G.R. No. 28815 , March 24, 1928
Government of the Philippine Islands, plaintiff-appellee, vs. Angela Montenegro and Ramon R. Papa, defendants-appellants.

FACTS

The Government, through the Postal Savings Bank, filed an action to foreclose a mortgage executed by defendant Angela Montenegro with the consent of her husband, Ramon Papa. The defendants were declared in default for failure to appear despite summons. The trial court granted a continuance at the Government’s request, based on the defendants’ promise to settle. When the defendants again failed to appear at the rescheduled hearing, the court received the plaintiff’s evidence and ordered foreclosure. The defendants subsequently filed multiple motions to reopen the case, alleging that bank representatives led them to believe a substitute mortgage would be accepted, making their appearance unnecessary. They claimed to have a valid defense but refused to disclose its specifics in their motions, which were not accompanied by affidavits of merit. The trial court denied all motions.

ISSUE

Whether the trial court erred in denying the defendants’ motions for a new trial or to reopen the case.

RULING

No, the trial court did not err. The Supreme Court affirmed the denial of the motions. The established rule is that a motion for a new trial based on fraud in procuring a default judgment must show both that the fraud actually existed and that the defendant has a meritorious defense. Such a motion must be supported by affidavits fully setting forth the facts of the defense. Here, the defendants deliberately withheld the facts of their alleged defense and failed to provide any affidavit of merit. Without these essential elements, the trial court could not intelligently assess the merits of the motion. The Supreme Court found the appeal frivolous and intended solely to delay payment. Consequently, it affirmed the trial court’s orders with triple costs imposed upon defendant Angela Montenegro.