Banco Español
vs. Palanca, 37 Phil 921
Facts:
Engracio Palanca Tanquinyeng secured a debt with various
parcels of real property in Manila. The debt amounted to P218,294.10 at 8% per
annum, payable quarterly. Property's estimated value was about P292,558. After the instrument's
execution, mortgagor returned to Amoy, China and died on January 29, 1810. The foreclosure proceeding needed
publication pursuant to section 399 of the Code of Civil Procedure. Publication was made in a
newspaper of Manila and an order of the court deposited in the post office in a stamped envelope of the summons
and complaint directed to defendant. The clerk,
however, failed to comply with the mail publication requirement.
The bank was able to foreclose the property without the
defendant.
After seven years, the administrator of the estate,
Vicente Palanca, appeared and requested the court to set aside the order of default
of July 2, 1908, and the judgment rendered upon July 3, 1908, and to vacate all the proceedings
subsequent thereto. The basis of this application, as set forth in the motion itself, was that the order of
default and the judgment rendered thereon were void because the court had never acquired jurisdiction
over the defendant or over the subject of the action. His appeal was denied by the lower
court, hence the appeal.
His appeal was denied by the lower court, hence the
appeal.
Issue: Whether or not the procedural aspect of the right to due process has been
prejudiced.
Held:
1. There must be a COURT or TRIBUNAL clothed with
judicial power to hear and determine the matter before
it;
2. JURISDICTION must be lawfully acquired over the
person of the defendant or over the property which is the subject of the
proceeding;
3. The defendant must be given the OPPORTUNITY to
be heard; and
4. Judgment must be rendered upon lawful HEARING.
The essentials of procedural fairness inn judicial
proceedings are:
Conclusions stated by the court indicated that the
judgment appealed from is without error, and the same is accordingly affirmed.
