G.R No.

140288 (2006)
SANDOVAL-GUTIERREZ, J.

ST. Agustin Services CO.,PTE.,LTD (*Petitioner)

V.
Grand International Airways Inc. (*Respondent)

 Petition for review on the decision of Court of Appeals

in setting aside the order of Regional Trial Court on
Enforcing Judgment By Default in the Philippines filed
against Grand International Airways Inc.
(*Respondent) by
ST. Agustin Services CO.,PTE.,LTD (*Petitioner)
Facts
Petitioner is a foreign based in Singapore.
o Engaged in Manufacturing, Repair & Maintenance of Aircraft
Respondent is a domestic Corporation.
o Engaged in Airline Operations

In January 1996 Petitioner & Respondent Executed an Agreement on:

• First Agreement:
Maintenance & Modification of Air Bus A300 B4-103 Reg. No. RP-
C882
• Under the Agreement
o Mode of payment, Manner, & Contract Price including the
interest in case of default payment.
o The Construction, Validity & Performance thereof shall be
Governed by Singapore Laws.
o Any suit arising from; that the Singapore Courts has the Non-
Exclusive Jurisdiction.
• Second Agreement::
Repair & Undertake Maintenance of Aircraft No. RP C8881
• Under the Agreement
o GTA (General Terms Of Agreement)
o Similar Terms with the First Agreement

That after the contracted work. petitioner promptly billed the

respondent. Despite the repeated demand, respondent failed to pay
in violation of the terms agreed upon.

Petitioner filled before High Court Of the Republic Of Singapore

o Singapore High Court issued Writ of Summons to be served
Extraterritorially
o Assisted & served by the sheriff of Pasay to the respondent
o Respondent received Writ of Summons but ignored the
summons
o Singapore High Court “Rendered Judgement by Default”

Petitioner Filed Before Regional Trial Court

o Petition For Enforcement of Judgement
Respondent filed Motion to Dismiss before Regional Trial Court on
two grounds:
o Singapore did not acquire jurisdiction overs its person
o Foreign Judgement to be enforced is void for violation of it’s
right to Due Process

Regional Trial Court Denied the Motion for neither among are
grounds for dismissal, Respondent then filed Motion for
reconsideration and was denied by Regional Trial Court

Respondent filed before Court of Appeals & the Petition was granted
setting aside the order of Regional Trial Court
o Collection of debt is a personal action that as a personal action,
the service of summons should be personal or substituted, not
extraterritorial, in order to confer jurisdiction on the court.

Petitioner then filed a Motion For Reconsideration before Court Of

Appeals and was subsequently Denied
Issues
Whether the Judgement by default by Singapore High Courts has jurisdiction
over Respondent; thus Judgement by default, Enforceable in the Philippines

Rulings
Yes, Supreme Court granted the petition and ruled that Judgement by
Default is Enforceable in the Philippines; Directed Regional Trial
Court to hear the Civil Case against the respondent

Where in:
Conditions for the recognition and enforcement of a foreign judgment in
our legal system are contained in:
oSec.48 Rule 39 of the Rules Of Procedure
oUnder the above Rule, a foreign judgment or order against a person is
merely presumptive evidence of a right as between the parties. It may be
repelled, among others, by want of jurisdiction of the issuing authority or by
want of notice to the party against whom it is enforced. The party attacking
a foreign judgment has the burden of overcoming the presumption of its
validity
o In the Philippines, jurisdiction over a party is acquired by service
of summons by the sheriff, his deputy or other proper court officer
either personally by handing a copy thereof to the defendant or by
substituted service

o In this case, the Writ of Summons issued by Singapore High Court

and was served upon respondent office in Pasay by the Sheriff. it
was received by the respondent but completely ignored the
summons, hence, it was declared in default

o Considering that the Writ of Summons was served upon respondent

in accordance with our Rules, jurisdiction was acquired by the
Singapore High Court over its person. Clearly, the judgment of
default rendered by that court against respondent is valid
Principles

In the absence of a special contract, no sovereign is bound to give

effect within its dominion to a judgment rendered by a tribunal of
another country; however, under the rules of comity, utility and
convenience, nations have established a usage among civilized
states by which final judgments of foreign courts of competent
jurisdiction are reciprocally respected and rendered efficacious
under certain conditions that may vary in different countries