In Green Star Express, Inc. v. Nissin-Universal Robina Corporation, the Supreme Court reiterated the importance of strictly adhering to the Rules of Court when serving summons to domestic corporations. The Court emphasized that proper service of summons is crucial for a court to acquire jurisdiction over a defendant corporation. If the summons is not served upon the specific officers designated by the rules, the court’s proceedings are null and void, safeguarding the due process rights of corporations.

Serving Summons: Who Holds the Key to Corporate Accountability?

This case arose from a vehicular accident involving a Green Star Express bus and a Universal Robina Corporation (URC) van, which resulted in the van driver’s death. Green Star sought damages from Nissin-Universal Robina Corporation (NURC) for the bus repairs, but NURC denied liability, leading to a legal battle over proper service of summons. The central question was whether serving the summons to NURC’s cost accountant, instead of the officers specified in the Rules of Court, was sufficient to establish the court’s jurisdiction over the corporation. This highlights the critical importance of adhering to procedural rules in ensuring due process and fair legal proceedings.

The Supreme Court emphasized that strict compliance with the rules on service of summons is essential for a court to acquire jurisdiction over a domestic private juridical entity. The court referenced Section 11, Rule 14 of the 1997 Rules of Court, which explicitly lists the officers upon whom service must be made: the president, managing partner, general manager, corporate secretary, treasurer, or in-house counsel. This provision replaced the previous rule that allowed service on a broader range of individuals, including agents, thereby narrowing the scope of permissible recipients.

The rationale behind this strict interpretation is to ensure that the corporation receives proper notice of the legal action against it. As the Court stated,

Section 11. Service upon domestic private juridical entity. — When the defendant is a corporation, partnership or association organized under the laws of the Philippines with a juridical personality, service may be made on the president, managing partner, general manager, corporate secretary, treasurer, or in-house counsel.

This explicit enumeration, according to the Court, excludes all others. The doctrine of expressio unius est exclusio alterius applies, meaning the express mention of one thing excludes all others. Therefore, service must be made only on the persons expressly listed in the rules.

In this case, the summons was served on Francis Tinio, a cost accountant at NURC. The petitioners argued that Tinio received the summons under the instruction of the general manager, Junadette Avedillo. However, this fact was not reflected in the Sheriff’s Return. The Court noted that the Sheriff’s Return did not indicate Avedillo’s presence or any refusal on her part to receive the summons. Furthermore, the petitioners failed to present the sheriff as a witness to verify their claim, and the affidavit supporting their allegation surfaced only when the case reached the Court of Appeals.

The Supreme Court found that the service on the cost accountant was insufficient to confer jurisdiction over NURC, even if the corporation had actual knowledge of the summons. The Court stated that,

Since the service of summons was made on a cost accountant, which is not one of the designated persons under Section 11 of Rule 14, the trial court did not validly acquire jurisdiction over NURC, although the corporation may have actually received the summons.

The Court underscored that allowing service on unauthorized individuals would circumvent the rules and further delay the administration of justice. This reaffirms the principle that notice is not a mere technicality but a fundamental aspect of due process. Corporations could be unfairly deprived of their right to defend themselves if the Rules on service of summons are disregarded.

The implications of this ruling are significant for both plaintiffs and defendants in legal proceedings involving corporations. Plaintiffs must ensure strict compliance with the Rules of Court when serving summons to avoid having their cases dismissed for lack of jurisdiction. Defendants, on the other hand, can raise the issue of improper service to challenge the court’s jurisdiction and protect their right to due process.

Building on this principle, the court decisions regarding the proper service of summons have a practical implication for businesses. They highlight the necessity of having clear internal procedures for handling legal documents. Companies must ensure that their designated officers, such as the president, general manager, or corporate secretary, are aware of their responsibility to receive summons. Furthermore, businesses need to train their administrative staff to identify and properly direct legal documents to the appropriate officers. A lack of awareness of these procedures could lead to significant legal complications, potentially jeopardizing the company’s defense in a lawsuit.

Moreover, the strict interpretation of the rules on service of summons underscores the importance of accuracy and diligence in legal proceedings. The Sheriff’s Return serves as crucial evidence of proper service. It is imperative that the return accurately reflects the details of the service, including the identity of the person served and their position within the corporation. Any ambiguity or discrepancies in the return can be grounds for challenging the validity of the service. Therefore, sheriffs and process servers must exercise due care in executing and documenting the service of summons to ensure compliance with the Rules of Court.

This approach contrasts with a more lenient interpretation that would focus on whether the corporation had actual notice of the lawsuit. While actual notice is undoubtedly important, the Supreme Court has made it clear that it is not a substitute for proper service. The Rules of Court prescribe a specific method for serving summons to corporations, and that method must be followed strictly. This emphasis on procedural compliance ensures fairness and protects the due process rights of all parties involved. It prevents the possibility of abuse or manipulation of the service process, which could potentially undermine the integrity of the legal system.

In conclusion, the case of Green Star Express, Inc. v. Nissin-Universal Robina Corporation reinforces the vital role of proper service of summons in establishing a court’s jurisdiction over a domestic corporation. The Supreme Court’s strict adherence to the Rules of Court safeguards the due process rights of corporations and ensures the fairness and integrity of legal proceedings. Plaintiffs must exercise diligence in serving summons on the designated officers, while corporations must establish clear internal procedures for handling legal documents. This decision serves as a reminder that procedural compliance is not a mere technicality but a fundamental requirement for a just and equitable legal system.

FAQs

What was the key issue in this case?	The key issue was whether the service of summons on a cost accountant of Nissin-Universal Robina Corporation (NURC) was valid to establish the court’s jurisdiction over the corporation.
Who should be served with summons for a domestic corporation?	According to Section 11, Rule 14 of the 1997 Rules of Court, summons should be served on the president, managing partner, general manager, corporate secretary, treasurer, or in-house counsel of the corporation.
What happens if the summons is not served on the correct person?	If the summons is not served on the correct person, the court does not acquire jurisdiction over the corporation, and any judgment rendered may be null and void.
Can actual knowledge of the lawsuit substitute for proper service of summons?	No, actual knowledge of the lawsuit does not substitute for proper service of summons. The Rules of Court prescribe a specific method for serving summons, and that method must be followed strictly.
What is the significance of the Sheriff’s Return?	The Sheriff’s Return is crucial evidence of proper service. It should accurately reflect the details of the service, including the identity of the person served and their position within the corporation.
What is the doctrine of expressio unius est exclusio alterius?	The doctrine of expressio unius est exclusio alterius means that the express mention of one thing excludes all others. In this case, the enumeration of specific officers in Section 11, Rule 14 excludes service on other individuals.
Why is strict compliance with the rules on service of summons important?	Strict compliance is important to ensure that the corporation receives proper notice of the legal action and to protect its due process rights. It also prevents abuse or manipulation of the service process.
What should corporations do to ensure proper handling of summons?	Corporations should establish clear internal procedures for handling legal documents and ensure that their designated officers are aware of their responsibility to receive summons.

In conclusion, the Supreme Court’s decision in Green Star Express, Inc. v. Nissin-Universal Robina Corporation serves as a crucial reminder of the importance of strict compliance with procedural rules in legal proceedings. The proper service of summons is not a mere formality but a fundamental requirement for establishing a court’s jurisdiction over a corporation.

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: GREEN STAR EXPRESS, INC. VS. NISSIN-UNIVERSAL ROBINA CORPORATION, G.R. No. 181517, July 06, 2015