14.4 Paramount Vs Japzon

14.
PARAMOUNT INSURANCE CORPORATION, petitioner, vs. HON. MAXIMO M. JAPZON, Presiding Judge, Br.
36, RTC, Manila; City Sheriff and Deputy Sheriffs Nestor Macabilin & Teodoro Episcope, public respondents,
JOSE LARA and ARSENIO PAED, private respondents
(G.R. No. L-68037, 29 July 1992, Romero, J.)
Petition for certiorari and prohibition
EMERGENCY RECIT: Paramount Insurance Corporation was adjudged liable for injuries sustained by
respondents in a vehicular accident. The SC held that it failed to substantiate its allegation that it was not properly
served with summons. All the pleadings, including the answer with crossclaim and counterclaims stated that he
represents the respondents.
FACTS:
Jose Lara contracted the services of a passenger jeepney owned and operated by Willy Garcia to transport
his family, relatives and friends from Manila to Pangasinan. The said jeepney was then driven by Emilio Macasieb. A
Ford truck then driven by Willy Manuel on its way to Manila, overtook a motor vehicle owned by Domingo Natividad
and in the process hit and sideswept the passenger jeepney.
Lara and Paed sustained an arm amputation and injury as to incapacitate for days of work, respectively.
Both vehicles suffered minor damages. The insurer of said truck is herein petitioner Paramount Surety and
Insurance Co. Inc.
Natividad filed a notice of claim with Paramount. A check in the amount P800.00 was paid to Paed's wife.
Another check in the amount of P5,000.00 was paid for medical treatment and hospitalization of the victims.
Lara and Paed filed a criminal case against Manuel for Reckless Imprudence resulting in Damage to
Property before the MTC Tarlac. They also filed a civil case for damages against Garcia, Macasieb, Manuel,
Natividad, and impleaded Paramount, the latter as insurer of the Ford truck.
A certain Atty. Segundo Gloria filed a notice of appearance dated November 16, 1978 where he informed
the court that he was appearing for and in behalf of the defendants Natividad, Manuel and Paramount. He
subsequently filed an answer with crossclaim and counterclaim.
Manuel pleaded guilty to the crime and was sentenced to imprisonment of arresto mayor.
The court reiterated its order before the reconstitution of the judicial records (after a fire gutted the City Hall)
declaring defendants Natividad, Manuel and Paramount in default in view of their continued failure to appear during
trial and allowed Lara and Paed to make a formal offer of exhibits and considered the case submitted for decision.
The RTC ordered the payment to respondents of hospitalization, medical expenses, actual and moral
damages.
A copy of the said decision was served on Atty. Segundo Gloria, on October 5, 1981. No appeal from the
judgment having been filed within the reglementary period or up to October 20, 1983, the same became final and
executory. Lara and Paed, now private respondents, filed an ex-parte motion for execution, which was granted.
Paramount, now petitioner, filed a motion to set aside the Decision raising the issue that the court has not
validly acquired jurisdiction over its person. Petitioner claims that the court has not validly acquired jurisdiction over
its person, not having been validly served with summons and a copy of the complaint nor did it actively participate in
the said proceedings. It alleged that Atty. Segundo Gloria was not its retained counsel at that time nor was he
authorized by petitioner to act for and in its behalf.
ISSUE:
14.4
Whether or not the court validly acquired jurisdiction over petitioner despite the appearance of Atty. Segundo M.
Gloria who allegedly was not retained or authorized to file an answer for it
RULING:
Yes. Paramount failed to substantiate its allegation that it was not properly served with summons. Hence,
the disputable presumption that official duty has been regularly performed prevails.
The records of the case showed that all the pleadings, including the answer with crossclaim and
counterclaim filed by Atty. Segundo Gloria stated that he represented the defendants Natividad, Manuel and
Paramount. In fact, he even filed a notice of appearance informing the court that he is representing the said
defendants
The mere filling of the answer with crossclaim raised a presumption of authority to appear for petitioner
Paramount Insurance Corporation. Such presumption is rebuttable, but only by clear and positive proof. It strains
credulity that a counsel who has no personal interest in the case would fight for and defend a case with persistence
and vigor if he has not been authorized or employed by the party concerned.
The petition is filed merely to derail its execution. It took Paramount almost six years to question the
jurisdiction of the lower court. The controverted Decision of August 30, 1983, became final and executory on
October 20, 1983. In any event, it is axiomatic that there is no justification in law and in fact for the reopening of a
case which has long become final and which in fact was already executed on July 18, 1984.

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