The Supreme Court, in this case, clarified the appropriate procedure when a defendant fails to appear at trial after pre-trial has concluded. The Court held that while a defendant cannot be technically declared “in default” at this stage, their absence constitutes a waiver of their right to present evidence. This means the trial can proceed ex parte, with the court rendering judgment based solely on the evidence presented by the appearing party. Crucially, a motion for reconsideration in such cases must be supported by affidavits showing excusable negligence and a meritorious defense; otherwise, the judgment becomes final and executory.

When Absence Speaks Volumes: Balancing Efficiency and Fair Trial

This case arose from a vehicular accident where a bus owned by Pangasinan Five Star Bus Co., Inc. collided with a jeepney driven by Leon Barredo, Jr., resulting in injuries to Barredo. The spouses Leon and Luisa Barredo filed a complaint for damages against the bus company and the bus driver, Emilio Credo. After pre-trial, the case was set for trial, but the defendants and their counsel failed to appear. Consequently, the trial court declared the defendants in default and allowed the plaintiffs to present evidence ex parte. The trial court then rendered a judgment in favor of the plaintiffs.

The bus company moved to lift the order of default and for reconsideration of the decision, but these motions were denied. The company appealed, arguing that it was improperly declared in default and deprived of due process. The Court of Appeals (CA) affirmed the trial court’s decision. The Supreme Court (SC) then took on the case, evaluating whether the trial court correctly handled the defendant’s absence during trial and the subsequent judgment.

The Supreme Court tackled the issue of whether the trial court erred in declaring the bus company in default for failing to attend the trial. The Court explained the distinction between failing to appear at pre-trial versus at the actual trial. Under Section 2, Rule 20 of the Rules of Court, failure to attend pre-trial allows the court to declare a party in default, enabling the other party to present evidence ex parte. However, the SC emphasized that this rule doesn’t apply in the same way to a party’s absence during trial after pre-trial has concluded. While the party cannot be declared in default, their absence means a waiver of their right to cross-examine witnesses and present evidence.

The Court clarified the correct course of action when a defendant fails to appear at trial. Despite the misnomer of being declared in default, the trial court was correct in allowing the plaintiffs to present their evidence ex parte. By not appearing, the bus company forfeited its right to present its own evidence. The Court highlighted the importance of supporting motions for reconsideration with affidavits, especially when excusable negligence is claimed. The bus company’s failure to submit these affidavits rendered its motion pro forma, meaning it lacked the necessary substance to interrupt the period for appeal.

Furthermore, the Supreme Court noted that the bus company’s motion for reconsideration was defective because it was not accompanied by an affidavit of merit, which is a sworn statement outlining the facts that constitute a valid defense. The absence of this affidavit is fatal to the motion, as it fails to demonstrate that the movant has a meritorious defense that would warrant the setting aside of the judgment. This is based on the principle that courts should not set aside judgments merely for the sake of allowing a party to present evidence if that party has no valid defense to begin with. This requirement ensures that the setting aside of a judgment is not a futile exercise.

As the Supreme Court stated in Philippine Commercial and Industrial Bank v. Judge Rodolfo Ortiz:

Where, therefore, a motion for new trial on the ground of fraud, etc., is unaccompanied by either or both affidavits, the motion is pro forma a scrap of paper, as it were, and will not interrupt the running of the period of appeal. x x x

The SC also noted the absence of a copy of the bus company’s Answer to the complaint, hindering a full assessment of its defenses. Consequently, the Court upheld the CA’s decision, emphasizing that procedural rules are designed to ensure fairness and efficiency in the judicial process.

The Supreme Court’s decision highlights the importance of procedural compliance in civil litigation. While the trial court erred in terminology by declaring the defendant “in default,” the ultimate outcome was correct because the defendant’s absence at trial constituted a waiver of their right to present evidence. The ruling reinforces the need for parties to actively participate in litigation and to diligently comply with procedural requirements, particularly when seeking to set aside a judgment. This compliance includes providing adequate support for claims of excusable negligence and demonstrating the existence of a meritorious defense through proper affidavits.

FAQs

What was the key issue in this case?	The key issue was whether the trial court erred in declaring the defendant “in default” for failing to appear at trial after the pre-trial stage. The Supreme Court clarified the correct procedure in such instances and addressed the requirements for motions for reconsideration.
Can a defendant be declared in default for not attending the trial?	Technically, no. After pre-trial concludes, a defendant’s failure to appear at trial constitutes a waiver of their right to present evidence, but they are not declared in default.
What happens if a defendant doesn’t show up for the trial?	The court can allow the plaintiff to present their evidence ex parte. The defendant is considered to have waived their right to cross-examine witnesses and present their own evidence.
What is an affidavit of merit?	An affidavit of merit is a sworn statement outlining the facts that constitute a valid defense. It must accompany a motion for reconsideration to demonstrate that the movant has a meritorious defense warranting the setting aside of the judgment.
Why is an affidavit of merit important?	It’s crucial because it demonstrates that the party has a valid defense, making it worthwhile to set aside the judgment. Without it, the court cannot be sure setting aside the judgment will serve justice.
What makes a motion for reconsideration “pro forma?”	A motion is considered pro forma if it lacks the required affidavits of merit. Such a motion fails to raise any new matters affecting the outcome of the case.
What was the final ruling in this case?	The Supreme Court upheld the Court of Appeals’ decision, affirming the trial court’s judgment in favor of the plaintiffs. The Court found that the defendant waived its right to present evidence by failing to attend the trial.
What should defendants do if they cannot attend a scheduled hearing?	They should immediately inform the court and the opposing party, providing a valid reason for their absence. They should also ensure their counsel is present or arrange for another attorney to appear on their behalf.

In conclusion, this case underscores the importance of actively participating in legal proceedings and adhering to procedural rules. The failure to do so can result in the waiver of important rights and the finality of adverse judgments.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Pangasinan Five Star Bus Co., Inc. v. Spouses Barredo, G.R. No. 152714, August 10, 2006