Gerry sued XYZ Bus Co. and Rico, its bus driver, for injuries Gerry suffered when their bus ran off and hit him. Of the two defendants, only XYZ Bus Co. filed an answer, alleging that its bus ran off the road because one of its wheels got caught in an open manhole, causing the bus to swerve without the driver's fault. Someone had stolen the manhole cover and the road gave no warning of the danger it posed. On Gerry's motion and over the objection of XYZ Bus Co., the court declared Rico, the bus driver, in default and rendered judgment ordefing him to pay P50,000 in damages to Gerry. Did the court act correctly?