TOPIC Pre-trial

CASE NO. G.R. No. L-40628

CASE NAME Tropical Homes Inc. v Villaluz
MEMBER MY

DOCTRINE
1. While there are instances when a party may be properly defaulted, these should be the exception rather
than the rule, and should be allowed only in clear cases of obstinate refusal or inordinate neglect to
comply with the orders of the court. Absent such a showing, a party must be given every reasonable
opportunity to present his side and to refute the evidence of the adverse party in deference to due
process of law.
2. A trial judge may extend the hours of session whenever in his judgment it is proper to do so.

RECIT-READY DIGEST
In the civil case filed by PHHC against Tropical Homes before CFI Rizal, Diokno, counsel of petitioner Tropical,
because of hunger and believing that the pre-trial of the case before his would take more time than usual, asked
the judge to postpone the pre-trial conference for his case. Respondent judge asked for the SPA and upon reading,
declared petitioner in default for failure to appear at the pre-trial on the ground that the SPA of Tropical in favor
of its counsel did not satisfy the requirements of Sec. 1, Rule 20. Issue: w/n judge gravely abused discretion in
declaring Tropical in default—YES. SC ruled that the judge abused his discretion when he declared the Tropical
in default because the SPA was sufficient to cover all appearances in court including the pre-trial conference.
Issue: w/n judge gravely abused discretion in denying Tropical’s request or postponement—YES The judge
was not wrong however, to deny the postponement of the pre-trial because he may extend the hours of session at
his discretion if it is proper (see Doctrine).

FACTS
• People’s Homesite Housing Corp. (PHHC), a GOCC, filed a complaint for the collection of sums of
money was the against the petitioner, Tropical Homes, Inc., before the CFI Rizal (Civil Case No.
Q19633).
• Tropical Homes timely filed its answer with counterclaim. The PHHC filed an answer to the counterclaim.
• The last pleading having been filed, the court set the case for pre-trial on 8 May 1976 11:30 am.
o The necessary notice were served upon the parties.
• On the scheduled day for the pretrial conference, Atty. Rene Diokno, counsel for Tropical Homes
(defendant in the lower court), arrived at the courtroom at about 11am.
o The respondent judge Villaluz was then hearing a criminal case so Diokno waited for his turn.
• When the hearing of the criminal case was terminated at about 11:50am, the pre-trial calendar was read.
o The case PHHC vs. Tropical Homes, Inc., was fourth on said calendar.
• At about 12:25pm, while the judge was conducting the pre-trial in the case of Patriarca v. PHHC — which
was the second case on the pre-trial calendar, Diokno, feeling the pangs of hunger and believing that the
pretrial conference then being conducted would take about 30 mins. more, and that there was still another
case to be heard before that of the petitioner, asked the court if he could approach the Bench.
o When it was granted, counsel Diokno asked the judge for the postponement of the pre-trial
conference in his case
• The judge asked for the SPA which gave Diokno the authority to represent Tropical, but eventually
declared Tropical in default for failure to appear at the pre-trial since the power of attorney the
petitioner had executed in favor of its counsel did not satisfy the requirements of Sec. 1, Rule 20 of
the Rules of Court in that no mention is made therein of the attorney's authority to bind his client
during the pre-trial, and ordering the plaintiff therein to present its evidence ex parte.

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 • Diokno for Tropical then asked for a period of 5 days within which to raise the legality of the order
in question, but the judge gave him 3 days only. He, however, subsequently relented and gave a
period of 5 days, as prayed for.
• Within the five-day period the instant petition for certiorari and prohibition was filed before this
Court, to annul and set aside said order.

ISSUE/S and HELD

1. W/N respondent judge gravely abused his discretion in declaring Tropical homes in default for its alleged
failure to appear at the pre-trial of the case—YES
2. W/N respondent judge gravely abused his discretion in denying the motion for the postponement of pre-
trial—NO

RATIO
1. W/N respondent judge gravely abused his discretion in declaring Tropical homes in default for its
alleged failure to appear at the pre-trial of the case—YES

• Tropical had authorized its counsel to appear for and on its behalf where its appearance is required and to
bind the petitioner in all said instances. The SPA authorized Diokno
o To appear for and in its behalf in the above-entitled civil case in all circumstances where its
appearance is required and to bind it in all said instances.
• bAlthough the SPA in question does not specifically mention the authority of petitioner's counsel to
appear and bind the petitioner at the pre-trial conference, the terms of said power of attorney are
comprehensive enough as to include the authority to appear for the petitioner at the pre-trial conference.
• The Court admonishes trial judges against issuing precipitate orders of default as these have the effect of
denying a litigant the chance to be heard, and in order to prevent needless litigations in the appellate courts
where time is needed for more important or complicated cases

2. W/N respondent judge gravely abused his discretion in denying the motion for the postponement of pre-
trial—NO
• It may be true that the pre-trial conference was to be held, in effect at about 12:25 o'clock in the afternoon,
whereas, Section 58 of RA 296 (Judiciary Act of 1948) provides that the hours for the daily sessions of
the CFI are from 9:00 o'clock to 12:00 o'clock noon and from 3:00 o'clock to 5:00 o'clock in the afternoon.
o But said Section also provides that the trial judge may extend the hours of session whenever in
his judgment it is proper to do so.
o A period of 25 minutes past the regulation time cannot be considered abusive, since the
respondent judge merely wanted to dispose of controversies as soon as possible
• Besides, it would appear that when Diokno complained of hunger and moved for the postponement of
the pre-trial conference, the respondent judge suspended the pretrial conference then being conducted to
give way to the case of the petitioner.

DISPOSTION
WHEREFORE, the petition is GRANTED. The order issued on 8 May 1975 in Civil Case No. Q-19633 of the
CFI Rizal, is hereby ANNULLED and SET ASIDE.
Another pre-trial conference should be conducted in the case after due notice to the parties and their
attorneys. The temporary restraining order heretofore issued is made permanent. Without costs.