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Question

E. Pleadings - Effect of Failure to Plead - Rule 9

A complaint was filed by Mr. Garcia against ABC Corporation for damages arising from a car accident. The complaint alleges the following:

1. On June 1, 2021, Mr. Garcia was driving his car along Maharlika Highway when it collided with a truck owned by ABC Corporation.
2. As a result of the collision, Mr. Garcia sustained severe injuries and his car was severely damaged.
3. The accident was solely due to the negligent and reckless driving of the truck driver, who was an employee of ABC Corporation.

Upon receipt of the summons, ABC Corporation failed to file an answer within the prescribed period. Mr. Garcia then filed a motion to declare ABC Corporation in default.

Based on the given scenario, answer the following question:

What is the effect of ABC Corporation's failure to plead?

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Answer