Title
Acuna vs. Yatco
Case
G.R. No. L-20560
Decision Date
Jul 31, 1967
Emiliano Acuna sued Batac Procoma for unpaid services; writ of attachment issued, later discharged. Supreme Court upheld jurisdiction, ruled discharge extinguished lien, dismissed certiorari petition.
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Case Digest (G.R. No. L-20560)

Facts:

Background of the Case

  • Emiliano Acuna filed a complaint on August 9, 1962, against Batac Producers Cooperative Marketing Association, Inc. (Batac Procoma, Inc.) and other defendants for the recovery of P300,000.00 for services rendered, P31,000.00 for cash advances, and P25,000.00 for attorney's fees and litigation costs.
  • The complaint was docketed as Civil Case No. Q-6547 in the Court of First Instance of Rizal, Quezon City Branch.
  • Acuna sought a writ of preliminary attachment on Batac Procoma's properties, which was granted ex-parte on August 14, 1962, upon posting a bond of P356,000.00.

Garnishment of Funds

  • On August 15, 1962, the sheriff of Quezon City served a notice of garnishment on the Philippine Tobacco Flue-Curing and Redrying Corporation (PTFCRCo), directing it to hold funds and properties belonging to Batac Procoma.
  • PTFCRCo reported holding checks and unpaid shipments totaling P503,048.92 belonging to Batac Procoma.

Dismissal of the Complaint

  • On August 22, 1962, the defendants filed a motion to dismiss the complaint and discharge the preliminary attachment, arguing that the complaint stated no cause of action and the attachment was improperly issued.
  • On September 10, 1962, the court dismissed the complaint and discharged the writ of preliminary attachment, allowing Acuna to withdraw P20,400.00 deposited by the defendants.

Execution Pending Appeal

  • On September 19, 1962, the defendants filed a motion for execution pending appeal, citing the prejudice to Batac Procoma's farmer-members if the attached funds were not released.
  • The court approved the record on appeal on September 22, 1962, and the defendants withdrew their motion for execution after the sheriff implemented the court's order to release the attached funds.

Release of Attached Funds

  • On November 23, 1962, the defendants filed an ex-parte motion for the release of funds held by PTFCRCo under the discharged writ of attachment.
  • On November 24, 1962, the court granted the motion, ordering PTFCRCo to deliver the attached properties and funds to the sheriff, who was to release them to the defendants.

Petition for Certiorari

  • Acuna filed a petition for certiorari with the Supreme Court on November 29, 1962, seeking to nullify the November 24, 1962 order and restrain the release of the remaining garnished funds.

Intervention

  • On January 10, 1963, 54 farmer-stockholders of Batac Procoma intervened, claiming that the attached funds belonged to them, not Batac Procoma.

Supreme Court Decision on Appeal

  • On June 30, 1967, the Supreme Court set aside the lower court's dismissal of the complaint and remanded the case for further proceedings, allowing Acuna to seek another writ of attachment if warranted.

Issue:

  1. Whether the respondent court acted without or in excess of jurisdiction, or with grave abuse of discretion, in issuing the November 24, 1962 order releasing the attached funds to the defendants.
  2. Whether the court lost jurisdiction over the case after approving the record on appeal on September 22, 1962.
  3. Whether the discharge of the writ of preliminary attachment extinguished the lien on the attached properties.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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