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  • El Banco Espanol-Filipino Vs Vicente Palanca (G.r. 11390)

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    The Supreme Court upheld the default judgment against the nonresident defendant in a mortgage foreclosure case. While notice by mail was not sent as ordered, this was an irregularity that did not defeat jurisdiction over the property, which was the subject of the quasi in rem foreclosure proceeding. Publication in a newspaper and attempts to notify the defendant by mail were sufficient to satisfy due process, as the court had jurisdiction over the property through its location within the court's district.

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    El Banco Espanol-filipino vs Vicente Palanca (g.r. 11390)

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    El Banco Espanol-filipino vs Vicente Palanca (g.r. 11390)

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    The Supreme Court upheld the default judgment against the nonresident defendant in a mortgage foreclosure case. While notice by mail was not sent as ordered, this was an irregularity that did not defeat jurisdiction over the property, which was the subject of the quasi in rem foreclosure proceeding. Publication in a newspaper and attempts to notify the defendant by mail were sufficient to satisfy due process, as the court had jurisdiction over the property through its location within the court's district.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    229 views3 pages

    El Banco Espanol-Filipino Vs Vicente Palanca (G.r. 11390)

    Uploaded by

    midnightbottle
    The Supreme Court upheld the default judgment against the nonresident defendant in a mortgage foreclosure case. While notice by mail was not sent as ordered, this was an irregularity that did not defeat jurisdiction over the property, which was the subject of the quasi in rem foreclosure proceeding. Publication in a newspaper and attempts to notify the defendant by mail were sufficient to satisfy due process, as the court had jurisdiction over the property through its location within the court's district.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    CONSTITUTIONAL*LAW*II*DIGESTS*(2012*–*2013)* * * *********ATTY.

