of loan dated January 15, 2022 where the Defendant borrowed the sum of P500,000 from the Plaintiff and committed to pay the amount in full on June 15, 2022.

In this example, the Defendant is obviously in a position to state if the allegation is true or false. He can definitely state if he entered into the contract or not. He cannot deny for want of knowledge, and if he does so, it will be deemed an admission.

Affirmative defenses

Affirmative defenses are those that hypothetically admit the allegations in the Complaint but introduce new matters that would absolve the Defendant from liability.

One affirmative defense is payment. The Defendant can admit that he borrowed a sum of money from the Plaintiff but allege that he has paid, and so he is no longer liable.

For example, the Complaint states:

3. The Defendant borrowed Php500,000 from the Plaintiff on January 15, 2022, promising to pay it in full on June 15, 2022.

The Answer states:

3. The Defendant ADMITS the allegation in paragraph 3 of the Complaint and by way of affirmative defense, alleges that on June 15, 2022, he paid the amount in full to the Plaintiff as shown by the receipt attached as Annex "A" and made an integral part hereof.

There are several affirmative defenses in Rule 8, Section 12 as well as Rule 6, Section 5b. These are:

• The court has no jurisdiction over the person of the defending party
• The venue is improperly laid
• The plaintiff has no legal capacity to sue
• The pleading asserting the claim states no cause of action
• A condition precedent for filing the claim has not been complied with
• Fraud
• Statute of limitations
• Release
• Payment
• Illegality
• Statute of frauds
• Estoppel
• Former recovery
• Discharge in bankruptcy
• Any other matter by way of confession and avoidance.

AFFIRMATIVE DEFENSE  VS. AFFIRMATIVE RELIEF

Note that there is a difference between affirmative defense and affirmative relief. An affirmative defense is raised by the defending party to defeat the opposing party's claim. An affirmative relief is a remedy that either party is asking from the court to sustain his legal position.

Examples of affirmative reliefs are:

• Motion to admit answer
• Motion for additional time to file answer
• Motion for reconsideration of a default judgment
• Motion to lift order of default.

(See United Coconut Planters Bank versus Sps. Alison Ang-Sy, et al, GR No. 204753, March 27, 2019)

Admissions

Admissions in the Answer can be express or implied.

Express admissions are made when the Defendant directly admits the allegations in the Complaint. For example, the Complaint alleges in paragraph 1:

1. Plaintiff is a corporation organized and existing under Philippine laws with principal address at 12345 Sucar avenue, Paranaque City.

The Defendant can admit this directly without causing harm to his defense and in order to abbreviate the proceedings, thus, he can state in his Answer:

1. Defendant ADMITS the allegation in paragraph 1 of the Complaint.

Implied admissions are made in two ways: when the Answer does not specifically deny the allegations in the Complaint (as when the Answer does not mention anything about it); or when the Answer makes a general denial. Section 11 of Rule 8 states:

Section 11. Allegations not specifically denied deemed admitted. — Material averments in a pleading asserting a claim or claims, other than those as to the amount of unliquidated damages, shall be deemed admitted when not specifically denied.

What is the effect of an admission? The Defendant can no longer contradict it. Section 4, Rule 129 of the Revised Rules on Evidence as amended states:

Section 4. Judicial admissions. – An admission, oral or written, made by [the] party in the course of the proceedings in the same case, does not require proof. The admission may be contradicted only by showing that it was made through palpable mistake or that no such admission was made.

Actionable documents

There are times when the cause of action, or the defense, is based on an actionable document. These are documents on which the action or defense is based.

For instance, the Plaintiff's claim against the Defendant is based on a promissory note. That promissory note is an actionable document.

Here are the rules on pleading when actionable documents are involved:

Section 7.Action or defense based on document. - Whenever an action or defense is based upon a written instrument or document, the substance of such instrument or document shall be set forth in the pleading, and the original or a copy thereof shall be attached to the pleading as an exhibit, which shall be deemed to be a part of the pleading. (7a)

Section 8. How to contest such documents. - When an action or defense is founded upon a written instrument, or attached to the corresponding pleading as provided in the preceding section, the genuineness and due execution of the instrument shall be deemed admitted unless the adverse party, under oath specifically denies them, and sets forth what he or she claims to be the facts; but the requirement of an oath does not apply when the adverse party does not appear to be a party to the instrument or when compliance with an order for an inspection of the original instrument is refused. (8a)

Counterclaims and cross-claims

A counterclaim is a claim raised by the Defendant against the Plaintiff, while a cross-claim is a claim raised by a Defendant against a co-Defendant.

If these are existing as of the time the Answer is filed, these should be included in the Answer.

Counterclaims may either be compulsory or permissive, while cross-claims should either be compulsory. Compulsory means that the claim arises out of the same transaction or occurrence that is the subject matter of the opposing party's claim.

Factual basis

Similar to a Complaint, the Answer should include the names of the Defendant's witnesses and the substance of their testimonies, a list of the evidence to be presented by the Defendant, and copies of the judicial affidavits of the witnesses.

Relief sought, verification, and

certification against forum shopping

The Defendant should state the relief sought and include a verification if the Answer raises a counterclaim or cross-claim. If so, it should also include a Certification against Forum Shopping.