    *SEDFREY*CANDELARIA*
    *
    El#Banco#Espanol+Filipino#v.#Vicente#Palanca##[G.R.#11390,#March# court! for! publication.! It! appears! from! the! receipt! that! the!
    26,1918]# envelope!used!by!Garcia!emanated!from!said!office!of!the!clerk.!!
    # • The! cause! proceeded! in! usual! course! but! seeing! as! the!
    Key#Concept:!Actual!notice!is!not!required!to!satisfy!judicial!due!process! defendant! did! not! appear,! judgment! was! taken! against! him! by!
    ! default!on!July!2,!1908.!On!July!3,!1908,!a!decision!was!rendered!
    Summary:!The!judgment!appealed!from!is!without!error!and!it!stands,! in! favor! of! the! plaintiff.! In! the! judgment,! it! was! stated! that!
    costs!to!Palanca.! publication!had!been!properly!made!in!a!periodical!but!nothing!
    ! was! mentioned! about! notice! given! by! mail.! E.! Palanca! was!
    Facts:## directed! to! pay! the! debt! amount! of! P249,355.32! lest! his!
    • On!March!31,!1908,!El!Banco!EspanolEFilipino!(Banco)!instituted! property!be!subjected!to!public!sale!in!the!event!that!payment!
    an! action! to! foreclose! a! mortgage! on! real! property! owned! by! is!not!made.!The!payment!was!never!made!and!on!July!8,!1908,!
    Engracio! Palanca! Tanquinyeng! y! Limquingco! (E.! Palanca),! who! the! court! ordered! the! sale.! The! property! was! bought! in! by!
    executed!such!mortgage!on!June!16,!1906!as!security!for!a!debt! Banco! for! P110,200,! way! below! the! valued! price! and! such! sale!
    owing! to! the! bank.! On! March! 31,! 1906,! the! debt! amounted! to! was!confirmed!by!the!court!on!Aug.!7,!1908.!
    P218,294.10! and! drew! interest! at! the! rate! of! 8%! per! annum,! • After! 7! years,! Vicente! Palanca! (V.! Palanca),! administrator! of! E.!
    payable! at! the! end! of! each! quarter.! At! the! time,! the! parties! Palanca’s! estate,! surfaced! to! petition! for! the! annulment! of! the!
    estimated! the! value! of! the! property! at! P292,558,! P75,000! in! ruling!and!to!vacate!all!the!proceedings!subsequent!thereto!on!
    excess!of!the!debt.!! the! basis! that! the! order! of! default! and! the! judgment! rendered!
    • After! executing! the! mortgage,! E.! Palanca! returned! to! Amoy,! were! void! because! the! court! had! never! acquired! jurisdiction!
    China,! his! native! country,! where! he! stayed! until! his! death! on! over!the!defendant!or!over!the!subject!of!the!action.!V.!Palanca!
    January!29,!1910.!Since!E.!Palanca!was!a!nonresident!at!the!time! further! protested! that! there! had! been! no! due! process! as! they!
    of!the!institution!of!the!action,!it!was!necessary!for!Banco!in!the! never!received!the!summons.!!
    foreclosure! proceeding! to! give! notice! to! the! defendant! by! #
    publication! pursuant! to! Sec.! 399! of! the! Civil! Code! Procedure.! Issues:##
    Publication!was!made!in!due!form!in!a!newspaper!of!the!city!of! (1) W/N!the!court!acquired!the!necessary!jurisdiction!to!enable!
    Manila.!The!court!further!directed!the!clerk!of!court!to!deposit! it!to!proceed!with!the!foreclosure!of!the!mortgage!
    in!the!post!office!a!stamped!enveloped!containing!a!copy!of!the! (2) W/N!the!proceedings!were!conducted!in!such!a!manner!as!
    summons!and!complaint!directed!to!E.!Palanca!to!be!sent!to!the! to!constitute!due!process!of!law!
    city!of!Amoy,!Empire!of!China!(during!this!time,!it!was!still!called! !
    the! “Empire! of! China”).! Whether! the! clerk! complied! or! not! is! Held:#
    not!clear!but!there!exists!an!affidavit!dated!April!4,!1908,!signed! ISSUE!1!E!Yes,!the!court!acquired!the!necessary!jurisdiction!to!enable!it!
    by! Bernardo! Chan! y! Garcia,! an! employee! of! the! attorneys! for! to!proceed!with!the!foreclosure!of!the!mortgage.!
    the!bank,!showing!that!upon!that!date,!he!had!deposited!in!the! Ratio!
    postEoffice! a! registered! letter,! addressed! to! E.! Palanca! I. Jurisdiction! over! the! person! is! acquired! by! the! voluntary!
    containing! the! summons,! the! complaint! and! the! order! of! the! appearance! of! a! party! in! court! and! his! submission! to! its!

    *
    Chan=Gonzaga*Evardone*Gutierrez*Lopez*Miclat*Nadal*Radoc*Superio*Tan*Tong*Valdez*Varela*
    CONSTITUTIONAL*LAW*II*DIGESTS*(2012*–*2013)* * * *********ATTY.*SEDFREY*CANDELARIA*
    *
    authority,! or! it! is! acquired! by! the! coercive! power! of! legal! made! which! involves! a! determination! of! a! personal! liability! of!
    process!exerted!over!the!person.!Jurisdiction!over!the!property! either!party!arising!out!of!the!contract!of!mortgaged!property.!
    is! acquired! either! through! seizure! under! legal! process! or! from! III. The!failure!of!the!clerk!to!send!notice!by!mail!to!the!nonresident!
    the! institution! of! legal! proceedings! wherein,! under! special! defendant!in!a!foreclosure!proceeding,!as!required!by!an!order!
    provisions!of!the!law,!the!power!of!the!court!over!the!property! of! the! court,! does! not! defeat! the! jurisdiction! of! the! court! over!
    is! recognized! and! made! effective.! In! the! latter! case,! the! the! mortgaged! property.! Such! irregularity! could! in! no! wise!
    property!may!never!be!taken!into!actual!custody!at!all.!! impair!or!defeat!the!jurisdiction!of!the!court.!
    • In! the! terminology! of! American! law,! the! action! to! ISSUE! 2! –! Yes,! proceedings! were! conducted! in! such! a! manner! as! to!
    foreclose!a!mortgage!is!said!to!be!a!proceeding!quasi&in& constitute!due!process!of!law!
    rem,! meaning! that! while! it! is! not! strictly! speaking! an! Ratio!
    action! in& rem,! it! partakes! of! that! nature.! An! action! “in& I. As! applied! to! judicial! proceedings,! due! process! of! law! implies!
    rem”! is! used! only! in! courts! of! admiralty! wherein! the! that!the!4!characteristics!are!present:!!
    property!alone!is!treated!as!responsible!for!the!claim!or! 1. There! is! a! court! or! tribunal! clothed! with! judicial& power!
    obligation! upon! which! the! proceedings! are! based.! The! to!hear!and!determine!the!matter!before!it!
    action! quasi& in& rem! differs! from! in& rem! in! the! 2. The!court!or!tribunal!must!acquire!jurisdiction!over!the!
    circumstance!that!in!the!former,!an!individual!is!named! person! of! the! defendant! or! the! property! that! is! the!
    as! defendant,! and! the! purpose! of! the! proceeding! is! to! subject!of!the!proceeding!
    subject! his! interest! to! the! obligation! or! lien! burdening! 3. The! defendant! must! be! given! an! opportunity& to& be&
    the! property.! All! proceedings! having! for! their! sole! heard&
    object! the! sale! or! disposition! of! the! property! of! the! 4. Judgment!must!be!rendered!upon!lawful&hearing&
    defendant,! the! judgment! entered! in! these! proceedings! II. In! an! action! to! foreclose! a! mortgage! against! a! nonresident,!
    is!conclusive!only!between!the!parties.! some! notification! of! the! proceedings! must! be! given! to! the!
    II. Where!the!defendant!in!a!mortgage!foreclosure!is!a!nonresident! defendant.!Under!statutes!generally!prevailing,!this!notification!
    and! refuses! to! appear! or! otherwise! submit! himself! to! the! commonly! takes! the! form! of! publication! in! a! newspaper! of!
    authority!of!the!court,!the!jurisdiction!of!the!latter!is!limited!to! general!circulation!and!the!sending!of!notice,!by!mail,!by!which!
    the!mortgage!property,!with!respect!to!which!the!jurisdiction!of! means!the!owner!is!admonished!that!his!property!is!the!subject!
    the! court! is! based! upon! the! fact! that! the! property! is! located! of! judicial! proceedings.! The! provisions! of! law! providing! for!
    within! the! district! and! that! the! court,! under! the! provisions! of! notice!of!this!character!must!be!complied!with.!
    law!applicable!in!such!cases,!is!vested!with!the!power!to!subject! • Furthermore,! in! the! same! foreclosure! action! against! a!
    the!property!to!the!obligation!created!by!the!mortgage.!In!such! nonresident! defendant,! the! court! is! required! to! make!
    case,! personal! jurisdiction! over! nonresident! defendant! is! an! order! for! the! clerk! to! mail! a! copy! of! the! summons!
    nonessential!and!in!fact!cannot!be!acquired.!Whether!in&rem&or! and! complaint! to! the! defendant! at! his! last! place! of!
    quasi&in&rem!against!a!nonresident,!the!relief!must!be!confined! residence! IF! known.! In! the! present! case,! an! order! was!
    to!the!res!(thing/property),!and!the!court!cannot!lawfully!render! made! directing! the! clerk! to! mail! the! required! copy! to!
    a!personal!judgment!against!him.!Hence,!no!adjudication!can!be! the! defendant! at! Amoy,! Empire! of! China.! No! evidence!

    *
    Chan=Gonzaga*Evardone*Gutierrez*Lopez*Miclat*Nadal*Radoc*Superio*Tan*Tong*Valdez*Varela*
    CONSTITUTIONAL*LAW*II*DIGESTS*(2012*–*2013)* * * *********ATTY.*SEDFREY*CANDELARIA*
    *
    appeared!of!record!showing!that!such!notice!had!in!fact! foreclosure! against! a! nonresident! who! did! not! return!
    been!mailed!by!the!clerk;!but!publication!was!regularly! and! submit! to! the! jurisdiction! of! the! court.! Such! act! of!
    made! in! a! periodical! as! the! law! requires.! It! was! held! the!plaintiff!was!not!such!a!prejudice!to!the!defendant!
    that! the! mere! making! of! the! order! by! the! court! as! would! justify! the! opening! of! the! judgment! of!
    constituted! a! compliance! with! the! law,! in! so! far! as! foreclosure.!
    necessary! to! constitute! due! process! of! law,! and! that! if! IV. It! is! held! that! under! the! circumstances! of! the! particular! case,!
    the!clerk!failed!to!send!the!notice,!his!dereliction!in!the! knowledge! of! the! proceedings,! or! of! their! result,! should! be!
    performance! of! his! duty! was! an! irregularity! which! did! imputed! to! him,! upon! the! legal! presumption! that! things! have!
    not! constitute! an! infringement! of! the! provision! of! the! happened!according!to!the!ordinary!habits!of!life,!and!that!as!a!
    Philippine!Bill!declaring!that!no!person!shall!be!deprived! consequence!his!failure!to!apply!for!relief!within!the!year!and!a!
    of!property!without!due!process!of!law.! half!during!which!he!survived!the!foreclosure!proceedings!was!a!
    • The! notification! is! constructive! or! substituted! service! circumstance!adversely!affecting!the!application!for!relief.!
    and! it! does! not! constitute! a! service! of! process! in! any! • Where! the! court! makes! an! order! for! the! clerk! to! mail!
    true! sense.! This! mode! of! notification! does! not! involve! notice! of! a! foreclosure! proceeding! to! a! nonresident!
    any! absolute! assurance! that! the! absent! owner! shall! defendant! it! will! be! presumed! in! the! absence! of!
    receive! the! notice! (due! to! address! problems! and! other! affirmative! proof! to! the! contrary! that! the! duty! was!
    mishaps),!which!is!not!absolutely!necessary.!! performed.!!
    • The!law!proceeds!from!the!presumption!that!property!is! • Once! in! Kentucky,! aside! from! publication! in! the!
    to!be!in!the!possession!of!its!owner!and!he!may!safely! newspaper,! the! posting! of! the! summon! on! the! front!
    be!held!to!be!affected!with!knowledge!that!proceedings! church! door! after! Sunday! service! was! also! required.!
    have!been!instituted!for!its!condemnation!and!sale.!It!is! Some! time! after! this! transpired,! the! second!
    the!duty!of!the!real!estate!owner!to!take!measures!that! requirement! of! posting! the! notice! was! questioned.!
    he! will! be! represented! when! his! property! is! called! into! Seeing! at! there! is! no! evidence! to! prove! this,! the! fact!
    question.! that! the! court! ordered! it! was! enough! to! act! as! a! legal!
    III. A! defendant! who! seeks! to! vacate! a! judgment! in! a! foreclosure! presumption!that!such!requirement!was!satisfied.!
    proceeding!on!the!ground!of!irregularity!in!the!sending!of!notice! !
    by! post,! or! failure! to! send! such! notice! pursuant! to! an! order! of! Malcom,#J.#dissenting:#
    the! court,! must! show! that! as! a! result! of! such! irregularity! he! ! “The! fundamental! idea! of! due! process! is! that! no! man! shall! be!
    suffered!some!prejudice!of!which!the!law!can!take!account.!! condemned!in!his!person!or!property!without!notice!and!an!opportunity!
    • As!to!the!matter!of!the!property!being!bought!at!a!price! of!being!heard!in!his!defense.!Literally!hundreds!of!precedents!could!be!
    much! below! the! value! agreed! upon! as! constituting! cited! in! support! of! these! axiomatic! principles.! In! the! instant! case,! the!
    prejudice,!it!was!held!that!if!any!liability!was!incurred!by! defendant!received!no!notice!and!had!no!opportunity!to!be!heard,!we!
    the! plaintiff! by! purchasing! at! a! price! below! that! which! cannot!say!there!is!due!process.”!The!defendant!is!prejudiced.!
    had! been! agreed! upon,! such! liability! was! of! a! personal!
    nature!and!could!not!be!the!subject!of!adjudication!in!a!

    *
    Chan=Gonzaga*Evardone*Gutierrez*Lopez*Miclat*Nadal*Radoc*Superio*Tan*Tong*Valdez*Varela*

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